Question

A shopkeeper purchases an article for Rs. 6,200 and sells it to a customer for Rs. 8500. If the sales tax (under VAT) is 8%; find the VAT paid by the shopkeeper.

Answer 1

Purchase price for shopkeeper = Rs. 6,200
Sale price for shopkeeper = Rs. 8,500
Tax paid by the shopkeeper = 8% of 6,200
`= 8/100` × 6,200=𝑅𝑠.496
Tax charged by the shopkeeper = 8% of 8,500
`=8/100` × 8,500=𝑅𝑠.680
Then VAT paid by the shopkeeper = Rs. 680 – Rs. 496 = Rs. 184 Ans.