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Question
Manoj buys a lather coat costing Rs 900 at Rs 990 after paying the VAT. Calculate the rate of VAT charge on the coat.
Solution
\[\text { Let the rate of VAT be x % }. \]
\[\text { Then }, \]
\[\text { VAT = Rs } . \left( \frac{x}{100} \times 900 \right)\]
\[ = Rs . 9x\]
So,
\[900 + 9x = 990\]
\[9x = 90\]
\[x = 10\]
\[\text { Thus, Manoj was charged 10 % VAT on the leather jacket } .\]
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