In this Exercise, all the prices are excluding Vat unless specified
Question 1: A person purchases an Article for Rs.6200 and sells it to a customer for Rs.8500. if the sales-tax (under VAT) is 8%; find the VAT paid by the person.
Answer:
Cost Price of the article
Selling Price of the article
Question 2: A purchases an article for Rs.3600 and sells it to B for Rs.4800. B in turn, sells the article to C for Rs.5500. If the Sales-Tax (under VAT) is 10%, find the VAT levied on A and B.
Answer:
Cost Price of the article for A
Selling Price of the article A
VAT levied on A
Cost Price of the article for B
Selling Price of the article B
VAT levied on B
Question 3: A manufacturer buys raw material for Rs.60,000 and pays 4% tax. He sells the ready stock for Rs.92,000 and charged 12.5% tax. Find the VAT paid by the manufacturer.
Answer:
Cost price of the raw material
Tax paid by the manufacturer
Selling price of the stock
Tax charged
Question 4: The cost of an article is Rs.6000 to a distributor. He sells it to a trader for Rs.7500 and the trader sells it to a customer for Rs.8000. If the VAT rate is 12.5%; Find the VAT paid by the:
i. Distributor
ii. Trader
Answer:
Cost Price of the article for distributor
Selling Price of the article for distributor
VAT levied on distributor
Cost Price of the article for Trader
Selling Price of the article for Trader
VAT levied on Trader
Question 5: The printed price of an article is Rs.2500. A wholesaler sells it to a retailer at 20% discount and charges sales-tax at the rate of 10%. Now the retailer, in turn, sells the article to a customer at its list price and charges the sales-tax at the same rate. Find:
i. The amount that retailer pays to the wholesaler.
ii. The VAT paid by the retailer.
Answer:
Printed Price of the article for wholesaler
Cost Price of the article for retailer
Amount paid by the retailer
Selling Price of the article for retailer
VAT levied on distributor
Question 6: A retailer buys an article for Rs.800 and pays the sale-tax at the rate of 8%. The retailer sells the same article to a customer for Rs.1000 and charges sales-tax at the same rate. Find:
i. The price paid by a customer to buy this article.
ii. The amount of VAT paid by the retailer.
Answer:
Cost price of the article
Tax paid by the retailer
Selling price of the article
Tax charged
Price paid by the customer
Question 7: A shopkeeper buys 15 identical articles for Rs.840 and pays sales-tax at the rate of 8%. He sells 6 of these articles at Rs.65 each and charges sales-tax at the same rate. Calculate the VAT paid by the shopkeeper against the sale of these six articles.
Answer:
Cost price of the article
Tax paid by the retailer
Selling price of the article
Tax charged
Question 8: The marked price of an article is Rs.900 and the rate of sales-tax on it is 6%. If on selling the article at its marked price, a retailer has to pay VAT=Rs.4.80; Find the money paid by him (including sales-tax) for purchasing this article.
Answer:
Let Cost price of the article
Tax paid by the retailer
Selling price of the article
Tax charged
Money paid
Question 9: A manufacturer marks an article at Rs.5000. He sells this article to a wholesaler at a discount of 25% on the marked price and the wholesaler sells it to a retailer at a discount of 15% on its marked price. If the retailer sells the article without any discount and at each stage the sales-tax is 8%, calculate the amount of VAT paid by:
i. The Wholesaler
ii. The Retailer
Answer:
Market Price of the article for wholesaler
Cost Price of the article for wholesaler
Amount of tax paid by the wholesaler
Cost Price of the article for retailer
Amount of tax paid by the retailer
Selling price of the article for retailer
Amount of tax paid by the end customer
Vat paid by retailer
Vat paid by wholesaler
Question 10: A shopkeeper buys an article at a discount of 30% and pays sales-tax at the rate of 8%. The shopkeeper, in turn, sells the article to a customer at the printed price and charges sales tax at the same rate. If the printed price of the article is Rs.2500; Find:
i. The price paid by the shopkeeper.
ii. The price paid by the customer.
iii. The VAT paid by the shopkeeper.
Answer:
Printed Price of the article for shopkeeper
Cost Price of the article for shopkeeper
Tax paid by the shopkeeper
Price paid by the shopkeeper
Selling Price of the article for shopkeeper
Tax paid by the customer
Price paid by the customer
VAT paid by the shopkeeper
Question 11: A shopkeeper sells an article at its list price Rs.3000 and charges sales-tax at the rate of 12%. If the VAT paid by the shopkeeper is Rs.72, at what price did the shopkeeper buy the article inclusive of sales-tax?
Answer:
Let Cost Price of the article for shopkeeper
Tax paid by the shopkeeper
Selling Price of the article for shopkeeper
Tax paid by the customer
Tax paid by the shopkeeper
Price paid by the shopkeeper
Question 12: A manufacturer marks an article for Rs.10,000. He sells it to a wholesaler at 40% discount. The wholesaler sells this article to a retailer at 20% discount on the marked price of the article. If retailer sells the article to a customer at 10% discount and the rate of sales-tax is 12% at each stage, find the amount of VAT paid by the:
i. Wholesaler
ii. Retailer
Answer:
Market Price of the article for wholesaler
Cost Price of the article for wholesaler
Amount of tax paid by the wholesaler
Cost Price of the article for retailer
Amount of tax paid by the retailer
Selling price of the article for retailer
Amount of tax paid by the end customer
Vat paid by retailer
Vat paid by wholesaler
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