A shopkeeper purchase an article for Rs 9,000 and sell it to a custome

1.	A shopkeeper purchase an article for Rs 9,000 and sell it to a customer for 10,500. If the VAT rate is 4%. Find the VAT paid by the shopkeeper?
Answer» Given S.P = 10,500, C.P. = 9000, Vat = ?, = 4% Vat = \(\frac{\text { Rate }}{100}\)(SP-CP) = \(\frac{\text { 4 }}{100}\)(10,500 – 9000) = \(\frac{\text { Rate }}{100}\)× 1500 = 60 ∴ Vat paid by shopkeeper = Rs 60.

A shopkeeper purchase an article for Rs 9,000 and sell it to a customer for 10,500. If the VAT rate is 4%. Find the VAT paid by the shopkeeper?

Answer»

Given S.P = 10,500, C.P. = 9000, Vat = ?, = 4%

Vat = \(\frac{\text { Rate }}{100}\)(SP-CP) = \(\frac{\text { 4 }}{100}\)(10,500 – 9000)

= \(\frac{\text { Rate }}{100}\)× 1500 = 60

∴ Vat paid by shopkeeper = Rs 60.