Mohan a owner of a departmental store purchased an article of Rs 1,500

1.	Mohan a owner of a departmental store purchased an article of Rs 1,500 at 4% VAT and sell it at Rs 1,700 to the customer at 4% VAT. How much amount did the shopkeeper deposit to the government as VAT.
Answer» Vat paid by the customer = 4% of 1700 = \(\frac{4}{100}\) × 1700= Rs 68 Vat paid by shopkeeper = 4%(1700 – 1500) = \(\frac{4}{100}\) × 200 = Rs 78.

Mohan a owner of a departmental store purchased an article of Rs 1,500 at 4% VAT and sell it at Rs 1,700 to the customer at 4% VAT. How much amount did the shopkeeper deposit to the government as VAT.

Answer»

Vat paid by the customer = 4% of 1700

= \(\frac{4}{100}\) × 1700= Rs 68

Vat paid by shopkeeper = 4%(1700 – 1500)

= \(\frac{4}{100}\) × 200 = Rs 78.