Sanju a owner of jewellary shop purchased a earring of Rs 2,000 at 12%

1.	Sanju a owner of jewellary shop purchased a earring of Rs 2,000 at 12% VAT and sells it at 2,300 to the customer Radhika. If Radhika also pays 12% VAT to the shopkeeper how much did the shopkeeper deposit to the government as VAT?
Answer» Vat paid by shopkeeper = 12% of (2300 – 2000) = \(\frac{12}{100}\) × (300) = Rs 36.

Sanju a owner of jewellary shop purchased a earring of Rs 2,000 at 12% VAT and sells it at 2,300 to the customer Radhika. If Radhika also pays 12% VAT to the shopkeeper how much did the shopkeeper deposit to the government as VAT?

Answer»

Vat paid by shopkeeper = 12% of (2300 – 2000)

= \(\frac{12}{100}\) × (300) = Rs 36.