The printed price of an air conditioner is Rs 45000/-. The wholesaler

1.	The printed price of an air conditioner is Rs 45000/-. The wholesaler allows a discount of 10% to the shopkeeper. The shopkeeper sells the article to the customer at a discount of 5% of the marked price. Sales tax (under VAT) is charged at the rate of 12% at every stage. Find : (i) VAT paid by the shopkeeper to the government. (ii) The total amount paid by the customer inclusive of tax.
Answer» List price of air conditioner = 45000 Discount = 10% (i) Thus, VAT paid by the shopkeeper to the government = Rs (5130 – 4860) = Rs 270 (ii) Total amount paid by the customer = Rs (42750 + 5130) = Rs 47880

The printed price of an air conditioner is Rs 45000/-. The wholesaler allows a discount of 10% to the shopkeeper. The shopkeeper sells the article to the customer at a discount of 5% of the marked price. Sales tax (under VAT) is charged at the rate of 12% at every stage. Find : (i) VAT paid by the shopkeeper to the government. (ii) The total amount paid by the customer inclusive of tax.

Answer»

List price of air conditioner = 45000

Discount = 10%

(i) Thus, VAT paid by the shopkeeper to the government = Rs (5130 – 4860) = Rs 270

(ii) Total amount paid by the customer = Rs (42750 + 5130) = Rs 47880