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Manoj buys a leather coat costing Rs. 900 at Rs. 990 after paying the VAT. Calculate the rate of VAT charged on the coat.

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Best answer

Given,

Let the rate of VAT = x%

So,

VAT = 900 x \(\frac{x}{100}\) = Rs. 9x

According to the question,

= 900 + 9x = 990

= 9x = 90

= x = 10

Hence,

Manoj was charged 10% VAT on leather jacket

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