Question

Shruti bought a set of cosmetic items for Rs. 345 including 15% value added tax and a purse for Rs. 110 including 10% VAT. What percent is the VAT charged on the whole transaction?

Answer 1

Let x be the price of cosmetic

VAT = \(\frac{15}{100}\)x

= \((x+\frac{15}{100}x)\) = 345

x = \(\frac{345\times 100}{100}\) = 300

Let Y be the price of purse

VAT = \(\frac{10}{100}y\)

\((y+\frac{y}{10})\) = 110

Y = 110 x \(\frac{10}{11}\) = 100

Total cost excluding VAT = 300+100 = 400

Let 3% be VAT percentage

400 + \((\frac{3}{100}\times 400)\) = (345 + 110)

3 = \(\frac{55}{4}\) = 13.75

VAT on whole transaction = 13.75%