Question

Malti bought a VCR for Rs. 19980 including VAT. If the original price of VCR be Rs. 18500, find the rate of VAT.

Answer 1

Selling Price = Rs.19980 

Original Price = Rs.18500 

VAT Amount = 19980 - 18500 

= Rs.1480 

VAT % = (VAT Amount/Original Price) × 100 

= (1480/18500) × 100 

= 8% 

So, Rate of VAT is 8%