Question

Shri. Batliwala sold shares of Rs. 30,350 and purchased shares of Rs. 69,650 in a day. He paid brokerage at the rate of 0.1% on sale and purchase. 18% GST was charged on brokerage. Find his total expenditure on brokerage and tax.

Answer 1

Total amount = sale value + Purchase value 

= 30350 + 69650 

= Rs. 1,00,000 

Rate of Brokerage = 0.1 % 

Brokerage = 0.1 % of 1,00,000

Total expenditure on brokerage and tax

= 100 + 18 = Rs. 118

∴ Total expenditure on brokerage and tax is Rs. 118.

Alternate Method:

Brokerage = 0.1 %, GST = 18% 

At the time of selling shares: 

Total sale amount of shares = Rs. 30,350

Brokerage = 0.1% of 30,350

For purchasing shares:

Total purchase amount of shares = Rs. 69,650 

Brokerage = 0.1% of 69,650

∴ Total expenditure on brokerage and tax = Brokerage and tax on selling + Brokerage and tax on purchasing

= (30.35 + 5.463) + (69.65 + 12.537) 

= Rs. 118

∴ Total expenditure on brokerage and tax is Rs. 118.