Question

A dealer buys an article at a discount of 30% from the wholesaler, the marked price being ? 6,000. The dealer sells it to a shopkeeper at a discount of 10% on the marked price. If the rate of VAT is 6%, find: 

(i) The price paid by the shopkeeper including the tax. 

(ii) The VAT paid by the dealer.

Answer 1

Given : Market Price = Rs 6000, Rate of discount = 30 %

∴ The price of the article which the dealer paid to the wholesaler

Sales tax paid by the dealer to the wholesaler 

(i) Now for shopkeeper rate of discount = 10 %

∴ The price of the article which the shopkeeper paid to the dealer