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 

= (0.1/100) × 1,00,000 

= Rs.100 

Rate of GST = 18% 

∴ GST = 18 % of brokerage 

= (18/100) × 100 

∴ GST = Rs.18 

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

= (0.1/100) x 30,350

= Rs. 30.35

GST = 18% of Rs. 30.35

=(18/100 ) x 30.35

= Rs. 5.463

For purchasing shares: 

Total purchase amount of shares = Rs.69,650 

Brokerage = 0.1% of 69,650 

= (0.1/100) × 69650 = Rs.69.65 

GST = 18% of 69.65 

= (18/100) × 69.65 

= Rs.12.537 

∴ 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