ML Aggarwal Solution Class 10 Chapter 1 Value Added Tax Chapter Test

Chapter Test

Question 1

A shopkeeper bought a washing machine at a discount of 20% from a wholesaler, the printed price of the washing machine being ₹ 18000. The shopkeeper sells it to a consumer at a discount of 10% on the printed price. If the rate of sales tax is 8%, find:

(i) the VAT paid by the shopkeeper. .

(ii) the total amount that the consumer pays for the washing machine.

Sol :

(i) S.P. of washing machine

$=\left(1-\frac{10}{100}\right) \times ₹ 18000$

$=\frac{90}{100} \times 18000=₹ 16200$

Sales tax=8 % of  ₹ 16200 

$=\frac{8}{100} \times ₹ 16200=₹ 1296$

Printed price =₹ 18000

Price paid by shopkeeper$=\left(1-\frac{20}{100}\right) \times ₹ 18000$

$=\frac{80}{100} \times ₹ 18000=₹ 14400$

Sale tax paid by shopkeeper$=\frac{8}{100} \times ₹ 14400=₹ 1152$

(i) ∴VAT paid by shopkeeper=Tax charged - Tax paid

=₹ 1296-₹ 1152=₹ 144

(ii) Price paid by customer

=₹ 16200+₹ 1296=₹ 17496

Question 2

A manufacturing company sold an article to its distributor for ₹22000 including VAT. The distributor sold the article to a dealer for ₹22000 excluding tax and the dealer sold it to a consumer for ₹25000 plus tax (under VAT). If the rate of sales tax (under VAT) at each stage is 10%, find :

(i) the sale price of the article for the manufacturing company.

(ii) the amount of VAT paid by the dealer.

Sol :

S.P. of an article for a manufacturer = ₹22000 including VAT

C.P. for the distributor = ₹22000

Rate of VAT = 10%

S.P. for the distributor of ₹22000 excluding VAT

S.P. for the consumer =₹ 25000+ Tax (VAT)

=₹ 25000+10% of ₹ 25000

=₹ 25000+₹ 2500=₹ 27500

(i) Sale price for the manufacturer

$=₹ 22000 \times \frac{100}{100+10}=₹ 22000 \times \frac{100}{110}$

=20000

(ii) Amount of VAT paid by the dealer

$=₹ 25000 \times \frac{10}{100}=₹ 2500$

VAT already paid by manufacturer$=₹ 22000 \times \frac{10}{100}=₹ 2200$

∴ Net VAT to be paid =₹ 2500-₹ 2200=₹ 300

Question 3

The marked price of an article is ₹7500. A shopkeeper sells the article to a consumer at the marked prices and charges sales tax at . the rate of 7%. If the shopkeeper pays a VAT of ₹105, find the price inclusive of sales tax of the article which the shopkeeper paid to the wholesaler.

Sol :

Marked price of an article = ₹7500

Rate of S.T. = 7%

∴ Total tax$=₹ \frac{7500 \times 7}{100}=₹ 525$

and VAT paid by the shopkeeper =₹ 105

∴ Tax =₹ 420 and rate =7 %

∴ C.P of the shopkeeper$=₹ \frac{420 \times 100}{7}$

=₹ 600

and total C.P paid by the shopkeeper

=₹ 6000+₹ 420=₹ 6420

Question 4

A shopkeeper buys an article at a discount of 30% and pays sales tax at the rate of 6%. The shopkeeper sells the article to a consumer at 10% discount on the list price and charges sales tax at the’ same rate. If the list price of the article is ₹3000, find the price inclusive of sales tax paid by the shopkeeper.

Sol :

List price of an article = ₹3000

Rate of discount = 30%

and rate of S.T. = 6%

Total discount $=₹ 3000 \times \frac{30}{100}=₹ 900$

∴S.P. of manufactures or

C.P. of the shopkeeper =₹ 3000-₹ 900=₹ 2100

S.T.$=₹ 2100 \times \frac{6}{100}=₹ 126$

Rebate given to consumer =10%

and C.P. of the consumer

$=₹ \frac{3000 \times(100-10)}{100}=₹ \frac{3000 \times 90}{100}$

=₹ 2700

(i) S.T. paid by shopkeeper =₹ 126

Total cost price of the shopkeeper =₹ 2100+126=₹ 2226

(ii) S.T. for consumer $=₹ 2700 \times \frac{6}{100}=₹ 162$

∴ Total cost price paid by the consumer=₹ 2700+₹ 162=₹ 2862

(iii) VAT paid by the shopkeeper

=₹ 162-₹ 126=₹ 36

Question 5

Mukerjee purchased a movie camera for ₹27468. which includes 10% rebate on the list price and then 9% sales tax (under VAT) on the remaining price. Find the list price of the movie camera.

Sol :

Let list price of the movie camera = x

Rebate = 10%

Price after rebate $=x \times \frac{100-10}{100}=x \times \frac{90}{100}$

Sales tax=9 %

Sales price $=\frac{90}{100} x \times \frac{100+9}{100}$

$=\frac{90}{100} x \times \frac{109}{100}=\frac{981}{1000} x$

$\therefore \frac{981}{1000} x=₹ 27468$

$x=\frac{27468 \times 1000}{981}$

∴x=28×1000=28000

∴List price of movie camera =₹ 28000

Question 6

A retailer buys an article at a discount of 15% on the printed price from a wholesaler. He marks up the price by 10%. Due to competition in the market, he allows a discount of 5% to a buyer. If the buyer pays ₹451.44 for the article inclusive of sales tax (under VAT) at 8%, find :

(i) the printed price of the article

(ii) the profit percentage of the retailer.

Sol :

(i)

Let the printed price of the article = ₹100

Then, retailer’s cost price

= ₹100-₹15 = ₹85

Now, marked price for the retailer

= ₹100 + ₹10 = ₹110

Rate of discount allowed = 5%

∴Sale price $=₹ \frac{110 \times(100-5)}{100}$

$=₹ \frac{110 \times 95}{100}=₹ \frac{1045}{10}$

∴Sale price including sales tax$=₹ \frac{1045}{10} \times \frac{100+8}{100}=₹ \frac{1045 \times 108}{1000}$

Now, if the buyers pays $₹ \frac{1045 \times 108}{1000}$

then printed price =₹ 100

and if buyer pays ₹ 451.44, then printed price$=₹ \frac{100 \times 451.44 \times 1000}{1045 \times 105}$

$=\frac{100 \times 45144 \times 1000}{100 \times 1045 \times 108}=₹ 400$

∴ Printed price =₹ 400

(ii) Now, gain of the retailer = S.P.-C.P.

$=₹ \frac{1045}{10}-\frac{85}{1}=\frac{1045-850}{10}=₹ \frac{195}{10}$

∴ Gain percent $=\frac{\text { Total gain } \times 100}{\text { C.P. }}$

$=\frac{195 \times 100}{10 \times 85}=\frac{390}{17}=22 \frac{16}{17} \%$