**In this exercise, all the prices are excluding tax/VAT unless specified.**

Question 1: A person purchases a compact computer system for Rs.47700 which includes 10% rebate on the marked price and then 6% Sales Tax on the remaining price. Find the marked price of the computer.

Answer:

Let the marked price

Sale price

Given

Question 2: A wholesaler sells an article for Rs.2700 at a discount of 10% on the printed price to a retailer. The retailer, in turn, raises the printed price of the article by 15% and sells it for Rs.3657 which includes Sales Tax on the new market price. Find:

- The rate of Sales Tax
- The Profit, as per cent, made by the retailer

Answer:

Let the printed price of the article is

Therefore

Let the Sales Tax rate

Profit percentage made by the retailer

Question 3: A shopkeeper buys an article at 70% of its printed price. He spends Rs.40 on transportation of the article. After charging Sales Tax at the rate of 10% on the printed price, he sells the article for Rs.7040. Find his profit as per cent to the nearest integer.

Answer:

Let the printed price

Cost to the shopkeeper

Selling price (including the sales tax)

Therefore

Cost to the shopkeeper

Profit %

Question 4: A person bought a washing machine marked at Rs.9375. The rate of Sales Tax is 6%. She asks the shopkeeper to reduce the price of the washing machine to such an extent that she has to pay Rs.9275 inclusive of Sales Tax. Find the reduction needed in the price of the washing machine.

Answer:

Let the cost price after reduction

Therefore

Reduction needed

Question 5: The catalog price of a colored T.V. is Rs.18000. The shopkeeper sells it to a customer at a discount of 20% on the catalog price. He gives a further off-season discount of 10% on the balance. Sales Tax at 10% is charged on the remaining amount. Find:

- The Sales Tax amount, the customer has to pay.
- The final price he has to pay for the color T.V.

Answer:

The catalog price of a colored T.V. is

Catalog price for the customer

Sales tax charged

Final price for the customer

Question 6: A shopkeeper buys an article for Rs.7500 and increases its price. He sells this article for Rs.9156 including 9% Sales Tax on the increased price. Calculate, by how much per cent the shopkeeper increases the price of the article.

Answer:

Let the increased price be

Therefore

Percentage increase

Question 7: An article is marked at Rs.500. The wholesaler sells it to a retailer at 20% discount and charges Sales-Tax on the remaining price at 12.5%. The retailer, in turn, sells the article to a customer at its marked price and charges Sales-Tax at the same rate. Calculate;

- The price paid by the customer
- The amount of VAT paid by the retailer

Answer:

Marked Price

Price Paid by the retailer

Price paid by the customer

Vat paid by the retailer

Question 8: An article is marked at Rs.4500 and the rate of Sales-Tax on it is 6%. A trader buys this article at some discount and sells it to a customer at the marked price. If the trader pays Rs.81 as VAT; Find:

- How much per cent discount does the trader get?
- The total money paid by the trader, including tax, to buy the article.

Answer:

Let the discount be

Cost Price for the trader

Sales Tax Paid by the trader

Selling Price for the trader

Sales Tax on the sales

Therefore

Solving for x we get

Total cost of the trader

Question 9: A retailer sells an article for Rs.5350 including 7% Sales Tax on the listed price. If he has bought it at a discount and has made a profit of 25% on the whole, find the rate of discount he gets.

Answer:

Let the list price

Therefore

Let the discount %

Therefore

Question 10: The printed price of an article is Rs.9600. A shopkeeper buys it at a discount of 20% and sells it at the printed price. Find the amount of VAT paid by the shopkeeper, if the rate of Sales Tax is 10%. Also, Find the profit made by the shopkeeper, if he spends Rs.120 on the transportation of the article.

Answer:

Listed Price

Discount

Cost Price

Selling Price

Sales Tax rate

Sales Tax paid by the shopkeeper

Sales Tax paid by the customer

VAT

Profit

Question 11: A shopkeeper buys a camera at a discount of 20% from the wholesaler, the printed price of the camera being Rs.1600 and the rate of sales tax is 6%. The shopkeeper sells it to the buyer at the printed price and charges tax at the same rate. Find:

- The price at which the camera can be bought from the shopkeeper.
- The VAT paid by the shopkeeper [2008]

Answer:

Printed Price of the camera

Discount

Sales Tax

Cost Price of the shopkeeper

Sales Tax on Cost Price

Sale Price

Price the the customer have to pay

Sales Tax paid by the customer

VAT

Question 12: A person bought an article for Rs.8000 and spent Rs.1000 for transportation. He marked the article at Rs.11700 and sold it to a customer. If the customer had to pay 10% sales tax, Find:

- The customer’s Price
- His’s Profit percent [2010]

Answer:

Cost Price

Overheads

Listed Price

Sales Tax rate

Customer Price

Profit

Question 13: A Shopkeeper sells an article at the listed price of Rs.1500 and the rate of VAT is 12% at each stage of sale. If the shopkeeper pays a VAT of Rs.36 to the Government, what was the price, inclusive of Tax, at which the shopkeeper purchased the article from the wholesaler? [2013]

Answer:

Listed price

Sales Tax paid by the shopkeeper

Let the price at which the shopkeeper purchased the article

Therefore

Sales tax paid

Total price paid by the shopkeeper

Question 14: A shopkeeper bought a washing machine at a discount of 20% from a wholesaler, the printed price of the washing machine being Rs.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:

- The VAT paid by the shopkeeper
- The total amount that the consumer pays for the washing machine. [2014]

Answer:

Printed Price

Discount

Cost Price for the shopkeeper

Sales Tax paid by the shopkeeper

Selling price to the customer

Sales tax paid by the customer

VAT paid by the shopkeeper

The total amount paid by the customer