Sales Tax and Value Added Tax
Sales Tax and Value Added Tax
Last updated at December 16, 2024 by Teachoo
Transcript
Ex 7.2, 4 I purchased a hair-dryer for Rs 5,400 including 8% VAT. Find the price before VAT was added.Given Amount Paid (Bill Amount) = 5400 Vat Percentage = 8% Let the Original Price = š„ Tax Amount = Vat Percentage Ć Original Price = 8% Ć š„ = 8/100 Ć š„ = šš/ššš Now, Bill amount = Original Price + Tax Amount 5400 = š„ + šš/ššš 5400 = (100š„ + 8š„)/100 5400 = (108 š„)/100 (5400 Ć 100)/108 = š„ (2700 Ć100)/54 = š„ (1350 Ć 100)/27 = š„ (450 Ć100)/9 = š„ 50 Ć 100 = š„ 5000 = š„ ā“ š„ = 5000 ā“ Original Price = Rs 5000