the list price of an article is rs. 2500. a shopkeeper sells the article to a customer at the list price and charges sales tax at 8%. if the shopkeeper paid a vat of rs. 40 to sales tax department what is the sum including tax shopkeeper paid to wholesaler?
Dear Student!
Here is the answer to your question.
Let the profit of the shopkeeper be Rs x, then the value of the article added by the shopkeeper = Rs x
VAT paid by the shopkeeper = Rs 40
Rate of sales tax = 8%
∴ 8% of Rs x = 40
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Thus, price of the article inclusive of sales tax which the shopkeeper paid to the whole sales
= Rs 2000 + Rs 160 = Rs 2160
Cheers!