The cost of a shirt is 400 Rs to a distributor .he sells it to trader for Rs500.
The trader sells it to customer for Rs1250. If rate of VAT is 12.5 %find vat paid to government

Asked by lovemaan5500 | 18th Nov, 2017, 05:14: PM

Expert Answer:

begin mathsize 16px style VAT space paid space by space the space distributor equals fraction numerator space 12.5 over denominator 100 end fraction cross times 400 equals Rs. space 50
VAT space paid space by space trader equals fraction numerator 12.5 over denominator 100 end fraction cross times open parentheses 500 minus 400 close parentheses equals Rs. space 12.5
VAT space paid space by space the space customer equals fraction numerator 12.5 over denominator 100 end fraction cross times open parentheses 1250 minus 500 close parentheses equals 93.75
Total space VAT space paid space to space the space government space equals space 50 space plus space 12.5 space plus space 93.75
equals Rs. space 156.25 end style

Answered by Sneha shidid | 30th Nov, 2017, 10:14: AM

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