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Sale Tax and Value Added Tax

Description: Sale Tax in Vat
Number of Questions: 15
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Tags: Sale Tax in Vat Sales Tax Sales Tax and Value Added Tax
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A shopkeeper buys a LCD TV at a discount of 15% from the wholesaler. The market price of the TV is Rs. 28,000 and the sales tax is charged at 9%. The shopkeeper sells it to the buyer at the market price and charges the same sales tax on it.

What is the total amount to be paid by the buyer to get that TV?

  1. Rs. 33,040

  2. Rs. 30,520

  3. Rs. 32,200

  4. Rs. 34,720

  5. Rs. 29,680


Correct Option: B
Explanation:

Total amount = 9% of Rs. 28,000 + Rs. 28,000 = Rs. 30,520

A person will buy three items at a price of Rs. 5,200, Rs. 8,500 and Rs. 6,800 where the sales tax charged for each item is 8%, 6% and 3% respectively. The total final amount paid by the person to the shopkeeper is

  1. Rs. 21,630

  2. Rs. 14,626

  3. Rs. 16,014

  4. Rs. 12,620

  5. Rs. 13,521


Correct Option: A
Explanation:

Amount paid for item 1 = 5,200 + (8/100) x 5,200 = Rs. 5,616

Amount paid for item 2 = 8,500 + (6/100) x 8,500 = Rs. 9,010

Amount paid for item 3 = 6,800 + (3/100) x 6,800 = Rs. 7,004

Total Final Amount paid by person = Rs. 5,616 + Rs. 9,010 + Rs. 7,004 = Rs. 21,630

Mr Ram bought a DVD set for Rs. 14,000. He sold it to Sham for Rs. 18,000. Sham sold it to Raj for Rs. 24,000. All the prices are excluding tax. The sales tax is charged at 8%.

What is the input tax amount paid by Mr. Ram?

  1. Rs. 1,120

  2. Rs. 1,440

  3. Rs. 1,920

  4. Rs. 320

  5. Rs. 2,560


Correct Option: A
Explanation:

Input tax amount paid by Mr. Ram = 8% of Rs. 14,000 = Rs. 1,120

A shopkeeper buys a LCD TV at a discount of 15% from the wholesaler. The market price of the TV is Rs. 28,000 and the sales tax is charged at 9%. The shopkeeper sells it to the buyer at the market price and charges the same sales tax on it.

Which of the following is the sales tax paid by the buyer to buy the TV?

  1. Rs. 2,520

  2. Rs. 5,040

  3. Rs. 4,200

  4. Rs. 6,720

  5. Rs. 1,680


Correct Option: A
Explanation:

Sales tax = 9% of Rs. 28,000 = (9/100) x Rs. 28,000 = Rs. 2,520

The actual price of the refrigerator is Rs. 12, 500. Currently the discount offered on this product is 10%. Calculate the total amount paid by the customer to buy this refrigerator by paying a sales tax of 8%.

  1. Rs. 11,250

  2. Rs. 10,350

  3. Rs.12,150

  4. Rs.14,650

  5. Rs. 13,750


Correct Option: C
Explanation:

Discount price = (10/100) x 12,500                       = Rs. 1,250

Price after discount = Rs.12,500- Rs.1,250                              = Rs. 11,250

Sales tax on Rs. 11,250 = (8/100) x 11,250                                     = Rs. 900

Total amount paid by customer = Rs. 11,250 + Rs. 900                                               = Rs. 12,150

A shopkeeper buys a LCD TV at a discount of 15% from the wholesaler. The market price of the TV is Rs. 28,000 and the sales tax is charged at 9%. The shopkeeper sells it to the buyer at the market price and charges the same sales tax on it.

What is discount given to the shopkeeper by the wholesaler?

  1. Rs. 2,520

  2. Rs. 5,040

  3. Rs. 4,200

  4. Rs. 6,720

  5. Rs. 1,680


Correct Option: C
Explanation:

Discount price = 15% of Rs. 28,000 = Rs. 4,200

Mr. Ram bought a DVD set for Rs. 14,000. He sold it to Sham for Rs. 18,000. Sham sold it to Raj for Rs. 24,000. All the prices are excluding tax. The sales tax is charged at 8%.

What is the output tax amount charged by Mr. Ram?

  1. Rs. 1,120

  2. Rs. 1,440

  3. Rs. 1,920

  4. Rs. 3200

  5. Rs. 2,560


Correct Option: B
Explanation:

Output tax charged by Mr. Ram = 8% of Rs. 18,000 = Rs. 1,440

The selling price of a washing machine was Rs. 15,120. But the total amount paid by the customer including sales tax is Rs. 16,632, then how much is the sales tax charged (in percentage)?

  1. 8%

  2. 10%

  3. 1%

  4. 100%


Correct Option: B
Explanation:

Sales tax amount = Rs.16,632 - Rs.15,120 = Rs. 1,512

Let “R” be the sales tax in percentage. Then, 1,512 = (R/100) x 15,120 ; R = (1,512 x 100) / 15,120 = 10%

Mr. Ram bought a DVD set for Rs. 14,000. He sold it to Sham for Rs. 18,000. Sham sold it to Raj for Rs. 24,000. All the prices are excluding tax. The sales tax is charged at 8%.

What is the value added tax paid by Mr. Ram?

  1. Rs. 800

  2. Rs. 1,440

  3. Rs. 480

  4. Rs. 320

  5. Rs. 2,560


Correct Option: D
Explanation:

Value added tax paid by Mr. Ram = 8% of Rs.18,000 - 8% of Rs.14,000 = Rs. 320

Mr. Thomas purchased dress materials costing around Rs. 92,650 including the 9% sales tax. From these materials, he designed three types of dresses K, L and M. Excluding the tax, these dresses were sold at Rs. 20,000, Rs. 38,000 and Rs. 42,000. The sales tax rates on these dresses are 4%, 8% and 12% respectively.

What is the amount of sales tax paid by Mr. Thomas during the purchase of dress material?

  1. Rs. 8,338.50

  2. Rs. 7,650

  3. Rs. 7,007.14

  4. Rs. 850

  5. Rs. 10,294.44


Correct Option: B
Explanation:

Market price = 92,650 x 9/(100 + 9) = Rs. 7,650

Mr. Thomas purchased dress materials costing around Rs. 92,650 including 9% sales tax. From these materials, he designed three types of dresses K, L and M. Excluding the tax, these dresses were sold at Rs. 20,000, Rs. 38,000 and Rs. 42,000. The sales tax rates on these dresses are 4%, 8% and 12% respectively.

Which of the following is the total tax received by Mr. Thomas after selling all the dress materials?

  1. Rs. 800

  2. Rs. 3040

  3. Rs. 5040

  4. Rs. 8880

  5. Rs. 7280


Correct Option: D
Explanation:

Total tax received = 4% of 20,000 + 8% of 38,000 + 12% of 42,000 = Rs. 800 + Rs. 3040 + Rs. 5040 = Rs. 8880

A shopkeeper buys a LCD TV at a discount of 15% from the wholesaler. The market price of the TV is Rs. 28,000 and the sales tax is charged at 9%. The shopkeeper sells it to the buyer at the market price and charges the same sales tax on it.

Which of the following is the value added tax paid by the shopkeeper?

  1. Rs. 4,662

  2. Rs. 378

  3. Rs. 2,520

  4. Rs. 2,142

  5. Rs. 6,720


Correct Option: B
Explanation:

VAT = [(9/100) x 28,000] - [(9/100) x 23,800] = Rs. 2,520 - Rs. 2,142 = Rs. 378

Mr Ram bought a DVD set for Rs. 14,000. He sold it to Sham for Rs. 18,000. Sham sold it to Raj for Rs. 24,000. All the prices are excluding tax. The sales tax is charged at 8%.

What is the value added tax paid by Sham?

  1. Rs. 800

  2. Rs. 1,440

  3. Rs. 480

  4. Rs. 320

  5. Rs. 2,560


Correct Option: C
Explanation:

Value added tax paid by Sham = 8% of Rs. 24,000 - 8% of Rs. 18,000 = Rs. 480

Mr Thomas purchased dress materials costing around Rs. 92,650 including the 9% sales tax. From these materials, he designed three types of dresses K, L and M. Excluding the tax, these dresses were sold at Rs. 20,000, Rs. 38,000 and Rs. 42,000. The sales tax rates on these dresses are 4%, 8% and 12% respectively.

What will be the market price of the dress materials?

  1. Rs. 85,000

  2. Rs. 7,650

  3. Rs. 77,857.14

  4. Rs. 7,65,000

  5. Rs. 92,541


Correct Option: A
Explanation:

Market price = 92,650 x 100/(100 + 9) = Rs. 85,000

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