VAT and Discount || How to calculate VAT amount
Q4) The marked price of an article is Rs. 10,000. If
there is 15% Discount and 13% VAT on it, find the discount amount, vat amount
and price to be paid?
Sol:
Here,
Marked Price (MP) = Rs.10,000
Discount = 15%
VAT = 13%
Discount Amount = ?
VAT Amount = ?
Price to be paid = ?
Now,
Discount Amount = D% of Mp
= (15/100)*10,000
= 1500
Similarly,
SP after Discount = MP – Discount Amount
= 10,000 – 1500
Rs.8500
Again,
VAT Amount = VAT% of SP
= (13/100) X 8500
= 1105
Lastly,
SP with VAT = SP + VAT Amount
= 8500 + 1105
= Rs. 9605
Therefore,
Discount Amount = Rs.1500
VAT Amount = Rs.1105
Price to be paid = Rs. 9605
