VAT and Discount || How to find VAT amount

 VAT and Discount

Here we are going to solve a question related to VAT and Discount of Basic Level Examination which is asked in question number 17 in BLE. 

Q1) To buy an article marked Rs.20,000, we get a discount of 15% and have to pay VAT at the rate of 13%. How much VAT amount we have to pay to buy that article?

Soln:

Here,

          Marked Price (MP) = Rs.20,000

          Discount = 15%

          VAT = 13%

          VAT Amount = ?

Now,

          SP after Discount = MP – D% of Mp

                                      = 20,000 - (15/100)*20,000

                                      = 20,000 - 3000

                                    = 17,000

Again,

          VAT Amount = VAT% of SP

                                = (13/100)*1700

                               = 2210

 

Therefore, we have to pay Rs.2210 as a VAT amount.