Find Price or Tax

This sales tax or VAT is charged by the Government on the selling price of an item and is added to the value of the bill. Bill amount = Cost of the item + Amount of Sales tax

What was the price of the suitcase before VAT was added? Example1: Priya bought a suitcase for Rs 2,730. The VAT for this item is 5%. What was the price of the suitcase before VAT was added? Also state how much is the VAT. Solution Given : Bill amount = Rs 2,730 ; VAT is 5%. To Find :- Price of suitcase and VAT amount Price without VAT VAT% VAT amount Price with VAT 5 100 (assumed) 5% (given) 105 Assume price without VAT is Rs 100, then the price including VAT is Then Price with VAT = Cost of the item + VAT amount = 100 + 5 = 105

VAT Cost of the item When 100 105 2730 ? 100 x Cost of item = 2730 x 105 Bill amount = Cost of the item + Amount of Sales tax Amount of Sales tax = Bill amount - Cost of the item = 2,730 – 2,600 = 130 Ans:- The original price of the suitcase = Rs 2,600 and VAT is Rs 130

Example2: The selling price with VAT, on a cooking range is Rs 19,610 Example2: The selling price with VAT, on a cooking range is Rs 19,610. If the VAT is 6%, what is the original price of the cooking range? Solution Given : Bill amount = Rs 19,610 ; VAT is 6%. Assume price without VAT is Rs 100, then the price including VAT is 6% Then Price without VAT = Cost of the item + VAT amount = 100 + 6 = 106

VAT Cost of the item When 100 106 ? 19610 100 x 19610= Cost of item x 106 Bill amount = Cost of the item + Amount of Sales tax Amount of Sales tax = Bill amount - Cost of the item = 19,610 – 18,500 = 1110 Ans:- The original price of the suitcase = Rs 18,500 and VAT is Rs 1110

Try these 1. Vinodh purchased musical instruments for Rs. 18,500 . If the rate of sales tax is 8%, find the total amount paid by him. 2. A refrigerator is purchased for Rs.15,000 , including sales tax. If the actual cost price of the refrigerator is Rs.12,600, find the rate of sales tax.