1. Find Price or Tax

2. 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

3. 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
= = 105

4. VAT Cost of the item
When ?
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

5. 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
= = 106

6. VAT Cost of the item
When ?
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

7. 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.