# Manufacturer A sells a washing machine to a trader B for Rs 12,500. Trader B sells it to a trader C at a profit of Rs 800 and trader C sells it to a customer at a profit of Rs 1,300. If the rate of VAT is 8% , find: i) the amount of VAT received by the state govt on the sale of this machine,ii) the amount that the consumer pays for the machine.

Amount of tax collected by Manufacturer A = 8% of Rs 12500

Amount VAT paid by trader B = 8% of Rs 800

Amount of VAT paid by trader C = 8% of Rs 1300

(i) Amount of VAT received by the state govt on the sale of machine = Amount of tax collected by Manufacturer A +

Amount of VAT paid by trader B + Amount of VAT paid by trader C

= Rs (1000 + 64 + 104) = Rs 1168

(ii) Amount that the consumer pays for the machine (including)

= Price charged by manufacturer A + Profit of trader B + Profit of trader C

= Rs (12500  + 800 + 1300) = Rs 14600

∴ Tax paid by consumer = 8% of Rs 14600

∴ Amount paid by consumer (including VAT)

= Rs 14600 + Rs 1168

= Rs 15768

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The  C.P  at  which  the  manufacturer  sells  :  12,500

so,12500+800= 13300

Trader  C  to  the  customer :  Profit  of  1300

so ,  13300+1300=  14600

%  of  Vat =  8 %

So ,

14600 *  8/100 =  1168

So  the  amt.  of  VAT =1168,

VAT +  the  amount  =14600+1168 =  15768

The  customer  pays  14600.

Is  it  ryt ??

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um..gyes so thank u soo much~~ i came across dis ques in some site.. nd cudnt find d answer.. but yeh thank u so much for ur help

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