The original price of the washing machine excluding VAT was Rs. 40000. After adding transportation costs, local tax, and profit, the retailer sold it to the customer for Rs. 50000. At a 13% VAT rate, the customer paid Rs. 6500 in VAT.
To find the original price of the washing machine excluding VAT, we can set up an equation where the selling price (SP) includes the original price (OP) and the VAT. Let's denote the rate of VAT as R. The equation would be SP = OP + OP * R. Given that the selling price (SP) is Rs. 45200 and the VAT rate (R) is 13%, we can solve for OP.
First, convert the VAT rate to decimal form: R = 13% = 0.13. Now the equation becomes 45200 = OP + OP * 0.13. Factoring out OP gives us 45200 = OP * (1 + 0.13), which simplifies to 45200 = OP * 1.13. To find OP, divide both sides by 1.13:
OP = 45200 / 1.13
OP = Rs. 40000
Once we have the original price, we can find out how much the retailer's expenses and profit were. Including transportation cost (Rs. 2000), local tax (Rs. 3000), and profit (Rs. 5000), the total additional cost is Rs. 10000.
To find out the final selling price to the customer, we add the retailer's total costs to the original price:
Final Price = Rs. 40000 (original price) + Rs. 10000 (additional costs)
Final Price = Rs. 50000
Now, let's calculate the VAT amount the customer has to pay at the present rate. Since the new selling price is Rs. 50000 and considering the present VAT rate is still 13%, the VAT amount would be:
VAT Amount = 50000 * 0.13
VAT Amount = Rs. 6500
Therefore, a customer would pay Rs. 6500 as the VAT if the present VAT rate is 13%.