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A dealer sold copies of a computer to the retailer. The retailer supplied the Computer Centre for the price, including transportation costs of Rs 3000, local tax of Rs 5000, and a profit of Rs 25,000. The retailer added 13% VAT to the price. The Computer Centre is required to pay the VAT amount. How much will the Computer Centre pay in VAT?

User Alease
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Final answer:

The Computer Centre will pay a VAT of Rs 4290, which is 13% of the total amount before VAT. Since the original cost price is not given, we assume this refers to the price including transportation costs, local tax, and profit, just before 13% VAT is added.

Step-by-step explanation:

The Computer Centre will have to pay Rs 4290 in VAT, which is 13% of the price before VAT. To calculate this, we need to understand that VAT is added on top of the cost, transportation, local tax, and profit. The initial amount before VAT can be calculated by adding the cost price, transportation costs (Rs 3000), local tax (Rs 5000), and profit (Rs 25000). Then, we find 13% of this total to determine the VAT amount. To calculate the VAT that the Computer Centre needs to pay, we would need the original cost price, which is not provided in the question. However, assuming that the 'price including transportation costs, local tax, and profit' refers to the total amount just before VAT is applied, we simply calculate 13% of that total to find out the VAT. For example, if the total amount before VAT is Rs 33000 (arbitrary figure for demonstration purposes), the VAT would be 13% of Rs 33000, which is Rs 4290. Therefore, the Computer Centre would pay Rs 4290 in VAT.

User Hao Li
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