The rate of the value added tax (VAT) can be calculated by dividing the amount of VAT (Y) by the selling price before tax (X) and then multiplying by 100 to get the percentage. If Y is Rs 0.83 and X is Rs 10.00, the VAT rate would be 8.3%.
The rate of the value added tax (VAT) can be found using the amount of VAT paid and the original selling price of the article before tax is added. To calculate the rate, you use the formula:
Amount of sales tax = price × rate of sales tax.
In this case, the selling price of an article is denoted as Rs X, and the value added tax is denoted as Rs Y. The formula to calculate the VAT rate is:
Tax rate = (Y / X) × 100.
This gives you the VAT rate as a percentage. For example, if Rs Y is Rs 0.83 and Rs X is Rs 10.00, then the VAT rate is (0.83 / 10.00) × 100 = 8.3%.
It is important to remember that once you have calculated the tax amount using the percentage, you then add it to the original amount to get the total price that includes tax. For instance, if you purchased goods worth Rs 10.00 and the tax rate is 8.25%, you will pay Rs 0.83 in taxes for a total of Rs 10.83.