Question

After allowing 5% discount on the marked price 10% VAT is charged on it. If the discount amount is Rs 80, find the VAT amount.​

Answer 1

To find the VAT amount, first calculate the marked price of the item using the discount information provided. Then determine the discounted price and apply the 10% VAT rate to it. The VAT amount comes out to be Rs 152.

Step-by-step explanation:

The question involves finding the VAT amount charged after a 5% discount and 10% VAT on the marked price of an item when the discount amount is Rs 80.

To begin, let's find the marked price (MP) of the item. Since the discount is 5% and the actual discount amount is Rs 80, we can write the equation as follows:

MP × 5% = Rs 80

MP × 0.05 = Rs 80

MP = Rs 80 / 0.05 = Rs 1600

Next, we calculate the discounted price (DP), by subtracting the discount from the marked price:

DP = MP - Discount Amount

DP = Rs 1600 - Rs 80 = Rs 1520

Now, we calculate the VAT on the discounted price using the given 10% rate:

VAT Amount = DP × 10%

VAT Amount = Rs 1520 × 0.10 = Rs 152

The VAT amount charged on the item after the discount is Rs 152.