Question

The cost of a rice cooker with 13% VAT is Rs 4,068. Calculate: its cost without VAT 26,00 (ii) Vat amount ​

Answer 1

if vat 13% is added, 113% value is 4068.. So, we need 100%? That is (4068x100) / 113 = 3600. So, the original price without vat is 3600.

Answer 2

Cost of rice cooker without VAT = Rs 3600

VAT amount = Rs 468

Explanation:

Given:

• Cost of rice cooker with 13% VAT = Rs 4,068
• VAT = 13%=0.13

To calculate:

• Cost of rice cooker without VAT

• VAT amount

Calculation:

we know that:

Cost of rice cooker with 13% VAT = Cost price + Vat% of Cost of rice cooker

Rs 4,068= Cost Price*(1+Vat%)

Rs 4,068 = Cost Price*(1+0.13)

Rs 4,068 = Cost Price*(1.13)

Dividing both side by 1.13

Cost Price =
`\tt (Rs\: 4,068)/(1.13)`

Cost Price of rice cooker without VAT= Rs 3,600

Note: Here Cost of rice cooker is Selling Cost of rice cooker

Now

Vat amount = Vat % of cost of rice cooker

=0.13*Rs 3,600

=Rs 468

Therefore, Vat amount is Rs 468.