## ML Aggarwal Class 10 Solutions for ICSE Maths Chapter 1 Value Added Tax Ex 1

These Solutions are part of ML Aggarwal Class 10 Solutions for ICSE Maths. Here we have given ML Aggarwal Class 10 Solutions for ICSE Maths Chapter 1 Value Added Tax Ex 1

**More Exercises**

- ML Aggarwal Class 10 Solutions for ICSE Maths Chapter 1 Value Added Tax Ex 1
- ML Aggarwal Class 10 Solutions for ICSE Maths Chapter 1 Value Added Tax MCQS
- ML Aggarwal Class 10 Solutions for ICSE Maths Chapter 1 Value Added Tax Chapter Test

**Question 1.**

**A manufacturing company sells a T.V. to a trader A for ₹ 18000. Trader A sells it to a trader B at a point of ₹ 750 and trader B sells it to a consumer at a profit of ₹ 900. If the rate of sales tax (under VAT) is 10%, find**

**(i) the amount of tax received by the Government.**

**(ii) the amount paid by the consumer for the T.V.**

**Solution:**

Sale price of a T.V. to trader A = ₹ 18000

Rate of VAT tax = 10%

(i) Total tax paid to Govt. = ₹ (I800 + 75 + 90) = ₹ 1965

(ii) Amount paid by the consumer to trader B = ₹ 18000 + 750 + 900 + Tax 1965 = ₹ 21615

**Question 2.**

**A manufacturer sells a washing machine to a wholesaler for ₹ 15000. The wholesaler sells it to a trader at a profit of ₹ 1200 and the trader sells it to a consumer at a profit of ₹ 1800. If the rate of VAT is 8%, find :**

**(i) The amount of VAT received by the State Government on the sale of this machine from the manufacturer and the wholesaler.**

**(ii) The amount that the consumer pays for the machine.**

**Solution:**

Total amount under VAT = ₹ 15000 + ₹ 1200 + ₹ 1800 = ₹ 18000

(i) VAT = 8% of ₹ 18000

= \(\frac { 8 }{ 100 }\) x 18000 = ₹ 1440

(ii) Consumer pays for the machine = ₹ 18000 + ₹ 1440 = ₹ 19440

**Question 3.**

**A manufacturer buys raw material for ₹ 40000 and pays sales tax at the rate of 4%. He sells the ready stock for ₹ 78000 and charges sales tax at the rate of 7.5%. Find the VAT paid by the manufacturer.**

**Solution:**

Cost price of raw material = ₹ 40000

Rate of sales tax = 4%

Total tax = ₹ \(\frac { 40000 x 4 }{ 100 }\) = ₹ 1600

Selling price = ₹ 78000

Rate of sales tax = 7.5%

VAT paid by the manufacturer = ₹ 5850 – ₹ 1600 = ₹ 4250

**Question 4.**

**A shopkeeper buys a camera at a discount of 20% from the wholesaler, the printed price of the camera being ₹ 1600 and the rate of sales tax is 6%. The shopkeeper sells it to the buyer at the printed price and charges sales tax at the same rate. Find**

**(i) the price at which the camera can be bought.**

**(ii) the VAT (Value Added Tax) paid by the shopkeeper.**

**Solution:**

Printed price of the camera (MP) = ₹ 1600

Rate of discount = 20%

(i) Price of camera = ₹ 1600 + ₹ 96 = ₹ 1696

(ii) VAT paid by the shopkeeper= ₹ 96 – ₹ 76.80 = ₹ 19.20

**Question 5.**

**The printed price of an article is ₹ 60000. The wholesaler allows a discount of 20% to the shopkeeper. The shopkeeper sells the article to the customer at the printed price. Sales tax (under VAT) is charged at the rate of 6% at every stage. Find :**

**(i) the cost to the shopkeeper inclusive of tax.**

**(ii) VAT paid by the shopkeeper to the Government.**

**(iii) the cost to the customer inclusive of tax.**

**Solution:**

Printed price of an article = ₹ 60000

Rate of discount allowed = 20%

Total discount = ₹ 60000 x \(\frac { 20 }{ 100 }\) = ₹ 12000

S.P. after discount = ₹ 60000 – ₹ 12000 = ₹ 48000

Rate of VAT = 6%

(i) Amount paid by the shopkeeper

= ₹ 48000 + ₹ 48000 x \(\frac { 6 }{ 100 }\)

= ₹ 48000 + ₹ 2880 = ₹ 50880

(ii) The price at which the shopkeeper sold to the customer = ₹ 60000

Profit = ₹ 60000 – ₹ 48000 = ₹ 12000

VAT paid by the customer to the Govt.

= ₹ 12000 x \(\frac { 6 }{ 100 }\) = ₹ 720

(iii) Total cost to the customer = ₹ 60000 + VAT inclusive of tax

= ₹ 60000 + \(\frac { 60000 x 6 }{ 100 }\)

= ₹ 60000 + ₹ 3600 = ₹ 63600

**Question 6.**

**A shopkeeper bought a TV at a discount of 30% of the listed price of ₹ 24000. The shopkeeper offers a discount of 10% of the listed price to his customer. If the VAT (Value Added Tax) is 10%, find : the amount paid by the customer, the VAT to be paid by the shopkeeper.**

**Solution:**

List price = ₹ 24000

Discount = 30%

(i) Amount paid by customer = ₹ 21600 + ₹ 2160 = ₹ 23760

(ii) Total VAT to be paid by shopkeeper = ₹ 2160 – ₹ 1680 = ₹ 480

**Question 7.**

**A shopkeeper sells an article at the listed price of ₹ 1500 and the rate of VAT is 12% at each stage of sale. If the shopkeeper pays a VAT of ₹ 36 to the Government, what was the amount inclusive of tax at which the shopkeeper purchased the articles from the wholesaler?**

**Solution:**

List price (M.P.) of an article = ₹ 1500

Rate of VAT = 12%

Total VAT = ₹ \(\frac { 1500 x 12 }{ 100 }\) = ₹ 180

But VAT paid by the shopkeeper = ₹ 36

Total VAT paid by wholeseller = ₹ 180 – ₹ 36 = ₹ 144

Rate of VAT = 12%

S.P. of the whole seller = \(\frac { 144 x 100 }{ 12 }\) = ₹ 1200

Total amount paid by the wholeseller including VAT = ₹ 1200 + ₹ 144 = ₹ 1344

**Question 8.**

**A shopkeeper buys an article whose list price is ₹ 800 at some rate of discount from a wholesaler. He sells the article to a consumer at the list price and charges sales tax at the prescribed rate of 7.5%. If the shopkeeper has to pay a VAT of ₹ 6, find the rate of discount at which he bought the article from the wholesaler.**

**Solution:**

List price (MP) of an article = ₹ 800

S.P. of the shopkeeper = ₹ 800

Rate of VAT = 7.5%

Total VAT = ₹ \(\frac { 800 x 7.5 }{ 100 }\) = ₹ 60

VAT paid by the shopkeeper = ₹ 6

VAT paid by the wholeseller = ₹ 60 – ₹ 6 = ₹ 54

Rate of VAT = 7.5%

S.P. of wholeseller

**Question 9.**

**A manufacturing company ‘P’ sells a Desert cooler to a dealer A for ₹ 8100 including sales tax (under VAT). The dealer A sells it to a dealer B for ₹ 8500 plus sales tax and the dealer B sells it to a consumer at a profit of ₹ 600. If the rate of sales tax (under VAT) is 8%, find**

**(i) the cost price of the cooler for the dealer A.**

**(ii) the amount of tax received by the Government.**

**(iii) the amount which the consumer pays for the cooler.**

**Solution:**

Manufactures ‘P’ selling price for Desert cooler including sales tax (VAT) = ₹ 8100

Rate of sales tax (VAT) = 8%

Cost price of dealer A = ₹ 7500

and sale price of dealer A = ₹ 8500

Gain = ₹ 8500 – ₹ 7500 = ₹ 1000

or cost price of dealer B = ₹ 8500

Gain = ₹ 600

S.P. of dealer B = ₹ 8500 + ₹ 600 = ₹ 9100

Consumers cost price = ₹ 8500 + ₹ 600 = ₹ 9100

(ii) Tax paid to the Govt.

= ₹ 600 + ₹ 80 + ₹ 48 = ₹ 728

The amount which the consumer pays = ₹ 7500 + ₹ 1000 + ₹ 600 + ₹ 728 = ₹ 9828

**Question 10.**

**A manufacturer marks an article for ₹ 5000. He sells it to a wholesaler at a discount of 25% on the marked price and the wholseller sells it to a retailer at a discount of 15% on the marked price. The retailer sells it to a consumer at the marked price and at each stage the VAT is 8%.**

**Calculate the amount of VAT received by the Government from :**

**(i) the wholesaler.**

**(ii) the retailer.**

**Solution:**

Marked price (M.P.) of an article = ₹ 5000

Discount given to the wholesaler = 25%

Cost price of wholesaler or S.P. of the manufacturer

(i) VAT received from the wholesaler = ₹ 340 – ₹ 300 = ₹ 40

(ii) and VAT received by the retailer = ₹ 400 – ₹ 340 = ₹ 60

**Question 11.**

**A manufacturer listed the price of his goods at ₹ 160 per article. He allowed a discount of 25% to a wholesaler who in his turn allowed a discount of 20% on the listed price to a retailer. The rate of sales tax on the goods is 10%. If the retailer sells one article to a consumer at a discount of 5% on the listed price, then find**

**(i) the VAT paid by the wholesaler.**

**(ii) the VAT paid by the retailer.**

**(iii) the VAT received by the Government.**

**Solution:**

List price (MP) of the goods = ₹ 160 per article

Rate of discount = 25%

(i) VAT paid by the wholesaler = ₹ 12.80 – ₹ 12 = ₹ 0.80

(ii) VAT paid by the retailer = 15.20 – 12.80 = ₹ 2.40

(iii) Total VAT paid to the Govt. = ₹ 15.20

**Question 12.**

**Kiran purchases an article for ₹ 5, 400 which includes 10% rebate on the marked price and 20% sales tax (under VAT) on the remaining price. Find the marked price of the article.**

**Solution:**

Let market price of the article be ₹ x

Hence, market price of the article is ₹ 5000

**Question 13.**

**A shopkeeper buys an article for ₹ 12000 and marks up its price by 25%. The shopkeeper gives a discount of 10% on the marked up price. He gives a further off-season discount of 5% on the balance. But the sales tax (under VAT) is charged at 8% on the remaining price. Find :**

**(i) the amount of VAT which a customer has to pay.**

**(ii) the final price he has to pay for the article.**

**Solution:**

Cost price of an article = ₹ 12000

Rate of mark up in price = 25%

(i) Amount of sales tax = ₹ 1026

(ii) Price to be paid = ₹ 12825 + ₹ 1026 = ₹ 13851

**Question 14.**

**In a particular tax period, Mr. Sunder Dass, a shopkeeper pruchased goods worth ₹ 960000 and paid a total tax of ₹ 62750 (under VAT). During this period, his sales consisted of taxable turnover of ₹ 400000 of goods taxable at 6% and ₹ 480000 for goods taxable at 12.5%. He also sold tax exempted goods worth ₹ 95640 in the same period. Calculate his tax liability (under VAT) for this period.**

**Solution:**

Cost price of good purchased by Sunder Dass = ₹ 960000

Tax paid (VAT) = ₹ 62750

Sale of goods worth = ₹ 400000

Rate of VAT = 6%

Tax paid to Govt. (VAT) = ₹ 62750

Tax liability = ₹ 84000 – ₹ 62750 = ₹ 21250

**Question 15.**

**In the tax period ended March 2015, M/S Hari Singh & Sons purchased floor tiles worth ₹ 800000 taxable at 7.5% and sanitary fittings worth ₹ 750000 taxable at 10%. During this period, the sales turnover for floor tiles and sanitary fittings are worth ₹ 840000 and ₹ 920000 respectively. However, the floor tiles worth ₹ 60000 were returned by the firm during the same period. Calculate the tax liability (under VAT) of the firm for this tax period.**

**Solution:**

Cost of floor tiles = ₹ 800000

Liability of tax of the firm = 155000 – (135000 + 4500) = ₹ 155000 – ₹ 139500 = ₹ 15500

Hope given ML Aggarwal Class 10 Solutions for ICSE Maths Chapter 1 Value Added Tax EX 1 are helpful to complete your math homework.

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