#### 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