#### 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 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