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