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