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## Sales Tax and Value Added Tax Class 10 Maths ICSE Solutions

Download Formulae Handbook For ICSE Class 9 and 10

**Formulae**

The amount of money paid by a customer for an article = The sale price of the article + Sales Tax on it, if any.

**VAT (Value Added Tax):**

- Unlike sales tax, VAT is also collected by the state government.
- It is not in addition to the existing Sales Tax, but is the replacement of Sales Tax. Presently, a majority of state governments have accepted the VAT system.
- It is tax on the value added at each transfer of goods, from the original manufacturer to the retailer.

Assuming that the rate of tax is 10% and a trader purchases an article for Rs. 800, the tax he pays = 10% Rs. 800 = Rs. 80.

Now, if he sells the same article for Rs. 1,150.

The tax he recovers (gets) = 10% of Rs. 1,150 = 115

∴ VAT = Tax recovered on the sale – Tax he paid on the purchase

= Rs. 115 – Rs. 80 = 35. - The difference of tax recovered on the sale value and paid on the purchase value is deposited with the government as VAT.

### Formulae Based Questions

**Question 1.** Sheela bought a V.C.R., at the list price of Rs. 13,500. If the rate of sale tax was 8%. Find the amount she had to pay for it.

**Question 2.** Rani purchases a pair of shoe whose sale price is Rs. 175. If she pays sales tax at the rate of 7%, how much amount does she pay as sales tax? Also find the net values of the pair of shoe.

**Question 3.** Sunita purchases a bicycle for Rs. 660. She has paid a sale tax of 10%. Find the list price of the bicycle.

**Question 4.** The price of a washing machine, inclusive of sales tax i, Rs. 13,530. If the sales tax is 10% find its list (or basic) price.

**Question 5.** Savita purchased an almirah for Rs. 4536 including sale tax. If the list price of the almirah is Rs. 4,200, find the rate of sale tax charged.

**Question 6.** The sale price of a television, inclusive of sales tax is Rs. 13,500. If sales tax is charged at the rate of 8% of the list price, find the list price of the television.

**Question 7.** The price of a washing machine inclusive of sale tax is Rs. 13,530. If the sale tax is 10% find its basic price.

**Question 8.** A shopkeeper buys on article whose list price is Rs. 450 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 rate of 6%. If the shopkeeper has to pay a VAT of Rs. 2.70, find the rate of discount at which he bought the article from the wholesaler.

### Concept Based Questions

**Question 1.** Samir bought the following articles from a departmental store:

**Question 2.** A shopkeeper bought a washing machine at a discount of 20% from a wholesaler, the printed price of the washing machine being Rs. 18,000. The shopkeeper sells it to a consumer at a discount of 10% on the printed price. If the rate of sales tax is 8%, find:

(i) the VAT paid by the shopkeeper.

(ii) the total amount that the consumer pays for the washing machine.

**Question 3.** Find the tax paid by (i) the manufacturer, (ii) the whole saler, (iii) the retailer, (iv) the customer. If the rate of sales tax be 10%.

**Question 4.** A shopkeeper sells an article at its marked price (Rs. 7,500) and charges sales-tax at the rate of 12% from the customer. If the shopkeeper pays a VAT of Rs. 180; calculate the price (inclusive of tax) paid by the shopkeeper.

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