Students of ICSE Class 10 should refer to Previous Year Questions ICSE Class 10 Mathematics Value Added Tax below which have come in past board exams. You should always go through questions that have come in previous years. This will help you to understand the pattern of questions in ICSE Class 10 History and prepare accordingly. This will help you to get better marks in ICSE Class 10 Board Exams
Previous Year Questions ICSE Class 10 Mathematics Value Added Tax
Short Answer Type Questions I
Question: The manufacturer sold a TV to a wholesaler for ₹ 7000. The wholesaler sold it to a trader at a profit of ₹ 1000, find :
(i) the total VAT (value added tax) collected by the state government at the rate of 5%
(ii) the amount that the customer pays for the TV.
Answer: Tax collected by manufacturer on ` 7,000 at the rate of 5%
= 7000 X5 / 100
= `₹ 3,50
VAT paid by wholesaler on `₹ 1000 at the rate of 5%
= 1000 X 5 / 100
= ₹` 50
VAT paid by trader on `₹ 1500 at the rate of 5%
= 1500 X 5 /100
= ₹ 75
(i) The VAT collected by the state government
= `₹ (350 + 50 + 75)
= `₹ 475
(ii) The total Amount paid by customer
= (7000 + 1000 + 1500)
+ (350 + 50 + 75)
= 9500 + 475
= ₹` 9,975.
Question: A dealer buys an article at a discount of 30% from the wholesaler, the marked price being `₹ 6,000. The
dealer sells it to a shopkeeper at a discount of 10% on the marked price. If the rate of VAT is 6%, find
(i) The price paid by the shopkeeper including the tax.
(ii) The VAT paid by the dealer
Answer: (i) MRP = ` 6,000
Cost of article for the dealer
= 70 / 100 × 6000 = `₹ 4,200
Cost of article for the shopkeeper
= 90 / 100 × 6000 = ₹` 5,400
Tax to be paid by the shopkeeper
= 6 / 100 × 5400 = `₹ 324
Net price for the shopkeeper
= ` (5400 + 324) = `₹ 5,724
(ii) Value added be the dealer
= ₹` (5400 – 4200)
= `₹ 1,200
\ VAT paid by the dealer
= 6% of `₹ 1,200 = `₹ 72
Question: A wholesaler buys a TV from the manufacturer for `₹ 25,000. He marks the price of the TV 20% above
his cost price and sells it to a retailer at a 10% discount on the marked price. If the rate of VAT is 8%, find the :
(i) marked price.
(ii) retailer’s cost price inclusive of tax.
(iii) VAT paid by the wholesaler
Answer: (i) Wholesaler’s price is = `₹ 25,000
M.P. = 25000 + 20 X 100 / 25,000
= `₹ 30,000
(ii) Retailer’s Price = 30 000 – 10 X 100 / 30,000
= ₹` 27,000
\ Price inclusive of tax = 27 000 + 8 X 100 / 27000
= ₹ (27000 + 2160)
= `₹ 29,160
(iii) VAT paid by wholesaler
= (27,000 25,000) X 8 / 100
= `₹ 160
(or by taking difference of two taxes)
Question: A shopkeeper bought a washing machine at a discount 20% from a wholesaler, the printed price of the washing machine being ₹ 18000. 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 amount of sales tax (under VAT) paid by the shopkeeper. (ii) the total amount that the consumer pays for the washing machine.
Answer: Wholesaler Printed price = ₹ 18000, discount = 20%
Sales tax = 18%
Sales price = price after 20% discount
= 18000 – 20 X 100 / 18000
= 18000 – 3600
= `₹ 14400
Tax charged by wholesaler = tax paid by shopkeeper
= 8 X 100 / 14400
= ₹ 1152
Shopkeeper ® Consumer
Printed price = `₹ 18000, discount = 10%
Sales tax = 8%
Sales price = price after 10% discount
= 18000 – 10 X 100 / 18000
= 18000 – 1800
= ` ₹ 16200
Tax charged by shopkeeper = tax paid by consumer
= 8 X 100 / 16200
= ` ₹ 1296
(i) Vat paid by shopkeeper = tax charged by
shopkeeper – tax paid by shopkeeper
= 1296 – 1152 = ` ₹ 144
(ii) Amount at which consumer bought the washing
machine = 16200 + 1296
= `₹ 17496
Detailed Answer :
(i) Marked price = `₹ 18,000
Discount = 20% to wholesaler
Discount
= Discount% / 100 X Marked price
= 20 / 100 × 18,000
= `₹ 3,600
CP for shopkeeper = ` ₹18,000 – ` 3,600
= ` ₹ 14,400
Sales tax paid by shopkeeper
= 8 / 100 X 14, 400
= `₹ 1,152
Discount for consumer = Discount of 10% on MP
= 10 / 100 X 18,000
= ` 1,800
CP for consumer = 18,000 – 1,800
= `₹ 16,200
Tax paid by the shopkeeper collected from the consumer
= 8 / 100 X 16, 200
= `₹ 1,296
VAT paid by the shopkeeper
= Tax charged – Tax paid
= 1296 – 1152
= `₹ 144
(ii) Total amount by consumer
= 16200 + 1296
= `₹ 17,496
Question: A shopkeeper sells an article at the listed price of ₹ 1500 and the rate of VAT is 12% at each stage of sale. If the shopkeeper pays a VAT of ₹ 36 to the government, what was the price, inclusive of tax, at which the shopkeeper purchased the article from the wholesaler ?
Answer: Marked price = ₹ 1,500 VAT% = 12% Shopkeeper paid VAT = ₹ 36
VAT on the article = 12% of listed price
= 12 / 100 X 1500
= ` 180
CP = `₹ x
VAT of article = 12% X CP
= 12 / 100 X x
Shopkeeper pays a VAT amount = ₹ 36
Total VAT – VAT paid = VAT Paid by shopkeeper
180 / 1 – 12x / 100 = 36
18 000 – 12x / 100 = 36
18,000 – 12x = 3,600
12x = 18,000 – 3,600
12x = 14,400
= 14 400 / 12
x = ₹ 1,200
Cost price = `₹ 1,200
tax paid = ₹ 12% of 1,200
= 12 / 100 × 1200
= 144
Total amount paid by shopkeeper including tax
= 1,200 + 144
= 1,344
Question: The printed price of an article is ` 60,000. The wholesaler allows a discount of 20% to the shopkeeper. The shopkeeper sells the article to the customer at the printed price. Sales tax (under VAT) is charged at the rate of 6% at every stage.
Find
(i) the cost to the shopkeeper inclusive of tax.
(ii) VAT paid by the shopkeeper to the Government.
(iii) the cost to the customer inclusive of tax.
Answer: Given :
Market price = ₹ 60,000
Discount = 20% of shopkeeper price
Discount =
20 / 100 × 60,000
(i) = `₹ 12,000
Selling price of wholesaler to shopkeeper
= 60,000 – 12,000
= `₹ 48,000
Sales tax = 6 / 100 X 48,000
= ₹ 2,880
CP for shopkeeper = 48,000 + 2,880
= ₹` 50,880
(ii) VAT paid by shopkeeper
= Tax Charged – Tax paid
= 3,600 – 2,880
= `₹ 7,20
(iii) Cost to customer including tax paid by salesman
= 60,000 + 6 / 100 X 60000
= 60,000 + 3,600
= ₹ 63,600
Question: A manufacturer sells a washing machine to a wholesaler for 15,000. The wholesaler sells it to a trader at a profit of 1200 and the trader in turn sells it to a consumer at a profit of ` 1800. If the rate of VAT is 8%, find
(i) the amount of VAT received by the State Government on the sale of this machine from the manufacturer and the wholesaler.
(ii) the amount that the consumer pays for the machine
Answer: Manufacturer sells a washing machine to a
wholesaler at the cost = ` ₹ 15,000
(i) VAT by manufacturer = 8 / 100 × 15,000
= ₹ 1,200
VAT paid by wholesaler = 8 / 100 × 1, 200
= ₹ 96
Total amount of VAT received by the State
Government = ₹ 1,200 + ₹ 96
= ₹ 1,296
(ii) Amount that consumer pays
= (15,000 + 1,200 + 1,800) + ST
= ₹ 18,000 + ST
Sales tax = 8% of 18,000
= 8 / 100 × 18,000
= ₹ 1,440
Total Amount paid by customer including Tax
= ST + Sales value
= 1,440 + 18,000
= ₹ 19,440
Question: A manufacturer marked price of an article ₹ 5000. He sells it to a wholesaler at a discount of 25% on
the marked price and the wholesaler 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
Answer: Manufacturer marked price = ₹ 5,000
Discount given by manufacturer to wholesaler
= 25% on ₹ 5000
Discount = 25% of 5000
= 25 / 100 × 5000
= ₹ 1,250
cost price for wholesaler = 5000 – 1250
= ₹ 3,750
VAT paid by manufacturer
= 8% of 3750
= 8 / 100 × 3750
= 300·0
= ₹ 300
Cost price of wholesaler = Selling price of manufacture
Cost price of wholesaler = ₹ 3,750
Discount = 15% of 5,000
= 15 / 100 × 5,000
= ₹ 750
Cost price = ₹ 5,000 – 750
= ₹ 4,250
(i) Government received VAT from wholesalers
= 8 / 100 (4, 250 − 3,750)
= 8 / 100 × 500
= ₹ 40
(ii) Government received VAT from retailer
= 8 / 100 (5,000 − 4, 250)
= 8 / 100 (750)
= ₹ 60
Question: A shopkeeper bought a TV at a discount of 30% of the listed price of ₹ 24,000. The shopkeeper offers a
discount of 10% of the listed price to this customer.
If the VAT (value added tax) is 10%, then find.
(i) the amount paid by the customer
(ii) the VAT to be paid by the shopkeeper
Answer: (i) Marked price = ₹ 24,000
Discount = 30%
Discount = 30 / 100 × 24,000
= ₹ 7,200
VAT paid by shopkeeper
= 10 / 100 × (24,000 − 7, 200)
= 10 / 100 × 16,800
= ₹ 1,680
Amount paid by shopkeeper
= 1,680 + 16,800
= ₹ 18,480
Discount for customer = 10 / 100 × 24,000
= ₹ 2,400
Cost price for customer = 24,000 – 2,400
= ₹ 21,600
VAT on ₹ 21,600 =
10 / 100 × 21,600
= ₹ 2,160
Total amount paid by customer
= 2,160 + 21,600
= ₹ 23,760
(ii) VAT to be paid by shopkeeper
= 2160 – 1680
= ₹ 4,80
Question: 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 paid by the shopkeeper
Answer: Marked price = ₹ 1,600
Discount = 20%
Discount = 20 / 100 × 1,600
= ₹ 320
= 1,600 – 320
= ₹ 1,280
(i) Price, at which camera can be bought cost price
of camera = Marked price
Sales tax = MP X ST × 100
= 1600 X 6 / 100
= ₹ 96
Total amount paid = 1,600 + 96
= ₹ 1,696
(ii) VAT paid by shopkeeper
= 1 600 X 6 / 100
Sales Tax 100 × 1280
= 6 / 100 × 1280
= 384 / 5
= ₹ 76·80
VAT paid by shopkeeper
= ₹ 96 – 76·80
= ₹ 19·20
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