## Selina Concise Mathematics Class 10 ICSE Solutions Chapter 1 Value Added Tax Ex 1B

These Solutions are part of Selina Concise Mathematics Class 10 ICSE Solutions. Here we have given Selina Concise Mathematics Class 10 ICSE Solutions Chapter 1 Value Added Tax Ex 1B.

**Other Exercises**

- Selina Concise Mathematics Class 10 ICSE Solutions Chapter 1 Value Added Tax Ex 1A
- Selina Concise Mathematics Class 10 ICSE Solutions Chapter 1 Value Added Tax Ex 1B
- Selina Concise Mathematics Class 10 ICSE Solutions Chapter 1 Value Added Tax Ex 1C

**[In this exercise, all the prices are excluding tax/VAT unless specified].**

**Question 1.**

**A shopkeeper purchases an article for ₹ 6,200 and sells it to a customer for ₹ 8,500. If the sale tax (under VAT) is 8%; find the VAT paid by the shopkeeper.**

**Solution:**

C.P. of article = ₹ 6200

Rate of VAT = 8%

Amount of VAT paid by the shopkeeper = ₹ 680 – ₹ 496 = ₹ 184

**Question 2.**

**A purchases an article for ₹ 3,600 and sells it to B for ₹ 4,800. B, in turn, sells the article to C for ₹ 5,500. If the sale tax (under VAT) is 10%, find the VAT levied on A and B.**

**Solution:**

C.P. of an article for A = ₹ 3600

C.P. of the article for B = ₹ 4800

and C.P. for C = ₹ 5500

Rate of VAT in each case = 10%

Now VAT levied on A = ₹ 480 – ₹ 360 = ₹ 120

and VAT levied on B = ₹ 550 – ₹ 480 = ₹ 70

**Question 3.**

**A manufacturer buys raw material for ₹ 60,000 and pays 4% tax. He sells the ready stock for ₹ 92,000 and charges 12.5% tax. Find the VAT paid by the manufacturer.**

**Solution:**

C.P. of raw material = ₹ 60000

Rate of tax = 4%

VAT paid by the manufacturer = ₹ 11500 – ₹ 2400 = ₹ 9100

**Question 4.**

**The cost of an article is ₹ 6,000 to a distributor. He sells it to a trader for ₹ 7,500 and the trader sells it to a customer for ₹ 8,000. If the VAT rate is 12.5% ; find the VAT paid by the :**

**(i) distributor**

**(ii) trader.**

**Solution:**

Cost price of an article to a distributor = ₹ 6000

and selling price of distributor = ₹ 7500

and selling price of trader = ₹ 8000

Rate of VAT = 12.5% = \(\frac { 25 }{ 2 }\) %

Now, VAT for two distributor

(i) Now VAT paid by distributor = ₹ 937.50 – ₹ 750 = ₹ 187.50

(ii) and VAT paid by trader = ₹ 1000 – ₹ 937.50 = ₹ 62.50

**Question 5.**

**The printed price of an article is ₹ 2,500. A wholesaler sells it to a retailer at 20% discount and charges sales-tax at the rate of 10%. Now the retailer, in turn, sells the article to a customer at its list price and charges the sales-tax at the same rate. Find :**

**(i) the amount that retailer pays to the wholesaler.**

**(ii) the VAT paid by the retailer.**

**Solution:**

M.P. of an article = ₹ 2500

Rebate = 20%

**Question 6.**

**A retailer buys an article for ₹ 800 and pays the sales-tax at the rate of 8%. The retailer sells the same article to a customer for ₹ 1,000 and charges sales- tax at the same rate. Find :**

**(i) the price paid by a customer to buy this article.**

**(ii) the amount of VAT paid by the retailer.**

**Solution:**

C.P. of an article for retailer = ₹ 800

Rate of S.T. = 8%

(i) Cost price of the customer = ₹ 1000 + ₹ 80 = ₹ 1080

(ii) VAT paid by the retailer = ₹ 80 – ₹ 64 = ₹ 16

**Question 7.**

**A shopkeeper buys 15 identical articles for ₹ 840 and pays sales-tax at the rate of 8%. He sells 6 of these articles at ₹ 65 each and charges sales-tax at the same rate. Calculate the VAT paid by the shopkeeper against the sale of these six articles.**

**Solution:**

C.P. of 15 articles = ₹ 840

VAT paid by the retailer = ₹ 31.20 – ₹ 26.88 = ₹ 4.32

**Question 8.**

**The marked price of an article is ₹ 900 and the rate of sales-tax on it is 6%. If on selling the article at its marked price, a retailer has to pay VAT = ₹ 4.80; find the money paid by him (including sales-tax) for purchasing this article.**

**Solution:**

M.P. an article = ₹ 900

Rate of S.T. = 6%

Amount paid including S.T. = ₹ 820 + ₹ 49.20 = ₹ 869.20

**Question 9.**

**A manufacturer marks an article at ₹ 5,000. He sells this article 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 its marked price. If the retailer sells the article without any discount and at each stage the sales-tax is 8%, calculate the amount of VAT paid by :**

**(i) the wholesaler.**

**(ii) the retailer.**

**Solution:**

M.P. of an article = ₹ 5000

Rate of discount = 25%

S.R of the manufacturer or C.P of

Now VAT paid by

(i) The wholesaler = ₹ 340 – ₹ 300 = ₹ 40

(ii) Retailer = ₹ 400 – ₹ 340 = ₹ 60

**Question 10.**

**A shopkeeper buys an article at a discount of 30% and pays sales-tax at the rate of 8%. The shopkeeper, in turn, sells the article to a customer at the printed price and charges sales tax at the same rate. If the printed price of the article is ₹ 2,500; find :**

**(i) the price paid by the shopkeeper.**

**(ii) the price paid by the customer.**

**(iii) The VAT (Value Added Tax) paid by the shopkeeper.**

**Solution:**

Printed price of an article = ₹ 2500

Discount = 30%

C.P of the article for shopkeeper

(i) Price paid by the shopkeeper = ₹ 1750 + ₹ 140 = ₹ 1890

(ii) Price paid by the customer = ₹ 2500 + ₹ 200 = ₹ 2700

(iii) VAT paid by the shopkeeper = ₹ 200 – ₹ 140 = ₹ 60

**Question 11.**

**A shopkeeper sells an article at its list price (₹ 3,000) and charges sales-tax at the rate of 12%. If the VAT paid by the shopkeeper is ₹ 72, at what price did the shopkeeper buy the article inclusive of sales-tax ?**

**Solution:**

S.P. or list price of an article = ₹ 3000

Rate of sales tax = 12%

C.P paid by the shopkeeper including S.T. = ₹ 2400 + ₹ 288 = ₹ 2688

**Question 12.**

**A manufacturer marks an article for ₹ 10,000. He sells it to a wholesaler at 40% discount. The wholesaler sells this article to a retailer at 20% discount on the marked price of the article. If retailer sells the article to a customer at 10% discount and the rate of sales-tax is 12% at each stage; find the amount of VAT paid by the :**

**(i) wholesaler**

**(ii) retailer**

**Solution:**

Marked price of an article = ₹ 10000

Rate of discount = 40%

C.P of the wholesaler

Now

(i) Vat paid by wholesaler = ₹ 960 – ₹ 720 = ₹ 240

(ii) Vat paid by retailer = ₹ 1080 – ₹ 960 = ₹ 120

Hope given Selina Concise Mathematics Class 10 ICSE Solutions Chapter 1 Value Added Tax Ex 1B are helpful to complete your math homework.

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