Here's the question you clicked on:
Dumb_as_a_Duck
A manufacturer marks an article for Rs. 5000. He sells it to a wholesaler at a discount of 25% on the marked price and the wholesaler sells it to the retailer at a discount of 15%. The retailer sells it 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
i) the wholesaler get a 25% discount so he pays to the manufacturer 75% of the Rs 5000 75% of 5000 is 3750 the VAT is 8% 8% of 3750 is Rs 300 ii) the retailer get a 15% discount so he pays to the manufacturer 85% of 5000 85% of 5000 is 4250 the VAT is 8% 8% of 4250 is Rs 340
No offence, but are you sure that's right? you either calculate VAT on the profit or as the difference between tax recovered and tax paid.
or so i thought.