Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing

Dumb_as_a_Duck

  • 4 years ago

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

  • This Question is Closed
  1. hoblos
    • 4 years ago
    Best Response
    You've already chosen the best response.
    Medals 2

    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

  2. Dumb_as_a_Duck
    • 4 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    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.

  3. Dumb_as_a_Duck
    • 4 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    or so i thought.

  4. Not the answer you are looking for?
    Search for more explanations.

    • Attachments:

Ask your own question

Sign Up
Find more explanations on OpenStudy
Privacy Policy