Practice the questions given in the worksheet on sales tax and value-added tax.
1. (i) A shopkeeper buys an article from the wholesaler at $ 72 and pays sales tax at the rate of 10%. The shopkeeper fixes the price of the article at $ 90 and charge sales tax at 10% from the consumer. Apply VAT system of sales tax to calculate the following.
(a) Find the input tax and output tax for the shopkeeper.
(b) Find the VAT that the shopkeeper pays to the government.
(c) Find the profit percent made by the shopkeeper.
(ii) A shopkeeper buys 10 phials of a medicine for $ 560 and pays sales tax at the prescribed rate of 4%. He sells 6 phials at $ 65 per phial and charges sales tax from the buyer at the prescribed rate.
(a) Find the input tax and output tax for the shopkeeper against the sale of 6 phials.
(b) Find the VAT payable by the shopkeeper.
2. (i) A retailer charges sales tax on an article at the prescribed rate of 6% from the buyer. The listed price of the article is $450. If the retailer has to pay a VAT of $ 2.40, what was the sum the retailer paid to the wholesaler?
(ii) A man buys an article whose listed price is $380 from a shopkeeper and pays a sales tax at the rate of 10%. The shopkeeper pays a VAT of $3. Find the input tax and the price inclusive of tax at which the shopkeeper bought the article from the wholesaler.
3. (i) A manufacturer lists the price of his goods at $ 2400 per article. The wholesaler gets a discount of 25% on the goods from the manufacturer. The retailers are allowed a discount of 15% on the listed price by the wholesaler. The prescribed rate of sales tax at all stages is 8%. A consumer buys an article from the retailer at the listed price. Find the VATs paid by the wholesaler and the retailer.
(ii) A manufacturer fixed the price of an article at $250. The rate of sales tax on the article is 12%. A wholesaler bought it and sold the same to a shopkeeper at a profit of 10%. The shopkeeper sold the article to a consumer at a profit of 15%.
(a) Find the sum of money the consumer paid to buy the article.
(b) Find the VAT paid by the wholesaler and the retailer together.
4. A shopkeeper buys a camera at a discount of 20% from the wholesale, the printed price of the camera being $ 1600 and the rate of sales tax is 6%. The shopkeeper sells it to a buyer at the printed price and charges tax at the same rate.
(i) Find the price at which the camera can be bought.
(ii) Find the VAT paid by the shopkeeper.
Answers for the worksheet on printed price rate of sales tax and selling price are given below.
1. (i) (a) input tax = $7.20 and output tax = $9
(ii) (a) input tax = $13.44 and output tax = $15.60
2. (i) $434.60
(ii) $35, $385
3. (i) $19.20, $28.80
(ii) (a) $287.50
4. (i) $1696