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A manufacturer sells a washing machine to a wholesaler for Rs 15,000. The wholesaler sells it to a trader at a profit of Rs 1,200 and the trader in turn sells it to a consumer at a profit of Rs 1,800. 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 [4 MARKS] |
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Answer» A manufacturer sells a washing machine to a wholesaler for Rs 15,000. The wholesaler sells it to a trader at a profit of Rs 1,200 and the trader in turn sells it to a consumer at a profit of Rs 1,800. 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 [4 MARKS] |
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