Sunday

December 21, 2014

December 21, 2014

Posted by **Anonymous** on Sunday, February 3, 2013 at 2:08am.

per article. The wholesaler ge6ts a discount of 25%

on the goods from the manufacturer.

The retailers are allowed a discount of 15% on

the list price by the wholesaler. The prescribe rate of sale tax

at all stages is 8%. A customer buys an article from the reatailer

at the listed price. Find the Value added tax paid by the retailer & wholesaler

- maths-urgently needed -
**Reiny**, Sunday, February 3, 2013 at 8:44amI noticed that you posted this question several times and nobody has answered it. That is probably due to the fact that we are not familiar with VAT.

I will give it a shot.

list price by manufacturer = Rs 240

wholesaler gets 25% discount, so he pays

Rs 180

question: does VAT get added here ?

if so, there would be tax paid on tax already added at the end.

without VAT added at this stage, the retailer discounts the RS 180 by 15% , thus list price by retailer is .85(180) = RS 153

This makes no sense to me.

Where does the wholesaler make his profit?

Isn't he taking a loss ???

I think this question needs more clarification.

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