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March 29, 2017

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A manufacturer lists the price of the goods at Rs.240
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 - ,

    I 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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