posted by Anonymous .
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
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
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.