Manoj buys a leather coat costs RS.900 at Rs.990 after paying the VAT. Calculate the rate of the VAT of the coat?
90/900 = 0.1 = 10%
To calculate the rate of VAT, we need to find the difference between the final price (990 Rs) and the original price (900 Rs).
VAT = Final price - Original price
VAT = 990 Rs - 900 Rs
VAT = 90 Rs
Now, we can calculate the rate of VAT by dividing the VAT amount by the original price and multiplying by 100.
Rate of VAT = (VAT / Original price) * 100
Rate of VAT = (90 Rs / 900 Rs) * 100
Rate of VAT = 0.1 * 100
Rate of VAT = 10%
Therefore, the rate of VAT on the coat is 10%.