A manufacture of furniture sells a sofa set to a retailer for Rs 23000.the retailer, in turn, sells the sofa set to a customer for Rs 29000.find the VAT rate as percent,if the retailer pays Rs 520 as VAT.
To find the VAT rate as a percentage, we need to calculate the amount of VAT paid by the retailer as a percentage of the selling price to the customer.
First, let's find the selling price to the customer. We know that the retailer sells the sofa set for Rs 29,000. Therefore, the selling price to the customer is Rs 29,000.
Next, we need to find the VAT rate as a percentage. To do this, we can use the formula:
VAT rate (%) = (VAT paid / Selling Price) * 100
Given that the retailer pays Rs 520 as VAT and the selling price to the customer is Rs 29,000, we can substitute these values into the formula:
VAT rate (%) = (520 / 29,000) * 100
Calculating this:
VAT rate (%) = (0.0179) * 100
VAT rate (%) = 1.79%
Therefore, the VAT rate is 1.79%.