Rohit purchased a pair of shoes for Rs. 882 inclusive of VAT. If the original cost be Rs. 840, find the rate of VAT.

Question

Philoid · Accepted Answer

Selling Price = Rs.882

Original Price = Rs.840

VAT Amount = 882- 840

= Rs.42

VAT % = (VAT Amount/Original Price) × 100

= (42/840) × 100

= 5%

So, Rate of VAT is 5%