ICSE Class 10 Maths Chapter 02 Sales Tax Value Added Tax VAT

Chapter 2

Sales Tax And Value Added Tax (VAT)

Points To Remember

1. Calculation of Sales Tax or Trade Tax:

(i) When no discount is given, then marked or list price of an article becomes the sales price and sales tax is calculated on it.

(ii) When discount or rebate is given, then first calculate the discount and find the selling price after deducting the discount from marked price and then calculate the sales tax on this selling price.

Sales tax = Rate of sales tax × Marked price.

Sales price = Marked price + Sales tax.

Exercise 2-A

Q. 1. The marked price of a watch is Rs. 1375. If sales tax is charged at the rate of 4%, find the total cost of the watch.

Sol. Marked price of the watch = Rs. 1375

Rate of sales tax = 4%

Total sales tax = Rs. 1375 × \(\frac{4}{100}\) = Rs. 55

Total cost price = Rs. 1375 + Rs. 55 = Rs. 1430 Ans.

Q. 2. The list price of a music system is Rs. 16925. If sales-tax is charged on it at the rate of 6%. Calculate the amount to be paid by a customer for purchasing the music system.

Sol. List price of the music system = Rs. 16925

Rate of sales tax = 6%

Total sales-tax = 16925 × \(\frac{6}{100}\) = Rs. 1015-50

Hence, cost price = Rs. 16925 + Rs. 1015-50 = Rs. 17940-50 Ans.

Q. 3. The owner of a furnishing gallery purchased the following goods from a wholesale dealer:

If the sales-tax is charged at 8%, find the total amount paid by him.

Sol. Price of 6 pillows = 6 × 188 = Rs. 1128

Price of 25 pairs pillow covers = 43 × 25 = Rs. 1075

Price of 14 Bed-sheets = 216 × 14 = Rs. 3024

Price of 205 metres lace = 6.20 × 205 = Rs. 1271

Price of 48 dozen curtain hooks = 14 × 48 = Rs. 672

Total Amount = Rs. (1128 + 1075 + 3024 + 1271 + 672) = Rs. 7170

Rate of sales-tax = 8%

Total sales-tax = 7170 × \(\frac{8}{100}\) = Rs. 573-60

Total amount to be paid = Rs. 7170 + Rs. 573-60 = Rs. 7743-60 Ans.

Q. 4. Sameer bought the following items from a departmental store:

(i) Medicines worth of Rs. 456;

(ii) Cosmetics worth of Rs. 325;

(iii) Stationery worth of Rs. 240;

(iv) Bakery products worth of Rs. 170.

If the sales tax is charged at the rate of 5% on medicines; 8% on cosmetics; 6% on stationery and 4% on bakery products, find the total amount paid by Sameer.

Sol. Price of medicines = Rs. 456

Price of cosmetics = Rs. 325

Price of stationery = Rs. 240

Price of Bakery products = Rs. 170

Sales tax on medicines = 5%

Sales tax on cosmetics = 8%

Sales tax on stationery = 6%

and sales tax on bakery products = 4%

Sales tax on medicine = Rs. 456 × \(\frac{5}{100}\) = Rs. 22-80

Sales tax on cosmetics = Rs. 325 × \(\frac{8}{100}\) = Rs. 26-00

Sales tax on stationery = Rs. 240 × \(\frac{6}{100}\) = Rs. 14-40

Sales tax on bakery products = Rs. 170 × \(\frac{4}{100}\) = Rs. 6-80

Total marked price = Rs. 456 + Rs. 325 + Rs. 240 + Rs. 170 = Rs. 1191

Total sales tax = Rs. 22-80 + 26-00 + Rs. 14-40 + Rs. 6-80 = Rs. 70-00

Total cost price of the bill = Rs. 1191 + Rs. 70 = Rs. 1261 Ans.

Q. 5. Roshan buys a moped with a marked price of Rs. 12500. He gets a rebate of 10% on it. After getting the rebate, sales tax is charged at the rate of 6%. Find the amount he will to pay for the moped.

Sol. Marked price of the moped = Rs. 12500

Rebate = 10%

Net price after rebate = Rs. \(\frac{12500(100-10)}{100}\) = Rs. 12500 × \(\frac{90}{100}\) = Rs. 11250

Rate of sales tax = 6%

Total sales tax = Rs. 11250 × \(\frac{6}{100}\) = Rs. 675

Cost price of the moped = Rs. 11250 + Rs. 675 = Rs. 11925 Ans.

Q. 6. Anurag buys goods worth of Rs. 5500. He gets a rebate of 5% on it. If sales tax is charged at the rate of 8%, find the amount he will have to pay for the goods.

Sol. List price of the goods = Rs. 5500

Rate of rebate = 5%

Net price after rebate = Rs. \(\frac{5500(100-5)}{100}\) = Rs. 5500 × \(\frac{95}{100}\) = Rs. 5225

Rate of sales tax = 8%

Total sales tax = Rs. 5225 × \(\frac{8}{100}\) = Rs. 418

Cost price of the goods = Rs. 5225 + Rs. 418 = Rs. 5643 Ans.

Q. 7. Prem bought a suitcase worth Rs. 2800. If he got a discount of 7\(\frac{1}{2}\)% on it and paid sales-tax at the rate of 7\(\frac{1}{2}\)%, find the final amount he paid for the suitcase.

Sol. List price of a suitcase = Rs. 2800

Discount = 7\(\frac{1}{2}\)% of Rs. 2800 = Rs. \(\begin{bmatrix}2800 \times \frac{15}{2 \times 100}\end{bmatrix}\) = Rs. 210

Cost of the suitcase after discount = Rs. (2800 - 210) = Rs. 2590

Sales-tax = 7\(\frac{1}{2}\)% = \(\frac{15}{2}\)% of Rs. 2590 = Rs. \(\begin{bmatrix}2590 \times \frac{15}{2 \times 100}\end{bmatrix}\) = Rs. 194-25

Final amount to be paid for the suitcase = Rs. (2590 + 194-25) = Rs. 2784-25 Ans.

Q. 8. The catalogue price of a computer set is Rs. 45000. The shopkeeper gives a discount of 7% on the listed price. He gives a further off-season discount of 4% on the balance. But sales tax at 8% is charged on the balance amount. Find:

(i) the amount of sales tax a customer has to pay.

(ii) the final price he has to pay for the computer set. (2005)

Sol. Catalogue price of the computer set = Rs. 45000

Rate of first discount = 7%

Amount of discount = Rs. 45000 × \(\frac{7}{100}\) = Rs. 3150

Amount after discount, = Rs. 45000 - Rs. 3150 = Rs. 41850

Rate of off-season discount = 4%

Amount of second discount, = Rs. 41850 × \(\frac{4}{100}\) = Rs. 1674

Net price of computer = Rs. 41850 - Rs. 1674 = Rs. 40176

Rate of sale tax charged = 8%

(i) Amount of sale tax = Rs. 40176 × \(\frac{8}{100}\) = Rs. 3214-08

(ii) Final price of the computer = Rs. 40176 + Rs. 3214-08 = Rs. 43390-08 Ans.

Q. 9. The sales-price of a sofa-set is Rs. 17985, inclusive of sales tax. If the rate of sales-tax is 9% of the list price, find the list-price of the sofa-set.

Sol. Sales price of sofa-set = Rs. 17985

Rate of sales-tax = 9%

Let the list price = Rs. 100

Sales tax = 9%

Sales price = Rs. 100 + 9 = Rs. 109

If sales price is Rs. 109, then list price = Rs. 100

If sales price is Rs. 17985, then list price = Rs. \(\frac{100}{109}\) × 17985 = Rs. 16500 Ans.

Teacher's Note

Sales tax is similar to GST (Goods and Services Tax) that we see in real shopping, where the final price includes this additional charge beyond the marked price.

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