Sales Tax / Value added Tax
It is charged by the government on the sale of an item. It is collected by the shopkeeper from the customer and given to the Government.
VAT: Valued Added Tax.
The prices include the tax is known as VAT.
The adjacent bill shows that 2% VAT is collected from the customer and added to the bill amount.
HOTEL SARAVANA BHAVAN
CHENNAI - 78
TIN # 33741460553 sT # AABFH3049MST001
B.No: 1.151179 Dt: 14-09-08 Ti: 8:08;50 Bck:37
|#. CD Name VAT % RATE QTY AMT Rs.
1 1405 Mini Tiffin (P) 2.00 51.00 1.00 51.00
2 31 Plain Dosai 2.00 21.50 1.00 21.50
SUBTOTAL 2.00 72.50
GRASS TOTAL 74.00
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(Finding Sales Tax) The cost of a pair of shoes at a shop was Rs. 1450. The sales tax charged was 8%. Find the bill amount.
On Rs. 100, tax paid was Rs. 8
On Rs. 1450, the tax paid would be
Bill amount = cost of item + sales tax.
= Rs. 1450 + Rs. 116 = Rs. 1566
(Value Added Tax). Reena bought a washing machine for Rs. 9800 including a tax of 10%. Find the price of washing machine before VAT was added.
Including VAT, price of washing machine = Rs. 9800
10% of 9800 = Rs. 980
Price, Before VAT added = 9800 - 980
= Rs. 8820