Class 8 Maths Comparing Quantities Sales Tax/Value Added Tax

Sales Tax/Value Added Tax

ST means Sales Tax, which we pay when we buy items. The sales Tax is charged by the Government on

the sale of an item.

Sales Tax = Tax % of Billing Amount

Now a days, the prices include the tax known as Value Added Tax (VAT).

Problem: I purchased a hair-dryer for ₹ 5,400 including 8% VAT. Find the price before VAT was added.

Class_8_Maths_Comparing_Quantities__Example_3

Solution:

C.P. = ₹ 5,400 and Rate of VAT = 8%

Let C.P. without VAT is ₹100, then price including VAT = 100 + 8 = ₹ 108

When price including VAT is ₹ 108, then original price = ₹ 100

When price including VAT is ₹ 1, then original price = 100/108

When price including VAT is ₹ 5400,

then original price = (100/108) * 5400

                                  = 100 * 50

                                  = ₹ 5000

Share these Notes with your friends  

< Prev Next >

You can check our 5-step learning process


.