Frank Solutions for Chapter 2 Sales and Service Tax Class 10 ICSE Mathematics
Exercise 2.1
1. The marked price and the rate of sales tax of different items are given below. Calculate the amount to be paid for each of them:
Answer
(i) From the table it is given that,
Marked price = ₹ 1,750, Rate of sales tax = 8.5%
We know that, Sales tax = (marked price × rate of sale tax)/100
= (1,750 × 8.5)/100
= ₹ 148.75
Then, Amount = marked price + sales tax
= ₹ 1,750 + ₹ 148.75
= ₹ 1,898.75
(ii) From the table it is given that,
Marked price = ₹ 14,840, Rate of sales tax = 7.5%
We know that, Sales tax = (marked price × rate of sale tax)/100
= (14,840 × 7.5)/100
= ₹ 1,113
Then, Amount = marked price + sales tax
= ₹ 14,840 + ₹ 1,113
= ₹ 15,953
(iii) From the table it is given that,
Marked price = ₹ 32,725, Rate of sales tax = 12%
We know that, Sales tax = (marked price × rate of sale tax)/100
= (32,725 × 12)/100
= ₹ 3,927
Then, Amount = marked price + sales tax
= ₹ 32,725 + ₹ 3,927
= ₹ 36,652
(iv) From the table it is given that,
Marked price = ₹ 16,000, Rate of sales tax = 11.5%
We know that, Sales tax = (marked price × rate of sale tax)/100
= (16,000 × 11.5)/100
= ₹ 1,840
Then, Amount = marked price + sales tax
= ₹ 16,000 + ₹ 1,840
= ₹ 17,84
(v) From the table it is given that,
Marked price = ₹ 28,975, Rate of sales tax = 16%
We know that, Sales tax = (marked price × rate of sale tax)/100
= (28,975 × 16)/100
= ₹ 4,636
Then, Amount = marked price + sales tax
= ₹ 28,975 + ₹ 4,636
= ₹ 33,611
(vi) From the table it is given that,
Marked price = ₹ 1,260, Rate of sales tax = 10%
We know that, Sales tax = (marked price × rate of sale tax)/100
= (1,260 × 10)/100
= ₹ 126
Then, Amount = marked price + sales tax
= ₹ 1,260 + ₹ 126
= ₹ 1,385
(vii) From the table it is given that,
Marked price = ₹ 4,500, Rate of sales tax = 9%
We know that, Sales tax = (marked price × rate of sale tax)/100
= (4,500 × 9)/100
= ₹ 405
Then, Amount = marked price + sales tax
= ₹ 4,500 + ₹ 405
= ₹ 4,905
(viii) From the table it is given that,
Marked price = ₹ 21,650, Rate of sales tax = 14%
We know that, Sales tax = (marked price × rate of sale tax)/100
= (21,650 × 14)/100
= ₹ 3,031
Then, Amount = marked price + sales tax
= ₹ 21,650 + ₹ 3,031
= ₹ 24,681
2. Find the rate of sales tax of the following items whose marked price and sales tax are given below:
Answer
(i) From the table it is given that,
Marked price = ₹ 2,740.00, Sales tax = ₹ 137
We know that, Rate of sales tax = (100 × Sale tax)/marked price
= (100 × 137)/2,740.00
= 5%
Therefore, rate of sales tax is 5%.
(ii) From the table it is given that,
Marked price = ₹ 16,400, Sales tax = ₹ 2,050
We know that, Rate of sales tax = (100 × Sale tax)/marked price
= (100 × 2,050)/16,400
= 12%
Therefore, rate of sales tax is 12%.
(iii) From the table it is given that,
Marked price = ₹ 8,325, Sales tax = ₹ 1,332
We know that, Rate of sales tax = (100 × Sale tax)/marked price
= (100 × 1,332)/8,325
= 16%
Therefore, rate of sales tax is 16%.
(iv) From the table it is given that,
Marked price = ₹ 3,500, Sales tax = ₹ 367.50
We know that, Rate of sales tax = (100 × Sale tax)/marked price
= (100 × 367.50)/3,500
= 10.5%
Therefore, rate of sales tax is 10.5%.
(v) From the table it is given that,
Marked price = ₹ 27,916, Sales tax = ₹ 4,047.82
We know that, Rate of sales tax = (100 × Sale tax)/marked price
= (100 × 4,047.82)/27,916
= 14.5%
Therefore, rate of sales tax is 14.5%.
3. Find the amount paid by Rajesh to buy a leather bag whose list price is ₹ 4,850 and the rate of sales tax is 12%.
Answer
From the question it is given that,
List price of the leather bag = ₹ 4,850
Then, rate of sales tax = 12%
We know that, Sales tax = (list price × rate of sale tax)/100
= (4,850 × 12)/100
= ₹ 582
Then,
The amount paid by Rajesh to buy Leather bag = List price + Sales tax
= ₹ 4,850 + ₹ 582
= ₹ 5,432
4. A watch is listed at ₹ 15,500 and the sales tax on it is 18%. Find the selling price of the watch.
Answer
From the question it is given that,
Rate of sales tax on watch = 18 %
Listed price of watch = ₹ 15,500
We know that, Sales tax = (list price × rate of sale tax)/100
= (15,500 × 18)/100
= ₹ 2,790
Then, Selling price of watch = ₹ (15,500 + 2,790)
= ₹ 18,290
5. Find the selling price of an electronic washing machine priced at ₹ 24,600 and carrying a sales tax of 15%.
Answer
From the question it is given that,
List price of electronic washing machine = ₹ 24,600
Rate of sales tax = 15%
We know that, Sales tax = (list price × rate of sale tax)/100
= (24,600 × 15)/100
= ₹ 3,690
Then, Selling price of watch = ₹ (24,600 + 3,690)
= ₹ 28,290
6. The list price of a chair is ₹ 7,500 and the sales tax on it is ₹ 1,125. Find the rate of sales tax.
Answer
From the question it is given that,
The list price of chair = ₹ 7,500
Sales tax = ₹ 1,125
We know that, Rate of sales tax = (100 × Sale tax)/marked price
= (100 × 1,125)/7,500
= 15%
Therefore, rate of sales tax is 15%.
7. A samsung plasma T.V. is priced in the showroom at ₹ 68,000. The sales tax on it is ₹ 14,960. Find the rate of sales tax.
Answer
From the question it is give that,
Price of samsung plasma T.V. in the showroom = ₹ 68,000
Sales tax = ₹ 14,960
We know that, Rate of sales tax = (100 × Sale tax)/marked price
= (100 × 14,960)/68,000
= 22%
Therefore, rate of sales tax is 22%.
8. The marked price of an article is ₹ 17,840 and the sales tax on it is ₹ 2,230. Find the rate of sales tax.
Answer
From the question it is given that,
The marked price of an article is ₹ 17,840
The sales tax = ₹ 2,230
We know that, Rate of sales tax = (100 × Sale tax)/marked price
= (100 × 2,230)/17,840
= 12.5%
Therefore, rate of sales tax is 12.5%.
9. The total cost of a refrigerator including sales tax is ₹ 30,940. If the rate of sales tax 12 %, find the basic price of the refrigerator.
Answer
From the question it is given that,
The total cost of a refrigerator including sales tax is ₹ 30,940
The rate of sales tax 12 %
Let us assume the basic price of refrigerator be y.
So, total price of the refrigerator = ₹ (y + ((y × 12)/100))
= ₹ 112y/100
Then, 112y/100 = ₹ 30,940
By cross multiplication we get,
112y = 30,940 × 100
⇒ 112y = 30,94,000
⇒ y = 30,94,000/112
⇒ y = ₹ 27,625
Therefore, the basic price of refrigerator is ₹ 27,625.
10. The price of a T.V. set inclusive of sales tax at the rate of 14% is ₹ 30,552. Find the basic price of the T.V. set.
Answer
From the question it is given that,
The total cost of a T.V. set including sales tax is ₹ 30,552
The rate of sales tax 14 %
Let us assume the basic price of T.V. set be y.
So, total price of the T.V. set = ₹ y + (y×14)/100
= ₹ 114y/100
Then, 114y/100 = ₹ 30,552
By cross multiplication we get,
114y = 30,552 × 100
⇒ 114y = 30,55,200
⇒ y = 30,55,200/114
⇒ y = ₹ 26,800
Therefore, the basic price of T.V. set is ₹ 27,625
11. The price of a pair of Nike shoes including sales tax at the rate of 7% is ₹ 1,572.90. Find the basic price of the shoes.
Answer
From the question it is given that,
The total cost of a Nike shoes including sales tax is ₹ 1,572.90
The rate of sales tax 7 %
Let us assume the basic price of Nike shoes be y.
So, total price of the Shoes = ₹ (y + ((y × 7)/100))
= ₹ 107y/100
Then, 107y/100 = ₹ 1,572.90
By cross multiplication we get,
107y = 1,572.90 × 100
⇒ 107y = 1,57,290
⇒ y = 1,57,290/107
⇒ y = ₹ 1,470
Therefore, the basic price of shoes is ₹ 1,470.
12. The price of a scooter including sales tax at the rate of 11% is ₹ 37,462.50. Find the basic price of the scooter.
Answer
From the question it is given that,
The total cost of a scooter including sales tax is ₹ 37,462.50
The rate of sales tax 11 %
Let us assume the basic price of scooter be y.
So, total price of the scooter = ₹ (y + ((y × 11)/100))
= ₹ 111y/100
Then, 111y/100 = ₹ 37,462.50
By cross multiplication we get,
111y = 37,462.50 × 100
⇒ 111y = 37,46,250
⇒ y = 37,46,250/111
⇒ y = ₹ 33,750
Therefore, the basic price of scooter is ₹ 33,750.
13. Laxman went to a shop to buy a fan costing ₹ 750. The rate of sales tax is 6%. He requests the shopkeeper to reduce the price to such an extent that he has to pay only ₹ 742 including the sales tax. Find the reduction needed in the price of the fan.
Answer
From the question it is given that,
The cost of fan is ₹ 750
The rate of sales tax 6 %
Let us assume the reduced price of fan be y.
So, total amount of the fan = y + 6% of y
= 1y + (6/100)y
= 106y/100
But, the total amount of the fan to be paid = ₹ 742
Then, reduced price = 106y/100 = ₹ 742
y = (742 × 100)/106
⇒ y = ₹ 74,200/106
⇒ y = ₹ 700
Therefore, reduction needed = ₹ 750 – ₹ 700 = ₹ 50
14. Nirmala went to a shop to buy a titan watch. The cost of the watch was ₹ 3,250. The rate of sales tax is 12%. The shopkeeper gave her a discount such that she got the watch for only ₹ 3,248. Find the discount given by the shopkeeper.
Answer
From the question it is given that,
The cost of titan watch is ₹ 3,250
The rate of sales tax 12 %
Let us assume the reduced price of watch be y.
So, total amount of the fan = y + 12 % of y
= 1y + (12/100)y
= 112y/100
But, the total amount of the watch to be paid = ₹ 3,248
Then, reduced price = 112y/100 = ₹ 3,248
y = (3,248 × 100)/112
⇒ y = ₹ 3,24,800/112
⇒ y = ₹ 2,900
Therefore, reduction needed = ₹ 3,250 – ₹ 2,900 = ₹ 350
15. Anurag went to a shop to buy a leather coat coasting ₹ 2,654. The sales tax on it is 9%. He requested the shopkeeper to reduce the price to such an extent that he has to pay only ₹ 2,616 including the sales tax. Find the reduction given by the shopkeeper.
Answer
From the question it is given that,
The cost of titan watch is ₹ 2,654
The rate of sales tax 9 %
Let us assume the reduced price of watch be y.
So, total amount of the fan = y + 9 % of y
= 1y + (9/100)y
= 109y/100
But, the total amount of the watch to be paid = ₹ 2,616
Then, reduced price = 109y/100 = ₹ 2,616
y = (2,616 × 100)/109
⇒ y = ₹ 2,61,600/109
⇒ y = ₹ 2,400
Therefore, reduction needed = ₹ 2,654 – ₹ 2,400 = ₹ 254
16. Shalini bought an electric washing machine for Rs 24,456.50 which included 15% rebate on the basic price and then 7% sales tax on the remaining price. Find the basic price of the washing machine.
Answer
Let the basic price be x.
17. Anand brought an Almirah for Rs 5,135.70 which included 15% rebate on the basic price and then 6% sales tax on the remaining price. Find the basic price of the the alimirah.
Answer
Let the basic price be x
18. Alex bought a game boy for Rs 4,784 which included a rebate of 20% and a sales tax of 15%. Find the basic price of game boy.
Answer
Let the basic price be x
19. Mr. Sharma purchased a motorcycle for Rs 22,982.40 which included two successive discounts of 20% and 5% respectively on the basic price and then 8% sales tax on the remaining price. Find the basic price of motorcycle.
Answer
Let the basic price be x
20. A computer was available for Rs 27,216 which included two successive discounts of 20% and 10% on the basic price and a sales tax of 8% on the remaining price. Find the basic price of the computer.
Answer
Let the basic price be x
21. A refrigerator was available for Rs 36,842.96, which included three successive discounts of 20%, 15% and 10% on the list price and a sales tax of 7.5% on the remainder. Find the list price of the refrigerator.
Answer
Let the list price be x
22. A Golf set was available for Rs 36,408.96, which included three successive discounts of 16%, 14% and 10% on the marked price and a sales tax of 12%. Find the marked price of the golf set.
Answer
Let the list price be x
23. An increase of 4% on the sales tax of an article led to an increase of Rs 480 on the selling price of the article. Find the marked price of the article.
Answer
The increase in price of the article is only because of increase in amount of salex tax.
Let marked price be x
24. Rupesh wanted to buy an air-conditioner. He bought it when the sales tax on it has just increased by 6%. As a result Rupesh had to pay Rs 1,920 more. Find the marked price of the air-conditioner.
Answer
The increase in price of the air-conditioner is only because of increase in amount of sales tax.
25. The government seeing the necessity of computers in daily life reduced sales tax on it 8%. As a result, computers are now cheaper by Rs 2,240. Find the marked price of the computers.
Answer
The decrease in price of the computers is only because of the decrease in amount of sales tax.
26. Reduction of 5% on the sales tax of scooters reduced its selling price by 2,200. Find the marked price of the scooter.
Answer
The decrease in price of the scooter is only because of the decrease in amount of sales tax.
27. A shopkeeper marks the price of a dress material 10% above his cost price and leaves a sales tax of 8% on it. If a customer has to pay Rs 2,970 for the dress material, find the cost price of dress material.
Answer
Let x be the cost price.
28. An electronic showroom increased the marked price of a new gadget by 12% and charged 12% sales tax on the new price. If the selling price of the gadget is now Rs 21,952, find the marked price of the gadget before increase.
Answer
Let x be the marked price.
29. Due to a seasonal change the dealer increased the marked price of his goods by 20%. Sales tax of 5% was charged on the new price. The selling price of the goods was now Rs 6,048. Find the original marked price.
Answer
Let x be the original marked price.
30. A shopkeeper marked the list price of a mobile phone 16% above his cost price. Sales tax on the mobile was charged at 12%. Rahul paid Rs 29,232 for the mobile. Find the cost price of the mobile.
Answer
Let x be the cost price.
31. A shopkeeper buys a watch for Rs 2,500 and marks up its price. A customer buys the watch for Rs 3,300 which includes a sales tax of 10% on the marked up price. Find the makeup percentage on the price of the watch. Also, find his profit percentage.
Answer
Let marked up price be x
32. A retailer buys an article at a discount of 20% on the listed price from a wholesaler. The shopkeeper marks up the price by 10% on the listed price. A buyer pays Rs 231 to get it after paying sales tax at the rate of 5% on the price asked for. Find the profit percentage.
Answer
Let listed price be x
Exercise 2.2
1. An electronics manufacturer sells an LCD to the dealer for 25,000. The dealer sells it to the retailer at Rs 32,000 and the retailer sells it to the customer at Rs 45,000. If the tax is levied at the each stage at the rate of 10%, find the tax paid by the manufacturer, dealer and the retailer.
Answer
Selling price for manufacturer = Rs 25, 00
2. A manufacturer sells a microwave with a marked price of Rs 11,000 to the distributor for Rs 7,500. The distributor sells it to the retailer at a profit of Rs 1,500. The retailer sells to the customer at the marked price. If tax is charged at 8%, find the VAT paid by the retailer and the price paid by the customer.
Answer
Marked price of the microwave = Rs 11,000
3. Trader A buys a washing machine from the manufacturer for Rs 12,500. He sells it to trader B at a profit of Rs 1,500. Trader B sells it to the customer at a profit of Rs 1000. If the rate of tax is 8%, find the amount of tax received by the government and the total amount paid by the customer for the machine.
Answer
S.P for the manufacturer = Rs 12,500
4. In a particular tax period A to Z Emporium purchased Silk Sarees worth Rs 5,00,000 taxable at at 12%, Cotton Sarees Worth Rs 8,00,000 taxable at 5% and Handloom Sarees worth Rs 3,00,000 exempted from tax. In the same tax period it sold silk Sarees worth Rs 12,00,000, Cotton Sarees worth 16,00,000 and Handloom Sarees worth Rs 7,00,000. Silk Sarees worth Rs 40,000 were returned due to manufacturing defect and Cotton Sarees worth Rs 60,000 were returned due to loss of colour. Calculate the tax paid by the firm for this period.
Answer
For Silk Sarees:
5. Mr. Gupta is a manufacturer. He sells machine to a trader A for Rs 25,000. Trader A sold it to B at a profit of Rs 3,500 and B sold it to C at a profit of Rs 2,500. If VAT is calculated at 8%, find the amount of tax paid to the government. Also, find the price paid by the customer for the machine.
Answer
S.P. for the manufacturer = Rs 25,000
Answer
S.P. for the manufacturer = Rs 15,000
7. The cost of manufacturing a motorcycle for the Hero Honda company is Rs 30,000. The company sells its motorcycle to its distributors. The distributor sells it to a retailer who then sells it to a customer. If the profit made by each of them is Rs 5,000 and VAT is levied at 12%, find the total tax paid to the government and the amount paid by the customer for the motorcycle.
Answer
C.P. for the manufacturing company = Rs 30,000
8. In a particular tax period, a trader purchased goods worth Rs 15,00,000 and paid a VAT of Rs 1,35,000. During the same period, he sold goods worth Rs 8,00,000 taxed at 12% and goods worth Rs 12,00,000 taxed at 5%. Calculate his tax liability for this period.
Answer
Tax paid on purchase of goods = Rs 1,35,000
9. In a particular tax period, a jewellery store purchased diamonds worth Rs 20,00,000 taxable of 15%, gold worth Rs 50,00,000 taxable at 12% and silver worth Rs 12,00, 000 taxable at 8% in the same period, the company sold diamonds worth Rs 34,00,000, gold jewellery worth Rs 86,00,000 and silver artifacts worth Rs 15,00,000. Calculate the tax liability of the company.
Answer
For Diamonds:
10. In a financial year, the HDFC company purchased floor tiles worth Rs 12,00,000 taxable at 7.5%, sanitary fittings worth Rs 15,00,000 taxable at 10% and glass worth Rs 16,00,000 taxable at 6%. In the same period, the company sold floor tiles worth Rs 28,00,000, sanitary fittings worth Rs 36,00,000 and glass worth Rs 15,00,000. Due to manufacturing defects, floor tiles worth Rs 2,00,000 and glass worth RS 1,50,000 were returned by the company. Calculate the tax liability of the company for this period.
Answer
For floor tiles:
