Mathematics Multiple Choice Questions & Answers on “Sales Tax/Value Added Tax”.
1. What will be the buying price of a soap at Rs. 100 when 5% sales tax is added?
a) Rs 105
b) Rs 110
c) Rs 112
d) Rs 134
Answer: a
Clarification: Cost price of soap = Rs. 100
Sales tax = 5%
= 5% of 100
= (frac{5}{100}) × 100
= Rs. 5
Buying price = Cost price + sales tax = 100 + 5 = Rs.105
2. If 5% VAT is included in the price of a shampoo bottles bought for Rs. 550 then what is the original price of the shampoo?
a) Rs 420
b) Rs 520
c) Rs 650
d) Rs 700
Answer: b
Clarification: Let the original price of the shampoo be Rs. x
Sales tax = 5%
= 5% of x
= (frac{5}{100}) × x
= Rs. (frac{5x}{100})
Buying price = Cost price + Sales tax
550 = x + (frac{5x}{100})
550 = (frac{105x}{100})
x = (frac{550×100}{105}) = 523.80 ∼ 520
The original price of the shampoo is Rs. 520.
3. What will be the buying price of 12 kg of sugar at Rs. 20/kg when a 9% sales tax is added?
a) Rs 378.9
b) Rs 350.5
c) Rs 348.8
d) Rs 398.0
Answer: c
Clarification: Cost of one kg sugar = Rs. 20
Cost of 12 kg sugar = 20 × 12 = 320
The cost price of sugar = Rs. 320
Sales tax = 9%
= 9% of 320
= (frac{9}{100}) × 320
= 28.8
Buying price = Cost price + Sales tax = 320 + 28.8 = 348.8.
4. If you buy a hair dryer for Rs. 10000 including 10% VAT what will be the price of the hair dryer before VAT was added?
a) Rs 9393
b) Rs 9292
c) Rs 9191
d) Rs 9090
Answer: d
Clarification: Let the original price of the hair dryer be Rs. x
VAT added = 10%
= 10% of x
= (frac{10}{100}) × x
= (frac{x}{10})
Buying price = cost price + sales tax
10000 = x + (frac{x}{10})
10000 = (frac{11x}{10})
x = (frac{10000×10}{11}) = 9090.90 ∼ 9090
5. What will be amount Shridhar has to pay for a watch costing Rs. 18000 when 8% sales tax is added?
a) Rs 19440
b) Rs 18850
c) Rs 17560
d) Rs 16540
Answer: a
Clarification: Cost price of watch = Rs. 18000
Sales tax = 8%
= 8% of 18000
= (frac{8}{100}) × 18000
= Rs. 1440
Buying price = Cost price + sales tax = 18000 + 1440 = Rs. 19440
6. The cost of a hover board was 15000 at the shop. What will be the bill amount after a sales tax of 10% is added?
a) Rs 16160
b) Rs 15150
c) Rs 14540
d) Rs 17170
Answer: b
Clarification: Cost price of hover board = Rs. 15000
Sales tax = 10%
= 10% of 15000
= (frac{10}{100}) × 15000
= Rs. 1500
Buying price = Cost price + sales tax = 15000 + 1500 = Rs. 15150
7. The bill amount of a cutlery set is Rs. 5000 including 9% sales tax. What is its original price?
a) Rs 4800
b) Rs 4700
c) Rs 5000
d) Rs 4500
Answer: d
Clarification: Let the original price of the cutlery be Rs. x
VAT added = 9%
= 9% of x
= (frac{9}{100}) × x
= (frac{9x}{100})
Buying price = cost price + sales tax
5000 = x + (frac{9x}{100})
5000 = (frac{109x}{100})
x = (frac{5000×100}{109}) = 4587.15 ∼ 4500
8. The cost of 1 kg of flour is Rs. 30 and 1 kg of sugar Rs. 35. What will be the bill amount if 10 kg of sugar and 15 kg of flour is bought with 5% of sales tax added?
a) Rs 866.25
b) Rs 890.98
c) Rs 865.56
d) Rs 834.56