1. Find Sales tax
Statement

2. This sales tax or VAT is charged by the Government on the selling
price of an item and is added to the value of the bill.
Bill amount = Cost of the item + Amount of Sales tax

3. Example 1: Vinodh purchased musical instruments for Rs 12,000.
If the rate of sales tax is 8%, find the sales tax and the total amount paid by him.
Solution Given:- Value of the musical instruments = Rs 12,000
Rate of Sales Tax = 8% ; Amount of Sales Tax = 12000
To Find : Sales tax , Total amount
Bill amount = Cost of the item + Amount of Sales tax
= =12960
Ans:- Sales tax = Rs 12,960 and total amount paid = Rs 12960

4. Example2: A refrigerator is purchased for Rs 14,355, including sales tax.
If the actual cost price of the refrigerator is Rs 13,050, find the rate of sales tax.
Solution Given: bill amount = Rs 14,355, Cost price = Rs 13,050.
To Find : rate of sales tax
Sales tax = Bill amount – Cost of the item
= – = 1305
Ans:- Rate of sale tax = 10%

5. Try these
Shiva bought a suitcase for Rs.7,420. The VAT for this item is
6%. What was the price of the suitcase before VAT was added?
Also state how much is the VAT.