Question

A manufacture of furniture sells a sofa set to a retailer for Rs 23000.the retailer, inturn, sells the sofa set to a customer for Rs 29000.
find the VAT rate as percent,if the retailer pays Rs520 as VAT.

Answer 1

what is VAT ?

Answer 2

value added tax

Answer 3

if 29000 is the price including the tax, then subtract 520 from 29000 to get 28480. this is the price before tax

then compute 520/28480 to get a tax rate

that is how i interpret what you are saying

Answer 4

where does Rs. 23000 gone

Answer 5

isn't 23000 what the retailer paid for it?