Manoj buys a leather coat costing Rs. 900 at Rs. 990 after paying the VAT. Calaulate the rate of VAT chaged on the coat.

Question

Philoid · Accepted Answer

Given,

Let the rate of VAT = x%

So,

VAT = 900

According to the question,

= 900 + 9x = 990

= 9x = 90

= x = 10

Hence,

Manoj was charged 10% VAT on leather jacket.