Multiple choice

Mr Ram bought a DVD set for Rs. 14,000. He sold it to Sham for Rs. 18,000. Sham sold it to Raj for Rs. 24,000. All the prices are excluding tax. The sales tax is charged at 8%.

What is the input tax amount paid by Mr. Ram?

  1. Rs. 1,120

  2. Rs. 1,440

  3. Rs. 1,920

  4. Rs. 320

  5. Rs. 2,560

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Input tax amount paid by Mr. Ram = 8% of Rs. 14,000 = Rs. 1,120