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 value added tax paid by Mr. Ram?

  1. Rs. 800

  2. Rs. 1,440

  3. Rs. 480

  4. Rs. 320

  5. Rs. 2,560

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

Value added tax paid by Mr. Ram = 8% of Rs.18,000 - 8% of Rs.14,000 = Rs. 320