Tag: taxation, calculation of income tax

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Questions Related to taxation, calculation of income tax

Multiple choice maths gst (goods and service tax) more about gst commission, brokerage and vat taxation, calculation of income tax

After sales tax, a book costs $\$ 25.20$. If sales tax is $5\%$, how much does the book cost before taxes?

  1. $\$ 23.50$
  2. $\$ 23.94$
  3. $\$ 24.00$
  4. $\$ 24. 23$
  5. $\$ 26.46$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Total cost of the book $ = $ 25.20 $
Which is cost of the book before taxes $ + $ Sales tax $ = $ 25.20 $
Letcost of the book before taxes $ = b $
$\Rightarrow  b + 5$ $\%$ of $ b = 25.20 $
$ \Rightarrow  b + \dfrac {5b}{100} = 25.20 $
$ \Rightarrow  1.05b = 25.20 $
$ \Rightarrow  b = $ 24 $

Multiple choice maths gst (goods and service tax) more about gst commission, brokerage and vat taxation, calculation of income tax

Mrs. Malhotra purchased solar panels for the taxable value of Rs $85,000$. She sold them for Rs $90,000$. The rate of GST is $5\%$. Find the ITC of Mrs Malhotra.

  1. $4000$
  2. $3500$
  3. $4500$
  4. $4250$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

$\Rightarrow$  Mrs. Malhotra purchase solar panels for $Rs.85,000.$

$\Rightarrow$  The rate of GST is $5\%$.
$\Rightarrow$  Then, the ITC of Mrs. Malhotra = $5\%\,of\,85,000$ 
 $\Rightarrow$  The ITC of Mrs. Malhotra =$\dfrac{5}{100}\times 85000=Rs.4250.$

Multiple choice maths gst (goods and service tax) more about gst commission, brokerage and vat taxation, calculation of income tax

Bashir khan purchased 100 shares of MV Rs. $40$. Brokerage paid at the rate of $0.5\%$ and rate of GST on brokerage is $18\%$. Find the total amount he paid for the share purchase.

  1. Rs $4020$
  2. Rs $4233.20$
  3. Rs $4023.60$
  4. Rs $4003$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Number of shares purchased $= 100$

Market Value of share $=$ Rs. $40$

$\therefore$ Total cost of $100$ shares $=$ Rs. $4000$

Brokerage rate $= 0.5\%$
$\Rightarrow$ Brokerage Commission paid $= \dfrac{0.5}{100} \times 40000 =$ Rs. $20$

GST on Brokerage $= 18\%$ of $40000$
                                $=$ Rs. 3.6

$\Rightarrow$ Total amount paid for the purchase $= 40000 + 20 + 3.6$
                                                                 $=$ Rs $4023.60$

Multiple choice maths gst (goods and service tax) more about gst commission, brokerage and vat taxation, calculation of income tax

A dealer has given $10\% $discount on a showpiece of Rs $25,000$. GST of $28\%$ is applied on the discounted price. Find the total amount that is shown in the tax invoice.

  1. $26000$
  2. $22500$
  3. $22400$
  4. $28800$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Listed Price $= 25000$

Discount given $= 10\%$

Discounted Price $= 25000 - \dfrac{10}{100}\times 25000 = 22500$

GST applied $= 28\%$
Total amount shown in tax invoice $= 22500 + \dfrac{28}{100}\times 22500$

                                                          $=$ Rs $28800$

Multiple choice maths gst (goods and service tax) more about gst commission, brokerage and vat taxation, calculation of income tax

A dealer pays following VAT @ of 14% on 20th April Rs. 2500, 20th May Rs. 1200. Find his sales for March and April.

  1. $16428.55$
  2. $26428.55$
  3. $36428.55$
  4. $46428.55$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Sales for April:
Total VAT = VAT% of sales
$2500=\cfrac{14}{100}\times sales$
Sales of April $= Rs. 17857.14$
Sales for May:
Total VAT = VAT% of sales
$1200=\cfrac{14}{100}\times sales$
Sales of April $= Rs. 8571.42$
Total sales for March and April $= 17857.14 + 8571.41 = Rs. 26428.55$

Multiple choice maths gst (goods and service tax) more about gst commission, brokerage and vat taxation, calculation of income tax

Shri. Batliwala sold shares of Rs $30350$ and purchased shares of Rs $69650$ in a day. He paid $0.1\%$ brokerage on both sale and purchase of shares. $18\%$ GST was charged on the brokerage. Find his total expenditure on brokerage and tax.

  1. $120$
  2. $118$
  3. $139.5$
  4. $105$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
Value of shares sold = $30350$
Brokerage =$0.1%$
$\therefore$ brokerage  value =$\cfrac{0.1}{100}\times30350$
= $303.5/10$=$30.35$
Value of shares purchased =$69650$
Brokerage =$0.1%$
$ \text {brokerage value} =\cfrac{0.1}{100}\times69650$
=$696.5/10$
=$69.65$
$\therefore$ total  brokerage  value =$(30.35+69.65)$
=$Rs 100$
$G. S. T$= $18%$ of brokerage  value 
$\therefore$ amount of gst = $\cfrac{18}{100}\times100$
=$18$
$\therefore$  total amount of brokerage +gst =$100$+$18$
=$118$.