Tag: gst (goods and service tax)

Questions Related to gst (goods and service tax)

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

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

  1. $\$ 23.50$

  2. $\$ 23.94$

  3. $\$ 24.00$

  4. $\$ 24. 23$

  5. $\$ 26.46$

Show answer
Correct Option: C
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 $

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.

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

  1. $4000$

  2. $3500$

  3. $4500$

  4. $4250$

Show answer
Correct Option: D
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 =$\dfrac{5}{100}\times 85000=Rs.4250.$

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.

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

  1. Rs $4020$

  2. Rs $4233.20$

  3. Rs $4023.60$

  4. Rs $4003$

Show answer
Correct Option: C
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 $4023.60$

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.

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

  1. $26000$

  2. $22500$

  3. $22400$

  4. $28800$

Show answer
Correct Option: D
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 $28800$

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

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

  1. $16428.55$

  2. $26428.55$

  3. $36428.55$

  4. $46428.55$

Show answer
Correct Option: B
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 $= 17857.14 + 8571.41 = Rs. 26428.55$

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.

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

  1. $120$

  2. $118$

  3. $139.5$

  4. $105$

Show answer
Correct Option: B
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 =$100$+$18$
=$118$.