Rohit went to buy some expensive, foreign chocolates. He only had Rs 100 with him. When he reached the shop, he got to know that on those chocolates, there was a 15% import duty and 5% VAT.
How much worth chocolate should he buy so that he can accommodate it in Rs 100 ?
If the VAT is added on the base price + Import Duty then
He would be able to buy chocolates worth Rs. 82.816
82.816 + Import Duty @ 15% Rs.12.422 = 95.238
Add 5% VAT on 95.238 Rs. 4.762
95.238 + 4.762 = 100
Let us start with goods worth 100. Add 15% import duty it becomes 115. Add 5% VAT it becomes 120.75. So if we have 120.75, we get chocos worth 100. By ratio proportion If we have 100 we get chocos worth 100*100/120.75 i.e. 82.816 which is same as that of Mr. Anup Desai but we should explain how the figure of 82.816 has been arrived at.
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