Question:Mr. Masaud, a retailer sells a Solar System whose listed price
is RO 1500 and charges...
Question
Mr. Masaud, a retailer sells a Solar System whose listed price
is RO 1500 and charges...
Mr. Masaud, a retailer sells a Solar System whose listed price
is RO 1500 and charges VAT at the prescribed rate of 12% from the
consumer.
a) If the retailer pays a VAT of RO 36 to the government, what
was the price inclusive of tax at which the retailer bought the
Solar System from the wholesaler?
b) If VAT is added, price of the product gets increased and
consumer needs to pay more. Discuss critically
c) The implementation of VAT decreases the seller’s profit.
Discuss analytically