Question

If the rate of CST is 2%, then find CST for the printed price of Rs. 800.

Answer 1

Hint: We here have been given an item whose printed price is Rs. 800. We have also been given the rate of the CST (Central Sales Tax) imposed on the item as $2\%$ and we have to find the amount of its CST. This means that we will have to calculate $2\%$ of Rs. 800 which is the required amount of tax. We will calculate this tax using the formula given as Any percentage, let us assume it to be $r\%$, of any principal sum, let us assume that to be $x\%$, is given by the following formula:
$\dfrac{r}{100}\times x$
We will put the given values of r and x in this formula and hence we will obtain our required answer.

Complete step-by-step solution
We have been given the printed price of an item to be Rs. 800 and have been told us that the CST is $2\%. $
Thus, for finding the CST, we have to find 2% of Rs. 800.
Now, we know that any percentage, let us assume it to be r%, of any principal sum, let us assume that to be $x\%$, is given by the following formula:
$\dfrac{r}{100}\times x$.............…..(i)
Here, we know that:
x= Rs. 800
r= 2%
Hence, putting the values of x and r in the formula given above, we get:
 $\begin{align}
  & \dfrac{2}{100}\times 800 \\
 & \Rightarrow 2\times 8 \\
 & \therefore 16 \\
\end{align}$
Thus, 2% of Rs. 800 is Rs. 16.
Hence, the CST on the item with printed price as Rs. 800 is Rs. 16. So, Rs. 16 is the required answer.

Note: Always remember while solving questions which involve the calculation of taxes that the MRP (maximum retail price) and the printed price are one at the same thing and they are the retail price of the item. Hence, there is no tax included in this price. Any tax that is imposed on an item is imposed on its MRP, i.e. the amount of that tax is that percent of MRP which is the rate of the imposed tax.