## Class 8 RD Sharma Textbook Solutions Chapter 13 - Profits, Loss, Discount, and Value Added Tax (VAT) PDF Download

## FAQs on RD Sharma Class 8 Maths Solutions Chapter 13 - Profits, Loss, Discount, and Value Added Tax

**1. What is loss and how is it calculated?**

It is used to determine the price of a commodity and determine how beneficial it is to buy or sell it. The amount of loss that a seller gets after selling a good to less than cost price is loss. When SP is less than CP it is called loss. CP stands for cost price of a product and SP stands for Selling Price also known as sale price sometimes.

Loss = Cost Price – Selling Price.

Loss percentage = (Loss / Cost price) x 100

If a shopkeeper buys a ball at 50 rupees and sells it to someone for 30 rupees. Then he incurred a loss of 20 rupees.

**2. What is profit and how is it calculated?**

It is the amount gained from a business. When the SP is more than CP, it is considered to be profit for the seller. SP denotes selling price and CP denotes cost price.

Profit = selling price - cost price

Profit percentage = (P/CP) × 100

P is Profit, CP is cost price

If a shopkeeper buys a ball at 100 rupees and sells it to someone at 120 rupees then he incurred a profit of 20 rupees. Thus, profit is the extra amount earned above the cost price.

**3. What is VAT?**

VAT stands for value added tax. If a producer adds value to the production, then tax is levied on the value added to the product. It is assessed incrementally. It is levied at each stage of production, distribution to the end consumer. Many countries consider it similar to GST. But, in India it is generally different from GST because of the implementation process. The amount of VAT is decided by the end market price on the consumer. Visit this link to learn more about VAT.

**4. Is VAT still applicable in India?**

VAT is not applicable in India. It has been removed by the government and replaced with GST. it came into effect in 2017 and subsumed 12 indirect taxes and 22 cesses. It aims to eliminate the cascading effect in the economy. Service tax and VAT are subsumed under GST. Students must learn the concept of VAT. Class 8 RD Sharma Textbook Solutions Chapter 13 includes detailed information on VAT that can help students to understand the concept easily. Visit Vedantu for a clear understanding of all concepts related to profit, loss, discount, and VAT.

**5. How is VAT different from GST?**

VAT stands for value added tax and GST stands for Goods and Services Tax.

VAT has a cascading effect on goods and GST overcomes this effect. GST is a single tax levied on the consumer. Generally, VAT is different from one state to another state. But, GST is uniform among all the states hence builds the concept of one country, one market. It is difficult to calculate VAT and comprehend it but GST is simple to calculate with different slabs for different taxes.