Solution:
Given,
Rate of VAT = 10%
S.P. with VAT = Rs. 1320
To find,
- Marked Price (MP) = ?
- Amount of VAT = ?
Let, the marked price be x
Here,
S.P. with VAT = MP + 10% of MP
Or, Rs. 1320 = x + 10% of x
Or, Rs. 1320 = 11x/100
∴ x = Rs. 1200
∴ Marked price (MP) of an article is Rs. 1200
and the amount of VAT = SP with VAT - MP = Rs. 1320 - Rs. 1200 = Rs. 120
Hence the VAT amount was Rs. 120.