Reference no: EM132960646

Question - An importer imported 1000 pieces of Motorcycle at C&F price Tk. 50,000 per piece. The clearing and incidental charge amounted to Tk. 70,000 for the lot. He sold 90 pieces of the cycle to wholesalers at a margin of 10% exclusive of VAT which is 15% on the value of sale price. The wholesaler charged a 15% commission to sell it to the retail sellers to be sold from their sale center. The retailers incur a cost of @ 2000 for maintenance and salary of persons of the sales center and charge a cost plus 10% margin. Compute VAT assuming that retailers sold 60 pieces of the cycle in the month of June 2015.