B buys a machine on 25 july 2014 which is advertised for sale at 2000 plus vat. he manages to negotiate a reduction in price at 10% and manufacturer also offers him a further discount of 5% on the discounted price. how much VAT will B be charged on the invoice of machine.?
sir in above question it says ''sale at 2000 plus VAt'' . so i calculated as :
1710 * 20/120 but in answer it says 1710 * 20/100
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Vat liability
The 2000 is exclusive of VAT before discount. After the available discounts the VAT exclusive price is 1710 and the VAT is computed as 20% thereon.
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