business math

Q5: Mr. Masaud a Wholesaler buys a product from the Al Khalil manufacturing company at RO 450 and pays VAT at the prescribed rate of 10%. Mr. Abdul, a retailer buys a product from the wholesaler at RO 600 and the wholesaler charges VAT at the prescribed rate of 10%. The retailer fixes the price at RO 700 and charges VAT at the same rate. Mr. Khalid buys the product from the retailer. (50*1M=5 Marks) a) What is the price including VAT that Mr. Khalid has to pay to buy the Product? b) Find out amount of input tax for the retailer and wholesaler. c) Find out amount of output tax for the retailer and wholesaler. d) How will you differentiate sales tax and VAT? Discuss e) Assume that sales tax system is applicable and rate is 20%, how much total tax would be levied on a product priced at RO 700