MCQ
Which of the following statement is true?
  • A
    Sales tax is always calculated on the cost price of an item and is added to the value of the bill
  • Sales tax is always calculated on the selling price of an item and is added to the value of the bill
  • C
    Sales tax is always calculated on the cost price of an item and is subtracted from the value of the bill.
  • D
    Sales tax is always calculated on the selling price of an item and is subtracted from the value of the bill.

Answer

Correct option: B.
Sales tax is always calculated on the selling price of an item and is added to the value of the bill
The sale tax is charged by the government on the sale of an item. It is collected by the shopkeepers from the customers and given to the government.

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