Sales Tax Calculator
Sales Tax Calculator
A Sales Tax Calculator helps you quickly compute the tax amount on a product or service based on the applicable sales tax rate. You can use it by entering the product price and tax rate to get the total cost, including tax. It simplifies tax calculations for purchases and billing.
Sales Tax
Sales tax is a government-imposed tax on the sale of goods and services, collected at the point of purchase.
What is Sales Tax?
Sales tax is a consumption tax paid by consumers on the purchase of goods and services. It is usually calculated as a percentage of the selling price.
How It Works
When you buy a product, sales tax is added to the final bill. The seller collects this tax and remits it to the government.
How We Can Calculate Sales Tax
Sales tax is calculated using the formula:
Sales Tax = (Price of Item × Sales Tax Rate) / 100
Total Price = Price of Item + Sales Tax
Example
If an item costs ₹1,000 and the sales tax rate is 10%:
Sales Tax = (1,000 × 10) / 100 = ₹100
Total Price = ₹1,000 + ₹100 = ₹1,100
The total cost of the item, including sales tax, will be ₹1,100.
No comments:
Post a Comment