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A manufacturer produces a good which cost him Rs.500. He sells it to a wholesaler at a price of Rs.500 and wholesaler sells it to retailer at a price of Rs.600. The retailer sells it to the customer at a price of Rs.800. If the sales tax charged is 5%. Find the tax charged under VAT by manufacturer, wholesaler and retailer. Find the tax paid by the customer?

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Manufacturer will pay 5% on 500 i.e., 25. Wholesaler will charge 5% on 600= 30. Retailer will charge 5% on 800 = 40. Customer will pay Rs.40 ultimately to the retailer.
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