Question -
Answer -
Let the original price be ₹ 100
VAT = 8% of 100 = ₹ 8
Sale price = ₹ 100 + ₹ 8 = ₹ 108
If SP is ₹ 108 then original price = ₹ 100
If SP is ₹ 1 then the original price = ₹ 100/108
If SP is ₹ 5,400 then the original price = ₹ 100/108 × 5,400 = ₹ 5,000
Thus, the price of hair-dryer before the addition of VAT = ₹ 5000.