(a) An importer imported goods paying VAT amounted Rs. 5,200. He (importer) incurred carriage expenses of Rs. 3,000 and sold them to a retailer charging 10% margin on cost. The retailer sold the…

(a) An importer imported goods paying VAT amounted Rs. 5,200. He (importer) incurred carriage expenses of Rs. 3,000 and sold them to a retailer charging 10% margin on cost. The retailer sold the goods to customer charging 20% margin on outlay with Rs. 1,000 as selling expenses there on. Required: (i) Cost price of customer (ii) Total VAT payable to government at each stage (b) "Value Added Tax is levied on added value of goods and services."Explain in brief.