PLEASE SORT OUT THIS....

sir,,,
the question of taxation of june pcc 09 IS as follows.

question no.7(A)

Compute the VAT amount payable by Mr. A who purchases goods from a manufacturer
on payment of Rs. 2,25,000 (including VAT) and earns 10% profit on sale to retailers.
VAT rate on purchase and sale is 12.5%

I HAVE CHECKED MANY SOLLUTIONS,,EVERYONE HAVE CALCULATED THE ANSWER BY TAKING 10% GP MARGIN ON COST,EVEN ICAI IN ITS SUGGESTED ANSWERS..

BUT ITS CLEARLY GIVEN 10%GP ON SALE TO RETAILER IN THE QUESTION..

SO WE SHOULD CALCULATE  SALE CONSIDERATION LIKE THIS-
200000(PURCHASE PRICE)+10% OF X=X
ASSUMING X AS SALE CONSIDERATION

OR LIKE THIS-
200000+10%OF 200000=220000??????