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(c) Rs 750

Let the basic price be $x$.

VAT $=10 \%$ of Rs $x$

$=\operatorname{Rs}\left(x \times \frac{10}{100}\right)$

$=\operatorname{Rs} \frac{x}{10}$

$\therefore$ Price including $\mathrm{VAT}=\mathrm{Rs}\left(\mathrm{x}+\frac{\mathrm{x}}{10}\right)$

$=R s . \frac{11 x}{10}$

Now, $\frac{11 \mathrm{x}}{10}=825$

$\quad \Rightarrow x=\left(825 \times \frac{10}{11}\right)$

$\quad \Rightarrow x=750$

∴ The basic price of the watch is Rs 750.