Tax Book 2023

Chapter 12 Solved Past Papers Sales Tax Numericals of ICMAP Stage IV - (2003 to 2018)

Question.5 Summer 2018

SOLVED PAST PAPERS SALES TAX NUMERICALS OF ICMAP

STAGE IV - (2003 TO 2018)

Note:AllthefollowingquestionshavebeensolvedundertheSalesTaxActeffectivefromJuly 1 st

2022, except as provided in the Finance Act, 2022.

Malik-e-Ashtar(pvt.) Limited (MAL) is registered under the Sales Tax Act, 1990 and is engaged in

12

Chapter

Conceptual Approach to Taxes____1019

Rupees Rupees.

To un-registered customers 1,275,000 3,100,000

To registered customers 2,900,000 1,630,000

Exempt supplies 850,000

Exports 1,400,000Suppliers 445,000

Additional Information :

Taxable goods from in-registered

Malik-e-Ashtar(pvt.) Limited (MAL) is registered under the Sales Tax Act, 1990 and is engaged in

the business of export and supply of consumer goods. Following information has been

extracted from MAL's records for the month of March 2023:

Supplies Purchases

Taxable goods from registered

Exempt goods from registered

> Goods purchased from MT Enterprise amounting to Rs. 37,000. MT Enterprise did not declare this amount in its

tax return for the month or March 2023.

. Supplies to registered persons include goods amounting to Rs. 290,000, which were supplied to an associated
company at a special discount of 35%.
. A registered supplier had supplied goods worth Rs. 675,000 to MAL in March 2022. However, MAL did not
receive the sales tax in invoice from the supplier.
. MAL distributed free samples on one of its new product among corporate clients. The value of these samplies
amounted to Rs. 135,000.
.Taxable goods purchased from registered suppliers include:

Goods worth Rs. 445,000 purchased from Asif Limited, which was blacklisted on March 15, 2023 due to
issuance of fake invoices.

Answer 5 Summer 2018

Required:

Under the provision of the Sales Tax Act, 1990 and Rules made thereunder, compute the amount of sales tax

payable by or refundable to MAL for the tax period March 2023.

> A new machine purchased for Rs. 700,000. which was commissioned into operation during March 2023.

> Office equipment of Rs. 310,000 were purchased for the warehouse.

. On March 28,2022, MAL paid sales tax of Rs. 140,000 on electricity bill.
. Equipment worth Rs. 585,000 manufactured by MAL, were used by MAL in testing related to research of
exempt supplies.

Conceptual Approach to Taxes____1019