Tax Book 2023

Chapter 12 Solved Past Papers Sales Tax Numericals of ICMAP Stage IV - (2003 to 2016)

Malik-e-Ashtar (Pvt.) Limited

computation of sales Tax Payable/(Refundable)

for the tax period March 2023

Rupees

Output tax (W-2) & (Note 1) 858,696

Less: Input tax

Lower of

• Actual (W-3) or 206,587
  -90% of output 772,827 (206,587)
  Sales tax liability 652,109
  Input on fixed assets (W-3) (82,328)
  569,781


• Unregistered suppliers (3%) 38,250 38,250
  Sales Tax Payable 608,031
  Sales tax Refundable on Zero rated supplies (W-3) 80,077
  Workings:
  W-1: Computation of Input Tax:
  Rupees

1020___Conceptual Approach to Taxes

W-1: Computation of Input Tax:

Rupees

Amounts Tax rate Input Tax

Input tax on other than fixed assests

Tax able goods from registered suppliers 3,100,000 17% 527,000

Exempt good from registered suppliers 1,630,000 - -

Taxable good from unregistered suppliers 445,000 - -

Invoice of supplies not received 675,000 17% -114,750

Purchases from blacklisted person 445,000 17% -75,650

CREST discrepancy 37,000 17% -6,290

Machine 700,000 17% -119,000

Office equipment 310,000 17% -52,700

Sales tax on electricity bills 140,000 - 140,000

298,610

Input tax on fixed assets 700,000 17% 119,000

Machine 417,610

W-2: Computation of Output Tax:

Rupees

Amounts Tax rate output tax

To unregistered customers 1,275,000 17% 216,750Taxable supplies

To registered customers 2,610,000 17% 443,700Taxable supplies

Exempt supplies 850,000 - - Exempt supplies

ExportsExports 1,400,0001,400,000 0%0% - - Zero-rated suppliesZero-rated supplies

446,154 17% 75,846

Free samples 135,000 17% 22,950

Equipment manafacture 585,000 17% 99,450

858,696

Supplies to associated Company

1020___Conceptual Approach to Taxes