Tax Book 2023

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

W-3: Apportionment of Input Tax:

Rupees Rupees

Supplies

Input Tax

on other

than Fixed

Assets

input tax

on Fixed

Assets Total

298,610 119,000 417,610

Taxable supplies 5,051,154 206,587 82,328 288,915Adjustable

zero-rated supplies 1,400,000 57,259 22,818 80,077Refund

Exempt supplies 850,000 34,764 13,854 48,618Lapsad

7,301,154

Question. NO. 5 Fall 2017

Hemani Technologies (Pvt) Limited (HTL) being an unlisted company is registered under the Sales Tax Act, 1990

(Note - 1) Assumed that supplies invoices to un registered persons have NTN or CNIC of

recipients, as applicable only on distributors otherwise proportionate input tax shall be

disallowed under section 8(1)(m) of the Sales Tax Act, 1990.

Conceptual Approach to Taxes____1021

Rs. '000' Rs. '000'

Purchases Supplies

Imports - raw materials 1,500 750

1,200 1,400

2,500 Exempt Supplies 650

450 Export to France 1,700

Additional Incormation :

Taxable goods from registered

suppliers

Taxable goods from cottage

industry

. Imports include raw materials worth Rs. 1,055,000 for the manufacturing of laptops. However, on
port, a serious damage was caused to the consignment. HTL received insurace claim or Rs. 890,000
after surrendering the right of disposal of consignment in favour of the insurance company.

Taxable goods to unregistered customers include goods worth Rs. 215,000 sold to cottage industry in

Sialkot. The rest of the goods were sold to end consumers in Karachi.

Exempt goods from registered

suppliers

Taxable goods to un-registered

customers

taxable goods to registered customers

Hemani Technologies (Pvt) Limited (HTL) being an unlisted company is registered under the Sales Tax Act, 1990

and is engaged in manufacturing and distribution of various electronic products. Following information has been

extracted from HTL's records for the month of December 2022:

Required:

. On April 12, 2023, HTL acquired a machine on operating leas from TZN Limited. The total lease rentals,
payable over the lease term of 2 years, are Rs. 4,700,000. The fair value at the inception of the lease of
Rs. 4,200,000.
. HTL issued a debit note of Rs. 55,000 to Jawwad Enterprises to rectify a mistake in HTL's sales invoice.
The invoice was originally raised in September 2022.

Sialkot. The rest of the goods were sold to end consumers in Karachi.

.HTL sold goods worth Rs. 67,000 to one of its customers on one month's credit. The amount was

inclusive of 5% mark-up.

Conceptual Approach to Taxes____1021