Tax Book 2023

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

ANSWER 5 Fall 2017

Computation of Sales Tax payable/ (Refundable)

For the tax period December 2022

Rupees Rupees

Output tax (w-2) & (Note 1) 537,540

Less: Input tax

Lower of:

• Actual (W-3) 390,087


• 90% of output 483,786 390,087
  Sales tax liability 147,453
  Add: Further tax


• Cottage industry (0%) -


• End consumers (exempt from further tax) - -
  Sales tax payable 147,453

Hemani Technologies (Pvt.) Limited (HTL) - unlisted company

Under the provisions of the Sales Tax Act, 1990 and Rules made thereunder, compute the amount of

sales tax payable by or refundable to Hemani Technologies (pvt.) Limited (HTL) and the amount of

sales tax to be carried forward, if any, for the tax period December 2022.

1022___Conceptual Approach to Taxes

Sales tax payable 147,453

Sales tax refundable on zero rated supplies (w-3) 209,724

Working:

W-1: Computation of Input Tax:

Rupees Rupees

Amounts Tax Rate Input Tax

Imports - Raw materials 1,500,000 17% 255,000

Exempt goods from registered suppliers 1,200,000 - -

Taxable goods from registered duppliers 2,250,000 17% 425,000

Taxable goods from cottage industry 450,000 - -

Machine on operating lease 4,200,000 - -

680,000

W-2: Computation of Output Tax:

Rupees Rupees

Amount Tax Rate Out put Status

Taxable goods to unregistered

customer- Cottage industry 215,000 17% 36,550Taxable supplies

Taxable goods to unregistered

customers - End consumers 535,000 17% 90,950Taxable supplies

1,400,000 17% 238,000Taxable supplies

Exempt supplies 650,000 - - Exempt supplies

Exports to France 1,700,000 - - Zero-rated supplies

Taxable goods to registered

Exports to France 1,700,000 - - Zero-rated supplies

890,000 17% 151,300Taxable supplies

Goods sold on credit 67,000 17% 11,390Taxable supplies

Debit note to Jawwad Enterprises 55,000 17% 9,350Taxable supplies

537,540

Insurance claim on surrender of right of

disposal

1022___Conceptual Approach to Taxes