Tax Book 2023

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

N-4: Input Tax:

N - 5

Answer 5(b) Spring 2017

Computation of Refund against Export: Rupees

Sales tax paid on commercial imports - Hair Serum 800,000

Input tax related to local supplies 564,706

Refund against export 235,294

90% restriction u/s 8B on input tax in case of a company is applicable subject to

restriction, limitations and conditions of the Sales Tax Act, 1990.

Q# 6 FALL 2016 TalhaFurnituresLtd.(TFL)beingasaunlistedcompanyisengagedintheproduction

Restriction of 90% of output tax is not applicable on commercial importers where value of

imports subject to 3% value addition as prescribed in the Twelfth Schedule to the Sales Tax Act

exceeds 50% of value of all taxable purchases, including imports, in a tax period under SRO

1190(I)/2019 dated October 02, 2019.

Conceptual Approach to Taxes____1025

Rupees

Taxable sales made to registered persons 9,000,000

Taxable sales made to unregistered persons 1,500,000

Scrap sales 300,000

Total sales 10,800,000

The company used following modes of payments for purchase of raw materials:

• Paid cash directly into the business bank a/c of the suppliers 1,980,000
  
  
  • Payment made through a crossed cheque which was deposited 1,510,000
    into a personal bank account of suppliers
  
  
  
  

- Online transfer of payment was made from business bank a/c 5,510,000

of the company to the business bank account of the suppliers

which was verified from the bank statements

Total payments 9,000,000

Addditional Information:

·            All amount for the sales of goods stated above are exclusive of sales tax.

Q# 6 FALL 2016 TalhaFurnituresLtd.(TFL)beingasaunlistedcompanyisengagedintheproduction

andsupplyofwiderangeofofficefurnituresi.e.revolvingchairs,tables,shelves,computertrollysetc.It

has been in operation for a number of years and registered under the Sales Tax Act, 1990.

TFL's business transactions for the month of December 2022 were extracted from records as follows:

·            All amount for the sales of goods stated above are exclusive of sales tax.

·            All the payments for purchases stated above are inclusive of sales tax.

·            A normal rate of tax of 17% applies to all transactions to registered persons.

·            TFL has a sales tax credit brought forward from November 2020 of Rs. 300,000.

Required:

ComputethesalestaxliabilityofTFLinrespectofitssalestaxreturnforthemonthofDecember2022.

Substantiate the answer with appropriate workings.

·          GoodsofRs.900,000werereturnedfromregisteredpersoninDecember 2022 andproperdebit

and credit note were issued.

·            An advance payment of Rs. 700,000 recieved on December 25, 2022 for the supply of goods to 

be made in April 2023.

Conceptual Approach to Taxes____1025