Tax Book 2023

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

ANSWER:

Talha Furnitures Ltd.

Sales Tax Liability

For the month of December 2022

Rupees

On taxable supplies

Sale made to registered person (Rs. 9,000,000 x 17%) 1,530,000

Sale made to unregistered person

Sales tax (Rs. 1,500,000 x 17%) 255,000

Scrap sales (Rs. 300,000 x 17%) 51,000

Advance payment received for goods to be supplied (Rs.700,000 x 0%) -

1,836,000

Less: Credit note issued for return for goods (Rs. 900,000 x 17%) 153,000

Total output tax 1,683,000

Input Tax:

On the purchase of raw materials for which payments were made:

In cash into the business bank account of the suppliers -

Through crossed cheque into a personal bank account of the suppliers -

1026___Conceptual Approach to Taxes

Through crossed cheque into a personal bank account of the suppliers -

800,598

Sales tax credit brought forward from November 2022 300,000

Total input tax 1,100,598

Total Tax Payable with Return:

Total Output Tax 1,683,000

Total Input Tax (1,100,598)

Sales tax payable for the month of December 2022 582,402

Further tax (Rs. 1,500,000 x 3%) 45,000

Total sales tax payable for the month of December 2022 627,402

(N - 1)

(Note - 2) 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.

Astheregisteredpersongiveninthisquestionisengagedinwiderangeofgoodsandnoneof

theclauseunderSRO1190(I)/2019datedOctober02,2019.isapplicabletherefore90%of

outputtaxlimitationoninputisapplicableU/S8BoftheSalesTaxAct,1990.Howeverthe

samehasnotbeenshownastheavailableinputtaxisalreadylessthan90%ofthetotaloutput

tax.

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

Online transfer to the business bank account of the suppliers (Rs.5,510,000 x

17/117)

(N - 3)

Rs. ‘000’

Purchases:

Local:

Raw materials from registered suppliers 800,000

Q.No.6(a)March 2015 KarvenLimitedbeinganunlistedcompanyisacompanyregisteredunderthe

SalesTaxAct,1990.Thecompanyisengagedinthemanufacturing,importandexportofchemical

products. Following activities were carried out by the company dating the month of January 2023:

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.

1026___Conceptual Approach to Taxes