Tax Book 2023

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

Input tax admissible N-1 118,462

or 90 % of 340,000 N-2 306,000 (118,462)

221,538

3% further tax on Rs. 500,000 15,000

Sales tax payable with return 236,538

Note 1 Residual Input tax

Purchase from registered supplier 800,000 136,000

Electricity bill 18,000

154,000

Apportionment of Residual input tax

Taxable supplies 2,000,000 118,462

Exempt supplies 600,000 35,538

2,600,000 154,000

Note 2 As the registered person given in this question is engaged in manufacturing of taxable and

exempt supplies and none of the clause under SRO 1190(I)/2019 dated October 02, 2019. is

applicable therefore 90% of output tax limitation on input is applicable U/S 8B of the Sales Tax

Act, 1990. However the same has not been shown as the available input tax is already less than

Conceptual Approach to Taxes____1029

Sales: Rs. '000

Sales of locally manufactured taxable goods (other than detergents) 20,000

Sales of imported finished goods on value addition basis 2,750

Sales of imported detergents to wholesalers

[31,250 packets @ Rs. 240 each packet] 7,500

Sales of locally manufactured detergents to wholesalers

[30,000 packets @ Rs. 225 each packet] 6,750

Imports and Local Purchases:

Import of raw materials for in-house consumption - Taxable 10,000

Import of finished goods - other than detergents 2,000

Import of finished goods - detergents 1,000

(Note - 3) 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.

Q.NO. 6 Spring 2014 Beta(Pvt.)Limitedisengagedinimports,tradingandlocalmanufacturingofcertaintaxable

consumergoodsincludingproductslikedetergentswhicharesubjecttolevyofsalestaxonretailpricebasis.

During the month of December, 2022 the following information of the company is complied:

Act, 1990. However the same has not been shown as the available input tax is already less than

90% of the total output tax.

Import of finished goods - detergents 1,000

Local purchases of raw materials - Taxable 8,750

Additional Information:

Note: All above amounts are exclusive of sales tax.

Retail price of detergents (imported and locally manufactured) is Rs. 250 per packet of 1.5 kilograms each.

Required:InthelightoftheprovisionsoftheSalesTaxAct, 1990 andrulesmadethereunder,calculatethesales

tax liability of Beta (Pvt.) Limited for the month of December, 2022.

Conceptual Approach to Taxes____1029