Scope and Payment of Tax Chapter- 05
(b) List the situations in which the type of goods identified in (a) above would not be eligible for zero
rating.
Q.8 (b) Autumn 2012 While carrying the sales tax audit of haleema, the Officer of Inland Revenue
identified a deficiency in the amount of sales tax deposited by her. She acknowledged this deficiency
but failed to deposit the balance amount.
Determine Haleema’s liability in the above situation. Also explain whether it would have been to her
advantage if she had paid the amount before issuance of the show cause notice.
Q. 8 Spring 2012 Mr. Zamarrud is engaged in the manufacture and sale of taxable as well as zero-
rated products.
Required: As a tax consultant, advise Ms. Zamarrud on the following matters:
(a) The conditions that need to be satisfied for the adjustment of input tax against the output tax
liability.
(b) Any seven situations in which input tax is not allowed to be adjusted against the output tax
liability.
(c) The remedy available to her if she fails to adjust input tax in the period in which it is paid.
Q.2 (b) Spring 2011 List down the particulars to be mentioned on the debit note issued by the
supplier in the event of change in the value of supply, under the Sales Tax Rules, 2006.
Q.7 (b) Autumn 2011 Mr. Gohar has recently been registered under the Sales Tax Act, 1990. He is
engaged in the export and distribution of consumer products. Before filing the first return, he wishes to
obtain advice on the following matters:
(i) Eligibility for a refund if input tax paid is in excess of the output tax payable for the month.
(ii) Consequences of non-payment of the entire amount of tax due as indicated in the return.
(iii) Concept of provisional and final adjustment.
Required: Comment on each of the above matters. (08 marks)
Q. NO. 7(b) Spring 2010 List the type of exports which are outside the purview of zero rating.
Q. NO. 7(b) Spring 2009 With reference to the Sales Tax Act, 1990, identify the situations under
which a registered person shall not be entitled to claim or deduct input tax.
Q. NO. 6(b) Autumn 2008 Certain food items supplied by Pakistan Distributors (Pvt.) Ltd. (PDL)
have been returned by the customers after the expiry date. PDL wishes to destroy them. Specify the
procedure which would have to be followed in this regard.
Q. NO. 7(b) Spring 2008 Sales Tax Act, 1990 places certain restrictions on adjustment of input tax.
You are required to explain the related provisions in respect of the following:
(i) Extent of restriction on admissibility of input tax;
(ii) The conditions under which the amount of input tax which had been so restricted may
subsequently be allowed;
(iii) Treatment of sales tax paid on acquisition of fixed assets.
Q. NO. 7(a) Autumn 2007 How would the input tax on raw material be determined and claimed
where a registered person is engaged in making taxable as well as exempt supplies?
Q. NO. 7(b) Autumn 2007 A contract has been signed on May 20, 2006 by Mr. Pervez and Mr.
Farooq. Both of them are registered persons. Under the contract, Mr. Pervez will supply branded
computers to Mr. Farooq within two months. At the time of entering into contract, the goods were