Practice Questions with Solutions Chapter- 06
Balance sales tax payable 10 , 000
Notes:- 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)/20 19 dated October 02, 2019. - Import value u/s 2(46)(iii)(d) for the purposes of sales tax is as under:
Rs.
Value for custom duty 550,000
Add: Custom duty 50,000
Add: Federal Excise duty 30,000
630,000
Solution (b):
Output tax:
On taxable supplies (Rs. 700 , 000 x 1 7 %) 119 , 000
Less input tax:
On commercial imports U/S 3 (630,000 x 1 7 %) (Note – 2 ) 107 , 100
Minimum value addition tax paid on commercial imports
Paid under twelfth Schedule (Rs. 630,000 x 3%) 18,900
126,000
Balance sales tax (Note – 3) (7,000)
Notes:
- 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. - Import value u/s 2(46)(iii)(d) for the purposes of sales tax is as under:
Rs.
Value for custom duty 550,000
Add: Custom duty 50,000
Add: Federal Excise duty 30,000
630,000
- In no case, the refund of excess input tax over output tax which is attributable to tax paid at
import stage, shall be refunded to a registered person, except that as used for making of zero-rated
supplies. [Serial # 4 of Procedure and conditions attached after Table given in 12th Schedule to the
Sales Tax Act, 1990]
Q.5: Mr. Mohsin is a registered manufacturer of goods falling under third schedule. Information about his
sales and purchases for the month of August 20 22 is as follows:
Sales (after 10% discount) 45,000
Taxable purchases 30,000
Required: Calculate sale tax payable by Mr. Mohsin.
Solution:
Goods falling under 3rd schedule are chargeable to tax @ 1 7 % at retail price. If discount is allowed
on these goods then sales tax shall be calculated on the retail price and not on the discounted price.
Output tax:
Tax on sales (45,000 x 100/90 x 1 7 %) 8, 500
Input tax: