Tax Book 2023

Chapter 07 Solved Past Papers Sales Tax Numericals of CA Mod- C

Rupees

14,500,000

10,254,980

Supplies

Q.NO.6 Autumn 2014

Local supplies to wholesalers

Local supplies to distributors

AliTradingCompany(ATC)isregisteredundertheSalesTaxAct, 1990 andisengagedinthebusinessofmanufactureandsupply

of consumer goods. Following information has been extracted from the records of ATC for the month of August 2022.

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10,254,980

18,650,000

980,000

5,500,000

50,982,000

9,200,000

Following additional information is also available:

Local supplies to distributors

Exports

Local supplies to registered retailers

Supply of exempted goods

(ii)    An early settlement discount of Rs. 250,000 was given to local distributors.

Local purchases from registered persons

(i)     Supplies amounting to Rs. 540,000 were returned by registered retailers.

(vi)  Sales tax credit brought forward from previous month amounted to Rs. 854,700.

(iii)  AnamountofRs.500,000wasreceivedfromImranAssociates,representing25%advancepaymentinrespectofsupplyofa
special order. ATC will supply this order in November 2022.
(v)    Goods  pledged  with  a  bank,  were  disposed  of  by  the  bank  for  Rs.  4 million in satisfaction of debt owed by ATC.  

Local purchases from un-registered persons

Purchases

Sales tax is payable at the rate of 17%. All the above figures are exclusive of sales tax.

Required:

Ali Trading Corporation
Computation of Sales tax payable / refundable
For the tax period August 2022

Output Tax Rs. Rs.

Solution

UndertheprovisionsoftheSalesTaxAct, 1990 computesalestaxpayable/refundableandinputtaxcredittobecarried

forward, if any, for August 2022.

(vii) Proper debit and credit notes have been issued wherever necessary.

(vi)  Sales tax credit brought forward from previous month amounted to Rs. 854,700.

Output Tax Rs. Rs.

Local supplies to wholesalers 14,500,000 2,465,000

Local supplies to distributors 10,254,980 1,743,347

Exports 18,650,000 -

Local supplies to registered retailers 980,000 166,600

Supply of exempted goods 5,500,000 -

500,000 -

Goods disposed pledged with bank 4,000,000 680,000

Return 540,000 (91,800)

• 4,963,147
  Input tax
  Input tax admissible 4,782,618
  Sales tax credit brought forward 854,700
  5,637,318
  or 90 % of 4,963,147 4,466,832

Advance received (not taxable as is not included in the value of

supply)

or 90 % of 4,963,147 4,466,832

(4,466,832)

Sales tax payable with return 496,315

Sales tax to be carried forward 1,170,486

Sales tax refundable on zero rated supplies 2,999,694

Input tax admissible to be apportioned

Purchases from registered persons 50,982,000 8,666,940

Apportionment of Input tax:

Taxable Supplies 29,734,980 4,782,618

Exports 18,650,000 2,999,694

Exempted goodsExempted goods 5,500,0005,500,000 884,628884,628

53,884,980 8,666,940

(Note - 1) No further tax has been charged on supplies covered under Fifth Schedule to the Sales Tax Act, 1990 by virtue of SRO
585(I)/2017, Dated: 01/07/2017.

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