Tax Book 2023

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

Sales tax carried forward [(A) - (B)] 1,063,336

Sales tax refundable on zero rated supplies (W-2) 948,903

(N - 1) Input tax

Input tax on Local purchases from registered persons (Rs. 27,000,000 x 17%) 4,590,000

(N - 2) Apportionment of input tax on taxable supplies

[U/R 25 of the Sales Tax Rules, 2006] Supplies Input tax

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[U/R 25 of the Sales Tax Rules, 2006] Supplies Input tax

Rs. Rs.

Local taxable (Gross) 23,023,000 3,641,097

Exports 6,000,000 948,903

29,023,000 4,590,000

(N - 3)

(N - 4)

(N - 5)

Asthezeroratedsuppliesarelessthan50%ofalltaxablesuppliesunderSRO1190(I)/2019datedOctober02,2019,

therefore 90% limitation is applicable U/S 8B of the Sales Tax Act, 1990.

Ithasbeenassumedthat3%furthertaxisapplicableonlocaltaxablesuppliestounregisteredpersonshencefurthertax

shallbeaccountedforandpaidseperatelywithoutadjustmentofthesameagainstinputtax/refundoftheregistered

person and further it shall also not be considered for the computation of 90% limitation on output tax.

NofurthertaxhasbeenchargedonsuppliescoveredunderFifthScheduletotheSalesTaxAct, 1990 byvirtueofSRO

585(I)/2017, Dated: 01/07/2017.

Supplies Rupees
Local supplies of manufactured good to registered persons 26,860,000
Local supplies of manufactured good to unregistered persons 3,550,000
Local supplies of zero-rated goods 1,250,000
Exports to Malaysia 15,000,000

Local purchases

Mr.Cleveramanufacturerofhouseholdappliances,isregisteredundertheSalesTaxAct,1990.Followinginformationhasbeen
extracted from its records for the month of February 2023:

(Note - 6) 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. 7 (b) Spring 2013

Local purchases
Registered persons 40,550,000
Unregistered persons 5,000,000

Following additional information is also available:

(iv) Sales tax credit of Rs. 410,000 was brought forward from pervious month.

(i) Supplies worth Rs. 1,300,000 were returned by different registered persons. Proper debit/ credit notes were raised

within the specified time.

(iii) A new machine amounting to Rs. 3,000,000 was imported from china and put into operation during the same month.

(ii) LocalpurchasefromregisteredpersonincludeandinvoiceRe.60,000whichwasissuedinthenameofMr.Clever's

uncle.

Sales tax is payable at the rate fo 16%. All the above amounts are exclusive of sales tax.

Required:
Compute the sales tax payable by /refundable to Mr. Clever along with input tax to be carried forward, if any, in the sales tax return
for the month of February 2023.

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