Chapter 07 Solved Past Papers Sales Tax Numericals of CA Module C
(i) Supplies made during the month were as follows:
Rupees
Local taxable supplies to registered persons 35,500,000
Local taxable supplies to unregistered persons 1,700,250
Exports to USA and Canada 25,500,000
Supplies of exempt goods 5,235,000
Mr.AghaisregisteredundertheSalesTaxAct,1990.Heisengagedinthesupplyofhouseholdappliancesandhasprovidedyou
the following information for the month of August 2022:
Q.NO. 6 Autumn 2011964 Conceptual Approach to Taxes
Supplies of exempt goods 5,235,000Goods worth Rs. 1,500,000 were returned by a registered person. Proper debit/credit notes have been issued in
this regard.
(ii) Following purchases were made during the month:
Rupees
Purchases from registered persons 54,550,000
Purchases from unregistered persons 10,600,000
(iii) Sales tax credit of Rs. 610,000 has been brought forward from previous month.
(iv) All the above amounts are exclusive of sales tax.
Goodspurchasedfromunregisteredpersonswereexclusivelyusedformakingtaxablesupplies.AnamountofRs.750,000is
payable to a registered person since February 01, 2022.
(v)AghaisalsorequiredtopayapenaltyofRs.10,000undertheSalesTaxAct, 1990 onaccountofcertaindefectsinthe
Required:
Rs. Rs.
Output tax
Local taxable supplies to registered persons U/S 3 (Rs. 35,550,000 x 17%) 6,043,500
Taxable supplies to unregistered persons U/S 3 (Rs.1,700,250 x 17%) (Note - 2 & 8) 289,043
Exports to USA and Canada [U/S 4 read with 5th Schedule] -
Supplies of exempt goods [U/S 13 read with 6th Schedule] -
Sales tax in respect of goods returned [U/S 9 read with Rule 22] (255,000)
Total output tax 6,077,543
Computethesalestaxpayable/(refundable)by/toMr.Aghaalongwithinputtaxtobecarriedforward,ifany,inthesalestaxreturn
for the month of August 2022.
Solution(v)AghaisalsorequiredtopayapenaltyofRs.10,000undertheSalesTaxAct, 1990 onaccountofcertaindefectsinthe
maintenance of records.
Input tax
Input tax apportioned to local taxable supplies (Note - 1) 5,008,202
Add sales tax credit b/f 610,000
Total input (A) 5,618,202
90% of output tax (B) 5,469,788
Less: Admissible input tax: lower of (A) or (B) 5,469,788
Sales tax payable 607,754
Input tax to be carried forward (A) Less (B) 148,414
Sales tax refundable in respect of exports U/S 10(1) (Note - 1) 3,433,019
Residual Input tax to be apportioned:
Purchases from registered persons (Rs. 54,550,000 x 17%) 9,273,500
Purchases from unregistered persons (Note - 4) -
Less : sales tax inadmissible U/S 73Less : sales tax inadmissible U/S 73 (Note - 5)(Note - 5) (127,500) (127,500)
Total input tax to be apportioned 9,146,000
(Note - 1) Apportionment of residual input tax Supplies Residul input
[U/R 25 of the Sales tax Rules, 2006] tax
Rs. Rs.
Local supplies 37,200,250 5,008,202
Exports 25,500,000 3,433,019
Exempt supplies (Note - 6) 5,235,000 704,779
67,935,250 9,146,000
(Note - 2)
(Note - 3)
Asthezeroratedsuppliesarelessthan50%ofalltaxablesuppliesunderSRO1190(I)/2019datedOctober02,2019,
therefore 90% limitation is applicable U/S 8B of the Sales Tax Act, 1990.
Ithasbeenassumedthat3%furthertaxu/s3(1A)isnotapplicableonlocaltaxablesuppliestounregisteredpersons
underSRO648(I)/2013datedJuly09, 2013 otherwisefurthertaxshallbeaccountedforandpaidseperatelywithout(Note - 4)
(Note - 5) AregisteedpersonisnotentitledtoclaiminputtaxU/S^73 wherethepaymentagainstinvoicesexceedingRs.50,000has
notbeenmadewithin 180 daysoftheissuanceoftaxinvoicesunlesscondonaionoftimelimitapprovalfromtheofBoard
has been obtained U/S 74 of the Sales Tax Act, 1990.
underSRO648(I)/2013datedJuly09, 2013 otherwisefurthertaxshallbeaccountedforandpaidseperatelywithout
adjustmentofthesameagainstinputtax/refundoftheregisteredpersonandfurtheritshallalsonotbeconsideredfor
the computation of 90% limitation on output tax.
Aspurchasesfromnon-registeredpersonsarewithoutsalestaxinvoiceshencethesameshallbewithoutsalestaxu/s
23(2) of the Sales Tax Act, 1990, therefore the question of adjustment of input tax is not applicable.964 Conceptual Approach to Taxes