Tax Book 2023

Chapter 12 Solved Past Papers Sales Tax Numericals of ICMAP Stage IV - (2003 to 2018)

Raw materials from non-registered suppliers 400,000

Imports:

Invoice value (converted into pak Rupees) 150,000

Customs duty 37,500

Value inclusive of customs duty 187,500

Federal excise duty 6,250

Manufacturing and other costs 220,000

Supplies:

Sales to registered customers 1,400,000

Sales to non-registered persons (commercial/industrial Customers) 600,000

Sales of exempted supplies 400,000

Exports 220,000

Additional Information:

Required:

SalestaxofRs.50,000,Rs.20,000andRs.16,000waspaidincashonaccountofelectricity,gasand

telephone bills respectively, directly consumed for taxable activities.

InthelightoftheprovisionsoftheSalesTaxAct,1990,computethenetsalestaxpayableforthe

Conceptual Approach to Taxes____1027

Solution:

Karvan Limited

Computation of Sales tax payable / refundable

For the period of January 2023

Output tax Rs. in '000'

Sales to registered customers 238,000

Sales to unregistered person 102,000

Sales of exempted supplies -

Exports -

340,000

Input tax

On taxabale supplies 128,960

On utilities bills ( 50,000 + 20,000 + 16,000) 86,000

A 214,960

or 90 % of 340,000 B 306,000

Lower of A and B (214,960)

Sales Tax payable 125,040

Add: 3% further sales tax on 400,000 12,000

Sales tax payable with return 137,040

month of January 2023. Substantiate your answer with notes.

Sales tax payable with return 137,040

Sales Tax refundable 14,186

Input tax for apportionment

Purchase from registered person 136,000

Imports (150,000 + 37,500 + 6,250) x 17% 32,938

168,938

Apportionment of input tax

Conceptual Approach to Taxes____1027