Tax Book 2023

Chapter 12 Solved Past Papers Sales Tax Numericals of ICMAP Stage IV - (2003 to 2016)

W-2 Apportionment of residual input tax

[U/R 25 of Sales Tax Rules, 2006] Supplies Residual input tax

Rs. "000" Rs. "000"

Taxable supplies 1,050 54

Exempt supplies 650 33

Total supplies 1,700 87

Note -1

Note -2

(Note - 3) Assumed that supplies invoices to un registered persons have NTN or CNIC of recipients, as

AsitiscaseofamanufacturerandnoneoftheclauseunderSRO1190(I)/2019datedOctober

02, 2019 isapplicabletherefore90%ofoutputtaxlimitationoninputisapplicableU/S8Bofthe

Sales Tax Act, 1990.

Ithasbeenassumedthat3%furthertaxu/s3(1A)isnotapplicableonlocaltaxablesuppliesto

unregisteredpersons(beingasfinalconsumers)underSRO648(I)/2013datedJuly09, 2013

otherwisefurthertaxshallbeaccountedforandpaidseperatelywithoutadjustmentofthesame

againstinputtax/refundoftheregisteredpersonandfurtheritshallalsonotbeconsideredfor

the computation of 90% limitation on output tax.

1032___Conceptual Approach to Taxes

Autumn - 2013 Q. 5

Rupees

Purchases from registered persons 6,000,000

Purchases from non-registered persons 720,000

Exports 1,000,000

During a tax period the company supplied goods worth Rs.7,000,000. As per normal business

practice, the company sells the goods at a discount of 20% of the retail price,

Required:

Compute the sales tax liability of Bashir corporation for the month of Junuary 2023.

Solution:

BASHIR CORPORATION (PVT.) LTD.

COMPUTATION OF SALES TAX

(Note - 3) 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.

Bashircorporation is registeredwith thesalestax departmentas manufacturer,exporter and the

distributor, it has the following transactions for the month of January, 2023:

COMPUTATION OF SALES TAX

FOR THE MONTH OF JANUARY 2023

OUTPUT TAX Rs.

Sales to registered person U/S 3 (N - 2) (Rs. 8,750,000 x 17 %) 1,487,500

Export [U/S 4 read with 5th Schedule] (N-2)(Rs. 1,000,000 x 0%) -

Total output tax 1,487,500

LESS : input tax

1032___Conceptual Approach to Taxes