Tax Book 2023

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

Purchased from registered person( 6,000,000 x 17%) 1,020,000

Purchased from un registered person (N - 3) -

1,020,000

Balance tax payable 467,500

(N - 1)

(N - 2)

Retail price of goods after discount 7,000,000

Retail price ( i.e sale price plus discount allowed )

(7,000,000 x 100 / 80) 8,750,000

(N - 3)

Asthezeroratedsuppliesarelessthan50%ofalltaxablesuppliesunderSRO1190(I)/2019

datedOctober02,2019,therefore90%limitationisapplicableU/S8BoftheSalesTaxAct,

1990.Howevethesamehasnotbeenshownastheavailableinputtaxisalreadylessthan90%

of the total output tax.

Aspurchasesfromnon-registeredpersonsarewithoutsalestaxinvoiceshencethesameshall

bewithoutsalestaxu/s23(2)oftheSalesTaxAct,1990,thereforethequestionofadjustment

of input tax in not applicable.

Conceptual Approach to Taxes____1033

(N - 4)

Q.4 (c) August 2012

Rupees

Supplies to registered manufacturers 4,250,000

Supplies to non-registered retailers 3,250,000

Sales of exempted supplies 600,000

Purchases from registered persons 3,000,000

Purchases from non-registered persons 2,100,000

Import of raw material 1,750,000

Required:

Compute the sales tax liability of Pak Manufactur ing Company for the month of June 2023.

Solution Q.4 (c) August 2012

Pak Manufacturing Company

NofurthertaxhasbeenchargedonsuppliescoveredunderFifthScheduletotheSalesTax

Act, 1990 by virtue of SRO 585(I)/2017, Dated: 01/07/2017.

of input tax in not applicable.

PakManufacturingCompany Limitedbeingasaunlistedcompanyisengagedinmanufacturingofboth

taxable and exempted supplies. Following are the transactions for the month of June 2023:

Pak Manufacturing Company

Computation of sales tax liability

For the tax period June 2023

Rupees Rupees

Output tax

On supplies to registered manufacturers U/S 3 (Rs. 4,250,000 x 17%) 722,500

On supplies to non-registered retailers U/S 3 (Rs.3,250,000 x 17%) (N-1) 552,500

On sales of exempted supplies [U/S 6 read with 6th Schedule] -

1,275,000

Input tax allocated to taxable supplies (W-1) (A) 747,685

Conceptual Approach to Taxes____1033