Tax Book 2023

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

90% of output tax [Rs. 1,275,000 x 90%] (N - 3) (B) 1,147,500

Less: admissible input tax: Lower of (A) or (B) 747,685

Balance sales tax payable 527,315

(W-1)

Residual input tax

Purchases from registered persons (Rs. 3,000,000 x 17%) 510,000

Purchases from non-registered persons (N - 2) -

Import of raw material (Rs. 1,750,000 x 17%) 297,500

807,500

Allocation of residual input tax: [U/R 25 of the Sales Tax Rules, 2006]

Supplies Residual input tax

Rs. Rs.

Supplies to registered manufacturers 4,250,000 423,688

Supplies to non-registered retailers 3,250,000 323,997

Sales of exempted supplies 600,000 59,815

8,100,000 807,500

1034___Conceptual Approach to Taxes

Input tax allocated to taxable supplies (W-1) (423,688 + 323,997) 747,685

Note - 1

Note - 2

Note - 3

Note - 5

(Note - 4) 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.

Aspurchasesfromnon-registeredpersonsarewithoutsalestaxinvoiceshencethesameshall

bewithoutsalestaxu/s23(2)oftheSalesTaxAct,1990,thereforethequestionofadjustment

of input tax in not applicable.

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.

90% restriction u/s 8B on input tax in case of a company is applicable subject to

restriction, limitations and conditions of the Sales Tax Act, 1990.

Spring - 2012 Q. 7

Rupees

Purchases – Local

From registered suppliers 70,250,000

From un-registered suppliers 15,750,000

Supplies:

Mr.FoladisregisteredundertheSalesTaxAct, 1990 andisengagedinthebusinessofmanufacture

andsupplyofhomeappliances.FollowinginformationhasbeenextractedfromtherecordsofMr.Folad

for the month of February 2023.

1034___Conceptual Approach to Taxes