Tax Book 2023

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

3. His actual rate of value addition was 14%.


4. GST paid on utility bills during the tax period amounted to Rs. 5,000.

Required:

(i) Work out output tax, input tax and sales tax payable for the tax period of July, 2022.

(ii) Also state:

(A) who collects sales tax on imports and how?

(B) Last date of filing of sales tax return in above case.

Solution

(i)

Input tax: Rs. Rs.

On assessed value @ 17% 280,500

Additonal tax on value addition @ 3% paid at import stage 49,500

On utility bills paid (No entitlement to claim) -

Total input tax 330,000

Conceptual Approach to Taxes____1039

Total input tax 330,000

Output tax:

Assessed value (N - 2) 1,650,000

14% value addition 231,000

Output tax @ 17% 1,881,000 319,770

319,770

Excss sales tax paid [ Output tax - Input tax ] (See note below) (10,230)

(N - 1)

(N - 2)

Assessed value

Import value 1,500,000

Custom duty @ 10% 150,000

Assessed value 1,650,000

(ii) (A)

Innocase,therefundofexcessinputtaxoveroutputtaxwhichisattributabletotaxpaidat

importstage,shallberefundedtoaregisteredperson,unlessgoodsareexported.[Serial# 4 of

ProcedureandconditionsattachedafterTablegivenin12thScheduletotheSalesTaxAct,

1990.

(ii) (A)

Who collects sales tax on imports and how?

Sales tax on imports is collected by the Collector of Custom @ 17% on assesed value and

3% additional sales tax of the same value as value addition at the time of import clearance.

(ii) (B)

Last date of filing of sales tax return:

Last date of filing of sales tax return is 15-08-2022 (subject to extensioas allowed by FBR) where

Conceptual Approach to Taxes____1039