Tax Book 2023

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

no sales tax is payable by the registered person.

Summer - 2004 Q. 8

Rs.

(i) Local purchases:

(a) From registered persons 4,500,000

(b) from un-registered persons 1,200,000

(ii) Imports 2,300,000

(iii) Utility bills, (exclusive of GST Rs. 75,000) 500,000

(iv) Sales to Registered Persons 3,200,000

(v) Sales to Un-registered persons 3,600,000

(vi) Exports 3,000,000

Notes:

1. All the above figures are exlusive of sales tax paid or recovered.

M/sSafiElectronicsareengagedinmanufacturingofelectronicgoodsandareregisteredunderSales

TaxAct, 1990 asManufacturer-cum-Exporter.DuringthemonthofMarch, 2023 theirSales/Purchases

data were recorded as under:

1040___Conceptual Approach to Taxes

1. All the above figures are exlusive of sales tax paid or recovered.


2. The owner also took goods worth Rs. 200,000 for his private use.


3. Unadjusted imput tax carried forward from last month amounted to Rs. 45,000.

Required:

(i) Calculate Sales Tax payable by M/s Safi Electronics for the month of March 2023.

(ii) Give necessary explanations, on adjustments if any, to notes number 2, 3 and 4.

Solution

M/s Safi Electronics

Computation of sales tax payable

For the month of March 2023

Rs.

Output tax:

On sales to registered persons (Rs. 3,200,000 x 17%) 544,000

On sales to un-registered persons (Rs. 3,600,000 x 17%)(Note 5) 612,000

3. Purchases include an invoice of Rs. 100,000 dated: 27-2-2023 which was not included in the Sales
   Tax Return for February, 2023, due to it's late receipt.

On sales to un-registered persons (Rs. 3,600,000 x 17%)(Note 5) 612,000

Exports [U/S 5 read with 5th Schedule] -

Goods taken for private use U/S 3 (Rs. 200,000 x 17%)(Note 1) 34,000

1,190,000

Input tax:

On purchases from registered persons (Rs. 4,500,000 x 17%) 765,000

On purchases from un-registered persons -

On imports used for manufacturing (Rs. 2,300,000 x 17%) 391,000

On utility bills paid 75,000

Unclaimed invoice of last month (Rs. 100,000 x 17%)(Note 2) 17,000

Unadjusted input tax of previous month (Note 3) 45,000

1040___Conceptual Approach to Taxes