Tax Book 2023

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

(A) 1,293,000

90% of output tax (N - 4) (B) 1,071,000

Sales tax payable [ Output tax - (lower of (A) or (B) ] 119,000

Sales tax credit c/f (A) less (B) 222,000

Explanations:

(N - 1) Goods taken for private use are chargeable to sales tax @ 17%.

(N- 5 ) Ithasbeenassumedthat3%furthertaxu/s3(1A)isnotapplicableonlocaltaxablesuppliesto

(N-4)Asthezeroratedsuppliesarelessthan50%ofalltaxablesuppliesunderSRO1190(I)/2019

dated October 02, 2019,, therefore 90% limitation is applicable U/S 8B of the Sales Tax Act, 1990.

(N - 3) Previous month carry forward shall be included in the input tax.

(N - 2) Invoice not claimed in previous month can be claimed in six succeeding tax periods.

Conceptual Approach to Taxes____1041

(N - 6)

(Note - 7) 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.

No further tax has been charged on supplies covered under Fifth Schedule to the Sales Tax

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

(N- 5 ) Ithasbeenassumedthat3%furthertaxu/s3(1A)isnotapplicableonlocaltaxablesuppliesto

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

furthertaxshallbeaccountedforandpaidseperatelywithoutadjustmentofthesameagainstinputtax/

refundoftheregisteredpersonandfurtheritshallalsonotbeconsideredforthecomputationof90%

limitation on output tax.

Conceptual Approach to Taxes____1041