Tax Book 2023

Scope and Payment of Tax Chapter- 05

ICMAP PAST PAPERS THEORETICAL QUESTIONS

Q. NO. 5(b) Fall 2017

Tehmoor Private Limited (TPL) supplies different cosmetic products to different vendors. In the month of
January 2017, TPL sent a consignment of 1,000 cosmetic products to Shaheen Limited (SL). SL found
that 50% of the consignment was expired and decided to return the products to TPL. Suppose both TPL
and SL are registered taxpayers under the Sales Tax Act, 1990.

Required:

(i) Enumerate what procedure should be followed by SL, if it returns the 50% of consignment to

TPL due to expiry of products.

(ii) List out the information which a debit and credit notes should contain, while returning the goods.

Q. NO. 6(b) Autumn (Feb) 2016

(i) There are certain kinds of refunds which can be claimed under section 10 and 66 of the Sales

Tax Act, 1990. Explain what kind of refunds can be claimed within one year of the date of

payment under section 66 of the Sales Tax Act, 1990 and how such refunds can be

differentiated from other refunds filed under section 10 of the Sales Tax Act, 1990.

(ii) In case a registered person failed to lodge the refund claim within the prescribed time of one

year under section 66 of the Sales Tax Act, 1990, does it mean that the refund claim stands

forfeited or the registered person can have any legal remedy under the provisions of the Sales

Tax Act, 1990 to keep alive his entitlement for such a refund claim? Discuss.

Q. NO. 5 (a) Spring 2015

(i) List down any six mandatory conditions of claiming adjustment of input tax under the provisions

of sections 7 and 8 of the Sales Tax Act, 1990, the non-compliance of which would invalidate

the input tax credit.

(ii) M/s. Rehmeen Limited hired a Value Added Tax expert to advise whether the input tax paid on

the certain transactions either purchases of taxable goods or acquisition of taxable services

can be adjusted against output tax. The management enquired admissibility of input tax with

regards to the following transactions:

• Sales tax paid on electricity bills in respect of the power consumed within the residential
  colony situated at the manufacturing plant of the company.


• Sales tax paid on purchases of cables and wires used for electrical fittings within the plant
  premises.


• Sales tax paid on import of pre-fabricated building structure to be installed under on-going
  expansion at the plant location.


• Sales tax paid on raw materials as already consumed in finished goods which
  eventually lost by fire.


• Sindh sales tax paid on insurance premium attributable to the company's commercial
  vehicles.

Required

Being a Value Added Tax (VAT) expert, discuss whether input tax on above goods and services

is admissible under the relevant provisions of the Sales Tax Act, 19 90.

Q.NO. 5 (a) March 2015 In view of the provisions of Sales Tax Laws:

(i) Identify the circumstances under which the debit and credit notes are required to be issued in

respect of supply made by a registered person.