Practice Questions with Solutions Chapter- 06
Note: All the under stated questions have been solved under the Sales Tax Act effective from July 1st
2022.
The following points are very important for students before solving the problems of sales tax.
Q.1 Briefly explain in which of the following cases a person is liable to be registered.
Sr. No. Particulars
1 Mr. Aslam is an importer; his taxable turnover during last 12 months is Rs. 5,000,001.
2 A wholesaler having taxable turnover during last 12 months Rs. 400,000.
3 A manufacturer having taxable turnover during last 12 months Rs. 4,000,000.
4 A manufacturer having taxable turnover during last 12 months Rs. 5,000,000.
5 A manufacturer having taxable turnover during last 12 months Rs. 10 ,000,0 01.
6 Mr. Amir is a manufacturer; his taxable turnover during last 12 months was Rs. 2,500,000
and his utility bills during last 12 months was
a) Rs. 600,000
b) Rs. 8 00,000
c) Rs. 9 00,000
7 Mr. Zahid is a Retailer; his taxable turnover during last 12 months is less than Rs. 5 million.
8 Taxable turnover of Mr. Akram during last 12 months is Rs. 400,000, he is a distributor.
9 Mr. Usman is a Retailer; his taxable turnover during last 12 months is Rs. 15 million.
10 A person wants to import goods, whether he is required to get himself registered or not.
11 Cottage Industry
12 Mr. Bilal is a manufacturer; detail regarding his turnover during last 12 months is as follows:
Local sales 8 ,500,000
Exports (Zero rated supplies) 2 ,500,000
13 Mr. Kamran is a manufacturer, information regarding last 12 months is given below:
Exports (Zero rated supplies) 3,000,000
Electricity bills 850,000
14 Mr. Ehsan is a Commercial exporter and wants to claim refund.Solution of Q.1:
Important note: This solution for requirement of registration has been made under section 14 of the
Sales Tax Act, 1990.Sr. No. Particulars
1 An importer is required to be registered irrespective of its turnover.
2 A wholesaler is required to be registered irrespective of its turnover.
3 A manufacturer is liable to be registered who is not running a cottage industry;
4 A manufacturer is liable to be registered who is not running a cottage industry;PRACTICE QUESTIONS WITH SOLUTIONS
6
Chapter