Practice Questions with Solutions Chapter- 06
Previous months b/f 200
Actual admissible input tax (A) 17 , 866
90% of output tax (Rs. 121,325 x 90%) (B) (Note - 3 ) 109 , 193
Less Admissible input tax: Lower of (A) or (B) 17 , 866
Sales tax payable 103 , 459
Refundable in respect of zero rated supplies & DTRE supplies (Rs. 3,241 + 7,293] 10,534
(Note - 1)
Input tax on purchases from registered persons (130,000 x 1 7 %) 22 , 100
Total input tax for apportionment 22 , 100Apportionment of taxable supplies input tax
[U/R 25 of the Sales Tax Rules, 2006] Supplies Input tax
Rs. Rs.
Local supplies to registered persons 500,000
Local supplies to non-registered persons (250,000 x 100/11 7 ) 213 , 675
Total local supplies 713 , 675 11 , 566
Supplies related to DTRE and zero rated 6 50,000 10,534
1,36 3 , 675 22 , 100(Note – 2 ) It has been assumed that 3 % further tax u/s 3(1A) is not applicable on local taxable supplies to
unregistered persons by virtue of serial 5 of SRO 648(I)/2013 dated July 09, 2013 otherwise further tax
shall be accounted for and paid separately without adjustment of the same against input tax / refund of the
registered person and further it shall also not be considered for the computation of 90% limitation on output
tax.
(Note - 3 ) As the zero rated supplies (including sales to DTRE registered persons) are less than 50% of all
taxable supplies under under SRO 1190(I)/2019 dated October 02, 2019 , therefore 90% limitation is
applicable U/S 8B of the Sales Tax Act, 1990.
(Note - 4 ) The question has been solved on the assumption that sales tax used on factory electricity and
telephone bills has been used only for taxable supplies (other than zero rated supplies) hence no
apportionment of the same has not been made.
(Note – 5 ) Input tax paid on gas bills of labor residential colonies is not admissible input tax under SRO
490(I)/20 0 4 dated June 12, 2004 read with SRO 464(I)/2007 dated June 09, 2007.
(Note - 6 ) The question has been solved on the assumption that exempt supplies have been made only
from exempt purchases and without use of any sales tax of other inputs, hence the same has been fully
accounted for in the input tax without any apportionment.
(Note - 7) 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.
Q.8 Mr. Kamran is a registered manufacturer under the Sales Tax Act, 1990. Data regarding his business
for August 20 22 is as follows1 Taxable turnover to registered persons 400,000
2 Taxable turnover to non-registered persons 150,000
3 Credit note issued for taxable supplies 50,000
4 Debit note issued for taxable supplies 20,000
5 Supplies to DTRE registered persons 20,000
6 Zero rated supply 45,000
7 Taxable purchases from registered persons 250,000
8 Exempted purchases 40,000
9 Sales tax paid on electricity bills 7,500