Tax Book 2023

Chapter 07 Solved Past Papers Sales Tax Numericals of CA Module C

W-1: Apportionment of input tax

Value of

supply

Input tax on plant and

machinery

Residual input

tax

180 9.25 29.06

98 5.03 15.82

278 14.28 44.88

(84×17%)

942 Conceptual Approach to Taxes

A B C D

Purchases

1,500,000 1,500,000 - -

• 
  
  
  
  • 1,500,000 1,500,000
  
  
  
  


• 
  
  
  
  • 
    
    
    
    • 2,500,000
    
    
    
    
  
  
  
  

Q.7 March 2019

Following information has been extracted from the records of four registered persons for the month of February 2023

Registered Persons

Taxable supplies from registered

persons

Taxable supplies from un-registered

persons

Fixed assets (machinery) from a

registered supplier

RUPEES

• 
  
  
  
  • 
    
    
    
    • 2,500,000
      Supplies
      1,200,000 - 1,000,000 1,000,000
      300,000 - - 800,000
    
    
    
    
  
  
  
  


• 
  
  
  
  • 800,000 -
    Zero rated supplies 300,000 1,800,000 - -
    All the above figures are exclusive of sales tax, wherever applicable. Sales tax is payable at the rate of 17%.
    Required:
  
  
  
  

registered supplier

Taxable supplies to registered persons

Exempt supplies to registered persons

Taxable supplies to un-registered

persons

In the light of the provisions of the Sales Tax Act, 1990 and Rules made thereunder, compute the amount of sales tax

Taxable

amount

Sales tax @

17%

-------- Rupees --------

Registered person (A)

Input tax

Supplies from registered persons 1,500,000 255,000

Less: Inadmissible input tax/adjustable input tax (255,000×600,000/1,800,000) (85,000)

Input tax for the month -

Answer

In the light of the provisions of the Sales Tax Act, 1990 and Rules made thereunder, compute the amount of sales tax

payable by or refundable to each of the above registered persons (other than public listed company) and input tax to be

carry forward, if any, for the tax period February 2023.

Output tax

Taxable supplies to registered persons 1,200,000 204,000

Exempt supplies to registered persons 300,000 -

Zero rate supplies 300,000 -

Output tax for the month 204,000

Admissible credit [Lower of 170,000 or 183,600 (90% of 204,000)] 170,000

Sales tax payable (204,000 – 170,000) 34,000

Sales tax refundable (300,000/1,800,000×255,000) 42,500

942 Conceptual Approach to Taxes