Tax Book 2023

Chapter 07 Solved Past Papers Sales Tax Numericals of CA Mod- C

Registered person (B)

Registered person (C)

Input tax

1,500,000 -

Output tax

Taxable supplies to registered persons 1,000,000 170,000

Since all supplies are zero rated and all purchases are made from registered suppliers, the registered person can claim the

refund of all input tax i.e. 255,000 (1,500,000×17%).

Supplies from un-registered persons

Conceptual Approach to Taxes___ _943

Taxable supplies to registered persons 1,000,000 170,000

800,000 136,000

Output tax for the month 306,000

Further tax on supplies to unregistered persons (800,000×3%) 24,000

Sales tax payable [306,000+24,000] 330,000

Registered person (D)

Input tax

Supplies from un-registered persons 1,500,000 -

Fixed assets (machinery) 2,500,000 425,000

Inadmissible input tax (800,000÷1,800,000×425,000) (188,889)

236,111

Output tax

Taxable supplies to registered persons 1,000,000 170,000

Taxable supplies to un-registered persons (Note 1)

Taxable supplies to registered persons 1,000,000 170,000

Taxable exempt supplies 800,000 -

Output tax for the month 170,000

Less: Input tax on fixed assets (236,111)

Sales tax refundable/carry forward (66,111)

Q.8 September 2018

Abid Khan is registered for sales tax purposes and is engaged in the manufacturing of electrical appliances in Multan. His

sales and purchases for the month of August 2022 are summarized below

(Note - 1) 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.

RUPEES

SUPPLIES

Taxable goods to registered customers 15,118,000

Taxable goods to un-registered customers 10,150,000

Exports 5,000,000

Exempt supplies 4,500,000

Purchases

Taxable goods from registered suppliers - for taxable supplies 25,000,000

for exempt supplies 1,500,000

Packing materials from un-registered suppliers 9,500,000

(i). Supplies of taxable goods to registered customers include

sales and purchases for the month of August 2022 are summarized below

(i). Supplies of taxable goods to registered customers include

(iv). An electricity bill of Rs. 2,600,000 was paid in cash which includes sales tax amounting to Rs. 350,000

(v). Input tax brought forward from July 2022 is Rs. 595,000

All the above figures are exclusive of sales tax, wherever applicable. Sales tax is payable at the rate of 17%

Required:

a. an amount of Rs. 4,225,000 against sale of electric toasters at a trade discount of 35%. As per normal

business practice, he allows a discount of 10% only

b. goods supplied against which advance payment of Rs. 2,500,000 had been received in June 2022

(ii). Taxable supplies returned by different registered customers amounted to Rs. 900,000. Proper debit and credit

notes were raised within the specified time

(iii). Taxable supplies returned by different registered customers amounted to Rs. 900,000. Proper debit and credit

notes were raised within the specified time

Required:

Compute sales tax payable by or refundable to Abid Khan along with input tax to be carried forward/refundable, if any, in

the sales tax return for the month of August 2022.

Conceptual Approach to Taxes___ _943