Chapter 07 Solved Past Papers Sales Tax Numericals of CA Module C
SALES TAX DEBIT (OUTPUT TAX)
Taxable goods supplied to Qatar (zero rated) 100,000 -
Taxable goods to registered persons (750-300) 450,000 76,500
Taxable goods to an associated undertaking at a
special discount (300/0.75) 400,000 68,000
Taxable goods supplied to unregistered customers (Note 2) 550,000 93,500
Goods disposed of by the bank 1,200,000 204,000
Total supplies / Output tax for the month 2,700,000 442,000
Admissible credit (90% of output tax i.e Rs. 397,800 (442,000 × 90%) or input tax
excluding Fixed Assets (511,074 – 81,852 = 429,222) whichever is lower (397,800)
950 Conceptual Approach to Taxes
excluding Fixed Assets (511,074 – 81,852 = 429,222) whichever is lower (397,800)
Input tax on fixed assets [(2,700,000 - 100,000) / 2,700,000] x 85,000 (81,852)
(479,652)
Excess of output tax over input tax (37,652)
Further tax payable on supplies made to unregistered person [550,000 × 3%] (Note 2) 16,500
Input tax to be carried forward (429,222 – 397,800) 31,422
Sales tax refund on zero rate supplies (W-1) 15,426
W-1: Apportionment of input tax
Total supplies 2,700,000
Zero rated supplies 100,000
Input tax 416,500
Inadmissible input tax relating to zero rate supplies (100,000/2,700,000×416,500) 15,426
(Note-2)NofurthertaxhasbeenchargedonsuppliescoveredunderFifthScheduletotheSalesTaxAct, 1990 byvirtueofSRO
585(I)/2017, Dated: 01/07/2017.
(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, 1990.950 Conceptual Approach to Taxes