Chapter 07 Solved Past Papers Sales Tax Numericals of CA Module C
Rs. Rs.
Output tax
Local taxable supplies to registered persons (Rs. 2,500,000 x 17%) 425,000
Taxable supplies to unregistered persons U/S 3 (Rs.875,000 x 17%) (Note - 2) 148,750
Person registered as exporter (625,000 x 17%) - assumed not registered under DTRE 106,250
Supply of shampoo (Rs. 135,000 x 3 = 405,000 x 17%) 68,850
Total output tax 748,850
Solution952 Conceptual Approach to Taxes
Input tax
Input tax (Note - 1) 274,040
Sales tax paid on electricity bills (Rs. 70,000 + 45,000 + 68,000) 183,000
Add sales tax credit b/f 30,000
Total input (A) 304,040
90% of output tax (B) 673,965
Less: Admissible input tax: lower of (A) or (B) 304,040
Sales tax payable 444,810
Add 3% further tax on supplies to un registered persons (Rs.875,000 x 3%) 26,250
Net total sales tax payable 471,060
(Note - 1)
Input tax working
Raw material purchased from registered persons (Rs. 930,000 x 17%) 158,100
Packing material from registered person (Rs. 510,000 x 17%)Packing material from registered person (Rs. 510,000 x 17%) 86,700 86,700
Imports (Rs. 472,000 x 17%) 80,240
Cables and wires purchase [Tax credit not allowed u/s 8(1)(h)] -
Electrice kettles purchased [Tax credit not allowed u/s 8(1)(a)] -
Input tax disallowed due to late payment (Rs. 300,000 x 17%) (51,000)
Total input tax to be apportioned 274,040
(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.Mulaqat Associates (MA), an association of persons, is registered under theSalesTaxAct, 1990 andis
engagedinthebusinessofmanufactureanddistributionofvarious products. Following informationhasbeen extracted
Q.NO.1 SPRING 2016Supplies Rupees
Jet fuel to Pak Airways proceeding to Oslo 800,000
Taxable goods to registered customers 500,000
Taxable goods to un-registered customers 375,000
Purchases
Taxable goods from registered suppliers 650,000
Taxable goods from un-registered suppliers 150,000
Exempt goods from registered suppliers 100,000
Imports – raw material 280,000Following information is also available:
(i)
engagedinthebusinessofmanufactureanddistributionofvarious products. Following informationhasbeen extracted
from MA’s records for February 2023:
TaxablegoodspurchasedfromregisteredsuppliersincludefurnitureofRs.45,000whichwasacquiredforuseinthe
office of marketing manager.
(ii)(iii)(iv)
(v)
(vi)(vii)MA purchased 150 bagsofcement, covered under Third Schedule, fortheconstructionofabungalowfor
managingpartner.CementwaspurchasedatthewholesalepriceofRs. 400 perbag.However,theretailpricewas
Rs. 500 per bag.
Advance of Rs. 268,000 was made to Nomi Corporation for the purchase of packing materials.
Taxablegoodstoun-registeredcustomersincludegoodsworthRs.200,000soldtocottageindustryinBela.Therest
of the goods were sold to educational institutions in Zhob.
On 15 February 2023 MAsignedanagreementwithBaliTraders(BT),aregisteredcustomer,forthesaleofgoods
worthRs.290,000.On 20 February 2023 thegoodsweremadeavailabletoBT.However,BTtookthedeliveryofgoods
on 5 March 2023.
MAsoldgoodsworthRs.52,000tooneofitscustomersontwomonthscredit.Theamountwasinclusiveof4%mark-office of marketing manager.
ImportsincluderawmaterialsworthRs.125,000forthemanufactureofshavingcream, coveredunder Third
Schedule. However, enroutefrom port toMA’swarehouseinUthalaseriousdamagewascausedtothe
consignment.MAreceivedinsuranceclaimofRs.90,000aftersurrenderingtherightofdisposalofconsignmentin
favour of the insurance company.(vii)(viii)
(ix)
(x)MAsoldgoodsworthRs.52,000tooneofitscustomersontwomonthscredit.Theamountwasinclusiveof4%mark-
up.
MAdistributedfreesamplesofoneofitsnewdetergentsZetaamongcorporateclients.Thevalueofthesesamples
amounted to Rs. 65,000.On 1 February 2023 MAsold4,000packsofanewcaramelicecream,coveredunderThirdSchedule,atadiscounted
price of Rs. 100 per litre pack. The retail price of the ice cream was Rs. 160 per litre pack.MAissuedadebitnoteofRs.35,000toHaliBrotherstorectifyamistakeinMA’ssalesinvoice.Theinvoicewasoriginally
raised in November 2022.952 Conceptual Approach to Taxes