Chapter 07 Solved Past Papers Sales Tax Numericals of CA Mod- C
(Note - 6)
(Note- 7)NofurthertaxhasbeenchargedonsuppliescoveredunderFifthScheduletotheSalesTaxAct, 1990 byvirtueofSRO
585(I)/2017, Dated: 01/07/2017.(Note - 6) 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.Aregisteedpersonisnotentitledtoclaiminputtaxattirbutabletoexemptsuppliesundersection8(2)oftheSalestaxAct,
1990.Conceptual Approach to Taxes___ _965
Rupees
Purchases:
Local Material:
from registered suppliers 15,000,000
from un-registered suppliers 8,000,000
Supplies:
Manufactured goods:
local taxable supplies to registered persons 10,000,000
local taxable supplies to un-registered persons 3,000,000
export to Taiwan 10,000,000
exempt goods 2,000,000
Q.NO. 5 Spring 2011on distributors otherwise proportionate input tax shall be disallowed under section 8(1)(m) of the Sales Tax Act, 1990.MaroofEngineeringLimited(MEL)anunlostedcompanyisregisteredundertheSalesTaxAct,1990.Thecompanyisengagedin
themanufacture&supplyofspareparts.FollowinginformationhasbeenextractedfromtherecordsofMELforFebruary 2023
month.
exempt goods 2,000,000
Following additional information is also available.
(ii) Material purchased from un-registered suppliers was exclusively used for making taxable supplies.
(iv) A new machinery of Rs 2.4 million was purchased and put to use during the same month.
(v) Rs. 20,000 was paid to a courier company for delivering gifts to MEL’s high value customers.
(iii)GoodsworthRs.500,000werereturnedbydifferentcustomers.Properdebit/creditnoteswereraisedwithinthespecified
period.
(i) PurchasesfromregisteredsuppliersincludeanamountofRs.1.0millionwhichwasinvoicedonMay15,2022.Theinputtaxon
this invoice could not be claimed in the relevant period.
(vii) Parts worth Rs. 15,000 were delivered to the CEO for his personal use, free of cost.
(viii) Sales tax credit of Rs. 50,000 was brought forward from previous month.
All the above amounts are exclusive of sales tax.
Required:
(a) Compute the sales tax payable/refundable.
(b) Input tax credit to be carried forward, if any.
(vi) MEL’spurchasesfromregisteredsuppliersincludematerialworthRs. 2 millionagainstwhichanadvancewaspaidinthe
monthofJanuary2023.However,duetoadispute,salestaxinvoicewasdelayedandwasreceivedbythecompanyafterfilingof
return.
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