Tax Book 2023

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

Input tax:
Input tax on purchases from registered persons (Rs. 160,000,000 x 17%) 27,200,000
27,200,000
(Note - 1)Apportionment of residual input tax Supplies Residul input
[U/R 25 of the Sales tax Rules, 2006] tax
Rs. Rs.
Taxable local supplies 120,000,000 19,200,000
Exports 30,000,000 4,800,000
Exempt supplies (Note - 3) 20,000,000 3,200,000

Conceptual Approach to Taxes___ _969

Exempt supplies (Note - 3) 20,000,000 3,200,000

170,000,000 27,200,000

(Note - 2)

(Note - 3)

i. Supplies made during the month were as follows:

Rupees

Q. No. 8(b): Autumn 2009

Asthezeroratedsuppliesarelessthan50%ofalltaxablesuppliesunderSRO1190(I)/2019datedOctober02,2019,

therefore 90% limitation is applicable U/S 8B of the Sales Tax Act, 1990.

Mr.AsifisregisteredundertheSalesTaxAct,1990.FollowinginformationforAugust 2022 monthhasbeenextractedfromhis
business records:

A registeed person is not entitled to claim input tax attirbutable to exempt supplies U/S 8(2) of the Sales Tax Act, 1990.

Rupees

To registered persons 5,000,000

To unregistered persons 3,000,000

Export supplies 11,000,000

Exempted supplies 2,000,000

ii. Goods costing Rs.8,000,000 were purchased from registered persons.

iii.

Sales tax liability:
Rs. Rs.

GoodspurchasedfromunregisteredpersonsamountingtoRs.2,000,000andwereusedexclusivelyformakingtaxable

supplies.

Required: Compute the sales tax payable and/or to be carried forward by Mr. Asif in the return for the month of August 2022.

Solution

Rs. Rs.
Output tax U/S 3 (Rs. 8,000,000 x 17%) (Note - 2) 1,360,000
Less: input tax against taxable local supplies (Note - 1) 518,095
Balance sales tax payable 841,905

Sales tax refundable on exports U/S 10(1) (Note - 1) 712,381

Input tax:
Input tax on purchases from registered persons (8,000,000 x 17%) 1,360,000
1,360,000
(Note - 1)Apportionment of residual input tax
[U/R 25 of the Sales tax Rules, 2006] Supplies Residual input
tax
Rs. Rs.
Taxable local supplies 8,000,000 518,095
ExportsExports 11,000,00011,000,000 712,381712,381
Exempt supplies (Note - 4) 2,000,000 129,524
21,000,000 1,360,000
(Note - 2)

(Note - 3)

(Note - 4)

(Note- 5)

A registeed person is not entitled to claim input tax attirbutable to exempt supplies U/S 8(2) of the Sales Tax Act, 1990.

Asthezeroratedsuppliesaremorethan50%ofalltaxablesuppliesunderSRO1190(I)/2019datedOctober02,2019,

therefore 90% limitation is not applicable U/S 8B of the Sales Tax Act, 1990.

Ithasbeenassumedthat3%furthertaxu/s3(1A)isnotapplicableonlocaltaxablesuppliestounregisteredpersons

underSRO648(I)/2013datedJuly09, 2013 otherwisefurthertaxshallbeaccountedforandpaidseperatelywithout

adjustmentofthesameagainstinputtax/refundoftheregisteredpersonandfurtheritshallalsonotbeconsideredfor

the computation of 90% limitation on output tax.

(Note- 5)NoNofurtherfurthertaxtaxhashasbeenbeenchargedchargedononsuppliessuppliescoveredcoveredunderunderFifthFifthScheduleScheduletotothetheSalesSalesTaxTaxAct,Act, 19901990 bybyvirtuevirtueofofSROSRO

585(I)/2017, Dated: 01/07/2017.

Conceptual Approach to Taxes___ _969