Chapter 07 Solved Past Papers Sales Tax Numericals of CA Mod- C
(c)Withreferencetodata(a)above,&disregardingtheerrorsgivenin(b)above,assumingthatinthemonthofNovember2022,it
wasfoundthatoutputtaxofRs.1,300,750showninthemonthlyreturnfortaxperiodOctober 2022 wasinfactRs.1,350,750i.e.
(b)Withreferencetodatain(a)above,assumingthatonOctober20, 2022 itwasfoundthatinputtaxclaimrelatingtotaxperiod
July 2022 amountingtoRs.50,000wasinadvertentlynotclaimedinthesalestaxreturnfiledforthatperiod.OnNovember10,2022,
itwasalsofoundoutthattherewasanotherinputtaxclaimrelatingtotaxperiodSeptember 2022 amountingtoRs.25,000which
was not claimed in the monthly return filed for that period.
YouarerequiredtoadviseastowhethersuchunclaimedamountscouldbeclaimedundertheSalesTaxAct,1990.Ifyouranswer
is in affirmative, then briefly explain the procedure for claiming such amounts.
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You are required to briefly explain the remedy, if any, available in the STA, 1990 to account for this error.
(a) September August July
Output tax (A) 1,375,000 1,175,750 1,210,000
Actual Input tax 1,130,000 1,450,000 1,050,000
Input tax brought forward 391,825 - -
Total input tax (B) 1,521,825 1,450,000 1,050,000
90% of output tax (90% x A above)(Note - 3) (C) 1,237,500 1,058,175 1,089,000
wasfoundthatoutputtaxofRs.1,300,750showninthemonthlyreturnfortaxperiodOctober 2022 wasinfactRs.1,350,750i.e.
short declared by Rs. 50,000.
Solution90% of output tax (90% x A above)(Note - 3) (C) 1,237,500 1,058,175 1,089,000
Less admissible input tax: lower of (B) or (C) 1,237,500 1,058,175 1,050,000
Balance sales tax payable 137,500 117,575 160,000
Input tax carried forward 284,325 391,825 -
(Note - 3)(b)
Effect of further tax under section 3(IA) has not been taken into account as the same can not be adjusted against output tax.
AsthenoneoftheclauseofSRO1190(I)/2019datedOctober02, 2019 isapplicable,therefore90%limitationis
applicable U/S 8B of the Sales Tax Act, 1990.Undersection7(1)itisprovidedthatwherearegisteredpersondidnotdeductinputtaxwithintherelevantperiod,hemayclaim
suchtaxinthereturnforanyofthesixsucceedingtaxperiodsthereforeboththeinputmaybeclaimedinthemonthlysalestax
returns for the tax period October.
(c)
Undersection11AoftheSalesTaxAct,1990.wherearegisteredpersonpaystheamountoftaxlessthanthetaxdueasindicated
inhisreturn,theshortpaidamountoftaxalongwithdefaultsurchargeshallberecoveredfromsuchpersonandnopenaltyunder
section 33 shall be imposed unless a show cause notice is given to such person.
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