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Tax Assignment: 3 Marks

The firm should file its first sales tax return by November 15th, 2018 for the month of October 2018 since that was when it made its first taxable supplies after registration in August 2018. The adjustable input tax related to paper alone is Rs. 915,384. The output tax amounts for each month from October to January are: October - Rs. 2,550,000, November - Rs. 3,400,000, December - Rs. 850,000, January - Rs. 680,000. The amounts deposited in the government treasury for the periods of September to January are: September - Rs. 0, October - Rs. 1,247,036, November - Rs

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51 views

Tax Assignment: 3 Marks

The firm should file its first sales tax return by November 15th, 2018 for the month of October 2018 since that was when it made its first taxable supplies after registration in August 2018. The adjustable input tax related to paper alone is Rs. 915,384. The output tax amounts for each month from October to January are: October - Rs. 2,550,000, November - Rs. 3,400,000, December - Rs. 850,000, January - Rs. 680,000. The amounts deposited in the government treasury for the periods of September to January are: September - Rs. 0, October - Rs. 1,247,036, November - Rs

Uploaded by

mehar noor
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Tax Assignment

1) When would the firm start submission of its sales tax returns?
3 marks

The sales tax should be paid by a registered person on taxable supplies made by
the person during the period. In this case, the company got itself registered in
August 2018, procured material in September 2018, and started production also
in October 2018. Effectively, he made taxable supplies during October 2018.
Therefore, he will file his first return for the month of June by 15 th November
2018 as per clause (9) of Section 2 of Sales Tax Ordinance.

2) What is the adjustable input tax related to paper alone? 2


marks
GST rate= 17 percent
Price of paper inclusive of GST= 9,000,000
Price exclusive of GST = 9,000,000/1.17= 7692308
GST= 9,000,000-7692308 = 1307692
Adjustable input tax=0.70*1307692=915384

3) Mention the amount of GST/output tax against each period’s supply:


5 marks

Month Taxable Supply GST(Taxable supply*


17%)
October 15,000,000 2,550,000
November 20,000,000 3,400,000
December 5,000,000 850,000
January 4,000,000 680,000
February 6,000,000 1,020,000
4) What would be the amount of tax deposited in the government
treasury for tax periods September, October, November, December,
January? 10 marks

Tax Output Input tax Adjustment Payment Unadjusted


Period tax for + brought allowed to input tax
the tax forward treasury carried
period unadjusted forward to
amount next tax
period
September 0 1,206,190 - - 1,206,190
October 2,550,000 96,774 + 2,295,000 1,247,036 0
(1,206,190)
=
1,302,964
November 3,400,000 38,286 - 3,361,714 0
December 850,000 15,625 - 834,375 0
January 680,000 108,000 - 572,000 0

Working for input Tax


September:
Input tax related to paper = 915,384
Tax related to common inputs = sum of all GST amounts of a month = 300,500
Residual input tax on taxable supplies = (15,000,000 * 300,500) / (15,000,000 +
500,000) = 290,806
Total input tax = 915,384 + 290,806 = 1,206,190

October:
Residual input tax = (15,000,000 * 100,000) / (15,000,000 + 500,000) = 96,774

November:
Residual input tax = (20,000,000 * 40,200) / (20,000,000 + 1,000,000) = 38,286

December:
Residual input tax = (5,000,000 * 25,000) / (5,000,000 + 3,000,000) = 15,625

January:
Residual input tax = (4,000,000 * 108,000) / (4,000,000 + 0) = 108,000

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