SALES TAX (THEORY+NUMERICAL) Flashcards
Numerical concept
after reapportionment which part of input goes where
Taxable supplys is adjusted
exempts is wasted
Zero rated*s is claimed/refunded
NQ
what is the sequence of last solution/ adjustment part of numerical?
o/p
less;
lower of
-adjustable input
or 90% of o/p
less; input on machines
add; further tax( @ 4% )
sales tax payble/(carried forward)
Refund against zero rated
Apportioned i/p on
-machine
-other
-on any other adjustment
who is required to be registered?
1- A manufacture not a cottage industry
2- A tier-1 retailer
3-an importer
4- exporter who wants to claim input
5-a wholeseller, distributor or dealer
6-a person required under federal or provincial law
whose gas and electricity shall be discontinued?
1- any person inclding tier-1 retailer, who fails to register for sales tax purpose
2- a tier-1 retailer not integrated with FBR
Explain cottage industry?
A manufacturer which fulfills all following conditions:
1-located in a residential area;
2-annual turn-over does not exceed 8 million;
3-labour force does not exceed 10 persons; and
4-does not have a comertial connection of electricity or gas
ia a cottage industry.
Differ zero rated and exempt goods?
540
Conditions for tax adjustment?
For tax adjustment, a person must hold:
1-Tax invoice in his name bearing NTN or incase of electricity or gas , a bill bearing registration number and address
2-bill of entry in case of imported goods
3-Treasury challan in case of goods purchased in auction
Conditions for payment through banking channel?
Payment exceeding 50000 must be
1-made by a cross banking channel
2-made within 180 days of issuance of tax invoice
3-from business bank account of buyer to business bank account of seller
Write particulars which must be on debit or credit note?
1-Name and NTN of the recipient and the supplier
2-Reason of issuance of note
3-Signature and seal of authorized person issuing the note
4-Number and date of the original sales tax invoice
5-Quantity being returned or the supply which has been cancelled
6- Original, revised and difference in the value and sales tax
Cases in which 90% restriction is not applicable?
1-Telecommunications
2-Distributors
3-CNG and Petroleum dealers
4-Commertial importers whose commertial imports exceeds 50% of the all taxable purchases during the tax year
5-person making zero rated supplies provided their value exceeds 50% of all taxable supplies during the year
Explain Tier-1 retailers?
Page no 551
Concept about chargebility of sales tax on tier 1 and other retailers?
Page no552
Differ zero rated and exempt supply?
page 540
explain stock treatment in taxation?
there is no treatment for opening and closing stock however if it is told that the person has registered newly, the purchase of last 30 days and imports of last 90 days which is unsold, shall be treated to input tax subjected to conditions and the stock is verifiable
what is manufacturer?
A person who is engaged in manufacturing whether raw material belongs to him or not and includes an assignee or trustee in case of bankrupsy
or
a person who holds any patents or rights to goods being manufactured
