Chapter 13 Solved Past Papers Sales Tax Numericals of ICMAP Stage IV - (2003 to 2016)

Chapter

13
SOLVED PAST PAPERS SALES TAX NUMERICALS OF ICMAP
STAGE IV - (2003 TO 2016)
Note: All the following questions have been solved under the Sales Tax Act effective from July 1st 2016,
except as provided in the Finance Act, 2016.

Q.No. 6(a) March 2015 Karven Limited is a company registered under the Sales Tax Act, 1990. The company is
engaged in the manufacturing, import and export of chemical products. Following activities were carried out by the
company dating the month of January 2015:

Rs. ‘000’
Purchases:
Local:
Raw materials from registered suppliers 800,000
Raw materials from non-registered suppliers 400,000
Imports:
Invoice value (converted into pak Rupees) 150,000
Customs duty 37,500
Value inclusive of customs duty 187,500
Federal excise duty 6,250
Manufacturing and other costs 220,000
Supplies:
Sales to registered customers 1,400,000
Sales to non-registered persons (commercial/industrial Customers) 600,000
Sales of exempted supplies 400,000
Exports 220,000

Additional Information:
Sales tax of Rs. 50,000, Rs. 20,000 and Rs. 16,000 was paid in cash on account of electricity, gas and telephone bills
respectively, directly consumed for taxable activities.

Required:
In the light of the provisions of the Sales Tax Act, 1990, compute the net sales tax payable for the month of January
2015. Substantiate your answer with notes.

Solution:

Karvan Limited
Computation of Sales tax payable / refundable
For the period of January 2017

Output tax Rs. in '000'

Sales to registered customers 238,000
Sales to unregistered person 102,000
Sales of exempted supplies -

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Exports -
340,000
Input tax
On taxabale supplies 128,960
On utilities bills ( 50,000 + 20,000 + 16,000) 86,000
A 214,960
or 90 % of 340,000 B 306,000
Lower of A and B (214,960)
Sales Tax payable 125,040
Add: 2% further sales tax on 400,000 8,000
Sales tax payable with return 133,040

Sales Tax refundable 25,792

Input tax for apportionment

Purchase from registered person 136,000
Imports (150,000 + 37,500 + 6,250) x 17% 32,938
168,938

Apportionment of input tax

Supplies to: Amount Input Tax

Registered person 1,400,000 90,272
Un-registered person 600,000 38,688
Exempted Supplies 400,000 25,792
Exports 220,000 14,186
2,620,000 168,938

Q.NO. 5(b) August 2014 Sitara Manufacturers (SM) deals in the taxable and exempted supplies. SM provided following
information for determination of its sales tax liability for the month of June, 2014.

·         SM made purchases amounting Rs. 800,000 from Elahi & Sons who is registered person.
·         Mr. Ahsan invoiced Rs. 150,000 to SM without charging any sales tax. 
·         SM further incurred manufacturing and other cost amounting Rs. 150,000. 
·         Out of total stock, SM supplied goods of worth Rs. 1,500,000 to Sidra & Co., which is a registered                              
company under the Sales Tax Ac t, 1990.
·         In addition to above SM made exempted supplies of Rs. 600,000 and supplied goods of worth Rs. 500,000 to non-
registered person.
·         SM also paid sales tax on electricity  bill amounting Rs. 18,000. 
Required:
Compute sales tax liability of SM under the Sales Tax Act, 1990 for the month of June, 2014.

Solution

Sitara Manufacturing
NTN #
STRN #
Computation of Sales tax payable / refundable
For the month of June 2017

Output tax
Sales to registered person 1,500,000 255,000
Sales to un-registered person 500,000 85,000

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Exempt supplies 600,000 -

340,000
Input tax
Input tax admissible W-1 118,462
or 90 % of 340,000 306,000 (118,462)
221,538
2% further tax on Rs. 500,000 10,000
Sales tax payable with return 231,538

Residual Input tax

Purchase from registered supplier 800,000 136,000
Electricity bill 18,000
154,000
Apportionment of Residual input tax
Taxable supplies 2,000,000 118,462
Exempt supplies 600,000 35,538
2,600,000 154,000

Q .NO. 6 Spring 2014 Beta (Pvt.) Limited is engaged in imports, trading and local manufacturing of certain
taxable consumer goods including products like detergents which are subject to levy of sales tax on retail price
basis. During the month of December, 2013 the following information of the company is complied:

Sales: Rs. '000

Sales of locally manufactured taxable goods (other than detergents) 20,000
Sales of imported finished goods on value addition basis 2,750
Sales of imported detergents to wholesalers
[31,250 packets @ Rs. 240 each packet] 7,500
Sales of locally manufactured detergents to wholesalers
[30,000 packets @ Rs. 225 each packet] 6,750

Imports and Local Purchases:

Import of raw materials for in-house consumption - Taxable 10,000
Import of finished goods - other than detergents 2,000
Import of finished goods - detergents 1,000
Local purchases of raw materials - Taxable 8,750

Additional Information:

Retail price of detergents (imported and locally manufactured) is Rs. 250 per packet of 1.5 kilograms each.

Note: All above amounts are exclusive of sales tax.

Required: In the light of the provisions of the Sales Tax Act, 1990 and rules made there under, calculate the sales
tax liability of Beta (Pvt.) Limited for the month of December, 2013.

Solution:
Beta (Pvt.) Limited

Output tax on: Rs. '000

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Sales of locally manufactured taxable goods (20,000,000 x 17%) 3,400

Sales of locally manufactured detergents [(30,000 products X Rs.250)] x 17% 1,275
Sales of imported detergents to wholesalers [(31,250 products X Rs.250)] x 17% 1,328
Sales of imported finished goods on value addition basis (2,750,000 x 17%) 468
Total Output Tax (A) 6,471

Input tax on:

Local purchase of raw materials 1,488

Import of raw materials for in-house consumption 1,700
Import of finished goods - other than detergents [Rs. 2(M) x 20%] 400
Import of finished goods - detergents [Rs. 1(M) x 20%] 200
Total input tax (B) 3,788

90% of output tax (Note - 1) (C) 5,823

Less admissible tax credit: lower of (B) or (C) (D) 3,788

Balance sales tax payable [A less D] 2,683

(N - 1) As the registered person given in this question is engaged in various types of activities and none of the
clause under SRO 647(I)/2007 dated June 27, 2007 is applicable therefore 90% of output tax limitation
on input is applicable U/S 8B of the Sales Tax Act, 1990.

(N - 2) 2% further sales tax u/s 3(1A) has not been charged as the supplies are made to registered wholesalers and
further final consumers (against supplies made) are not required to be registered under the Sales Tax Act,
1990.

Spring - 2013 Q. 5 b

Hassan Associates manufactures and supplies Product A and Product B. Hassan Associates is registered under the
Sales Tax Act, 1990. Following information has been extracted from its records for the month of May 2013:

Rupees in million
Purchase of raw material from registered person
To manufacture Product A 900
To manufacture Product B 300
Purchase of raw material from unregistered person
To manufacture Product A 150
To manufacture Product B 200
Import of raw material to manufacture Product A and B 450
Sale of Product A
To registered person 800
To unregistered person 250
Sale of Product B
To registered person 500
To unregistered person 150
Sale return during the month
Product A 50
Product B 30
Sales tax paid on electricity bill 15

Further information:
·         Product B is exempt from the sales tax.
·         Sales tax credit brought forward from previous month amounted to Rs. 25 million.
·         An  import bill dated November 10, 2012 amounting  to Rs. 25 million had  not been claimed 

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inadvertently. This oversight was detected during the month.
·         Sales  tax  is  payable  at  the  rate  of  16%.  All  the  above  amounts  are  exclusive  of sales tax. 

Required:
In the light of the Sales Tax Act, 1990 and rules made there under, calculate the following for the month of
May 2013;

·         Sales tax payable / refundable
·         Input tax to be carried forward, if any.

Solution:

HASSAN ASSOCIATES
SALES TAX LIABILITY
TAX PERIOD: MAY 2017

OUTPUT TAX Rs. "000" Rs. "000"

On total taxable supplies [(800+250) x 17%] (Note - 1) 179

Less: Return (50 x 17%) (9)
170
INPUT TAX

On taxable supplies only for product A U/S 3 153

On taxable supplies U/S 3 (W - 2) 54
Add: sales tax credit brought forward from previous month 25
(A) 232

90% of output tax (Note - 2) (B) 153

Less admissible tax credit: lower of (A) or (B) 153

Balance sales tax payable 17

Sale tax excess payment carry forward (A - B) 79

WORKING

W-1
Residual input tax :

Import for taxable & exempt goods ( 450 x 17%) 77

Sale tax on electricity bill 15
Less: Import bill un claimed ( 25 x 17%) (4)
Total residual input tax 87

W-2 Apportionment of residual input tax

[U/R 25 of Sales Tax Rules, 2006] Supplies Residual input tax
Rs. "000" Rs. "000"

Taxable supplies 1,050 54

Exempt supplies 650 33
Total supplies 1,700 87

(Note - 1) It has been assumed that 2% further tax u/s 3(1A) is not applicable on local taxable supplies to unregistered
persons (being as final consumers) under SRO 648(I)/2013 dated July 09, 2013 otherwise further tax shall
be accounted for and paid seperately without adjustment of the same against input tax / refund of the
registered person and further it shall also not be considered for the computation of 90% limitation on output
tax.

(Note - 2) As it is case of a manufacturer and none of the clause under SRO 647(I)/2007 dated June 27, 2007 is
applicable therefore 90% of output tax limitation on input is applicable U/S 8B of the Sales Tax Act,

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applicable therefore
1990.

Autumn - 2013 Q. 5

Bashir corporation is registered with the sales tax department as manufacturer, exporter and the distributor, it has the
following transactions for the month of january, 2013:

Rupees
Purchases from registered persons 6,000,000
Purchases from non-registered persons 720,000
Exports 1,000,000

During a tax period the company supplied goods worth Rs.7,000,000. As per normal business practice, the
company sells the goods at a discount of 20 % of the retail price,

Required:
Compute the sales tax liability of Bashir corporation for the month of junuary 2013.

Solution:

BASHIR CORPORATION PVT LTD

COMPUTATION OF SALES TAX
FOR THE MONTH OF JANUARY 2017

OUTPUT TAX Rs.

Sales to registered person U/S 3 (N - 2) (Rs. 8,750,000 x 17 %) 1,487,500

Export [U/S 4 read with 5th Schedule] (N-2)
(Rs. 1,000,000 x 0%) -

Total output tax 1,487,500

LESS : input tax

Purchased from registered person ( 6,000,000 x 17%) 1,020,000

Purchased from un registered person (N - 3) -
1,020,000
Balance tax payable 467,500

(N - 1) As the zero rated supplies are less than 50% of all taxable supplies under SRO 647(I)/2007 dated June
27, 2007, therefore 90% limitation is applicable U/S 8B of the Sales Tax Act, 1990. Howeve the same
has not been shown as the available input tax is already less than 90% of the total output tax.

(N - 2)
Retail price of goods after discount 7,000,000

Retail price ( i.e sale price plus discount allowed )

(7,000,000 x 100 / 80) 8,750,000

(N - 3) As purchases from non-registered persons are without sales tax invoices hence the same shall be
without sales tax u/s 23(2) of the Sales Tax Act, 1990, therefore the question of adjustment of input tax
in not applicable.

Q.4 (c) August 2012

Pak Manufacturing Company Limited is engaged in manufacturing of both taxable and exempted supplies. Following are
the transactions for the month of June:

Rupees
Supplies to registered manufacturers 4,250,000
Supplies to non-registered retailers 3,250,000

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Sales of exempted supplies 600,000
Purchases from registered persons 3,000,000
Purchases from non-registered persons 2,100,000
Import of raw material 1,750,000

Required:
Compute the sales tax liability of Pak Manufactur ing Company for the month of June.

Solution Q.4 (c) August 2012

Pak Manufacturing Company

Computation of sales tax liability
Rs.
Output tax
On supplies to registered manufacturers U/S 3 (Rs. 4,250,000 x 17%) 722,500
On supplies to non-registered retailers U/S 3 (Rs.3,250,000 x 17%) (N-1) 552,500
On sales of exempted supplies [U/S 6 read with 6th Schedule] -
1,275,000

Input tax allocated to taxable supplies (W-1) (A) 747,685

90% of output tax [Rs. 1,275,000 x 90%] (N - 3) (B) 1,147,500

Less: admissible input tax: Lower of (A) or (B) 747,685

Balance sales tax payable 527,315

(W-1)
Residual input tax
Purchases from registered persons (Rs. 3,000,000 x 17%) 510,000
Purchases from non-registered persons (N - 2) -
Import of raw material (Rs. 1,750,000 x 17%) 297,500
807,500

Allocation of residual input tax: [U/R 25 of the Sales Tax Rules, 2006]
Supplies Residual input tax
Rs. Rs.
Supplies to registered manufacturers 4,250,000 423,688
Supplies to non-registered retailers 3,250,000 323,997
Sales of exempted supplies 600,000 59,815
8,100,000 807,500

Input tax allocated to taxable supplies (W-1) (423,688 + 323,997) 747,685

(Note - 1) It has been assumed that 2% further tax u/s 3(1A) is not applicable on local taxable supplies to unregistered
persons (being as final consumers) under SRO 648(I)/2013 dated July 09, 2013 otherwise further tax shall
be accounted for and paid seperately without adjustment of the same against input tax / refund of the
registered person and further it shall also not be considered for the computation of 90% limitation on output
tax.

(Note - 2) As purchases from non-registered persons are without sales tax invoices hence the same shall be
without sales tax u/s 23(2) of the Sales Tax Act, 1990, therefore the question of adjustment of input tax
in not applicable.

(Note - 3) As it is case of a manufacturer and none of the clause under SRO 647(I)/2007 dated June 27, 2007 is
applicable therefore 90% of output tax limitation on input is applicable U/S 8B of the Sales Tax Act,
1990.

Spring - 2012 Q. 7

Mr. Folad is registered under the Sales Tax Act, 1990 and is engaged in the business of manufacture and supply of

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home appliances. Following information has been extracted from the records of Mr. Folad for the month of February
2012.
Rupees
Purchases – Local
From registered suppliers 70,250,000
From un-registered suppliers 15,750,000

Supplies:
Local taxable supplies to registered persons 72,870,000
Local taxable supplies to un-registered persons 9,850,000
Exports to Canada and USA 12,700,000

Following additional information is also available:

(i) A new machine purchased for Rs. 12 million was commissioned into operations during February 2012.

(ii) Sub-standard supplies amounting to Rs. 4,500,000 were returned to vendors. Proper debit/credit notes were raised in
this regard.

(iii) Goods worth Rs. 7,200,000 were returned by different customers. Proper debit/credit notes were raised within the
specified period.

(iv) An amount of Rs. 820,000 on account of purchases made from a registered supplier is outstanding since July 2011.
The related input tax was accounted for in the relevant tax period.

(v) Sales tax credit brought forward from previous month amounted to Rs. 910,500.

Sales tax is payable at the rate of 16%. All the above figures are exclusive of sales tax.
Required:
Compute sales tax payable/refundable and input tax credit to be carried forward, if any.

Solution:

Mr. Folad
Computation of sales tax liability

Rs. Rs.
Output tax:

On local taxable supplies to registered persons U/S 3 12,387,900

On local taxable supplies to unregistered persons U/S 3 (Note 4) 1,674,500
On exports to Canada and USA [U/S 4 read with 5th Schedule]
Less sales returns (1,224,000)
12,838,400
Input tax:

On net local supples from registered persons (Note 2) less related to 7,351,347
fixed assets (Rs.9,119,832 - Rs. 1,768,485)
On purchases from un- registered persons -
Input tax b/f 910,500
(A) 8,261,847

90% of output tax (N - 1) (B) 11,554,560

Less: Admissible input tax Lower of (A) or (B) 8,261,847

Purchase of fixed asset related to local taxable supplies 1,768,485

(Rs. 2,040,000 / 95,420,000 x 82,720,000) (N - 1)
(C) 10,030,332

Balance sales tax payable [ Output tax - (C) ] 2,808,068

2% further sales tax payable on supplies to un-registered persons (N - 3) 197,000
Sales tax refundable related to export supplies (Note 3) (1,400,168)

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(N - 1) As the zero rated supplies are less than 50% of all taxable supplies under SRO 647(I)/2007 dated June 27,
2007, therefore 90% limitation is applicable U/S 8B of the Sales Tax Act, 1990. The said limitation is not
applicable on input tax paid on acquistion of fixed assets.

(N - 2) Apportionment of taxable supplies input tax

[U/R 25 of Sales Tax Rules, 2006] Supplies Input tax
Rs. Rs.

Local supplies (gross) 82,720,000 9,119,832

Export sales 12,700,000 1,400,168
95,420,000 10,520,000

(N - 3) It has been assumed that 2% further tax u/s 3(1A) is applicable on local taxable supplies to unregistered
persons (being as final consumers) under SRO 648(I)/2013 dated July 09, 2013 hence the same shall be
accounted for and paid seperately without adjustment of the same against input tax / refund of the registered
person and further it shall also not be considered for the computation of 90% limitation on output tax.

Summer - 2011 Q. 4(b)

The following information relate to XYZ (Pvt) Ltd., for the month ended December 31, 2010:
Rs.
Taxable supply 5,000,000
Exempt supply 1,000,000
Zero-rated supply 2,000,000
Total supply 8,000,000

Purchase of raw materials used in taxable and zero-rated supply 4,500,000

Purchase of raw materials used in exempt supply 550,000

Required:
Compute the amount of sales tax liability / refund of the company.

Solution:

XYZ (Pvt) Ltd

Computation of sales tax liability for the month ended December 31, 2016

Rs.
Output tax:
On taxable supply U/S 3 (Rs. 5,000,000 x 17%] 850,000
On exempt supply [U/S 6 read with 6th Schedule] -
On zero rated supply [U/S 5 read with 5th Schedule] -
850,000
Input tax:
Purchase of raw materials used in taxable supplies (N - 2) 546,429
Purchase of raw materials used in exempt supply -
(A) 546,429

90% of output tax (N - 1) (B) 765,000 546,429

Less: Admissible input tax lowe of (A) or (B)
Balance sales tax liability 303,571

Sales tax refundable (Note 2) 218,571

(N - 1) As the zero rated supplies are less than 50% of all taxable supplies under SRO 647(I)/2007 dated June 27,
2007, therefore 90% limitation is applicable U/S 8B of the Sales Tax Act, 1990.

(N - 2) Apportionment of taxable supplies input tax:

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[U/R 25 of the Sales Tax Rules, 2006]
Supplies Input tax
Rs. Rs.

Local supplies (net) 5,000,000 546,429

Zero rated supplies 2,000,000 218,571
7,000,000 765,000

Winter - 2008 Q. 5

Karsaz Limited is engaged simultaneously in manufacturing and supply of taxable as well as exempted goods. Summary
of its transactions for the month of October is given below:

Rupees Rupees
Purchase of goods to be used for taxable supplies 600,000
Purchase of goods to be used for exempt supplies 900,000
Purchase of goods to be used for both taxable and exempt supplies 3,000,000
Total input tax on all purchases 675,000
Supply of wholly taxable goods 1,500,000
Supply of wholly exempt goods 1,800,000

Supply of partly taxable and partly exempted goods:

Taxable supplies 3,750,000

Exempt supplies 750,000
4,500,000
Required:
Compute the sales tax liability of the company for the tax period. (Show proper workings)

Solution

Karsaz Limited
Computation of sales tax liability
Rs.
Output tax:
On supply of wholly taxable goods U/S 3 255,000
On supply of wholly exempt goods [U/S 6 read with 6th Schedule] -
On supply of partly taxable and partly exempted goods
Taxable supplies U/S 3 637,500
Exempt supplies [U/S 6 read with 6th Schedule] -
892,500
Input tax:
On purchase of goods to be used for taxable supplies (W-1) 90,000
On purchase of goods to be used for exempt supplies -
On share of taxable supplies in purchase of goods for both 375,000
taxable and exempt supplies (W - 2) (A) 465,000

90% of output tax (N - 1) (B) 803,250

Less admissible input tax lower of (A) or (B) 465,000
Balance sales tax liability 427,500

Working:

Total purchases (600,000 + 900,000 + 3,000,000) 4,500,000

Total input tax on all purchases 675,000

W - 1:
Tax on purchase of goods to be used for taxable supplies
(675,000 / 4,500,000 x 600,000) 90,000

W - 2:

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Tax on purchase of goods for both taxable and exempt supplies
(675,000 / 450,0000 x 3,000,000) 450,000

This input tax of Rs. 450,000 shall be allowed proportionately:

(450,000 x 3,750,000 / (3,750,000 + 750,000) ) 375,000

(N - 1) As it is case of a manufacturer and none of the clause under SRO 647(I)/2007 dated June 27, 2007 is
applicable therefore 90% of output tax limitation on input is applicable U/S 8B of the Sales Tax Act,
1990.

Winter - 2004 Q. 6

Mr. Fakhar Rizvi is a commercial importer of taxable goods. During the month of July, 2004 he imported goods valuing
Rs. 1,500,000. On these imports he paid custom duty @ 10%, general sales @ 15% and income tax @ 6%. He also
opted to pay Sales Tax on value addition at the time of imports.

In addition to the above he provided following further information:

1. All imported goods were sold during the month of import i.e. July, 2004.

2. There were no opening or closing inventories.

3. His actual rate of value addition was 14%.

4. GST paid on utility bills during the tax period amounted to Rs. 5,000.

Required:

(i) Work out output tax, input tax and sales tax payable for the tax period of July, 2004.

(ii) Also state:

(A) who collects sales tax on imports and how?
(B) Last date of filing of sales tax return in above case.

Solution

(i)

Input tax: Rs.

On assessed value @ 17% 280,500
Additonal tax on value addition @ 3% paid at import stage 49,500
On utility bills paid (No entitlement to claim) -
Total input tax 330,000

Output tax:
Assessed value (N - 2) 1,650,000
14% value addition 231,000
Output tax @ 17% 1,881,000 319,770
319,770
Excss sales tax paid [ Output tax - Input tax ] (See note below) (10,230)

(N - 1) The importer is not entitled to claim refund on commercial imports sold at less than minimum value addition
that is presently 18.75%. Provided that all the available stock in sold by registered person.

(N - 2)

Assessed value
Import value 1,500,000
Custom duty @ 10% 150,000
Assessed value 1,650,000

(ii) (A)

Who collects sales tax on imports and how?

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Sales tax on imports is collected by the Collector of Custom @ 17% on assesed value and 3% additional tax
of the same value as minimum value addition at the time of import clearance.

(ii) (B)

Last date of filing of sales tax return:

Last date of filing of sales tax return is 15-08-2016 as no sales tax is payable by the registered person.

Summer - 2004 Q. 8

M/s Safi Electronics are engaged in manufacturing of electronic goods and are registered under Sales Tax Act, 1990 as
Manufacturer-cum-Exporter. During the month of March, 2004 their Sales/Purchases data were recorded as under:
Rs.
(i) Local purchases:
(a) From registered persons 4,500,000
(b) from un-registered persons 1,200,000
(ii) Imports 2,300,000
(iii) Utility bills, (exclusive of GST Rs. 75,000) 500,000
(iv) Sales to Registered Persons 3,200,000
(v) Sales to Un-registered persons 3,600,000
(vi) Exports 3,000,000

Notes:

1. All the above figures are exlusive of sales tax paid or recovered.

2. The owner also took goods worth Rs. 200,000 for his private use.

3. Purchases include an invoice of Rs. 100,000 dated: 27-2-2004 which was not included in the Sales Tax Return for
February, 2004, due to it's late receipt.

4. Unadjusted imput tax carried forward from last month amounted to Rs. 45,000.

Required:
(i) Calculate Sales Tax payable by M/s Safi Electronics for the month of March 2004.

(ii) Give necessary explanations, on adjustments if any, to notes number 2, 3 and 4.

Solution

M/s Safi Electronics

Computation of sales tax payable
For the month of March 2017
Rs.
Output tax:
On sales to registered persons (Rs. 3,200,000 x 17%) 544,000
On sales to un-registered persons (Rs. 3,600,000 x 17%) (Note 5) 612,000
Exports [U/S 5 read with 5th Schedule] -
Goods taken for private use U/S 3 (Rs. 200,000 x 17%) (Note 1) 34,000
1,190,000
Input tax:
On purchases from registered persons (Rs. 4,500,000 x 17%) 765,000
On purchases from un-registered persons -
On imports used for manufacturing (Rs. 2,300,000 x 17%) 391,000
On utility bills paid 75,000
Unclaimed invoice of last month (Rs. 100,000 x 17%) (Note 2) 17,000
Unadjusted input tax of previous month (Note 3) 45,000
(A) 1,293,000

90% of output tax (N - 4) (B) 1,071,000

Sales tax payable [ Output tax - (lower of (A) or (B) ] 119,000

Sales tax credit c/f (A) less (B) 222,000

Explanations:

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(N - 1) Goods taken for private use are chargeable to sales tax @ 17%.

(N - 2) Invoice not claimed in previous month can be claimed in six succeeding tax periods.

(N - 3) Previous month carry forward shall be included in the input tax.

(N - 4) As the zero rated supplies are less than 50% of all taxable supplies under SRO 647(I)/2007 dated June 27, 2007,
therefore 90% limitation is applicable U/S 8B of the Sales Tax Act, 1990.

(N - 5) It has been assumed that 2% further tax u/s 3(1A) is not applicable on local taxable supplies to unregistered
persons (being as final consumers) under SRO 648(I)/2013 dated July 09, 2013 otherwise further tax shall be accounted
for and paid seperately without adjustment of the same against input tax / refund of the registered person and further it
shall also not be considered for the computation of 90% limitation on output tax.

Conceptual Approach to Taxes_______________________________________________

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