Question
ABC Mobile Co Ltd is a mobile retailer. It purchases F16 mobile for $1100 per mobile from A2Z Mobile and Accessories Ltd, a large importer
ABC Mobile Co Ltd is a mobile retailer. It purchases ‘F16 mobile’ for $1100 per mobile from A2Z Mobile and Accessories Ltd, a large importer of mobile phones. ABC Mobile Co Ltd (a GST-registered entity) plans to sell the mobiles at a 200% markup to its customers. In January last year, ABC Mobile purchased 100 ‘F16 Mobile’. However, in April, it was discovered that 10 mobiles are faulty. ABC Mobile Co Ltd returned them to A2Z Mobile and Accessories Ltd and obtained a full refund.
Required:
Explain the GST consequences of this arrangement for both parties.
(Maximum 400 words)
Step by Step Solution
3.44 Rating (157 Votes )
There are 3 Steps involved in it
Step: 1
The Goods and Services Tax GST is a consumption tax applied to the supply of goods and services in Singapore In this scenario ABC Mobile Co Ltd is a G...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Microeconomics
Authors: Douglas Bernheim, Michael Whinston
2nd edition
73375853, 978-0073375854
