ACC213- Introduction to Income Tax

For the quarter ended 31 December 2018, Aqua Pte Ltd (APL), a goods and services tax (GST) registered trader, recorded the following transactions from trading in ornamental fish: Sold $200,000 worth of goods to customers; 20% were exported overseas, 40% were sold to GST-registered businesses in Singapore, 30% were sold to non-GST registered businesses in Singapore, and 10% (intended for export) were sold in Free Trade Zones.

Collected a deposit of $8,000 from a local customer on 18 December 2018. Of which, $3,000 is a refundable security deposit and $5,000 is related to the supply of goods amounting to $15,000 on 28 December 2018. Tax invoice for this supply of goods has yet to be issued as at 31 December 2018. Total realised foreign exchange losses for the quarter ended 31 December 2018 was $200. Total realised foreign exchange gains for the quarter ended 31 December 2018 was $100. Total unrealised foreign exchange losses for the quarter ended 31 December 2018 was $235. Total unrealised foreign exchange gains for the quarter ended 31 December 2018 was $85. Absorbed GST on sales to local, non-GST registered customers. These sales amounted to 10% of APLs total sales. Transferred an air pump machine worth $5,000 to an affiliated business at no charge. Purchased $100,000 worth of goods from local suppliers, 70% of which were from GST-registered businesses. Imported goods worth $20,000 from an overseas supplier who has no permanent establishment in Singapore. Purchased $10,000 worth of goods from an overseas supplier who has no permanent establishment in Singapore and these goods were shipped from the suppliers country to another overseas country, other than Singapore. Leased a shophouse it owns with an annual value of $144,000 to a businessman at a monthly rental of $12,000. The shophouse is assessed to be 40% residential and 60% commercial in composition. Received a Debit Note from a GST-registered business for goods rejected amounting to $7,000. Issued a Credit Note to replace the above-mentioned Debit Note for the same amount. Issued a Debit Note of $3,000 to an affiliated company for expenses incurred on its behalf as an agent. Issued a Debit Note of $4,000 to an affiliated company for expenses incurred on its behalf as a principal. These expenses were for the provision of taxable supplies to the affiliated company. Bad debt relief for local sales amounting to $5,000 was claimed. Recovered cash amounting to $9,000 from a debtor, of whom, bad debt relief of $10,000 (excluding GST) has been claimed from the Comptroller of GST in the prior reporting quarters.

Collected a deposit of $8,000 from a local customer on 18 December 2018. Of which, $3,000 is a refundable security deposit and $5,000 is related to the supply of goods amounting to $15,000 on 28 December 2018. Tax invoice for this supply of goods has yet to be issued as at 31 December 2018. Total realised foreign exchange losses for the quarter ended 31 December 2018 was $200. Total realised foreign exchange gains for the quarter ended 31 December 2018 was $100. Total unrealised foreign exchange losses for the quarter ended 31 December 2018 was $235. Total unrealised foreign exchange gains for the quarter ended 31 December 2018 was $85.

APL also incurred the following expenditures in the quarter, all of which were paid to GST-registered businesses, except for the donation to a local charitable organisation. All figures are exclusive of GST.

Required: (a) Compute the net amount of GST payable by or refundable to APL for the quarter ended 31 December 2018. Examine the above and identify the type and value of supply and amount of output/input tax chargeable/payable for every item mentioned in the question. Where applicable, you are to implement the common or specific GST reliefs, implement the relevant GST concepts to ascertain the appropriate treatment for each item identified and illustrate each items timing and value of supply in the context of GST. All relevant computations and assumptions must be shown for marks to be awarded. You may use a table such as the one below:

Item	Type of Supply	Value of Supply ($)	Input Tax ($)	Output Tax ($)

(51 Marks)

Retail and office space rent Shipping charge for exports Shipping charge for imports Bank charges Donation to a local charitable organisation Gift hamper given to a high-value client on 24 December 2018 Annual dinner & dance expenditure (60% of which were attributable to family members of staff) 72,000 1,200 900 120 400 800 18,000 Retail and office space rent Shipping charge for exports Shipping charge for imports Bank charges Donation to a local charitable organisation Gift hamper given to a high-value client on 24 December 2018 Annual dinner & dance expenditure (60% of which were attributable to family members of staff) 72,000 1,200 900 120 400 800 18,000