BN Ltd is a packaging business. All amounts are Vat inclusive, where applicable. The following information relates to the $2-$month tax period of August and September $2022.$

INCOME

Sales

$865000$

Sales: Australia

$125000$

Rent received: Residential supply

$14000$

Interest received

$22000$

Fee from consulting service

$15675$

EXPENSES

Wages

$25000$

Petrol

$18000$

Bad debts

$42000$

Telephone

$36000$

Water and Electricity

$24000$

Importation of good from Zimbabwe

$150000$

Customs Duty

$6000$

Purchase of factory building from non$-$vendor

$65000$

Purchase of raw material

$115000$

Purchase of water bottles

$2000$

Cost of new motor car for general use in business

$186500$

Calculate the VAT payable or refundable for the period of August and September $2022.$

$($Note: IF VAT IS NOT APPLICABLE, PLEASE PROVIDE REASONS$)$

Round off to two $(2)$ decimal places.

QUESTION $2[8$ MARKS$]$

$2\mathrm{.}1$ Discuss the following: To whom is the deduction of annuities allowed and what are the conditions that need to be met. $(5)$

$2\mathrm{.}2$

Calculate a S$18$A deduction for the $2023$ year of assessment if B Ltd donated R$8000.$ Taxable Income is R$75000.(3$