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Exercise 7 We have data on business activities of Mist Group as follows: - Gross turnover exclusive of VAT: VND20 billion of which, VND8 billion

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Exercise 7 We have data on business activities of Mist Group as follows: - Gross turnover exclusive of VAT: VND20 billion of which, VND8 billion comes from exported goods; VND12 billion comes from the domestic sale of an excise duty item with excise duty rate of 20 percent. - Total declared expenses apart from excise duty: VND16 billion of which: - Donation for construction of a hospital: VND200 million - Donation to Youth union of Hanoi: VND100 million - Expenses with invalid vouchers are VND150 million - Provision for doubtful debt: VND140 million. Balance on bad debt provision at the end of the tax year: VND100 million. There were no debts with over due date during the tax year. - Income received from a joint venture with a Vietnamese company on which income tax has been paid is VND300 million. Required: Calculate the VAT and CIT payable by this group. Given that: - Input VAT qualified for deduction: VND80 million; - VAT rate applicable to this item: 10 percent; - All purchase transactions are supported with legitimate invoices except for those stated otherwise; - Bank payments are applicable to all purchase transactions of the company; - CIT standard rate is applicable to this group. Exercise 7 We have data on business activities of Mist Group as follows: - Gross turnover exclusive of VAT: VND20 billion of which, VND8 billion comes from exported goods; VND12 billion comes from the domestic sale of an excise duty item with excise duty rate of 20 percent. - Total declared expenses apart from excise duty: VND16 billion of which: - Donation for construction of a hospital: VND200 million - Donation to Youth union of Hanoi: VND100 million - Expenses with invalid vouchers are VND150 million - Provision for doubtful debt: VND140 million. Balance on bad debt provision at the end of the tax year: VND100 million. There were no debts with over due date during the tax year. - Income received from a joint venture with a Vietnamese company on which income tax has been paid is VND300 million. Required: Calculate the VAT and CIT payable by this group. Given that: - Input VAT qualified for deduction: VND80 million; - VAT rate applicable to this item: 10 percent; - All purchase transactions are supported with legitimate invoices except for those stated otherwise; - Bank payments are applicable to all purchase transactions of the company; - CIT standard rate is applicable to this group

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