Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Role Of Project Auditing In The Improvement Of Systems

Authors: Aïssata Maiga, Oumar Bah

1st Edition

6205076616, 978-6205076613

More Books

Students also viewed these Accounting questions