Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Lay Lawn ( Pty ) Ltd provides laying of instant lawn, lawn mowing, and maintenance services and is well known for its professional services. The
Lay Lawn Pty Ltd provides laying of instant lawn, lawn mowing, and maintenance
services and is well known for its professional services. The company started trading
on March and immediately registered as a valueadded tax VAT vendor. The
company makes taxable supplies.
Below is a list of Lay Lawn Pty Ltds transactions that took place during the months
of March and April All amounts include valueadded tax where applicable unless
stated otherwise.
On March Lay Lawn Pty Ltd secured annual lawn maintenance
contracts. Lay Lawn Pty Ltd invoiced customers in both March and
April at a monthly fee of Rexcluding valueadded tax This monthly
fee is fixed for the year.
On March Lay Lawns Pty Ltd employed six employees four laborers
and two supervisors The laborers were paid R each per month, and the
supervisor were paid a monthly salary of R each.
On March Lay Lawns Pty Ltd purchased, for cash, a secondhand
truck. This secondhand truck was purchased from a vendor for R The
HBACCJanJunSATDV
use of this truck was given to the one supervisor as his company car from
March
With regards to the truck, Lay Lawns Pty Ltd:
o Paid R for the truck licence.
o Bears the trucks full cost of fuel and maintenance. Fuel for the month of
March amounted to R
This truck was stolen on March An indemnity award of R was
received from the companys insurers on April The truck has not yet
been replaced.
Instead of paying the employees extra cash to cover their transport expenses
to and from work, Lay Lawn Pty Ltd purchased taxi coupons. These taxi
coupons are distributed to the employees weekly. During March and April
Lay Lawn Pty Ltd incurred R on purchasing taxi coupons.
During March Lay Lawn Pty Ltd purchased herbicides, fertilisers, and
other lawn maintenance products from a registered vendor amounting to R
These purchased items form part of the companys trading stock.
REQUIRED:
Calculate the net valueadded tax payable to or owed by SARS for the twomonth
VAT period of Lay Lawn Pty Ltd which ended on April
If no or zero valueadded tax is applicable to a transaction, state a brief reason for
your answer.
Round your answers to the nearest rand.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
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