Question
Nadeem Limited (NL) is registered as a Manufacturer under the Sales Tax Act, 1990. Following information has been extracted from the companys financial records for
Nadeem Limited (NL) is registered as a Manufacturer under the Sales Tax Act, 1990. Following information has been extracted from the companys financial records for the month of April 2021:
|
|
| Rupees |
Supplies | Purchases | ||
Zero Rated Goods - Registered Persons | 3,000,000 | Taxable Supplies (N-1) | 3,800,000 |
Taxable Good - Registered Persons | 7,000,000 | Exempt Supplies | 900,000 |
Taxable Good - Unregistered Persons | 1,300,000 | Purchases from Export Supplies | 1,500,000 |
Exempt Goods | 1,600,000 | Purchases from Exempt Supplies | 1,100,000 |
Machinery (N-2) | 4,500,000 | ||
Office Stationery (Allocable to Taxable Supplies) | 200,000 | ||
Total | 12,900,000 | Total | 12,000,000 |
Notes:
N-1: Supplies from Registered Persons for local Taxable Supplies:
- It includes supplies worth Rs. 900,000 which was purchased for the personal use of Director Finance under his employment contract.
- Remaining purchases were used in making taxable supplies.
N-2: Machinery:
- The total cost of machinery, to be used for making taxable and exempt supplies, is as follows:
| Rupees |
Cost of machinery - Taxable Supplies | 3,000,000 |
Cost of machinery - exempt Supplies | 1,500,000 |
Total Cost | 4,500,000 |
Additional Information:
- Input tax claim on electricity and gas bills for common use of all supplies amounted to Rs. 51,000
- Company claimed input tax credit of Rs. 95,000 on purchase of taxable good from Aslam (Pvt.) Limited, which was declared blacklisted by the Commissioner due to tax fraud.
- Sales Tax is payable at 17%. All the above figures are exclusive of sales tax, where applicable.
Required:
In the light of provisions of Sales Tax Act, 1990and Rules made thereunder, calculate sales tax payable
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