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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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