Q-1: By making taxable supplies, a person is eligible to be registered in Sales Tax BUT NOT registered yet. The person is making exempt supplies as well.

Further the accounting record of the above person shows the following transactions during a Tax Period:

a. Three meters; one Sui Gas and two electricity; are installed in the business premises of the person. Sales Tax was paid at their bills as follows:

Rs. 300,000 at Sui Gas bills

Rs. 200,000 at bills of the first meter of electricity which was used for the production of taxable supplies; and

Rs. 50,000 at bills of the second meter of electricity which was used only for the production of exempt supplies.

b. Some goods were imported during the Tax Period to use in manufacturing of taxable supplies only at an Invoice Price of Rs. 2,500,000. Further information regarding these imports is as follows:

Value determined for custom duty 3,500,000

Air Freight 800,000

Bank Charges 90,000

Other Charges at Port 40,000

Custom duty 600,000

Federal Excise duty 200,000

c. Goods of Rs. 5,000,000 were exported during the Tax Period out of which some of Rs. 3,000,000 would be re-imported to Pakistan.

d. Goods of Rs. 8,000,000 were locally sold, out of which goods of Rs. 2,000,000 were exempt from Sales Tax and out of the remaining taxable supplies some having worth Rs. 500,000 were returned during the Tax Period. All local buyers were registered persons.

e. Purchases of Rs. 5,000,000 were made from a registered person, out of which goods of Rs. 1,000,000 were returned to the supplier. These purchases were made for the production of both Taxable as well as exempt supplies.

f. Purchases of Rs. 3,500,000 were made from a non-registered person which were used for the production of both taxable as well as exempt supplies.

g. Purchases of Rs. 900,000 were made only for the production of exempt supplies.

REQUIRED:

You have to calculate Sales Tax Payable / (Refundable) during the said Tax Period along with all relevant workings and notes.