Q.5

pakistan context

Abid Khan is registered for sales tax purposes and is engaged in the manufacturing of electrical appliances in Multan. His sales and purchases for the month of August 20X8 are summarized below: Rupees Supplies Taxable goods to registered customers 15,118,000 Taxable goods to un-registered customers 10,150,000 Exports 5,000,000 Exempt supplies 4,500,000 Purchases Taxable goods from registered suppliers - for taxable supplies 25,000,000 - for exempt supplies 1,500,000 Packing materials from un-registered suppliers 9,500,000 Additional information: (i) Supplies of taxable goods to registered customers include: An amount of Rs. 4,225,000 against sale of electric toasters at a trade discount of 35%. As per normal business practice, he allows a discount of 10% only. Goods supplied against which advance payment of Rs. 2,500,000 had been received in June 20X8. (ii) Taxable supplies returned by different registered customers amounted to Rs. 900,000. Proper debit and credit notes were raised within the specified time. (iii) A plant costing Rs. 2,700,000 was commissioned into operation on 15 August 20X8. The plant is being used for taxable supplies only. (iv) An electricity bill of Rs. 2,600,000 was paid in cash which includes sales tax amounting to Rs. 350,000. (v) Input tax brought forward from July 20X8 is Rs. 595,000. All the above figures are exclusive of sales tax, wherever applicable. Sales tax is payable at the rate of 17%. Required: Compute sales tax payable by or refundable to Abid Khan along with input tax to be carried forward/refundable, if any, in the sales tax return for the month of August 20X8.