Question 2 Albert Connection Pte Ltd (ACPL) is a company incorporated and resident in Singapore. Its business involves trading in premium non-alcoholic champagnes, wines and spirits from various parts of the world. It is registered for GST purposes. During the quarter ended June 30, 2019, ACPL had the following transactions: (1) It imported non-alcoholic champagnes and wine from suppliers in Australia. The purchase price is US$323,000 before freight and insurance of US$4,000. These non-alcoholic wines and spirits are non-dutiable goods and no customs duty is payable on its importation. The prevailing exchange rate at Singapore Customs at the time of import is US$1:$$1.37. ACPL's in-house exchange rate for the quarter is US$1:$1.35 and the use of in-house exchange rate was approved by IRAS. ACPL signed a sales contract with a customer in Indonesia. Contract value was $200,000 and ACPL raised an invoice dated April 28, 2019 for a 20% deposit which formed a partial payment for the non-alcoholic wines to be supplied. As per the terms of contract, the sales involved delivery of wines to customer's warehouse in Jakarta on June 18, 2019. ) (2) (3) On May 3, 2019, ACPL paid $3,800 to GoFast Logistics Pte Ltd, a GST registered business, for the freight forwarding services to transport wines stored in ACPL's warehouse at Eunos to customer's warehouse in Jakarta on June 18, 2019. ACPL raised an invoice to the customer for the remaining 80% of contract sum upon delivery. (4) (5) (6) On June 10, 2019, ACPL sold $100,000 worth of non-alcoholic champagnes and wines to a Hotel (customer H) in Singapore. This sale involved delivery of goods from ACPL's warehouse to customer's warehouse in Clementi Loop. On June 25, 2019, ACPL gave a cash volume rebate of $10,000 to Customer H for its aggregate purchases from ACPL exceeding $500,000 for the past 12 months. A GST registered trader in Singapore over-purchased non-alcoholic red wines from Canada and stored at a free trade zone at Singapore Port. With good discount, ACPL bought 1,200 bottles of wines from this trader for $50,000 and requested the trader to deliver the wines to ACPL's warehouse at Eunos on June 25, 2019. Any applicable import GST will be borne by ACPL. A customer in Vietnam had placed order for a specific brand of non- alcoholic rose wine. The contract value was $80,500 and the sale involved delivery of goods from ACPL's supplier in France to customer's warehouse in Hanoi. (7) (8) ACPL traded-in its old chiller for a new one which costs $10,800 from a non-GST registered business. Both parties agreed on a trade-in value of $800 for the setoff against the original selling price of the new chiller and ACPL paid $10,000 as final settlement. (9) ACPL's team building at Sentosa Siloso Beach was in July 2019. ACPL bought 100 pieces of door gifts (each costs less than $20) from a GST registered department store during its anniversary sales in May 2019 when GST was absorbed by the store. The total spending was $1,950 and these gifts were given to all employees participated on the team building day. (10) ACPL has invested in a shop house at China Town. The unit has an annual value of $80,000 and was tenanted since April 1, 2019 at a monthly rental income of $7,000. (11) ACPL had engaged a GST registered law firm for the drafting of the tenancy agreement (re item 9 above) and other trade documents. As per the instruction of ACPL, the law firm paid the property tax of the shop house on behalf of ACPL, on April 10, 2019. On May 3, 2019, ACPL received an invoice from the law firm for the legal services rendered and recovery of the property tax paid on behalf, amounting to $5,000 and $8,000 respectively. (12) ACPL received interest income of $600 from a 6-month fixed deposit placed with UOB, an approved bank in Singapore. (13) ACPL charged a customer in Indonesia a late payment interest of $500 for trade debt outstanding for more than 60 days. (14) Marketing personnel were reimbursed for petrol expenses of $2,354 (including 7% GST) which they incurred on their S-plated cars used for business purposes. (15) Employees were reimbursed for their medical fee incurred of $856 (including 7% GST). This benefit was not mandatory under the Work Injury Compensation Act or any collective agreement within the meaning of the Industrial Relations Act. (a) All amounts are exclusive of applicable GST unless stated otherwise. Required: Examine the above and apply the GST rules to identify the type of transaction and value of supply for each of the item above. Implement common GST reliefs (if applicable) and compute the GST payable/refundable for the quarter ended June 30, 2019. You may use the format as provided below. Description Type of transaction Value of supply Input Tax Claimable Output Tax (44 marks) Question 2 Albert Connection Pte Ltd (ACPL) is a company incorporated and resident in Singapore. Its business involves trading in premium non-alcoholic champagnes, wines and spirits from various parts of the world. It is registered for GST purposes. During the quarter ended June 30, 2019, ACPL had the following transactions: (1) It imported non-alcoholic champagnes and wine from suppliers in Australia. The purchase price is US$323,000 before freight and insurance of US$4,000. These non-alcoholic wines and spirits are non-dutiable goods and no customs duty is payable on its importation. The prevailing exchange rate at Singapore Customs at the time of import is US$1:$$1.37. ACPL's in-house exchange rate for the quarter is US$1:$1.35 and the use of in-house exchange rate was approved by IRAS. ACPL signed a sales contract with a customer in Indonesia. Contract value was $200,000 and ACPL raised an invoice dated April 28, 2019 for a 20% deposit which formed a partial payment for the non-alcoholic wines to be supplied. As per the terms of contract, the sales involved delivery of wines to customer's warehouse in Jakarta on June 18, 2019. ) (2) (3) On May 3, 2019, ACPL paid $3,800 to GoFast Logistics Pte Ltd, a GST registered business, for the freight forwarding services to transport wines stored in ACPL's warehouse at Eunos to customer's warehouse in Jakarta on June 18, 2019. ACPL raised an invoice to the customer for the remaining 80% of contract sum upon delivery. (4) (5) (6) On June 10, 2019, ACPL sold $100,000 worth of non-alcoholic champagnes and wines to a Hotel (customer H) in Singapore. This sale involved delivery of goods from ACPL's warehouse to customer's warehouse in Clementi Loop. On June 25, 2019, ACPL gave a cash volume rebate of $10,000 to Customer H for its aggregate purchases from ACPL exceeding $500,000 for the past 12 months. A GST registered trader in Singapore over-purchased non-alcoholic red wines from Canada and stored at a free trade zone at Singapore Port. With good discount, ACPL bought 1,200 bottles of wines from this trader for $50,000 and requested the trader to deliver the wines to ACPL's warehouse at Eunos on June 25, 2019. Any applicable import GST will be borne by ACPL. A customer in Vietnam had placed order for a specific brand of non- alcoholic rose wine. The contract value was $80,500 and the sale involved delivery of goods from ACPL's supplier in France to customer's warehouse in Hanoi. (7) (8) ACPL traded-in its old chiller for a new one which costs $10,800 from a non-GST registered business. Both parties agreed on a trade-in value of $800 for the setoff against the original selling price of the new chiller and ACPL paid $10,000 as final settlement. (9) ACPL's team building at Sentosa Siloso Beach was in July 2019. ACPL bought 100 pieces of door gifts (each costs less than $20) from a GST registered department store during its anniversary sales in May 2019 when GST was absorbed by the store. The total spending was $1,950 and these gifts were given to all employees participated on the team building day. (10) ACPL has invested in a shop house at China Town. The unit has an annual value of $80,000 and was tenanted since April 1, 2019 at a monthly rental income of $7,000. (11) ACPL had engaged a GST registered law firm for the drafting of the tenancy agreement (re item 9 above) and other trade documents. As per the instruction of ACPL, the law firm paid the property tax of the shop house on behalf of ACPL, on April 10, 2019. On May 3, 2019, ACPL received an invoice from the law firm for the legal services rendered and recovery of the property tax paid on behalf, amounting to $5,000 and $8,000 respectively. (12) ACPL received interest income of $600 from a 6-month fixed deposit placed with UOB, an approved bank in Singapore. (13) ACPL charged a customer in Indonesia a late payment interest of $500 for trade debt outstanding for more than 60 days. (14) Marketing personnel were reimbursed for petrol expenses of $2,354 (including 7% GST) which they incurred on their S-plated cars used for business purposes. (15) Employees were reimbursed for their medical fee incurred of $856 (including 7% GST). This benefit was not mandatory under the Work Injury Compensation Act or any collective agreement within the meaning of the Industrial Relations Act. (a) All amounts are exclusive of applicable GST unless stated otherwise. Required: Examine the above and apply the GST rules to identify the type of transaction and value of supply for each of the item above. Implement common GST reliefs (if applicable) and compute the GST payable/refundable for the quarter ended June 30, 2019. You may use the format as provided below. Description Type of transaction Value of supply Input Tax Claimable Output Tax (44 marks)