QUESTION 2 In recent policy of the government to help drive economic growth, companies are encouraged to engage in research and development. Thai Manufacturer Company (TMC) hires Bangkok Corporate Allied (BCA) to handle its R&D related issues. BCA provides consultation and also sells tangible products to its clients. Its annual sales is above 10 million Baht. Its business consists of 50% goods and 50% services. BCA is not a registered VAT collector: it claims that it is an "R&D consulting company": therefore, it is not required to collect VAT from its clients. BCA presented the following bill to TMC and TMC paid the billed in full within 30 days. 1 Employee seminar on quality control 2 Mainframe computer system 3 Operating manual books for software 4 500,000 Training employees to use software 5 Guest speaker fees 6 Consultation for 12 months at 1,000 Baht per montlh 7 Memory upg 20,000 rade for computer: 100 terabytes hard drive Labor for system installation 85,000 2,500 8 Computer work stations Monitor Keyboard custom made 30 units x 1,000 Baht Online support link to BCA operator 30 units x 3,000 Baht 30,000 TOTAL: (a) Should BCA be registered to collect VAT? Why or why not? (b) If VAT should have been collected how much VAT was due? QUESTION 2 In recent policy of the government to help drive economic growth, companies are encouraged to engage in research and development. Thai Manufacturer Company (TMC) hires Bangkok Corporate Allied (BCA) to handle its R&D related issues. BCA provides consultation and also sells tangible products to its clients. Its annual sales is above 10 million Baht. Its business consists of 50% goods and 50% services. BCA is not a registered VAT collector: it claims that it is an "R&D consulting company": therefore, it is not required to collect VAT from its clients. BCA presented the following bill to TMC and TMC paid the billed in full within 30 days. 1 Employee seminar on quality control 2 Mainframe computer system 3 Operating manual books for software 4 500,000 Training employees to use software 5 Guest speaker fees 6 Consultation for 12 months at 1,000 Baht per montlh 7 Memory upg 20,000 rade for computer: 100 terabytes hard drive Labor for system installation 85,000 2,500 8 Computer work stations Monitor Keyboard custom made 30 units x 1,000 Baht Online support link to BCA operator 30 units x 3,000 Baht 30,000 TOTAL: (a) Should BCA be registered to collect VAT? Why or why not? (b) If VAT should have been collected how much VAT was due