QUESTION THREE $[30]$

On Point Limited, a resident of the Republic, introduced a new accounting package on $30$ September $2020$ to provide financial data needed to complete its value$-$added tax returns.

For On Point Limited$$s tax period $1$ January $2021$ to $28$ February $2021$ the following financial data was provided by its new accounting system. When appropriate, amounts include value$-$added tax:

Supply of goods and services at the standard rate $402500$

Supply of goods and services at the zero rate $50000$

Supply of exempt goods and services $100000$

Input tax on capital goods $($note $1)45000$

Input tax on non$-$capital goods and services $($note $2)48750$

Second$-$hand goods purchased and paid for $($note $3)12650$

Value of fringe benefits subject to value$-$added tax $1150$

Credit notes issued $($note $4)13800$

Credit note received $($note $4)6900$

Bad debts written off $($note $5)9200$

The Commissioner has agreed with On Point Limited to a $$turnover$-$based$$ method of apportionment, and $80\%$ has been agreed as the percentage applicable to the making of taxable supplies.

Notes

$1.$ On Point Limited$$s input tax on capital goods includes

$$ R$750$ value$-$added tax on the purchase of a coffee machine for its employees$$ common room, and

$$ R$9000$ value$-$added tax on the purchase of a delivery van for the delivery of its goods.

$3$

$2.$ On Point Limited$$s Input tax on non$-$capital goods and services purchased includes

$$ R$360$ value$-$added tax for membership fees paid to the local country club for its managing director$$s membership, and

$$ R$270$ value$-$added tax for his subscription to a professional society.

$3.$ On Point Limited purchased, and paid for, a second$-$hand machine from a non$-$vendor for R$12650.$

$4.$ On Point Limited$$s credit notes issued, and received, all relate to supplies made at the standard rate of $15\%.$

$5.$ Bad debts written off by On Point Limited relate to supplies made at the standard rate.

You are required to

$3\mathrm{.}1.$

Determine the value$-$added tax due to$,$ or from, the Commissioner for its tax period $1$ January $2021$ to $28$ February $2021.$ Provide brief reasons to support your determinations if necessary. for $30$ marks