Question: Township Rollers Ltd is the company based in Mwinilunga in North Western Province. The company has won a tender of supplying goods and services to Mwinilunga Copper Mines. It expects to employ about nine workers for a start, whose minimum monthly salaries will be K4,000. It has been projected that the minimum monthly revenue is expected to be K85,000. The Company would require a reasonable capital considering the demand in the products and other services it will be providing to the mines. Township Rollers Ltd has not yet registered with the Zambia Revenue Authority and the company has been advised to complete the registration process with ZRA. Required: (a) As a Tax accountant for Township Rollers Ltd, state the types of tax the compay should register for and the current rates applicable for each. (b) Briefly justify why the company should register for the types of tax mentioned above. (c) Mutende Limited is a company based in Lusaka. The company deals in taxable supplies and has a number of customers both within and outside Lusaka. The company entered into the following transactions in the month of November 2020: K 1 Suka Solutions Services Company was invoiced by Mutende Limited a year ago. Suka solutions Services Company is now bankrupt and Mutende Limited has only recovered K65,000 of the total invoice value of K200,000 the balance has been written off in respect of a standard rated invoice of registered customer. In addition, Mutende Limited wrote off a debt of K20,000 in respect of standard rated unregistered customer. 2 As per the policy of the company, all unused assets were sold for K90,000 VAT inclusive. 3 Mutende Limited had the following standard rated expenses: Petrol inclusive 6,000 Diesel inclusive 5,000 Entertaining customers 30,000 Expenses with regard to the Wall fence for the the CEO 8,500 Utility bills 1,000 Telephone bills 2,000 51,500 4 Mutende Limited sales to VAT registered customers was 315,000. Only K15,000 of the sales were zero rated and the balance were standard rated. 5 Mutende Limited standard rated sales to unregistered customer was K8,000. 6 Mutende Limited purchased standard rated goods from registered supplies amounted to K10,000 (VAT inclusive). Purchases from unregistered suppliers amounted to K2,000 out of which K1,500 were standard rated and K500 zero rated. 7 Mutende Limited acquired a motor car at a cost of K95,000 and a Hilux van at a cost of K110,000. VAT on the two vehicles was charged at the standard rate and both vehicles are wholly and exclusively for business purposes and they are (VAT inclusive). Note Unless specifically stated, all the above persons are registered for VAT and transactions are stated exclusive of VAT. Mutende Limited was registered for value added tax (VAT) in 2015. Required: Calculate the VAT payable in respect of the month of November 2020, showing clearly any output VAT payable or input VAT claimable on each transaction. (d) Briefly explain three (3) advantages and three (3) disadvantages of registering a business for Turnover Tax (TOT)/ Question: Township Rollers Ltd is the company based in Mwinilunga in North Western Province. The company has won a tender of supplying goods and services to Mwinilunga Copper Mines. It expects to employ about nine workers for a start, whose minimum monthly salaries will be K4,000. It has been projected that the minimum monthly revenue is expected to be K85,000. The Company would require a reasonable capital considering the demand in the products and other services it will be providing to the mines. Township Rollers Ltd has not yet registered with the Zambia Revenue Authority and the company has been advised to complete the registration process with ZRA. Required: (a) As a Tax accountant for Township Rollers Ltd, state the types of tax the compay should register for and the current rates applicable for each. (b) Briefly justify why the company should register for the types of tax mentioned above. (c) Mutende Limited is a company based in Lusaka. The company deals in taxable supplies and has a number of customers both within and outside Lusaka. The company entered into the following transactions in the month of November 2020: K 1 Suka Solutions Services Company was invoiced by Mutende Limited a year ago. Suka solutions Services Company is now bankrupt and Mutende Limited has only recovered K65,000 of the total invoice value of K200,000 the balance has been written off in respect of a standard rated invoice of registered customer. In addition, Mutende Limited wrote off a debt of K20,000 in respect of standard rated unregistered customer. 2 As per the policy of the company, all unused assets were sold for K90,000 VAT inclusive. 3 Mutende Limited had the following standard rated expenses: Petrol inclusive 6,000 Diesel inclusive 5,000 Entertaining customers 30,000 Expenses with regard to the Wall fence for the the CEO 8,500 Utility bills 1,000 Telephone bills 2,000 51,500 4 Mutende Limited sales to VAT registered customers was 315,000. Only K15,000 of the sales were zero rated and the balance were standard rated. 5 Mutende Limited standard rated sales to unregistered customer was K8,000. 6 Mutende Limited purchased standard rated goods from registered supplies amounted to K10,000 (VAT inclusive). Purchases from unregistered suppliers amounted to K2,000 out of which K1,500 were standard rated and K500 zero rated. 7 Mutende Limited acquired a motor car at a cost of K95,000 and a Hilux van at a cost of K110,000. VAT on the two vehicles was charged at the standard rate and both vehicles are wholly and exclusively for business purposes and they are (VAT inclusive). Note Unless specifically stated, all the above persons are registered for VAT and transactions are stated exclusive of VAT. Mutende Limited was registered for value added tax (VAT) in 2015. Required: Calculate the VAT payable in respect of the month of November 2020, showing clearly any output VAT payable or input VAT claimable on each transaction. (d) Briefly explain three (3) advantages and three (3) disadvantages of registering a business for Turnover Tax (TOT)/