Review Question The following information is extracted from VAT return of a tobacco manufacturing company for the month of July 2015. During the month, the company imported tobacco processing machinery at C.I.F value of TZS.14, 000,000. The rate of import duty was 10 per cent. Other standard rated purchase made during the month amounted to TZS.8,000,000. Value of total supplies during the month was TZS. 115, 200,000. These supplies included zero rated exports (processed tobacco) of TZS. 104,000,000; fertilizer sold to farmers of TZS.6,000,000; local sales of tobacco at standard rate of TZS.4,000,000; and other sales made at standard rate of TZS. 1,200,000. Amount of total input tax paid by the company to all suppliers was TZS.6, 400,000. The analysis of this figure is as follows: (i) Directly attributable to zero rated supplies TZS.4, 400,000. (ii) Directly attributable to exempt supplies TZS.400, 000. (iii) Directly attributable to standard rated supplies TZS.800, 000. (iv) Not directly attributable to exempt nor taxable supplies TZS.800,000. Required: Determine the amount of VAT to be paid or claimed.