Question
The following transactions relate to a hardware store based in Laikipia for the month of September 2020. Purchase of goods at standard rate 626,400 Exported
The following transactions relate to a hardware store based in Laikipia for the month of September 2020.
Purchase of goods at standard rate | 626,400 |
Exported goods to Congo | 380,000 |
Sales at standard rate | 1,113,600 |
Audit fees | 37,120 |
Purchase of fuel and oil for delivery van | 29,000 |
Telephone bills | 17,400 |
Exempt sales | 400,000 |
Exported goods to Malawi | 220,000 |
Catering services | 41,760 |
Purchase of stationery | 20,880 |
Cost of assigning a debt for consideration | 100,000 |
Car park services provided by country authority | 50,000 |
Treatment and supply of natural water | 40,000 |
Purchase of first aid boxes and kits | 30,000 |
Additional Information
- The company issued debit notes and credit notes of sh.24,3690 and sh.34,800 respectively in respect to taxable supplies at standard rate.
- The company returned goods invoiced at sh.29,000 to suppliers because they were of a wrong type. A credit notes was received immediately
- The company imported goods valued at sh.320,000 (CIF). The goods were not included in the purchases figure. Import duty was at the rate of 20%
- The company transferred a branch as a going concern to another registered company at a cost of sh.450,000 at the end of April 2017
- The company could not identify purchases at standard rate that were sold as exempt and therefore restricted deductible input tax
- Transactions are inclusive of VAT at the rate of 14% where applicable.
Required
Determine the VAT payable by (or refundable to) the company for the month of September 2020 (14 Marks)
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