Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Tuppy Plastic ( Pty ) Ltd ( ' Tuppy ' ) is a company that manufactures Tupperware. The financial year ends on the last day
Tuppy Plastic Pty Ltd Tuppy is a company that manufactures Tupperware. The financial year ends on the last day of March. The company is a registered ValueAdded Tax VAT vendor, on the invoice basis, and has a twomonth tax period, making taxable supplies. The following information regarding the December to January VAT period has been provided to you by the tax manager, Ms Michelle Prinsloo. All amounts are inclusive of VAT, where applicable, unless specifically indicated otherwise. Tuppy sold a machine that was used in its manufacturing process to Mr Ayob, the majority shareholder, for R Mr Ayob is not a registered VAT vendor. The company originally acquired the manufacturing machine for R on October Assume that on December the tax value was R and the openmarket value was assessed at RReference to the ValueAdded Tax Act A previously used factory building costing R was purchased from a nonvendor. The purchase price and transfer duty of R was paid on January when transfer took place into Tuppy's name. On December a new motorcar was acquired for R The use of the motorcar was immediately assigned to Tuppy's marketing manager. The purchase of the motorcar was facilitated through an instalment credit agreement. This agreement required an upfront deposit of R due on January followed by monthly instalments of R On December equipment with a selling price of Rexcluding VAT was sold to a customer in Zimbabwe. The equipment was consigned and delivered by Tuppy to the customer's factory in Zimbabwe. Reference to the ValueAdded Tax Act On December the company experienced a robbery at its premises resulting in the theft of a delivery vehicle valued at R The insurance company compensated them with a cash reimbursement of Rexcluding VAT
Tuppy Plastic Pty Ltd Tuppy is a company that manufactures Tupperware. The financial year ends on
the last day of March.
The company is a registered ValueAdded Tax VAT vendor, on the invoice basis, and has a twomonth
tax period, making taxable supplies.
The following information regarding the December to January VAT period has been provided
to you by the tax manager, Ms Michelle Prinsloo. All amounts are inclusive of VAT, where applicable,
unless specifically indicated otherwise.
Tuppy sold a machine that was used in its manufacturing process to Mr Ayob, the majority
shareholder, for R Mr Ayob is not a registered VAT vendor. The company originally acquired
the manufacturing machine for R on October Assume that on December
the tax value was R and the openmarket value was assessed at RReference to
the ValueAdded Tax Act
A previously used factory building costing R was purchased from a nonvendor. The
purchase price and transfer duty of R was paid on January when transfer took place
into Tuppy's name.
On December a new motorcar was acquired for R The use of the motorcar was
immediately assigned to Tuppy's marketing manager. The purchase of the motorcar was facilitated
through an instalment credit agreement. This agreement required an upfront deposit of R due
on January followed by monthly instalments of R
On December equipment with a selling price of Rexcluding VAT was sold to a
customer in Zimbabwe. The equipment was consigned and delivered by Tuppy to the customer's
factory in Zimbabwe. Reference to the ValueAdded Tax Act
On December the company experienced a robbery at its premises resulting in the theft of a
delivery vehicle valued at R The insurance company compensated them with a cash
reimbursement of Rexcluding VAT
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started