undefined

Question 2 (20 marks) Clean Air Pte Ltd ("CAPL") is in the business of manufacturing and selling industrial grade air purifiers to retailers and consumers, located in Singapore and overseas. The company opted for voluntary Goods and Services Tax ("GST") registration in 2015 when it first started business. CAPL files GST returns on a quarterly basis. In the quarter ended 31 March 2019, the company entered into the transactions below. All amounts stated are exclusive of GST unless otherwise stated. All purchases were made with GST registered traders unless otherwise stated. 1) The company sold $600,000 worth of air purifiers to local customers, of which, 20% to household consumers. At the same time, there were $150,000 worth of returns from its retailers due to unsatisfied quality. The company recorded a net sales of $450,000 in its accounting books for the quarter ended 31 March 2019. 2) The company sold S200,000 worth of goods to an Australian retailer. The Australian retailer is GST registered in its country. Singapore warehouse only managed to fulfil $150,000 of the order as it was running low on stock. The remaining $50,000 was shipped out from its warehouse in China directly to its customer in Australia. 3) The company bought baby spa packages totaling $5,000 as gifts for 5 of its staff who had new born babies. It is the company's practice to claim input tax credit on all its purchases, where applicable and permissible. 4) The company rented out part of its excess space in the factory at $10,000 per month. 5) The company paid rental for unfurnished apartment for its marketing director at $3,000 per month. The annual value of the apartment was $38,000. 6) Paid medical expenses of $5,000 to a General Practitioner ("GP) for staff visiting the clinic due to common ailments like flu and cough. 7) Paid accident insurance premium of $10,000. The insurance is mandatory under the Work Injury Compensation Act, 8) Received interest income of $2,000 from an approved bank in Singapore. 9) The company paid for its marketing director's car running expenses of $4,000. 10) The company gave away a mini air purifier to a potential retailer in Indonesia. The mini air purifier costs $1,500 and it is a special edition marked with not for sale". The company claimed the relevant input tax in relation to the manufacturing of this mini air purifier in the previous quarter. 11) The company sold its office space in Chai Chee industrial area as it was under utilised. The office space was sold for $1,000,000 to another company in Singapore. The company incurred $20,000 property agent fees in relation to this sale. 12) $250,000 worth of supplies and parts were bought from a factory in China. 13) Salaries of $100,000 were paid to all the company's staff. 14) The company sent its marketing director to Geneva to attend a sales conference. The air ticket charged by Singapore Airlines amounted to $3,500. Required: (a) For each of the above transactions, state the type of supply and compute the GST payable or recoverable from the Comptroller of GST from CAPL's perspective in the following format. Description of transaction Output GST $ Input GST $ Type of Supply (e.g. standard-rated, zero- rated, out-of-scope, exempt, etc) All input GST recoverable is duly claimed. If the input GST is not recoverable, provide an explanation (under the column Type of Supply" - e.g. standard- rated, zero-rated, out-of-scope, exempt). Round-off your computations to the nearest dollar (17 marks) (b) Based on the transactions, determine the amount of GST payable/(refundable) to/(from) the Comptroller of GST for the accounting period 1 January 2019 to 31 March 2019. Also, state the due date on which any net GST payable is due to the Comptroller of GST. Round-off your computations to the nearest dollar. (3 marks) Question 2 (20 marks) Clean Air Pte Ltd ("CAPL") is in the business of manufacturing and selling industrial grade air purifiers to retailers and consumers, located in Singapore and overseas. The company opted for voluntary Goods and Services Tax ("GST") registration in 2015 when it first started business. CAPL files GST returns on a quarterly basis. In the quarter ended 31 March 2019, the company entered into the transactions below. All amounts stated are exclusive of GST unless otherwise stated. All purchases were made with GST registered traders unless otherwise stated. 1) The company sold $600,000 worth of air purifiers to local customers, of which, 20% to household consumers. At the same time, there were $150,000 worth of returns from its retailers due to unsatisfied quality. The company recorded a net sales of $450,000 in its accounting books for the quarter ended 31 March 2019. 2) The company sold S200,000 worth of goods to an Australian retailer. The Australian retailer is GST registered in its country. Singapore warehouse only managed to fulfil $150,000 of the order as it was running low on stock. The remaining $50,000 was shipped out from its warehouse in China directly to its customer in Australia. 3) The company bought baby spa packages totaling $5,000 as gifts for 5 of its staff who had new born babies. It is the company's practice to claim input tax credit on all its purchases, where applicable and permissible. 4) The company rented out part of its excess space in the factory at $10,000 per month. 5) The company paid rental for unfurnished apartment for its marketing director at $3,000 per month. The annual value of the apartment was $38,000. 6) Paid medical expenses of $5,000 to a General Practitioner ("GP) for staff visiting the clinic due to common ailments like flu and cough. 7) Paid accident insurance premium of $10,000. The insurance is mandatory under the Work Injury Compensation Act, 8) Received interest income of $2,000 from an approved bank in Singapore. 9) The company paid for its marketing director's car running expenses of $4,000. 10) The company gave away a mini air purifier to a potential retailer in Indonesia. The mini air purifier costs $1,500 and it is a special edition marked with not for sale". The company claimed the relevant input tax in relation to the manufacturing of this mini air purifier in the previous quarter. Question 2 (20 marks) Clean Air Pte Ltd ("CAPL") is in the business of manufacturing and selling industrial grade air purifiers to retailers and consumers, located in Singapore and overseas. The company opted for voluntary Goods and Services Tax ("GST") registration in 2015 when it first started business. CAPL files GST returns on a quarterly basis. In the quarter ended 31 March 2019, the company entered into the transactions below. All amounts stated are exclusive of GST unless otherwise stated. All purchases were made with GST registered traders unless otherwise stated. 1) The company sold $600,000 worth of air purifiers to local customers, of which, 20% to household consumers. At the same time, there were $150,000 worth of returns from its retailers due to unsatisfied quality. The company recorded a net sales of $450,000 in its accounting books for the quarter ended 31 March 2019. 2) The company sold S200,000 worth of goods to an Australian retailer. The Australian retailer is GST registered in its country. Singapore warehouse only managed to fulfil $150,000 of the order as it was running low on stock. The remaining $50,000 was shipped out from its warehouse in China directly to its customer in Australia. 3) The company bought baby spa packages totaling $5,000 as gifts for 5 of its staff who had new born babies. It is the company's practice to claim input tax credit on all its purchases, where applicable and permissible. 4) The company rented out part of its excess space in the factory at $10,000 per month. 5) The company paid rental for unfurnished apartment for its marketing director at $3,000 per month. The annual value of the apartment was $38,000. 6) Paid medical expenses of $5,000 to a General Practitioner ("GP) for staff visiting the clinic due to common ailments like flu and cough. 7) Paid accident insurance premium of $10,000. The insurance is mandatory under the Work Injury Compensation Act, 8) Received interest income of $2,000 from an approved bank in Singapore. 9) The company paid for its marketing director's car running expenses of $4,000. 10) The company gave away a mini air purifier to a potential retailer in Indonesia. The mini air purifier costs $1,500 and it is a special edition marked with not for sale". The company claimed the relevant input tax in relation to the manufacturing of this mini air purifier in the previous quarter. 11) The company sold its office space in Chai Chee industrial area as it was under utilised. The office space was sold for $1,000,000 to another company in Singapore. The company incurred $20,000 property agent fees in relation to this sale. 12) $250,000 worth of supplies and parts were bought from a factory in China. 13) Salaries of $100,000 were paid to all the company's staff. 14) The company sent its marketing director to Geneva to attend a sales conference. The air ticket charged by Singapore Airlines amounted to $3,500. Required: (a) For each of the above transactions, state the type of supply and compute the GST payable or recoverable from the Comptroller of GST from CAPL's perspective in the following format. Description of transaction Output GST $ Input GST $ Type of Supply (e.g. standard-rated, zero- rated, out-of-scope, exempt, etc) All input GST recoverable is duly claimed. If the input GST is not recoverable, provide an explanation (under the column Type of Supply" - e.g. standard- rated, zero-rated, out-of-scope, exempt). Round-off your computations to the nearest dollar (17 marks) (b) Based on the transactions, determine the amount of GST payable/(refundable) to/(from) the Comptroller of GST for the accounting period 1 January 2019 to 31 March 2019. Also, state the due date on which any net GST payable is due to the Comptroller of GST. Round-off your computations to the nearest dollar. (3 marks) Question 2 (20 marks) Clean Air Pte Ltd ("CAPL") is in the business of manufacturing and selling industrial grade air purifiers to retailers and consumers, located in Singapore and overseas. The company opted for voluntary Goods and Services Tax ("GST") registration in 2015 when it first started business. CAPL files GST returns on a quarterly basis. In the quarter ended 31 March 2019, the company entered into the transactions below. All amounts stated are exclusive of GST unless otherwise stated. All purchases were made with GST registered traders unless otherwise stated. 1) The company sold $600,000 worth of air purifiers to local customers, of which, 20% to household consumers. At the same time, there were $150,000 worth of returns from its retailers due to unsatisfied quality. The company recorded a net sales of $450,000 in its accounting books for the quarter ended 31 March 2019. 2) The company sold S200,000 worth of goods to an Australian retailer. The Australian retailer is GST registered in its country. Singapore warehouse only managed to fulfil $150,000 of the order as it was running low on stock. The remaining $50,000 was shipped out from its warehouse in China directly to its customer in Australia. 3) The company bought baby spa packages totaling $5,000 as gifts for 5 of its staff who had new born babies. It is the company's practice to claim input tax credit on all its purchases, where applicable and permissible. 4) The company rented out part of its excess space in the factory at $10,000 per month. 5) The company paid rental for unfurnished apartment for its marketing director at $3,000 per month. The annual value of the apartment was $38,000. 6) Paid medical expenses of $5,000 to a General Practitioner ("GP) for staff visiting the clinic due to common ailments like flu and cough. 7) Paid accident insurance premium of $10,000. The insurance is mandatory under the Work Injury Compensation Act, 8) Received interest income of $2,000 from an approved bank in Singapore. 9) The company paid for its marketing director's car running expenses of $4,000. 10) The company gave away a mini air purifier to a potential retailer in Indonesia. The mini air purifier costs $1,500 and it is a special edition marked with not for sale". The company claimed the relevant input tax in relation to the manufacturing of this mini air purifier in the previous quarter