Question
What are the correct options here and an explanation on how to get to the answers. 1. How much VAT must the farmer pay? a)
What are the correct options here and an explanation on how to get to the answers.
1. How much VAT must the farmer pay? a) R115 b) R1 500 c) R0 d) R380 2. If the input tax for the retailer is R280, how much was the purchases if VAT is at standard rated? a) R1 867 b) R3 000 c) R0 d) R140 3. How much would the total output tax be? a) R578,20 b) R 2 400 c) R2 240 d) R1 140 e) 4. How much is the total tax due to SARS for the farmer, manufacturer, wholesaler and retailer? a) R140, R61,80, R70, and R140 respectively b) R1 500, R61.80, 90 and R170 respectively c) R0, R140, R1 400 and R280 respectively d) R1 140, R2 800 and R140 respectively 5. How much is the total tax due to SARS? a) R401,80 b) R1 661,80 c) R1 821.80 d) R140
Choose the correct answer based on the following tahle. Assume Vat charged at 15% ) \begin{tabular}{|l|l|l|l|c|} \hline Vendor & Selling price & Input tax & Output tax & Tax due to SARS \\ \hline Farmer & R10000 & & ? & ? \\ \hline Manufacturer & R1 000 & R88.20 & R150 & ? \\ \hline Wholesaler & R2000 & R210 & R300 & ? \\ \hline Retailer & R3000 & R280 & R450 & ? \\ \hline & & R578.20 & ? & ? \\ \hline \end{tabular}Step by Step Solution
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