- 20 Marks
STP – Feb 2007 – L3 – Q5 – VAT Apportionment
Explain VAT rules for goods on sale or return and input tax apportionment for taxable and exempt supplies.
Question
a) Tanji Enterprises Ltd. operates a Fuel Filling Station and a huge Supermarket in Tamale within the same premises. A joint tax audit team from the LTU Office visited Tanji and noted that Tanji supplies taxable and non-taxable goods and services to customers but fails to notice the split distinction between these services. The VAT team therefore has disallowed some claims and apportioned others to reflect the true VAT claimable.
Required:
i. Explain the VAT rules for goods supplied on sale or return.
ii. Discuss the apportionment of input tax for taxable and exempt supplies.
(b).Required:
Discuss the VAT rules on the timing of supply for the following:
i. Goods or services applied to own use, gifted, or supplied under hire purchase or finance lease.
ii. Continuous or metered supplies like electricity.
iii. Goods supplied under a hire purchase agreement or finance lease.
iv. Goods or services supplied under rental agreements or periodic payments.
v. Ancillary supplies.
Find Related Questions by Tags, levels, etc.
- Tags: Continuous Supplies, Hire Purchase, Own Use, Time of Supply, VAT
- Level: Level 3
- Topic: Strategic Indirect Tax Management
- Series: FEB 2007
