Hire Purchase – Page 6

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.

Answer

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

ATAX – May 2017 – L3 – Q3a – Capital Gains Tax (CGT)

Compute Capital Gains Tax for hire purchase transactions and explain the implications of hire purchase interest on CGT.

Question

Global Company Nigeria Limited, a construction company based in Abuja, commenced business on January 7, 2009. The company has struggled to acquire necessary equipment due to poor financial results.

At a directors’ meeting on November 6, 2012, the company decided to approach a finance house for assistance. They provided the following information:

The company purchased an excavator on hire purchase on March 1, 2013, and paid a deposit of N32,000,000.
The excavator’s cost price was N55,000,000, with the balance payable in 25 monthly installments of N1,200,000 starting April 1, 2013.

The excavator was sold as follows:

For N65,000,000 after installment payments on January 1, 2014.
For N69,000,000 after installment payments on November 1, 2014.

You are required to:

i. Calculate the Capital Gains Tax (CGT) for the relevant Assessment Year, assuming the sales values above. (14 Marks)
ii. Explain the implications of hire purchase interest on Capital Gains Tax computations. (2 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Assessment Year, Capital gains tax, Hire Purchase, Tax computation
Level: Level 3

Topic: Capital Gains Tax (CGT)

AT – May 2018 – L3 – SB – Q3b – Capital Gains Tax

Calculate capital gains for asset disposal under hire purchase with specific instalment conditions.

Question

Alero Manufacturing Limited, Abeokuta, Ogun State, purchased a chargeable asset on hire purchase in year 2014. The deposit paid for the purchase was N800,000. The balance was to be paid in forty instalments of N75,000. The cash price of the asset was N2,400,000.

Required:

Calculate the capital gains, assuming the asset was sold as detailed below:

(i) For N4,200,000 after payment of thirty instalments. (7 Marks)

(ii) For N4,500,000 after payment of all the instalments. (7 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital gains tax, Disposal, Hire Purchase, instalment payments, Interest Element
Level: Level 3

Topic: Capital Gains Tax (CGT)
Series: MAY 2018

BL – Nov 2020 – L1 – SB – Q3c – Hire Purchase and Consumer Credit Transactions

Define hire purchase and advise on rights after repossession under partial payment.

Question

A hire purchase agreement is a transaction with strict rules and regulations.

Required:
i. What is hire purchase?
ii. Case Scenario:
Ronke entered into a hire purchase agreement to buy a Nissan Micra car belonging to Fred. Ronke paid the sum of N900,000 out of the agreed price of N1,000,000. After unsuccessful demands by Fred for the balance of N100,000 on the car, Fred seized the car in front of Ronke’s house.

Advise Ronke on her rights, if any.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Buyer’s Rights, Consumer Rights, Hire Purchase, Payment Default, Repossession
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: NOV 2020

BL – Nov 2020 – L1 – SA – Q13 – Hire Purchase and Consumer Credit Transactions

Objective question on the form of consideration in hire purchase agreements.

Question

13. The consideration for a hire purchase is
A. Payment of shares
B. Price of goods
C. Installmental payment
D. Bill of exchange
E. Cost of goods

Answer

Find Related Questions by Tags, levels, etc.

Tags: Consideration, Hire Purchase, Installment Payment, Payment Terms
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: NOV 2020

BL – May 2012 – L1 – SB – Q5B – Agency Law

State two differences between a hire purchase agreement and a sale agreement.

Question

A hire purchase agreement and a sale agreement are similar but not identical. Required: State any TWO differences between a hire purchase agreement and a sale agreement.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Law, Contract Law, Hire Purchase
Level: Level 1

Topic: Agency Law
Series: MAY 2012

BL – May 2012 – L1 – SA – Q7 – Hire Purchase and Consumer Credit Transactions

State the type of goods covered by the Hire Purchase Act 2004.

Question

State the type of goods to which the Hire Purchase Act 2004 is applicable irrespective of the amount involved.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Law, Consumer Credit, Hire Purchase
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: MAY 2012

BL – May 2012 – L1 – SA – Q15 – Hire Purchase and Consumer Credit Transactions

Identify the parties involved in a hire purchase relationship.

Question

A hire purchase relationship is one between a:

A. Hiree and a hirer
B. Hiree and a bank
C. Seller and a servant
D. Master and a servant
E. Bailor and a bailee

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Law, Consumer Credit, Hire Purchase
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: MAY 2012

BL – May 2012 – L1 – SA – Q6 – Hire Purchase and Consumer Credit Transactions

Identifying the obligation that does not fall under a hirer's responsibility.

Question

Which of the following is NOT a hirer’s obligation?

A. To take delivery of the goods
B. To take proper care of the goods
C. Not to part with the possession of the goods
D. To report to the owner every week
E. To return the goods to the owner when the agreement is terminated

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Law, Consumer Credit, Hire Purchase
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: MAY 2012

BL – Nov 2011 – L1 – SB – Q3b – Hire Purchase and Consumer Credit Transactions

Defining a hire purchase agreement and explaining its essential features.

Question

Define “hire purchase agreement” and explain THREE of its essential features.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bailment, Contract, Hire Purchase, Property in Goods
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: NOV 2011

BCL – May 2016 – L1 – Q4 – Sale of Goods/Hire Purchase

Analyze the implications of paying 60% of a hire purchase price, the legality of seizing a motor, and possible remedies.

Question

Kobi Jones, a porter, buys a tricycle motor to help him cart goods of his clients. The motor was purchased from Agaza Motor Company Limited on a hire purchase agreement. The hire purchase price was GH¢4,500.00 to be paid for in twenty equal instalments. By June 2011, Kobi Jones had paid 60% of the purchase price but was unable to pay the instalment due in July 2011. His plea to be given more time to pay fell on deaf ears. In August 2011, while Kobi Jones was on his way to cart goods for customers, the agents of Agaza Motor Company seized the motor. Kobi Jones thus lost a very lucrative job from which he had hoped to make GH¢2,400.00. Kobi Jones is very upset and comes to you for advice.

a) Explain the effect that the payment of 60% of the purchase price had on the agreement. (6 marks)

b) What does the seizure of the motor by the agents of Agaza Motor Company amount to? (10 marks)

c) What remedies, if any, are available to Kobi Jones? (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Contract Breach, Hire Purchase, Protected Goods, Remedies
Level: Level 1

Topic: Sale of goods/hire purchase
Series: MAY 2016

BCL – May 2018 – L1 – Q3b – Sale of Goods/Hire Purchase

Discuss the basic requirements of a Hire Purchase agreement and the steps a hirer should take upon termination.

Question

b) Komosa Limited entered into a Hire- Purchase agreement with Mr. Gyeabour over a car. The agreement was to last for a period of 4 years of monthly instalment. The instalment arrangements went on for three and half years till Mr.Gyeabour decided to terminate the arrangement and stopped paying the instalment. For the remaining period, the Company had no news of Mr. Gyeabour or the car. When the car was later found, the air conditioning compartment was in a bad state of disrepair. The Company now intends to sue Mr. Gyeabour who has resurfaced. Mr. Gyeabour is now pleading with the Company for mercy.

Required:
i) Describe TWO basic requirements that should be outlined in a Hire Purchase Agreement. (4 marks)

ii) Explain to Mr. Gyeabour TWO steps he should have taken in respect of the termination and the damaged car under the Hire-Purchase Act, 1974 NRCD 292. (6 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Damaged Goods, Hire Purchase, Termination
Level: Level 1

Topic: Sale of goods/hire purchase
Series: MAY 2018

BCL – Nov 2023 – L1 – Q2b – Sale of Goods/Hire Purchase

Discuss the legal nature of goods under a hire purchase agreement and the implications of repossession by the seller.

Question

Yaro Ltd deals in cars. They let out their brand new car to Nakare on a hire purchase agreement. The total purchase price stood at GH¢86,000 payments to be made in two years. The monthly installment agreed on was GH¢3,600. With almost three quarters of the payment made, Nakare for unknown reasons refused to make further installment payments. Nakare refused to communicate to Yaro Ltd.

Officials of Yaro Ltd, including the accountant, while on a normal duty tour, chanced on the car and took possession of it. Nakare admitted to non-fulfillment of regular installment but argued that the company’s action was in error.

Required: i) With almost three quarters of the total purchase price paid, explain the legal nature of the goods. (5 marks)

ii) What are the possible implications of the actions of the officials of Yaro Ltd under the hire-purchase agreement? (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Contract Law, Hire Purchase, Legal Rights, Protected Goods
Level: Level 1

Topic: Sale of goods/hire purchase
Series: NOV 2023

Question Tag: Hire Purchase

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

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.

ATAX – May 2017 – L3 – Q3a – Capital Gains Tax (CGT)

Compute Capital Gains Tax for hire purchase transactions and explain the implications of hire purchase interest on CGT.

AT – May 2018 – L3 – SB – Q3b – Capital Gains Tax

Calculate capital gains for asset disposal under hire purchase with specific instalment conditions.

BL – Nov 2020 – L1 – SB – Q3c – Hire Purchase and Consumer Credit Transactions

Define hire purchase and advise on rights after repossession under partial payment.

BL – Nov 2020 – L1 – SA – Q13 – Hire Purchase and Consumer Credit Transactions

Objective question on the form of consideration in hire purchase agreements.

BL – May 2012 – L1 – SB – Q5B – Agency Law

State two differences between a hire purchase agreement and a sale agreement.

BL – May 2012 – L1 – SA – Q7 – Hire Purchase and Consumer Credit Transactions

State the type of goods covered by the Hire Purchase Act 2004.

BL – May 2012 – L1 – SA – Q15 – Hire Purchase and Consumer Credit Transactions

Identify the parties involved in a hire purchase relationship.

BL – May 2012 – L1 – SA – Q6 – Hire Purchase and Consumer Credit Transactions

Identifying the obligation that does not fall under a hirer's responsibility.

BL – Nov 2011 – L1 – SB – Q3b – Hire Purchase and Consumer Credit Transactions

Defining a hire purchase agreement and explaining its essential features.

BCL – May 2016 – L1 – Q4 – Sale of Goods/Hire Purchase

Analyze the implications of paying 60% of a hire purchase price, the legality of seizing a motor, and possible remedies.

BCL – May 2018 – L1 – Q3b – Sale of Goods/Hire Purchase

Discuss the basic requirements of a Hire Purchase agreement and the steps a hirer should take upon termination.

BCL – Nov 2023 – L1 – Q2b – Sale of Goods/Hire Purchase

Discuss the legal nature of goods under a hire purchase agreement and the implications of repossession by the seller.

Our offerings

Contact Info

Customer

Get In Touch

Question Tag: Hire Purchase

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

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.

You're reporting an error for "STP – Feb 2007 – L3 – Q5 – VAT Apportionment"

ATAX – May 2017 – L3 – Q3a – Capital Gains Tax (CGT)

Compute Capital Gains Tax for hire purchase transactions and explain the implications of hire purchase interest on CGT.

You're reporting an error for "ATAX – May 2017 – L3 – Q3a – Capital Gains Tax (CGT)"

AT – May 2018 – L3 – SB – Q3b – Capital Gains Tax

Calculate capital gains for asset disposal under hire purchase with specific instalment conditions.

You're reporting an error for "AT – May 2018 – L3 – SB – Q3b – Capital Gains Tax"

BL – Nov 2020 – L1 – SB – Q3c – Hire Purchase and Consumer Credit Transactions

Define hire purchase and advise on rights after repossession under partial payment.

You're reporting an error for "BL – Nov 2020 – L1 – SB – Q3c – Hire Purchase and Consumer Credit Transactions"

BL – Nov 2020 – L1 – SA – Q13 – Hire Purchase and Consumer Credit Transactions

Objective question on the form of consideration in hire purchase agreements.

You're reporting an error for "BL – Nov 2020 – L1 – SA – Q13 – Hire Purchase and Consumer Credit Transactions"

BL – May 2012 – L1 – SB – Q5B – Agency Law

State two differences between a hire purchase agreement and a sale agreement.

You're reporting an error for "BL – May 2012 – L1 – SB – Q5B – Agency Law"

BL – May 2012 – L1 – SA – Q7 – Hire Purchase and Consumer Credit Transactions

State the type of goods covered by the Hire Purchase Act 2004.

You're reporting an error for "BL – May 2012 – L1 – SA – Q7 – Hire Purchase and Consumer Credit Transactions"

BL – May 2012 – L1 – SA – Q15 – Hire Purchase and Consumer Credit Transactions

Identify the parties involved in a hire purchase relationship.

You're reporting an error for "BL – May 2012 – L1 – SA – Q15 – Hire Purchase and Consumer Credit Transactions"

BL – May 2012 – L1 – SA – Q6 – Hire Purchase and Consumer Credit Transactions

Identifying the obligation that does not fall under a hirer's responsibility.

You're reporting an error for "BL – May 2012 – L1 – SA – Q6 – Hire Purchase and Consumer Credit Transactions"

BL – Nov 2011 – L1 – SB – Q3b – Hire Purchase and Consumer Credit Transactions

Defining a hire purchase agreement and explaining its essential features.

You're reporting an error for "BL – Nov 2011 – L1 – SB – Q3b – Hire Purchase and Consumer Credit Transactions"

BCL – May 2016 – L1 – Q4 – Sale of Goods/Hire Purchase

Analyze the implications of paying 60% of a hire purchase price, the legality of seizing a motor, and possible remedies.

You're reporting an error for "BCL – May 2016 – L1 – Q4 – Sale of Goods/Hire Purchase"

BCL – May 2018 – L1 – Q3b – Sale of Goods/Hire Purchase

Discuss the basic requirements of a Hire Purchase agreement and the steps a hirer should take upon termination.

You're reporting an error for "BCL – May 2018 – L1 – Q3b – Sale of Goods/Hire Purchase"

BCL – Nov 2023 – L1 – Q2b – Sale of Goods/Hire Purchase

Discuss the legal nature of goods under a hire purchase agreement and the implications of repossession by the seller.

You're reporting an error for "BCL – Nov 2023 – L1 – Q2b – Sale of Goods/Hire Purchase"

Our offerings

Contact Info

Customer

Get In Touch

admin

Pick a Form