- 20 Marks
ATP – Aug 2017 – L2 – Q1 – Indirect Taxes
Compute input tax claimable and VAT payable for The Mall Limited for August 2016.
Question
a) The Mall Limited is a company registered under the Companies Act 1963, Act 179 and has been dealing in both taxable and non-taxable supplies. The company has been registered to operate as a VAT registered company. The company’s operations for August 2016 were as follows.
| Description | GH¢ |
|---|---|
| Total value of taxable supplies | 1,451,125 |
| Input Tax on Taxable Supplies | 102,000 |
| Input Tax which cannot be attributable directly to Supplies | 45,000 |
| Value of Exempt Supplies | 300,000 |
| Value of Relief Supplies | 65,400 |
Required: Compute the input tax claimable by The Mall Limited for August 2016 and VAT payable, if any, for the same period.
b). NIMBOLA Limited is a company gazetted by the Commissioner-General of the Ghana Revenue Authority to be under self-assessment tax payment. During the 2016 year of assessment, the estimated Chargeable Income declared by the company was GH¢50,000. However, the actual Chargeable Income declared for the year per the Returns submitted to the Commissioner-General was GH¢80,000.
Required: Calculate (if any) the penalty for underestimation. Assume a statutory Bank of Ghana Discount rate of 25% for the year 2016. 14 marks.
Find Related Questions by Tags, levels, etc.
- Tags: chargeable income, Penalty, Self Assessment., Underestimation
- Level: Level 2
- Topic: Tax Compliance Framework
- Series: AUG 2017
