- 20 Marks
Question
Menuaa Manufacturing Limited (MML) produces iron rods for sale in both the domestic and foreign markets. The company is registered with the Ghana Revenue Authority for Value Added Tax (VAT). The company’s transactions during the month of October 2018 were as follows:
| Transactions | GH¢ |
|---|---|
| Sales (VAT Inclusive) | 756,000 |
| Exports to Sierra Leone | 120,000 |
| Relief Supplies | 48,000 |
| Purchase of Rolling Equipment | 55,500 |
| Hotel Expenses for Staff at a workshop on the new amendment on the VAT law. (VAT Inclusive) | 4,500 |
| Stationery purchased for Administration work | 15,600 |
| Iron Ingot imported (CIF) | 141,750 |
| Local Purchases | 50,000 |
Unless otherwise stated Sales and Purchases are all Value Added Tax exclusive. National Health Insurance and GET Fund Levies are also exclusive except where it has been specifically stated.
Required:
a. You are required to calculate the NHIL and GET fund levies, VAT payable, if any, and Withholding Tax for October 2018.
b. State the last date when each payment is due.
Answer
(a)
| Item | Value | Cost | GETF | NHIL | INPUT | OUTPUT | WHT |
|---|---|---|---|---|---|---|---|
| Sales | 756,000 | 733,980.58 | |||||
| Exports | 120,000 | 120,000 | |||||
| Relief Supplies | 48,000 | 0 | 0 | 0 | |||
| Rolling Equipment | 55,000 | 55,000 | 0 | 0 | 0 | $1,650.00$ | |
| Hotel Expenses | $4,500.00$ | $3,809.52$ | 0 | 0 | 0 | 0 | 285.71 |
| Iron Ingot Imported | 141,750 | 141,750 | $4,252.50$ | $4,252.50$ | 0 | 0 | 0 |
| Local Purchase | 50,000 | 50,000 | 0 | 0 | $1,500.00$ | ||
| Total Tax Payable | $4,252.50$ | $4,252.50$ | 0 | $22,019.42$ | $3,435.71$ |
(b). GET Fund, NHIL and VAT payable by the last day working day of November. Withholding Tax – payable by the 15th of November.
- Tags: GET Fund, NHIL, Tax Deadlines, VAT, Withholding Tax
- Level: Level 2
- Topic: Tax Compliance Framework
- Series: AUG 2019
- Uploader: Samuel Duah