- 5 Marks
Question
Charley Chemist LTD made a taxable supply of medical consumables amounting to GH¢750,000 exclusive of VAT and levies on 23 November 2023 to the University of Ghana Medical Centre. The University of Ghana Medical Centre is a withholding tax agent for both VAT withholding and Direct Tax withholding.
Required:
i) Compute the amount of VAT withheld by the University of Ghana Medical Center.
ii) Compute the amount of direct tax withheld by the University of Ghana Medical Centre.
Answer
i) VAT Withheld Calculation:
| Description | Amount (GH¢) |
|---|---|
| Sales Value | 750,000 |
| NHIL (2.5%) | 18,750 |
| GETFL (2.5%) | 18,750 |
| COVID Levy (1%) | 7,500 |
| Total VAT Base | 795,000 |
| VAT (15%) | 119,250 |
| Invoice Value | 914,250 |
| VAT Withheld (7% x 795,000) | 55,650 |
ii) Direct Tax Withheld Calculation:
| Description | Amount (GH¢) |
|---|---|
| WHT (3% x 750,000) | 22,500 |
- Tags: Direct Tax, Medical Supplies, Tax Agent, Tax Compliance, Tax computation, Tax deduction, VAT, VAT Withholding, Withholding Tax
- Level: Level 2
- Uploader: Salamat Hamid