Question

Following information has been extracted from the records of four registered persons for the month of February 2019:
Particulars Registered Persons
A B C D
-------------------- Rupees --------------------
Purchases
Taxable supplies from registered persons 1,500,000 1,500,000 - -
Taxable supplies from un-registered persons - - 1,500,000 1,500,000
Fixed assets (machinery) from a registered supplier - - - 2,500,000
Supplies
Taxable supplies to registered persons 1,200,000 - 1,000,000 1,000,000
Exempt supplies to registered persons 300,000 800,000
Taxable supplies to un-registered persons 800,000
Zero rated supplies 300,000 1,800,000

All the above figures are exclusive of sales tax, wherever applicable. Sales tax is payable at the rate of 17%.
Required: In the light of the provisions of the Sales Tax Act, 1990 and Rules made thereunder, compute the amount of sales tax payable by or refundable to each of the above registered persons and input tax to be carry forward, if any, for the tax period February 2019. (20)

(kindly solve in the context of pakistan)

Answer 1

Particulars	A	B	C	D
Sales
Sales to registered person	1,200,000	-	1,000,000	1,000,000
Taxable supplies to unregistered person	800,000
Sales tax collected @ 17% on registered person	204,000	-	170,000	170,000
Sales tax collected @ 18% on unregistered person	144,000
Total sales tax to be paid to govt	348,000	-	170,000	170,000
Purchases
Taxable supplies from registered persons	1,500,000	1,500,000	-	-
Taxable supplies from unregistered persons	-	-	1,500,000	1,500,000
Sales tax paid @ 17% to registered person	255,000	255,000	-	-
Sales tax paid @ 18% to registered person	-	-	270,000	270,000
Total sales tax as input credit	255,000	255,000	270,000	270,000
Off set of Liability with input credit	93,000	(255,000)	(100,000)	(100,000)
Status	To pay	Refund	Refund	Refund
Supreme court has upheld that there is no sales tax to be paid on purchase or sales of fixed assets from
or to the registered person