Kilifi Ltd. a company registered for value added tax (VAT) purposes, provided the following details in respect of the month of January 2012: Determine: i. The VAT...

Kilifi Ltd. a company registered for value added tax (VAT) purposes, provided the following details in respect of the month of January 2012:
January 1: Purchased raw materials from South Africa for Sh.668.160 gross inclusive of import duty charged at 20% and VAT.
January 8: Paid for legal services amounting to Sh.52.200.
January 10: Purchased spare parts for motor vehicle repair for Sh. 18,560.
January 12: Exported goods to the Democratic Republic of Congo for Sh.600,000. January 15: Sold goods to Mwanzia, a businessman in Nairobi for Sh.52, 200.
January 18: Sold goods to the Ministry of Finance for Sh.232, 000.
January 20: Issued credit notes to a customer for defective goods for Sh.34.800. January 24: Purchased gas cylinders for Sh. 18,560.
January 26: A debtor of goods valued at Sh.69, 600 was declared bankrupt. January 28: Supplied non-taxable goods to a children's home costing Sh. 180,000. January 29: Purchased goods for Sh.278,400.
January 30: Paid for tax consultancy services of Sh. 61,480.

Note: 25% of purchases were sold at the standard rate of 16%, while the balances were either sold at zero rates or as exempt supplies. All transactions are inclusive of VAT at 16% where applicable

Determine:
i. The VAT payable or refundable.
ii. Comment on the tax computed in (i) above

---

---

Wilfykil answered the question on February 15, 2019 at 07:42

Exams With Marking Schemes

• Grade 1
• Grade 2
• Grade 3
• Grade 4
• Grade 5
• Grade 6
• Grade 7
• Grade 8
• Grade 9
• PP1
• PP2
• Playgroup
• Form 1
• Form 2
• Form 3
• Form 4

Related Questions

---

• Highlight five circumstances under which customs duty paid might be refunded (Solved)
  

  Highlight five circumstances under which customs duty paid might be refunded

  Date posted: February 15, 2019 .    Answers (1)

• Mbale Ltd. has not paid tax for a number of years. As a tax consultant, advise the Finance Manager of Mbale Ltd. on four actions... (Solved)
  

  Mbale Ltd. has not paid tax for a number of years. As a tax consultant, advise the Finance Manager of Mbale Ltd. on four actions that the revenue authority could take against the company for recovery of overdue tax.

  Date posted: February 15, 2019 .    Answers (1)

• Explain the following terms as used in taxation: i) Specific custom duty ii) Ad valorem custom duty (Solved)
  

  Explain the following terms as used in taxation:
  i) Specific custom duty
  ii) Ad valorem custom duty

  Date posted: February 15, 2019 .    Answers (1)

• Outline six contents of a notice of assessment. (Solved)
  

  Outline six contents of a notice of assessment.

  Date posted: February 15, 2019 .    Answers (1)

• Beta Supermarket Ltd. is registered for VAT. During the month of January 2013, the supermarket had the following transactions Determine A value added tax (VAT) account... (Solved)
  

  Beta Supermarket Ltd. is registered for VAT. During the month of January 2013, the supermarket had the following transactions
  January
  1 Sold goods on credit to Mwamba Enterprises for Sh. 400,000.
  2 Purchased goods on credit from Hekima Traders for Sh. 200,000
  2 Paid for catering expenses Sh. 68,000 by cash
  3 Mwamba Enterprises returned goods valued at Sh.60, 000, and received a credit note.
  4 Exported goods to Uzalendo Ltd., a company based in Rwanda for Sh. 300,000
  5 Purchased stationery for Sh. 84,000 on credit from Smart Books Bookshop.
  9 Purchased goods for Shs 800,000 from Uchumi Enterprises on credit
  12 Imported goods from Canada for Sh. 900,000 exclusive of import duty of 25% and value added tax at 16%.
  16 Received a debit note of Sh. 48,000 from Uchumi Enterprises
  17 Paid electricity bills amounting to Sh. 24,000 by cheque
  20 Engaged an auditor and paid him Sh. 60,000 for auditing the supermarket‘s inventory.
  21 Sold goods worth Sh. l,400,000 to the Ministry of Youth and Sports
  24 Bought spare .parts for repair of motor vehicles for Sh. 120,000
  25 Sold goods on credit to Jawabu Enterprises for Sh. 800,000
  30 Made cash sales of Sh. 200,000 and banked the cash on the same day
  
  The above transactions are stated inclusive of VAT at the rate of 16% where applicable and unless otherwise stated
  Determine A value added tax (VAT) account for the month of January 2013

  Date posted: February 15, 2019 .    Answers (1)

• Outline four offences under the value added tax (VAT) Act (Solved)
  

  Outline four offences under the value added tax (VAT) Act

  Date posted: February 15, 2019 .    Answers (1)

• The VAT Act requires a registered person to notify the commissioner' within 14 days of changes in certain particulars of a business. Suggest six such changes... (Solved)
  

  The VAT Act requires a registered person to notify the commissioner' within 14 days of changes in certain particulars of a business.
  Suggest six such changes whose details need to be notified to the commissioner

  Date posted: February 15, 2019 .    Answers (1)

• As a newly appointed Tax Manager of ABC audit firm, advise a client, Mr. Baraza on the following issues: i) He has submitted a self-assessment return... (Solved)
  

  As a newly appointed Tax Manager of ABC audit firm, advise a client, Mr. Baraza on the following issues:
  i) He has submitted a self-assessment return and wishes to know three possible responses he could receive from the commissioner.
  ii) Three different types of income on which turnover tax is not applicable

  Date posted: February 15, 2019 .    Answers (1)

• Mauzo Ltd., a company registered for value added tax (VAT) purposes, provided the following details in respect of the month of November 2012: Determine VAT account... (Solved)
  

  Mauzo Ltd., a company registered for value added tax (VAT) purposes, provided the following details in respect of the month of November 2012:
  
  
  
  Determine VAT account for the month of November 2012

  Date posted: February 15, 2019 .    Answers (1)

• Evaluate four measures under Customs and Excise Act that are designed to prevent dumping in your country (Solved)
  

  Evaluate four measures under Customs and Excise Act that are designed to prevent dumping in your country

  Date posted: February 15, 2019 .    Answers (1)

• The following is a cash book summary of Wings Traders for the month of December 2013: (i) Calculate for Wings Traders, the VAT payable or refundable... (Solved)
  

  The following is a cash book summary of Wings Traders for the month of December 2013:
  
  
  
  (i) Calculate for Wings Traders, the VAT payable or refundable for the month of December 2013.
  (ii) Comment on the registration status of the business in respect to VAT.
  (iii) Advise the management of Wings Traders whether the firm is eligible for turnover tax

  Date posted: February 15, 2019 .    Answers (1)

• Explain three benefits that could be derived from changing zero rated supplies to exempt supplies in your country (Solved)
  

  Explain three benefits that could be derived from changing zero rated supplies to exempt supplies in your country

  Date posted: February 15, 2019 .    Answers (1)

• Outline four ways through which a government could prevent loss of revenue from imports (Solved)
  

  Outline four ways through which a government could prevent loss of revenue from imports

  Date posted: February 15, 2019 .    Answers (1)

• As a tax student, you have been nominated by your institution to make a seminar presentation regarding the various rights conferred to a registered taxpayer... (Solved)
  

  As a tax student, you have been nominated by your institution to make a seminar presentation regarding the various rights conferred to a registered taxpayer under the VAT Act
  Summarise eight rights of a registered taxpayer that you would include in your presentation.

  Date posted: February 15, 2019 .    Answers (1)

• The revenue authority of your country has recently launched an online based integrated tax management system whose aim is to make it more convenient for... (Solved)
  

  The revenue authority of your country has recently launched an online based integrated tax management system whose aim is to make it more convenient for firms and individuals to pay tax.
  In light of this statement:
  (i) Briefly explain how an online based integrated tax management system works.
  (ii) List three types of tax returns that are filed under the system.
  (iii) Evaluate five benefits that are derived from use of the system over the traditional model of filing tax returns

  Date posted: February 15, 2019 .    Answers (1)

• Assume that you have been requested to make a presentation in a tax seminar, on the measures that should be put in place to curb... (Solved)
  

  Assume that you have been requested to make a presentation in a tax seminar, on the measures that should be put in place to curb the problem of tax evasion in your country
  Discuss four measures of overcoming the problem of tax evasion that you would include in your presentation

  Date posted: February 15, 2019 .    Answers (1)

• The following purchases and sales were made by Haraka Enterprises during the month of December 2013: Determine The total VAT payable or refundable to Haraka Enterprises... (Solved)
  

  The following purchases and sales were made by Haraka Enterprises during the month of December 2013:
  
  
  Determine The total VAT payable or refundable to Haraka Enterprises for the month of December 2013.

  Date posted: February 15, 2019 .    Answers (1)

• Highlight four circumstances under which the government might revoke the licence of a manufacturer of excisable goods. (Solved)
  

  Highlight four circumstances under which the government might revoke the licence of a manufacturer of excisable goods.

  Date posted: February 15, 2019 .    Answers (1)

• Argue four cases in favor of introduction of capital gains tax (CGT) in most countries (Solved)
  

  Argue four cases in favor of introduction of capital gains tax (CGT) in most countries

  Date posted: February 15, 2019 .    Answers (1)

• Outline four requirements for a valid memorandum of appeal (Solved)
  

  Outline four requirements for a valid memorandum of appeal

  Date posted: February 15, 2019 .    Answers (1)