Assuming that a Nissan Car Manufacturing Company sold 100 cars to the wholesale trader for OMR 7,500 each plus VAT. The wholesale trader sold all the 100 cars to the retailer showroom for OMR 8,000 each plus VAT. The retailer showroom realized OMR 850,000 after selling all the 100 cars to the local customers plus VAT. Assume the rate of Value Added Tax (VAT) throughout in Oman is 5%. There Input tax credit available in Nissan Car Manufacturing Company account was OMR 42,500. ANSWER QUESTION NO 15 TO 18 Question 15 What will be the total tax burden by the consumers? a. OMR 85,000 b. OMR 42,500 c. OMR 40,000 d. OMR 47,500 Question 16 Which of the following statement will be correct for Nissan Car Manufacturer? a. Tax to be refunded from Government is OMR 5000 b. Tax to be payable to Government is OMR 37,500 c. Tax to be refunded from Government is OMR 42,500 d. Tax to be payable to Government is OMR 5000 Question 17 What will be the VAT payable by the wholesaler to Government? a. OMR 7500 b. OMR 40,000 c. OMR 2500 d. OMR 42,500 Clear my choice

Assuming that a Nissan Car Manufacturing Company sold 100 cars to the wholesale trader for OMR 7,500 each plus VAT. The wholesale trader sold all the 100 cars to the retailer showroom for OMR 8,000 each plus VAT. The retailer showroom realized OMR 850,000 after selling all the 100 cars to the local customers plus VAT. Assume the rate of Value Added Tax (VAT) throughout in Oman is 5%. There Input tax credit available in Nissan Car Manufacturing Company account was OMR 42,500. ANSWER QUESTION NO 15 TO 18 Question 15 What will be the total tax burden by the consumers? a. OMR 85,000 b. OMR 42,500 c. OMR 40,000 d. OMR 47,500 Question 16 Which of the following statement will be correct for Nissan Car Manufacturer? a. Tax to be refunded from Government is OMR 5000 b. Tax to be payable to Government is OMR 37,500 c. Tax to be refunded from Government is OMR 42,500 d. Tax to be payable to Government is OMR 5000 Question 17 What will be the VAT payable by the wholesaler to Government? a. OMR 7500 b. OMR 40,000 c. OMR 2500 d. OMR 42,500 Clear my choice

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter2: Income Tax Concepts

Section: Chapter Questions

Problem 18P

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Question 15

What will be the total tax burden by the consumers?

OMR 85,000

OMR 42,500

OMR 40,000

OMR 47,500

Question 16

Which of the following statement will be correct for Nissan Car Manufacturer?

Tax to be refunded from Government is OMR 5000

Tax to be payable to Government is OMR 37,500

Tax to be refunded from Government is OMR 42,500

Tax to be payable to Government is OMR 5000

Question 17

What will be the VAT payable by the wholesaler to Government?

OMR 7500

OMR 40,000

OMR 2500

OMR 42,500

Clear my choice

Question 18

What will be the input tax for the retailer showroom?

OMR 2500

OMR 40,000

OMR 42,500

OMR 7500

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