Question 1 The F & G products (Pty) Ltd, which supplies goods to mining industry and which was registered for value added tax (VAT), for the tax period ended 25 April 2020 are as follows. Please note that all the amounts exclude VAT where relevant: Notes BWP Income: Sales 1 472 972 Profit on sale of single cab bakkie 26 387 Commission received 2 48 206 Impaired trade receivable recovered 3 17 573 Technical fees received 4 20 000 ======== 1585 138 Expenses: Purchases - local 376 100 Purchases - imported 569 226 Credit notes issued for sales returns 12 739 Depreciation 65 182 Discount allowed for early payment 8 628 Salaries and wages 217 030 Pension fund contribution 32 555 Provision for future costs 30 000 Interest on overdraft 18 729 ======== 1 330 189 Profit before tax 254 949 Notes: The profit on the sale of the single cab bakkie was calculated as follows: Cost 210 000 Depreciation (79 387) ======== 130 613 Proceeds 157 000 Profit on disposal 26 387 Commission received is in respect of the sale of life insurance policies. The impaired trade receivable recovered is a partial recovery of a debt written off in July An input credit has not yet been claimed by F & G products (Pty) Ltd. Technical fees were received from a non-resident. In respect of F & G Pty Ltd for the tax period ended 25 April 2020 (a). Calculate the VAT payable or refundable. (Note: Your answer should split supplies and inputs between standard rated, zero-rated, exempt and non-taxable). (b). If the company’s VAT return and payment are submitted after 25 April 2020, state the amount of the penalty for the: (1). Late return and (2). Late payment
Question 1
The F & G products (Pty) Ltd, which supplies goods to mining industry and which was
registered for value added tax (VAT), for the tax period ended 25 April 2020 are as follows.
Please note that all the amounts exclude VAT where relevant:
Notes BWP
Income:
Sales 1 472 972
Profit on sale of single cab bakkie 26 387
Commission received 2 48 206
Impaired trade receivable recovered 3 17 573
Technical fees received 4 20 000
========
1585 138
Expenses:
Purchases - local 376 100
Purchases - imported 569 226
Credit notes issued for sales returns 12 739
Discount allowed for early payment 8 628
Salaries and wages 217 030
Pension fund contribution 32 555
Provision for future costs 30 000
Interest on overdraft 18 729
========
1 330 189
Profit before tax 254 949
Notes:
- The profit on the sale of the single cab bakkie was calculated as follows:
Cost 210 000
Depreciation (79 387)
========
130 613
Proceeds 157 000
Profit on disposal 26 387
- Commission received is in respect of the sale of life insurance policies.
- The impaired trade receivable recovered is a partial recovery of a debt written off in July
- An input credit has not yet been claimed by F & G products (Pty) Ltd.
- Technical fees were received from a non-resident.
In respect of F & G Pty Ltd for the tax period ended 25 April 2020
(a). Calculate the VAT payable or refundable.
(Note: Your answer should split supplies and inputs between standard rated, zero-rated, exempt
and non-taxable).
(b). If the company’s VAT return and payment are submitted after 25 April 2020, state the
amount of the penalty for the: (1). Late return and (2). Late payment
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