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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

  

Answers


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


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