- Total tax payable in any year of income does not exceed Sh.40,000
- Income other than employment income is less than one third of total income.
- If his total tax liability for that year of income is nil to the best of his judgement.
- Individual's only source of income is employment, and all taxes have been paid in full through PAYE tax.
Wilfykil answered the question on February 15, 2019 at 08:02
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(ii) Deductible input tax.
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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.
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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
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9 Purchased goods for Shs 800,000 from Uchumi Enterprises on credit
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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
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