QUESTION THREE
On Point Limited, a resident of the Republic, introduced a new accounting package on September to provide financial data needed to complete its valueadded tax returns.
For On Point Limiteds tax period January to February the following financial data was provided by its new accounting system. When appropriate, amounts include valueadded tax:
Supply of goods and services at the standard rate
Supply of goods and services at the zero rate
Supply of exempt goods and services
Input tax on capital goods note
Input tax on noncapital goods and services note
Secondhand goods purchased and paid for note
Value of fringe benefits subject to valueadded tax
Credit notes issued note
Credit note received note
Bad debts written off note
The Commissioner has agreed with On Point Limited to a turnoverbased method of apportionment, and has been agreed as the percentage applicable to the making of taxable supplies.
Notes
On Point Limiteds input tax on capital goods includes
R valueadded tax on the purchase of a coffee machine for its employees common room, and
R valueadded tax on the purchase of a delivery van for the delivery of its goods.
On Point Limiteds Input tax on noncapital goods and services purchased includes
R valueadded tax for membership fees paid to the local country club for its managing directors membership, and
R valueadded tax for his subscription to a professional society.
On Point Limited purchased, and paid for, a secondhand machine from a nonvendor for R
On Point Limiteds credit notes issued, and received, all relate to supplies made at the standard rate of
Bad debts written off by On Point Limited relate to supplies made at the standard rate.
You are required to
Determine the valueadded tax due to or from, the Commissioner for its tax period January to February Provide brief reasons to support your determinations if necessary. for marks
