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QUESTION THREE

$[30]$

On Point Limited, a resident of the Republic, introduced a new accounting package on $30$ September $2020$ to provide financial data needed to complete its value$-$added tax returns.

For On Point Limited's tax period $1$ January $2021$ to $28$ February $2021$ the following financial data was provided by its new accounting system. When appropriate, amounts include value$-$added tax:

$\backslash$table$[[$Supply of goods and services at the standard rate,$402500],[$Supply of goods and services at the zero rate,$50000],[$Supply of exempt goods and services,$100000],[$Input tax on capital goods $($note $1),45000],[$Input tax on non$-$capital goods and services $($note $2),48750],[$Second$-$hand goods purchased and paid for $($note $3),12650],[$Value of fringe benefits subject to value$-$added tax,$1150],[$Credit notes issued $($note $4),13800],[$Credit note received $($note $4),6900],[$Bad debts written off $($note $5),9200]]$

The Commissioner has agreed with On Point Limited to a 'turnover$-$based' method of apportionment, and $80\%$ has been agreed as the percentage applicable to the making of taxable supplies.

Notes

On Point Limited's input tax on capital goods includes

R$750$ value$-$added tax on the purchase of a coffee machine for its employees' common room, and

R$9000$ value$-$added tax on the purchase of a delivery van for the delivery of its goods.

$2$

On Point Limited's Input tax on non$-$capital goods and services purchased includes

R$360$ value$-$added tax for membership fees paid to the local country club for its managing director's membership, and

R$270$ value$-$added tax for his subscription to a professional society.

On Point Limited purchased, and paid for, a second$-$hand machine from a non$-$vendor for R$12650.$

On Point Limited's credit notes issued, and received, all relate to supplies made at the standard rate of $15\%.$

Bad debts written off by On Point Limited relate to supplies made at the standard rate.

You are required to

$3\mathrm{.}1.$ Determine the value$-$added tax due to$,$ or from, the Commissioner for its tax period $1$ January $2021$ to $28$ February $2021.$ Provide brief reasons to support your determinations if necessary.

$(30)$

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