Advanced Taxation – Indirect Tax
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Question 1CircumstancesSales Value of Taxable GoodsA sale between a taxable person and an independent personThe actual selling price of the goodsA sale by taxable person to a person not independent of himThe price at which such goods would have been sold in the ordinary course of business to a person independent of the taxable personWhere a taxable person uses the goods other than as material in the manufacture of goods or by saleThe price at which such goods would have been sold to an independent person at the time of its first useImport of taxable goodsThe aggregate of the value of the goods for purposes of custom duty + amount of the custom dutyWhere a manufacturer sub-contracts part of the manufacturing process to another personThe amount charged by that sub-contractor for the workdone, subject to the approval of the DG of Customs and Excise
Question 2Subject to Sales Tax?Sales taxWhy?RMHotel in LangkawiNo. Free zone.NILSupermarket in PhilippinesNo. Export exempted from sales tax.NILDepartmental store in SabahYes.①Taxable Goods② Manufactured and consumed in Malaysia(a) 400,000 x 10% = 40,000(b)  Taxable Period: July & AugustDue date: 28 days from expiry of taxable period → 28 September 2008RMSales Tax PayableAmount due on 28.9.200840,0001st Penalty (30 days)29.9.2008 to 28.10.200840,000 x 10% = 4,0002nd Penalty(30 days)29.10.2008 to 27.11.200840,000 x 10% = 4,000Total Amount of Tax and Penalty Imposed48,000 (c)Question 3Import Taxable Goods = Amount of taxable goods + Custom DutyRMTransaction Value28,000+) Custom DutyImport Duty ( 80% x 28,000)Excise Duty ( 60% x 28,000)22,4001680067,200