Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Sales tax
- This topic has 4 replies, 2 voices, and was last updated 8 years ago by John Moffat.
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- June 1, 2015 at 10:55 am #251278
For the 3months ended 31 march 201X Gails gross sales were $23500, purchases were $12000(net) and expenses $800(net).Sales tax rate is 17.5%.
How much is due to the tax authority for the quarter?
Ans:$1260June 1, 2015 at 11:14 am #251284my calculation was:
output tax=$23500X17.5/117.5=$3500
input tax=$12000X17.5%=$2100
#Sales tax payable to authority is $1400(my ans).
#Sales tax relating to expenses is irrecoverable.So sales tax of($800X17.5%)$140 is shown as an expense in the SOPL and that’s why it has no effect to sales tax account.
Am I right sir?Please explain if needed!June 1, 2015 at 12:32 pm #251314Why do you say that sales tax for expenses is irrecoverable!!
All sales tax suffered is recoverable, whatever it is suffered on (except for some very special cases which are not examinable in F3 – only in the tax exam F6).
June 1, 2015 at 9:15 pm #251695thanks for quick reply moffat sir!!
June 2, 2015 at 8:36 am #251782You are welcome 🙂
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