Summary
Summary TAX May Solution.
- Institution
- University Of South Africa (Unisa)
Summary of 7 pages for the course TAX3701 - Taxation of Business Activities at Unisa (TAX May Solution.)
[Show more]
Content preview
SOLUTION TO QUESTION 1 May/June 2014MONATE BAKERS
VAT Payable/refundable 28 February 2015 (2 month period)
Part A
VAT Output
Accountant's Total Output VAT (given) 93 600
Cash sales - reversal of accountant's output vat -56 123
cash sales were exclusive of VAT therefore you need -
to apply 15% and not 15/115 -
R457 000 x 15% 68 550
Interest on loan - reversal of accountant's output vat -198
- interest is a financial service and therefore exempt -
Indemnity payments - reversal of accountant's output vat -21 000
time of supply is date payment is received
payment was received after 28/02/2015 and
therefore falls outside of the VAT period -
Fringe benefit
reversal of accountant's output vat -16 279
Correct calc (R96 900 x 100/115 x 0,6% x 15/115 x 2 months) 132
Adjusted Output VAT 68 682
VAT Input
Accountant's Total Input VAT (given) 51 811
Baking ingredients – no adjustment -
Baking ovens - reversal of accountant's input vat -5 250
- Notional input VAT lower of cost R37 500 or MV R33 000
33000 x 15/115 4 304
Donation - reversal of accountant's input vat -1 070
- no input vat, as there is no consideration -
Salaries - reversal of accountant's input vat -19 600
- not a supply -
Municipal rates - reversal of accountant's input vat -360
- zero-rated supply -
Depreciation - reversal of accountant's input vat -2 151
- not a supply
Adjusted Input VAT 27 684
Vat Refund (Vat output less Vat input) 40 998
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller LILSAINT. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R80,00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67866 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now