Question 5
ICAN
•
2024
•
TAXATION
•
mixed
Case Stimulus
Havillah Manufacturing Limited is a company that is engaged in the manufacture of different kinds of perfume, body lotions and other cosmetic products. The statement of profit or loss of the company for the year ended September 30, 2021, is as follows: N’000 N’000 Turnover 206,250 Less cost of sales (112,750) Gross profit 93,500 Other income 34,375 127,875 Less operating costs: Operating expenses 62,975 Interest and similar charges 3,520 (66,495) Profit before tax 61,380 Taxation (6,875) Profit after tax 54,505 Dividend (42,350) Retained profit for the year 12,155
Additional Information
{
"label": "(i)",
"content": "Turnover is made up of N64,350,000 export sales and N141,900,000 local sales."
}
{
"label": "(ii)",
"content": "Cost of sales comprises: N’000 Opening inventory (VAT inclusive) 24,915 Closing inventory (VAT inclusive) 40,865 Purchase of raw materials 94,600 Freight charges 20,570 Other direct materials 13,530"
}
{
"label": "(iii)",
"content": "The company purchased plant and machinery which cost N24,750,000. This amount was included in opening inventory, VAT inclusive."
}
{
"label": "(iv)",
"content": "Value added tax and withholding tax remitted during the year amounted to N2,173,180 and N1,787,500, respectively."
}
Requirements
(
a
)
Compute the net VAT payable by Havillah Manufacturing Limited for the year.
(
b
)
State FIVE VAT exempt goods.
(
c
)
State FIVE VAT exempt services.
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About This Question
This is
Ican
2024
Taxation
Question 5.
It is one of the
mixed
questions from the
2024
Ican
Taxation
examination.