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    Calculations Updated To PDF

    Uploaded by

    Likhona Nobatyi
    This is an accounting note

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Calculations Updated To PDF

    Uploaded by

    Likhona Nobatyi
    5 views8 pages
    This is an accounting note

    Original Title

    calculations updated to pdf

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

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    This is an accounting note

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    5 views8 pages

    Calculations Updated To PDF

    Uploaded by

    Likhona Nobatyi
    This is an accounting note

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 8

    Workings

    1. Purchase of delivery vehicle

    * Input vat is denied for double cab light delivery vehicle in terms of s17(2)( c)

    Input vat = Nil

    * Capital allowances

    s11(e ) deductions are allowed. Write off period per binding rule no. 47 = 4 years and is apportioned for p

    R400 000/ 4 x 5/12 = R 41 667

    2. Purchase of a new manufacturing building:

    Building will be used to make taxable supplies, therefore input tax can be claimed

    R 2 875 000 x 15/ 115 = R375 000 Input vat


    R 2 875 000 x 100/ 115 = R 2 500 000 Cost of building

    *Capital allowance

    Building used for trade purposes, there qualifies for S13(1) Deductions

    R 2 500 000 x 5% = R125 000

    3. Purchase of machinery:

    a.New machinery used in the process of manufacturing of renewable energy

    Value of machinery = Cost R 1 380 000 + Installation costs R 12 500 = R1 392 500

    The machinery will be used to make taxable supplies, therefore input vat may be claimed.

    R 1 392 500 x 15/115 = R181 630 Input vat


    R 1 392 500 x 100/115 =R 1 210 870 cost of machinery

    *Capital allowance

    s12B(2)(b) - deduction allowed at 100% of the cost of the machinery


    R 1 210 870 x 100 % =R 1 210 870

    b. Second-hand non-manufacturing machine from non-vendor

    Deemed input vat calculated @ lesser of : Actual cost R 293 250 and Market value R300 000

    R293 250 x 15/115 = R 38 250 input vat


    R293 250 x 100 /115 = R 255 000 cost of machine

    * Capital allowance

    s12E deductions for Non-manufacturing machines used for purposes of trade in Small Business Corporat
    at 50% of the cost in the first year it is brought into use

    R 255 000 x 50% = R 127 500

    4. Sale of goods to another country

    direct exports - zero rated ( taxable @ 0%)

    R 200 000 x 0% = R0 Output Vat

    5. Supply of commercial accommodation

    R350 x 30 days = R10 500

    R10 500 x 15% x 60% = R945 (Output vat)

    6. Sales to Local customers

    Sale of taxable supplies to local customers


    R125 000 x 15/115 = R 16 304 Output vat
    R125 000 x 100/115 = R 108 696 Cost of the Solar panels

    7. Fringe benefits to employees

    Assets given to employees are a deemed supply in terms of s8(14) of the Vat act.

    R62 500 x 15/115 = R 8 152 Output value


    R62 500 x 100/115 = R 54 348 Cost of fringe benefit

    8. Insurance payout
    *Input vat was claimed on payment of the premiums.
    The insurance payout constitutes a deemed supply and vat output is payable.

    R 90 500 x 15/ 115 = R 11 804 Output Vat

    9. Purchase of materials to be used in the making of taxable supplies

    R 50 000 x 15/115 = R6 522 Input vat

    10. Purchase of residential accommodation

    Exempt supply, there are no vat implications

    Input vat = Nil

    * Rental income
    R 2 500 x 6 units = R 15 000

    * Capital allowances

    s13sex deductions allowed on the cost of the residential units and an extra 5% as it qualifies as a low cos

    ( R 275 000 x 6 units) x 55 % (acquired from a developer) x( 5% + 5%) = R 90 750

    11. Sales to Local customers

    * Sale of taxable supplies to local customers

    R 60 000 X 15/ 115 = R 7 826 Output vat

    12. Financial services

    * Transfer of ownership of shares is exempt for vat purposes in terms of s12(a).

    Output vat = Nil

    13. Entertainment

    * Input vat is denied for entertainment expenses in terms of s17(2)(a) of the Vat act.
    Input vat = Nil

    14. Sales to Local customers

    * Sale of taxable supplies to local customers

    R 10 000 x 15/ 115 = R 1 304

    15. Supply of commercial accommodation

    *R 350 x 3 days = R1 050

    R1 050 x 15% = R158 (Output vat)


    INPUT VAT OUTPUT VAT
    R R

    is apportioned for part of a year.

    375 000

    181 630
    38 250

    Business Corporations are allowed.

    945

    16 304

    8 152

    11 804
    6 522

    ualifies as a low cost unit as defined in s1 of the income tax act

    7 826

    0
    1 304

    158

    601 402 46 493

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