M/S Vintage Creations Limited are licensed manufacturers of alcoholic beverages. In the month of May 2019,...
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M/S Vintage Creations Limited are licensed manufacturers of alcoholic beverages. In the month of May 2019, they applied for and were issued with four million (4,000,000) Excise stamps for use on their range of products. The stamps were used as follows: • 45% of the stamps were used on "zombie" brandy with an alcoholic strength of 40% packed in 500ml bottles. • 35% of the stamps were used on "Ecstasy" vodka with an alcoholic strength of 30% packed in 450ml bottles. • 20% of the stamps were used on "mobit" alcoholic drink with an alcoholic strength of 8% packed in 250ml bottles. Additional Information: a) Stamps Mobit Ecstasy Zombie 2400 bottles 16,200 bottles b) 400 bottles of zombie brandy were accidentally destroyed while still in the stock room. c) The company released 100 cartons of 12 bottles each of mobit drink for consumption by its staff in their offices. Note: i. opening stock 85,000 3600 bottles iii. closing stock 22,000 600 bottles 20 bottles 900 bottles ii. Excise Duty on compounded products of less than 10% -sh 164 per liter. ii. Assume that the rate of Excise Duty on neutral spirit is ksh 222 per liter. Excise Duty on compounded products of more than 10% alcoholic strength is ksh 222 per liter. Required: i. Calculate the amount of Excise Duty payable by m/s Vintage Creations on or by 20th June 2019. Explain how the accidentally destroyed product will be treated by the commissioner. c) Explain the inclusions as well as exclusions in the definition of the - "ex- factory selling price in Excise Administration. d) Explain any four items that an authorized officer checks on an Excise return filing. e) Explain any six important roles played by on a resident authorized officer within a factory manufacturing excisable tobacco products. M/S Vintage Creations Limited are licensed manufacturers of alcoholic beverages. In the month of May 2019, they applied for and were issued with four million (4,000,000) Excise stamps for use on their range of products. The stamps were used as follows: • 45% of the stamps were used on "zombie" brandy with an alcoholic strength of 40% packed in 500ml bottles. • 35% of the stamps were used on "Ecstasy" vodka with an alcoholic strength of 30% packed in 450ml bottles. • 20% of the stamps were used on "mobit" alcoholic drink with an alcoholic strength of 8% packed in 250ml bottles. Additional Information: a) Stamps Mobit Ecstasy Zombie 2400 bottles 16,200 bottles b) 400 bottles of zombie brandy were accidentally destroyed while still in the stock room. c) The company released 100 cartons of 12 bottles each of mobit drink for consumption by its staff in their offices. Note: i. opening stock 85,000 3600 bottles iii. closing stock 22,000 600 bottles 20 bottles 900 bottles ii. Excise Duty on compounded products of less than 10% -sh 164 per liter. ii. Assume that the rate of Excise Duty on neutral spirit is ksh 222 per liter. Excise Duty on compounded products of more than 10% alcoholic strength is ksh 222 per liter. Required: i. Calculate the amount of Excise Duty payable by m/s Vintage Creations on or by 20th June 2019. Explain how the accidentally destroyed product will be treated by the commissioner. c) Explain the inclusions as well as exclusions in the definition of the - "ex- factory selling price in Excise Administration. d) Explain any four items that an authorized officer checks on an Excise return filing. e) Explain any six important roles played by on a resident authorized officer within a factory manufacturing excisable tobacco products.
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i Calculation of Excise Duty payable by MS Vintage Creations The total volume of alcoholic beverages produced by MS Vintage Creations Limited during M... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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