Manama Co. who is registered trader with VAT Directorate of Ministry of Finance of Bahrain. Manama Co.
Question:
Manama Co. who is registered trader with VAT Directorate of Ministry of Finance of Bahrain. Manama Co. is dealing with the products which are standard rated @5%, zero rated and exempt rated. Manama is supposed to submit VAT returns on quarterly basses. Following are the transactions of 2018.
July 10 | Purchased 150 units of Item X from Ali @BD 150 each (net) on cash. This item is standard rated at the time of purchase and zero rated at the time of sales. |
July 13 | Sold 120 units of Item X for BD 200 (net) to Ahmad on credit |
July 14 | Purchased 1000 units of Item A from Rami @BD 200 each (net) on credit. This item is standard rated supplies at the time of purchases and sales. (credit terms 5/25, n/30) |
July 16 | Sold 200 units of Item A for BD 200 (net) to Hanan on credit. |
July 26 | Sold 200 units of Item A for BD 250 (net) to Ahmad on cash. Trade discount was 5%. |
July 29 | Returned 100 units of item A to Rami. |
July 31 | Settled the dues of Rami and got cash discount. |
August 8 | Purchased 400 units of Item B from Wafa @BD 240 each (net) on cash. This item is standard rated supplies at the time of purchases and exempt rated at the time of sales. Trade discount was 10%. |
August 29 | Sold 100 units of Item B @440 each (Net) on credit to Hamdan. |
August 31 | Hamdan returned 20 units and give money for remaining units. |
Assume that credit claimed in books of account on September 30,2018 and VAT return is submitted on October 25,2018 with VAT payment or refunded.