Piong sold taxable goods to his close relative, Peter, for RM 6,000. The selling price under...

 

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Piong sold taxable goods to his close relative, Peter, for RM 6,000. The selling price under usual trade terms is RM 6,600. A discount of RM 80 was given in consideration of early payment made by Peter prior to the sale, thus resulting in a net receipt of RM 5,920. Required: 1. Compute the sales tax payable on the above taxable goods using the sales tax rate 10%. (3 marks) b) PESB and PNSB are both 100% wholly owned subsidiaries of PSB group. PESB imported taxable goods from an independent supplier at a purchase price of RM 97,750. Other expenditure incurred in the goods as follows: RM Insurance 1,000 Freight 1,250 Import duty (customs valuation: RM 105,000) 20,000 Processing cost 5,000 The goods were sold to PNSB at cost inclusive of the above charges plus 20% mark-up in line with the group policy. The mark-up price on sale to customers outside the group is 30%. PESB is a registered manufacturer for sales tax whereas PNSB is not a taxable person Assume the sales tax rate is 10%. Required: 1. Compute the sales tax payable by PESB on importation. (4 marks) II. Compute the sales tax payable by PESB on the goods sold to PNSB. (9 marks) III. Explain when a manufacturer of taxable good is liable to be registered. (4 marks) Piong sold taxable goods to his close relative, Peter, for RM 6,000. The selling price under usual trade terms is RM 6,600. A discount of RM 80 was given in consideration of early payment made by Peter prior to the sale, thus resulting in a net receipt of RM 5,920. Required: 1. Compute the sales tax payable on the above taxable goods using the sales tax rate 10%. (3 marks) b) PESB and PNSB are both 100% wholly owned subsidiaries of PSB group. PESB imported taxable goods from an independent supplier at a purchase price of RM 97,750. Other expenditure incurred in the goods as follows: RM Insurance 1,000 Freight 1,250 Import duty (customs valuation: RM 105,000) 20,000 Processing cost 5,000 The goods were sold to PNSB at cost inclusive of the above charges plus 20% mark-up in line with the group policy. The mark-up price on sale to customers outside the group is 30%. PESB is a registered manufacturer for sales tax whereas PNSB is not a taxable person Assume the sales tax rate is 10%. Required: 1. Compute the sales tax payable by PESB on importation. (4 marks) II. Compute the sales tax payable by PESB on the goods sold to PNSB. (9 marks) III. Explain when a manufacturer of taxable good is liable to be registered. (4 marks)

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I Sales Tax Pay able S elling Price under usual trade terms RM 6 600 Disc ount Given RM 80 Net Rece ... View the full answer