Twelve company is a GST registrant operating in British Columbia. BC does not participate in the HST
Question:
Twelve company is a GST registrant operating in British Columbia. BC does not participate in the HST program. It has 7 percent non-refundable provincial sales tax (PST). During the current calendar quarter, the following sales and expenditures were recorded. All sales were cash sales and all expenditures were invoiced for and paid in the quarter. All capital equipment is used 100% for taxable supplies.
Amount GST PST TOTAL
Sales 24,000 1,200 1,680 26,880
Expenditures
Capital Equipment 14,000 700 980 15,680
Interest 1,000 Nil Nil 1,000
Purchases of Inventory 6,000 300 420 6720
Rent (GST, but no PST) 4,000 200 Nil 4,200
Salaries 4,000 Nil Nil 4,000
Supplies 2,000 100 140 2,240
Total Expenditures 31,000 1,300 1,540 33,840
Question: Under the PST rules for B.C. what is the “total amount due” to be included in the box “K” of the PST tax return form?
Fundamentals of Corporate Finance
ISBN: 978-1118845899
3rd edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates