Deductibility – NBC Institute

AT – Nov 2024 – L3 – Q4a – Value Added Tax Deductibility

Determine the deductible input VAT for a VAT-registered company operating multiple business divisions under different VAT treatments.

Question

The two scenarios below relate to ClearTel LTD, a VAT-registered company in Ghana. Each scenario is an independent scenario and should be considered separately.

Scenario 1

ClearTel LTD operates three divisions (XYZ). Division X deals in the sale of computers and mobile phones. Division Y deals in the sale of locally-manufactured sanitary towels. Division Z is into the supply of fertilizers to farmers in Ghana.

Revenue from each division for 2024 is shown below:

Division	Description	Revenue (GH¢)
X	Computers and mobile phones	1,005,700
Y	Sale of locally-manufactured sanitary towels	2,500,000
Z	Supply of fertilizers to farmers	78,800,000

ClearTel LTD has incurred total input VAT of GH¢50,500,000, and the Finance Manager of the company is unable to determine specifically which division of the business this input VAT amount relates to.

Required:

Determine the amount of input VAT ClearTel LTD can deduct, in line with the provisions of the Value Added Tax Act, 2013 (Act 870 as amended). Justify your answer

Answer

Find Related Questions by Tags, levels, etc.

Tags: Deductibility, Exempt supplies, Input Tax, Mixed Taxation, VAT, Zero-rated supplies
Level: Level 3

Topic: Tax administration in Ghana, Value-Added Tax (VAT)
Series: Nov 2024

PT – Dec 2023 – L2 – Q4c – Corporate Tax Liabilities

Explanation of the conditions under which interest is deductible for tax purposes.

Question

Explain the conditions under which interest is deductible for tax purposes. (6 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate Tax, Debt Obligation, Deductibility, Interest, Tax law
Level: Level 2

Topic: Corporate Tax Liabilities
Series: DEC 2023

TX – May 2019 – L3 – Q2C – Capital Allowance

Discuss the concepts of domestic and excluded expenditure according to the Income Tax Act 2015 (Act 896) and their implications on tax deductions.

Question

i) What constitutes domestic expenditure? (2 marks)
ii) What constitutes excluded expenditure? (2 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Deductibility, Domestic expenditure, Excluded Expenditure, Income Tax Act 2015 (Act 896), Tax deduction
Level: Level 3

Topic: Tax administration in Ghana
Series: MAY 2019

AT – Nov 2024 – L3 – Q4a – Value Added Tax Deductibility

Determine the deductible input VAT for a VAT-registered company operating multiple business divisions under different VAT treatments.

Question

The two scenarios below relate to ClearTel LTD, a VAT-registered company in Ghana. Each scenario is an independent scenario and should be considered separately.

Scenario 1

Revenue from each division for 2024 is shown below:

Division	Description	Revenue (GH¢)
X	Computers and mobile phones	1,005,700
Y	Sale of locally-manufactured sanitary towels	2,500,000
Z	Supply of fertilizers to farmers	78,800,000

Required:

Determine the amount of input VAT ClearTel LTD can deduct, in line with the provisions of the Value Added Tax Act, 2013 (Act 870 as amended). Justify your answer

Answer

Find Related Questions by Tags, levels, etc.

Tags: Deductibility, Exempt supplies, Input Tax, Mixed Taxation, VAT, Zero-rated supplies
Level: Level 3

Topic: Tax administration in Ghana, Value-Added Tax (VAT)
Series: Nov 2024

PT – Dec 2023 – L2 – Q4c – Corporate Tax Liabilities

Explanation of the conditions under which interest is deductible for tax purposes.

Question

Explain the conditions under which interest is deductible for tax purposes. (6 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate Tax, Debt Obligation, Deductibility, Interest, Tax law
Level: Level 2

Topic: Corporate Tax Liabilities
Series: DEC 2023

TX – May 2019 – L3 – Q2C – Capital Allowance

Discuss the concepts of domestic and excluded expenditure according to the Income Tax Act 2015 (Act 896) and their implications on tax deductions.

Question

i) What constitutes domestic expenditure? (2 marks)
ii) What constitutes excluded expenditure? (2 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Deductibility, Domestic expenditure, Excluded Expenditure, Income Tax Act 2015 (Act 896), Tax deduction
Level: Level 3

Topic: Tax administration in Ghana
Series: MAY 2019

Question Tag: Deductibility

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AT – Nov 2024 – L3 – Q4a – Value Added Tax Deductibility

Determine the deductible input VAT for a VAT-registered company operating multiple business divisions under different VAT treatments.

PT – Dec 2023 – L2 – Q4c – Corporate Tax Liabilities

Explanation of the conditions under which interest is deductible for tax purposes.

TX – May 2019 – L3 – Q2C – Capital Allowance

Discuss the concepts of domestic and excluded expenditure according to the Income Tax Act 2015 (Act 896) and their implications on tax deductions.

AT – Nov 2024 – L3 – Q4a – Value Added Tax Deductibility

Determine the deductible input VAT for a VAT-registered company operating multiple business divisions under different VAT treatments.

PT – Dec 2023 – L2 – Q4c – Corporate Tax Liabilities

Explanation of the conditions under which interest is deductible for tax purposes.

TX – May 2019 – L3 – Q2C – Capital Allowance

Discuss the concepts of domestic and excluded expenditure according to the Income Tax Act 2015 (Act 896) and their implications on tax deductions.

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Question Tag: Deductibility

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AT – Nov 2024 – L3 – Q4a – Value Added Tax Deductibility

Determine the deductible input VAT for a VAT-registered company operating multiple business divisions under different VAT treatments.

You're reporting an error for "AT – Nov 2024 – L3 – Q4a – Value Added Tax Deductibility"

PT – Dec 2023 – L2 – Q4c – Corporate Tax Liabilities

Explanation of the conditions under which interest is deductible for tax purposes.

You're reporting an error for "PT – Dec 2023 – L2 – Q4c – Corporate Tax Liabilities"

TX – May 2019 – L3 – Q2C – Capital Allowance

Discuss the concepts of domestic and excluded expenditure according to the Income Tax Act 2015 (Act 896) and their implications on tax deductions.

You're reporting an error for "TX – May 2019 – L3 – Q2C – Capital Allowance"

AT – Nov 2024 – L3 – Q4a – Value Added Tax Deductibility

Determine the deductible input VAT for a VAT-registered company operating multiple business divisions under different VAT treatments.

You're reporting an error for "AT – Nov 2024 – L3 – Q4a – Value Added Tax Deductibility"

PT – Dec 2023 – L2 – Q4c – Corporate Tax Liabilities

Explanation of the conditions under which interest is deductible for tax purposes.

You're reporting an error for "PT – Dec 2023 – L2 – Q4c – Corporate Tax Liabilities"

TX – May 2019 – L3 – Q2C – Capital Allowance

Discuss the concepts of domestic and excluded expenditure according to the Income Tax Act 2015 (Act 896) and their implications on tax deductions.

You're reporting an error for "TX – May 2019 – L3 – Q2C – Capital Allowance"

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