instalment payments – NBC Institute

AT – May 2018 – L3 – SB – Q3b – Capital Gains Tax

Calculate capital gains for asset disposal under hire purchase with specific instalment conditions.

Question

Alero Manufacturing Limited, Abeokuta, Ogun State, purchased a chargeable asset on hire purchase in year 2014. The deposit paid for the purchase was N800,000. The balance was to be paid in forty instalments of N75,000. The cash price of the asset was N2,400,000.

Required:

Calculate the capital gains, assuming the asset was sold as detailed below:

(i) For N4,200,000 after payment of thirty instalments. (7 Marks)

(ii) For N4,500,000 after payment of all the instalments. (7 Marks)

Answer

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Tags: Capital gains tax, Disposal, Hire Purchase, instalment payments, Interest Element
Level: Level 3

Topic: Capital Gains Tax (CGT)
Series: MAY 2018

AT – Nov 2016 – L3 – Q1c – Tax administration in Ghana

Advise a client on VAT/NHIL issues related to credit sales, instalment payments, sale-or-return, and tax relief.

Question

c) You have been appointed as a Tax consultant in a firm in Tabora, Accra. A client approached you one month after your appointment, and asked for your advice with their business records and Value Added Tax and National Health Insurance Levy (VAT/NHIL) returns.

i) One of their customers to whom they sold goods on credit worth GH¢12,500 inclusive of VAT has gone officially bankrupt. The company had paid the VAT on the transaction three months ago.
ii) In March 2015, the client in order to boost sales started selling to customers on 12 months equal instalments payment with some small interest. He is confused as to how to determine the amount of the VAT/NHIL and when he should pay the VAT/NHIL.
iii) The company sold goods worth GH¢17,000 in March 2015, on a sale-or-return basis, but the company is not clear as to when to account for the VAT/NHIL on the sale and what happens to the VAT/NHIL paid if the customer returns the goods.
iv) The company sold stationery and office equipment worth GH¢30,000 to a Jude Power Manufacturing Company in Accra. The accountant of Jude Power informed them that their company is relieved from paying VAT/NHIL, so they will not pay.

Required:
Advise your client on issues raised in “i-iv” concerning VAT/NHIL returns. (10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Advise a client on VAT/NHIL issues related to credit sales, and tax relief., instalment payments, sale-or-return
Level: Level 3

Topic: Tax administration in Ghana
Series: NOV 2016

AT – May 2018 – L3 – SB – Q3b – Capital Gains Tax

Calculate capital gains for asset disposal under hire purchase with specific instalment conditions.

Question

Required:

Calculate the capital gains, assuming the asset was sold as detailed below:

(i) For N4,200,000 after payment of thirty instalments. (7 Marks)

(ii) For N4,500,000 after payment of all the instalments. (7 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital gains tax, Disposal, Hire Purchase, instalment payments, Interest Element
Level: Level 3

Topic: Capital Gains Tax (CGT)
Series: MAY 2018

AT – Nov 2016 – L3 – Q1c – Tax administration in Ghana

Advise a client on VAT/NHIL issues related to credit sales, instalment payments, sale-or-return, and tax relief.

Question

Required:
Advise your client on issues raised in “i-iv” concerning VAT/NHIL returns. (10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Advise a client on VAT/NHIL issues related to credit sales, and tax relief., instalment payments, sale-or-return
Level: Level 3

Topic: Tax administration in Ghana
Series: NOV 2016

Question Tag: instalment payments

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AT – May 2018 – L3 – SB – Q3b – Capital Gains Tax

Calculate capital gains for asset disposal under hire purchase with specific instalment conditions.

AT – Nov 2016 – L3 – Q1c – Tax administration in Ghana

Advise a client on VAT/NHIL issues related to credit sales, instalment payments, sale-or-return, and tax relief.

AT – May 2018 – L3 – SB – Q3b – Capital Gains Tax

Calculate capital gains for asset disposal under hire purchase with specific instalment conditions.

AT – Nov 2016 – L3 – Q1c – Tax administration in Ghana

Advise a client on VAT/NHIL issues related to credit sales, instalment payments, sale-or-return, and tax relief.

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AT – May 2018 – L3 – SB – Q3b – Capital Gains Tax

Calculate capital gains for asset disposal under hire purchase with specific instalment conditions.

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AT – Nov 2016 – L3 – Q1c – Tax administration in Ghana

Advise a client on VAT/NHIL issues related to credit sales, instalment payments, sale-or-return, and tax relief.

You're reporting an error for "AT – Nov 2016 – L3 – Q1c – Tax administration in Ghana"

AT – May 2018 – L3 – SB – Q3b – Capital Gains Tax

Calculate capital gains for asset disposal under hire purchase with specific instalment conditions.

You're reporting an error for "AT – May 2018 – L3 – SB – Q3b – Capital Gains Tax"

AT – Nov 2016 – L3 – Q1c – Tax administration in Ghana

Advise a client on VAT/NHIL issues related to credit sales, instalment payments, sale-or-return, and tax relief.

You're reporting an error for "AT – Nov 2016 – L3 – Q1c – Tax administration in Ghana"

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