CHAPTER 3- VALUE ADDED TAX ON SALE OF SERVICE

PROBLEM 3-2 TRANSPORT CO.

Transporting Passengers 200,000.00

3%
Common carrier's tax 6,000.00

Transporting cargoes 50,000.00

12%
Value-Added tax- Output VAT 6,000.00
Problem-3 Shipping co.

Transporting Passengers 500,000

12%
Common tax carrier's 60,000

Transporting Cargoes 100,000

12%
Value-added tax- Output VAT 12,000
Problem-4 Overseas Shipping

Transporting Passengers 2,000,000

Trasporting Cargoes 1,000,000
Total 3,000,000
0%
Value-added tax- Output VAT 0
problem-5 Mr. A (Building Contractor)

Taxable Gross Receipts 1,100,000

12%
Output-VAT 132,000
problem-6 -Mr. B (Building Contractor)

Materials 3,300,000
Labor 1,100,000
Taxable Gross Receipts 4,400,000
12%
Output-VAT 528,000
Problem-7- Building Contractor

Taxable Gross Receipts 2,420,000

12%
Output-VAT 290,400
Problem-8 Mr. D ( Building Contractor)

Taxable Gross Receipts 4,800,000

12%
Output-VAT 576,000
Problem-11- Mr.K

Output tax (6,000,000*12%) 720,000

less: Input taxes
Materials Purchased
(1,000,000*12%) 120,000
Labor Purchased
(800,000*12) 96,000 216,000
Value-added tax payable 504,000
problem 12-Mr. L

cash received-advances 11,000

cash received-work completed:
for labors 110,000
for parts 33,000
total amount received 154,000

Output Tax(154,000*12%) 18,480

Less: Input Tax
Parts Purchased
(33,000*12%) 3,960
services of machine shops
(44,000*12%) 5,280
Paints Purchased
(22,000*12%) 2,640 11,880
VAT-Payable 6,600
problem 13- Mr. AB

Output tax:
professional fees
(180,000/90%) 200,000
(200,000*12%) 24,000
Reimbursement billed to Mr. AB
(6,000*12%) 720
Total 24,720
Less: Input Tax
Expenses chargable to client
billed to Mr. AB (6,000*12%) 720
purchased of computer
(70,000*12%) 8,400
purchased of office supplies
(1,000*12%) 120
purchased of water
(10,000*12%) 1,200
purchased of electricity
(20,000*12%) 2,400
payments to PLDT
(5,000*12%) 600
payments for other exp.
(3,000*12%) 360 13,800
VAT-Payable 10,920