RsSA: The Review School of Accountancy Page 6 of 9

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39. V,ihich of the following input. taxes slra 11 not be appli.ed for'conversi.on into Tax
I Credit Cert-ificate (TCC) ?
a. Taput- tax on locaily purchased goods wlr i uh are expul Led
b. rirpul tax on 1ocaI1y purchased goods rvhich are so.ld tc Asian Development Bank
. . .riutilized aclvance VAT payment m.1.je by sel l ei: o I reli ned sugar
i :;namortized input tax on pirrchase of capital goods

4A . A i.,rxpcryer was reg j-stereci under the VAT syslem j n the second . month of the second
fi-sca1 quarter. The fisca-L year startecl June 1., 2A76 . His Certificate of
Registr.';tion shows the ef fective <lat6 on r-he fj rst day of the third mont-h of the
sec,rrt,i quaLtei^. To comply with VAT requirements, what wi-11 he fif e initially?
: . l,ionthly VAT decl aration on or bef ore October 20
t t'lonthly VAT declaration on or before Nowember 20
Quarterly VAT return on or before December 25 ar next working day
i. Norle of the chcices,

i. 41 ;'estaurant owner who sel_ts fcod anil Crink-s in his re.staurant is:
I a sel ler of q1)oo^i.
. a se]Ler of services,
d. not sub j ect tto v;l lue-aclderl lax .

42 Whr -:-r cf the fo-l.,lowjnq is not considered "q:g!51qg5!ige receipts,,?

,-r" Ceposlt -in banks made avai.t.able t-o the seller of services without restrictions
l'. rssuance by the debt-or o1l a noti.ce l-o offset arry ciekrt or obtigat|on and
.lcceptance tlrcr:eof by thre serler as paymenL [or services rende::ed
. transfer of amounts re-,Lai:red by rhe payor to the account of the contractor
L4,''i"-
''= .;. advance paymerlts €q"g_iyg-d-ljuring the taxable .period for the .services per:formecl
or Lo be performed--l5r another person
,1 'i.l,t .
rl
' 43. ilihi-ch of the foJ. lowing staL€mcnts is*ir1.g-a.I.rgc} f,:r phrf ippine vAT purposes?
I . sale of real property orl defer::ed pa),.Tnent plan r-s subject to VAT based on
^. selling price stated irr l-he
sa-Les dcrcuments on fair market value, whlchever j-s
ru I, hi ghe r
s | -'' ',f\.U,tr',,"'- b- If the VAT i.s-nqL=hiILeS separately in the docurnent of sa1e, the
selling price
..'t. Lhe consideri'ri- j on sl-at.ecl ttrereir shal l be &Sl-e,l__to_ !e_ _ir]glusive cf vAT.
c' , I the gross .setilng price .i..s based on t-he zonal value ,.r. m-iIe--f-\rafue of the
n\: -fid,nh,.,,1'" DropertY, the zona'l value.or markeL va]uo shall be tleemed excluslve of VAT.
'I'he vAT on sare of rea.l proL)erL.ies cn j nsta.ll.nierrr- pi.an (i.nit
ia_L payments
excee'ls 25? cf the 9ross sclling price) j-s based on the insL:al-fmen riceivetj
p-1 us i nterest and penaitie,s for Iat_e Da;;nen: .

44 Thi s mandates that eo__l{All shal_l be imposed. t-c,ror,nR-parf of the cost of the goocls
r;.,.,' lned for .consumpt.'ion olrt.sicle the territ-orial{borderr7of the taxing authortty.
a. Cross Border Doctrine _
b. Destination Principle
C. Territorial ;urisdiction
d. Reci-pr:ocity Rule
Alt . ",,,, term "Iivesiogk" lor VAT purposjes lnclr-rdes:
. " clogs and cats.
it. race horses.
c. zoo anirna.ls .
d. br-rlls and cafves,
46. Whlch of the following shal be cxemJ-rL f ron: VAT?
r

a . .i;i 1e of ornamentaJ- pl.ants

ir" i'{itling of wheat int_o wheat f lour
.la I e of m-Lneral waLe r

..i. Export sale of a person who j s iexempl- .rr ronr VAT

!

\ 47. Wtiich of the following statenrents is inccrrdct?

a ' For indirect taxes like vAT, t-n" pi6frai:'lrirry to question or seek a ref r.rnd of tlie
tax is the stat.utory taxpayer/-se.J -rer., or: thc payor, not the end consumel:.
b- The printing of the word "zero-rateci" .;-s requirecl to be placed on Lhe VA1 i.nvoice .,r
receipts cower:inc; zero-raLed sales in crclq:r t-o be entitled t-o claim for tax crecii.t
or refund unles.s there ar:e otl:er documents that can cletermine the ver:acity of the
t-axpayer's cla'i ms.
':. iior. a claim for: refund, tcrxpayer mus't- noL on-i,y. pr:ove that it -is a VAT*registereci
"':ntity but that, also, it- filed j-ts claim within t.he prescripl-Lve period.
l' rjhould the input taxcs resu}t f rori. ze,ro-ratecl . or: ef fectively
transactions, any excess over t.he outp',.11- t.axes shctii be refunded onl zer:o-rat,ed
y to the
l_axpayer.

TAXATION _ FiRST PRE-BOARD EXAMINATION (BATCH 34) ,5lf?\