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  • Apportionment of Input Tax

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    tutorwarrior98
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    Input tax must be apportioned between taxable, exempted, and zero-rated supplies. The value of taxable supplies is divided by the value of total supplies to calculate the apportionment percentage, which is then applied to the residual input tax to determine the amount claimable. Brought forward input tax and purchases of finished goods do not require apportionment. Sales and purchase return figures must be included in values.

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    Tax Practices CAF 03 Input tax

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    Apportionment of Input tax

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    Input tax must be apportioned between taxable, exempted, and zero-rated supplies. The value of taxable supplies is divided by the value of total supplies to calculate the apportionment percentage, which is then applied to the residual input tax to determine the amount claimable. Brought forward input tax and purchases of finished goods do not require apportionment. Sales and purchase return figures must be included in values.

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    15 views1 page

    Apportionment of Input Tax

    Uploaded by

    tutorwarrior98
    Input tax must be apportioned between taxable, exempted, and zero-rated supplies. The value of taxable supplies is divided by the value of total supplies to calculate the apportionment percentage, which is then applied to the residual input tax to determine the amount claimable. Brought forward input tax and purchases of finished goods do not require apportionment. Sales and purchase return figures must be included in values.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 1

    Input tax on making both Determination & Apportionment of Input Tax (Rule 25)

    Residual Input Tax

    Input tax on
    Taxable supplies
    Exempted suplies
    (including zero rated)

    Taxable supplies + Zero rated supplies + Exempted supplies


    Shall be apportioned.

    Note:- Fromula:-

    Commercial Inporter: Apportionment:


    * No apportionment as goods are finished. Value of taxable supplies
    x Residual input tax
    Value of total supplies
    General:
    * B/f input tax should not be apporioned. Method:-
    * No apportionment in case of finished goods e.g 3rd Schedule items. Gross value of supplies Input tax
    * Sales return figure should be taken.
    * Purchase return figure shall be considered. Taxable supplies xxx xxx

    Zero rated supplies xxx xxx

    Exempted supplies xxx xxx

    Total XXX XXX (Residual Input)

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