CAF-2 · Chapter 17 · Question 5 of 15
A registered manufacturer supplies goods specified in the Third Schedule (e.g., shampoo and toilet soap) to an unregistered distributor. What is the rate of "further tax" applicable on this supply?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) D) 0% (Further tax is not charged)
Explanation
Generally, a further tax of 4% is charged on taxable supplies made to a person who is not registered or not an active taxpayer. However, the Federal Government has exempted certain items from this further tax, specifically including items listed in the Third Schedule to the Sales Tax Act, 1990.
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