CAF-2 · Chapter 18 · Question 3 of 15
Which of the following input taxes is strictly INADMISSIBLE under Section 8 of the Sales Tax Act, 1990?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) C) Input tax paid on building and construction materials, such as paints and electrical fittings, used in the construction of the company's own factory building.
Explanation
A registered person shall not be entitled to deduct input tax paid on goods used in, or permanently attached to, immoveable property, such as building and construction materials, paints, electrical and sanitary fittings, pipes, wires and cables.
More Determination of Sales Tax Liability MCQs
- Q5Following up on the 90% input tax restriction under Section 8B, which of the following input tax claims is EXEMPT from this 90% limitation?
- Q6XYZ Traders deals in both taxable and exempt supplies. During the month, the value of their taxable supplies was Rs. 6,000,000 and exempt…
- Q7A registered manufacturer sold taxable goods with a 1-year warranty. Five months later, a customer returned a defective part, and the…
- Q8If a customer returns goods to the supplier and the goods are found to be completely unfit for consumption and must be destroyed, what is…
- Q9Under the Sales Tax Rules for Debit and Credit Notes, what is the maximum standard time limit for issuing a debit or credit note to adjust…