User Account

All Pages

What is the tax treatment for vat purposes of the sale

Assignment Help Accounting Basics
Reference no: EM132766913

Bobs Corporation is a local export-oriented enterprise engage in the business of manufacturing of sardines. In 2017, it sold to Mr. Bo Huang of China under the term FOB Shipping Point. Mr. Huang wants a specialized packaging material for his sardines. He ordered the said packaging materials from another Philippine Company Norhan Packaging Inc. (NPI). It was agreed that NPI will deliver the packaging materials to Bobs Corporation so that the latter can use the same for the sardines to be delivered to Mr. Huang in China.

Problem 1: What is the tax treatment for vat purposes of the sale of Bobs Corporation to Mr. Huang?

A. Subject to 12%
B. Subject to 0%
C. Exempt
D. None of the choices

Problem 2: Based on the preceding number, what is the tax treatment of the sale of NPI to Mr. Huang?

A. Subject to 12%
B. Subject to 0%
C. Exempt
D. None of the choices

Problem 3: Suppose Bobs Corporation bought packaging materials from NPI, what is status of the sale?

A. Subject to 12%
B. Subject to 0%
C. Subject to 0% only if NPI's export sales exceed 70% of total annual production in the current year.
D. Subject to 0% only if Bobs Corporation's export sales exceed 70% of total annual production in the current year.

Reference no: EM132766913

Questions Cloud

Make the journal entries in the records of partridge ltd : Make the journal entries in the records of Partridge Ltd for the years ended 30 June 2018 and 30 June 2019 in relation to the investment in Pear Tree Ltd
What would Jay children receive : At the time of his death, John's investment portfolio was worth $305,169. What would Jay's children receive
Which is not a scheme of shifting incidence of tax burden : Which is not a scheme of shifting the incidence of tax burden? The manufacturer transfers the tax to the consumer by adding the tax to the selling price
What is the value of the company : Tool Manufacturing has an expected EBIT of $83,000 in perpetuity and a tax rate of 25 percent. What is the value of the company
What is the tax treatment for vat purposes of the sale : What is the tax treatment for vat purposes of the sale of Bobs Corporation to Mr. Huang? Bobs Corporation is a local export-oriented enterprise engage
Discuss about the organs affected in the body : Writen presentation in work document (Toxoplasma gondii): Chain of infection and its Links associated: Infectious agent, Reservoirs, Portal of Exit.
What is between for-profit business vs not-for-profit entity : What is the distinction between for-profit business and not-for-profit entities, including governments and what are the implications of this distinction
Discuss the factors that Ms Fraser should investigate : Discuss the factors that Ms Fraser should investigate in determining whether an investor-associate relationship exists
How much profit or loss will you have : An investor wants to invest his money in a bank at an annual interest rate of 18%. He plans to deposit $1000 to the bank on the first day of each month for 10 y

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd