Why the company should register for the types of tax

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Reference no: EM132717600

Question: Township Rollers Ltd is the company based in Mwinilunga in North Western Province. The company has won a tender of supplying goods and services to Mwinilunga Copper Mines. It expects to employ about nine workers for a start, whose minimum monthly salaries will be K4,000. It has been projected that the minimum monthly revenue is expected to be K85,000. The Company would require a reasonable capital considering the demand in the products and other services it will be providing to the mines. Township Rollers Ltd has not yet registered with the Zambia Revenue Authority and the company has been advised to complete the registration process with ZRA.

Required: (a) As a Tax accountant for Township Rollers Ltd, state the types of tax the compay should register for and the current rates applicable for each.

(b) Briefly justify why the company should register for the types of tax mentioned above.

Briefly explain three (3) advantages and three (3) disadvantages of registering a business for Turnover Tax (TOT).

Reference no: EM132717600

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