Banggawan-2016-BTTax

# Exceeds p1m the input vat on purchases of depreciable

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exceeds P1M, the input VAT on purchases of depreciable capital goods must be amortized. 11. C (P1,600 for November and P1,600 for December. Note that December is the end of the quarter.) Teacher’s Key Answers: 2016 Business and Transfer Taxation 29 12. C Input VAT on truck (P700K x 12% / 60 months) P 1,400 Input VAT on equipment (P500K x 12% / 48 months) 1,250 Total claimable amortization of deferred input VAT in June P 2,650 Note: The input VAT shall be amortized over 60 months or actual useful life in months, whichever is SHORTER. 13. D (Same as P2,650) 14. A (Note that this is a fiscal quarter ending August 2015.) The MAAC in August did not exceed P1M. Hence, the P600K x 12% or P72,000 input VAT shall be claimable in that month. The total claimable input VAT in August shall be computed as follows: Claimable input VAT in June (amortization of deferred VAT) P 2,650 Claimable input VAT in July (amortization of deferred VAT) 2,650

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Claimable input VAT in August Amortization of deferred VAT from purchased in prior months 2,650 VAT on purchase of depreciable goods 72,000 Total claimable input VAT for the fiscal quarter ending August 2015 P 79,950 15. B (An individual taxpayer is allowed to use only the calendar year.) The MAAC exceeds 1M, hence, any input VAT on depreciable capital goods must be amortized. Input VAT in July = P1,680,000 x 12/112 = P180,000 / 60 months = P3,000. The input VAT shall be amortized over not more than 60 months. 16. C Note: The MAAC exceeds P1M. The input VAT in August (P1,232,000 x12/112) or P132,000 shall be amortized over 48 months (4 years x 12). Hence, P132,000/48 months = P2,750. The claimable input VAT in August shall be: Amortization of deferred VAT from July P 3,000 Amortization of deferred VAT from August 2,750 Total claimable input VAT P 5,750 17. C Claimable input VAT in July P 3,000 Claimable input VAT in August 5,750 Claimable input VAT in September (from July and August) 5,750 Total claimable input VAT for the quarter P 14,500 18. C (This problem is defective in the sense that it did not provide the month of acquisition of the commercial lot but it may still be answered. Students must develop a level of critical thinking to determine the intent of the examiner using the choices as clues.) The February (monthly) VAT return shall be undoubtedly P24,000. March is the end of the quarter. We expect a P48,000 answer if the lot is acquired February and P72,000 (P24,000 x 3) if the lot is acquired January. The only feasible answer here is P24,000; P48,000. Note: Commercial lot is non-depreciable. The input VAT is not amortized. The input VAT however on its purchase may be claimed in installment as the buyer pays VAT on the installments. 19. C (The April input VAT shall be amortized. Hence, P1,200,000 x 12%/60 months = P2,400.) 20. B (The input VAT on the May purchase of capital goods shall not be amortized. Hence, P120,000, computed as (P400K+P600K)x12% plus P2,400. Hence, P122,400. 21. A Claimable input VAT in April P 2,400 Claimable input VAT in May 122,400 Teacher’s Key Answers: 2016 Business and Transfer Taxation 30 Claimable input VAT in June (P2,400+P200K x 12%) 26,400
Total claimable input VAT for the quarter P 151,200 22. B The input VAT on the equipment must have been amortized over 60 months starting October 2012.

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• Fall '15
• Finney
• Calculus, input vat, transfer taxation

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