案例分析题

Lambda Ltd was set up in Guangzhou 12 years ago. The company has been continually loss making in recent years, and the shareholders decided to liquidate it in December 2014. The following assets were sold before the start of the liquidation process.

问答题

Calculate the amount of business tax and land appreciation tax (LAT) payable on the sale of the factory building.
Notes:
1. City maintenance and construction tax and education levy should be calculated at 12% of business tax.
2. Ignore stamp duty.

【正确答案】

Disposal of the factory building

【答案解析】
问答题

Calculate the consumption tax payable on the sale of the cosmetics packs.
Note: The consumption tax rate for cosmetics is 30%.

【正确答案】

Sale of cosmetic products
Consumption tax of RMB117,949 (460,000 ÷ 1·17 x 30%)

【答案解析】
问答题

State, giving reasons, if the expired cosmetic packs would be treated as a value added tax (VAT) abnormal loss.

【正确答案】

Expired cosmetic products
This is not a value added tax (VAT) abnormal loss. An abnormal loss for VAT is the losses due to theft, spoilage and deterioration due to poor management. [Under Article 24 of VAT Regulations]

【答案解析】
问答题

Calculate the output VAT on the sale of the inventories (finished goods and raw materials).

【正确答案】

Sale of inventories
Output VAT is RMB95,897 ((460,000 + 200,000) ÷ 1·17 x 17%)

【答案解析】
问答题

State whether Lambda Ltd can obtain a VAT refund on the liquidation of the company.

【正确答案】

There is no VAT refund due on the liquidation of a company.

【答案解析】