He Feels This Interview Question Could Deny Him The Job - Jobs/Vacancies (2)

He Feels This Interview Question Could Deny Him The Job - Jobs/Vacancies (2) - Nairaland

Nairaland Forum › Nairaland General › Jobs/Vacancies › He Feels This Interview Question Could Deny Him The Job (3062 Views)

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Re: He Feels This Interview Question Could Deny Him The Job by Smeeky(m): 10:09pm On Sep 10, 2015

GANDALF1:
VAT is an abbreviation for Value Added Tax. It simply means the tax that a user will have to pay to the government for using a raw material that has been improved on by a manufacturer.
The manufacturer purchased the plastic + ink and added value by turning them into ballpoint pens. His unit sale price of #15/each is inclusive of his cost price, profit and value added tax.
Your marketer added value by transporting the pen and storing it. Hence the 5% VAT he is collecting and must remit to government.
If you purchase the pens and use them to create a back-to-school kit for kids, you have added value and authorised to collect VAT and remit to Government.
So in reality, everybody pays/remits VAT at their end.

I do not agree with your workings...Vat is a tax on spending and it is borne by the final consumer. FIRS does not care who uses the product or manufactures it,what they know is to collect vat on registered company. I believe the manufacturer company is registered. Firstly, the question did not tell if the manufacturer vat is Ex-vat or inc-vat on the marketer...so I believe vat was charged. Remember it is not the manufacturer or marketer that pays vat,but that does not concern FIRS as long as they are registered,they are borne to pay vat.
Now the marketer assumes the manufacturer included vat on the cost price,so he will definitely include it when selling....Now this is how it comes in;
cost of goods=1500.... vat included in the price of d pen is 5% of N1500= N75(output vat...being vat included in the price of goods sold)....selling price of 1735 x 5%= N86.75(output vat)...Now less N86.75 from N75( now seen as input vat...being vat to be paid)= N11.75(tax paid to FIRS)...Since the vat is included in the accumulated sales, 1735 - 1500= N735 profit before vat and tax...Lessing the tax and vat will result to N200.925 NP.....

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Re: He Feels This Interview Question Could Deny Him The Job by GANDALF1(m): 8:10am On Sep 11, 2015

Smeeky:
I do not agree with your workings...Vat is a tax on spending and it is borne by the final consumer. FIRS does not care who uses the product or manufactures it,what they know is to collect vat on registered company. I believe the manufacturer company is registered. Firstly, the question did not tell if the manufacturer vat is Ex-vat or inc-vat on the marketer...so I believe vat was charged. Remember it is not the manufacturer or marketer that pays vat,but that does not concern FIRS as long as they are registered,they are borne to pay vat.
Now the marketer assumes the manufacturer included vat on the cost price,so he will definitely include it when selling....Now this is how it comes in;
cost of goods=1500.... vat included in the price of d pen is 5% of N1500= N75(output vat...being vat included in the price of goods sold)....selling price of 1735 x 5%= N86.75(output vat)...Now less N86.75 from N75( now seen as input vat...being vat to be paid)= N11.75(tax paid to FIRS)...Since the vat is included in the accumulated sales, 1735 - 1500= N735 profit before vat and tax...Lessing the tax and vat will result to N200.925 NP.....

Didnt put it up for you to agree. Go to FIRS website and download the tax act. Google VAT. After that, Believe what you want.

Cheers

Re: He Feels This Interview Question Could Deny Him The Job by Nobody: 8:43am On Sep 11, 2015

GANDALF1:
Didnt put it up for you to agree. Go to FIRS website and download the tax act. Google VAT. After that, Believe what you want.

Cheers

He is actually right though you are not totally wrong in the real sense of things. VAT is meant to be borne by the final consumer for the value they have enjoyed on the goods or services they paid for. In this case, as a seller and not the final consumer, you only have to remit to the government the net off of your Vat output (vat from sales you recorded minus vat input (vat from purchases you made).

Re: He Feels This Interview Question Could Deny Him The Job by Smeeky(m): 8:44am On Sep 11, 2015

GANDALF1:
Didnt put it up for you to agree. Go to FIRS website and download the tax act. Google VAT. After that, Believe what you want.

Cheers

I'm sorry if you got the wrong impression of what I said,what I do not agree with is the workings and not what you wrote about vat...just trying to tell you I wouldn't calculate it that way.

Re: He Feels This Interview Question Could Deny Him The Job by GANDALF1(m): 7:06pm On Sep 11, 2015

Smeeky:
I'm sorry if you got the wrong impression of what I said,what I do not agree with is the workings and not what you wrote about vat...just trying to tell you I wouldn't calculate it that way.

Ok bro. Was thinking its the usual NL beef tins. Very sorry I poked you.

Chop knuckle

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