Sales Tax Instructions

Sales Tax Instructions, 2009
Apply piece rates paid to establish pieces produced.
Following information may also be taken during audit which will be helpful for
matching/reconciliation with other information:-
Process sketch.
Raw materials used.
Detailed description of manufacturing processing bottling mixing crushing etc.
Intermediate product (if any).
Finished product.
By products.
Further processing, packing, polishing etc.
Key material (the material that must be used and whose quantity does not vary
significantly in the manufacturing process).
Key input e.g. electricity, water, etc.
Ration of key material to finished product (Unit of raw material to unit of finished
product-unit used is specified).
Wastage of key material (if any) %.
Wastage finished product (if any) %.
What is the relationship of the taxpayer with other tax departments. The audit officer
should cross refer the answer received with the relevant tax departments:-
excise duty payments (amount and taxable activity).
customs duty payments (amount, place of imports and transaction volumes).
income tax payment (reported profits and amount paid).
The officer will inspect all the business premises and activities of the taxpayer and
observe the scale of activity. The officer should be alert for any signs that unrecorded
taxable activity is taking place e.g. by comparing the production method and stock to the
declared type of goods sold.