Tax Revenue Efficiency of Indian States: The case of Stamp ...
Chapter 16 Documentary Stamp Tax
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Transcript of Chapter 16 Documentary Stamp Tax
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BUSINESS AND TRANSFER TAXATION 6th Edition (BY: VALENCIA & ROXAS)SUGGESTED ANSWERS
Chapter 16: DOCUMENTARY STAMP TAXES
CHAPTER 16
DOCUMENTARY STAMP TAXES
Problem 16 – 1
1. True2. True3. False – the transaction.4.
False – to be taxed against the party who is not exempt.5. True6. False – 10 days from the close of the month7. True8. True9. True
10.
True
Problem 16 – 2 B
Documentary stamp tax to be paid (P1,000/P200) x P10 x P2 P 100
Problem 16 – 3 A
Documentary stamp tax to be paid ($5,000 x P40/P200) x P0.30 P 300
Problem 16 – 4 B
DST on first P5,000DST on excess of the first P5,000 = (P395,000/P5,000) x P10 Total documentary stamp tax
P 20790
P810
Problem 16 – 5 C
Documentary stamp tax (P800,000/P1,000) x P15 P12,000
Problem 16 – 6 D
DST on first P2,000DST on excess of the first P2,000 = (P142,000/P1,000) x P1 TotalMultiply by Total documentary stamp tax
P 3142
P1452
P290
Problem 16 – 7
Face value of the bondsDivide by
Multiply by documentary stamp taxDocumentary stamp tax
P50,000200250
P 1.50P 375
Problem 16 – 8
Par value of the stock (P100 x 1,000 shares)Divide by
Multiply by documentary stamp taxDocumentary stamp tax
P100,000200500
P 2.00P 1,000
Problem 16 – 9
Par value (P100 x 100 shares)Divide by value
Multiply by documentary stamp taxDocumentary stamp tax
P10,00020050
P 1.50P 75
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Problem 16 – 10
Face value of documentDivide by
Multiply by documentary stamp tax rate
Documentary stamp tax
P100,000200500
P 0.30
P 150
Problem 16 – 11
Face value of document (P50 x $5,000)Divide by
Multiply by documentary stamp tax rateDocumentary stamp tax
P250,000200
1,250P 0.30P 375
Problem 16 – 12
Insurance policyDivide by
Multiply by documentary stamp tax rateDocumentary stamp tax
P1,000,000200
5,000P 0.50P 2,500
Problem 16 – 13
Annual insurance premiumDivide by
Multiply by documentary stamp tax rateDocumentary stamp tax
P 5,0004
1,250P 0.50P 625
Problem 16 – 14
The documentary stamp tax on the affidavit of loss is P15.00.
Problem 16 – 15
The documentary stamp tax would be P10.00.
Problem 16 – 16
Sales priceLess: Unpaid mortgage balanceBalanceLess: Amount not subject to DSTBalanceDivide by
Multiply byDocumentary stamp taxAdd: DST for the first P1,000 Total documentary stamp tax
P1,000,000200,000
P 800,0001,000
P 799,000P 1,000
799P 15P 11,985
15P 12,000
Problem 16 – 17
Documentary stamp (P1,000,000/ P1,000) x 15Surcharge (P15,000 x 25%)Interest (from June 25 to July 25) (P15,000 x 20%) Total payable
P15,0003,750
250P19,000
Problem 16 – 18
a. P – 0 – b.
P – 0 –
See page 503 of the textbook. Deeds of property donated to the government are exempt fromdocumentary stamp tax.