[Question] Provisional tax question

[Roger15]

Good day,

For provisional tax, is it nessessary to insert a value under turnover even though you will be using the SARS basic amount to declare taxable income?
Turnover = sales of product, what happens if you rent out services such as machinery or receive interest income? That would not be turnover and that income not declared as turnover which SARS requries therefore I would insert Nil. However I must pay provisional tax on the estimated income the company is making per the income statement and will declare estimated taxable income.

Thanks

[Jddt]

Hi - The turnover in your case would amount to the plant hire income not the sale of goods.

So an estimate of what your plant hire income will be - This does however amount to Turnover and can not be reflected as nil.

Hope this helps.

[Roger15]

Hi
The income to be reflected under turnover...would this be for the full year or for only 6months ...2014/01 return?
Thanks

[Jddt]

Hi Roger

The income would be for the full year. However please note the following:

1) Depending on the financial year end you busy with.
2) 1st provisional tax payment due end of Feb each year and second due end of Aug each year and there is third TOP UP payment if necessary
3) Based on the above info you can analyse what the progress is going to at year with regards to revenue

Please take note that the first provisional payment must be deducted when calculating the second payment .

Cheers for now.

[Dave A]

2) 1st provisional tax payment due end of Feb each year and second due end of Aug each year

Isn't the first provisional payment due end of August and the second provisional due end of February?

[Justloadit]

Isn't the first provisional payment due end of August and the second provisional due end of February?

That's my understanding

[Jddt]

Sorry guys my bad.

[Dave A]

Oh well, we got there in the end, and hopefully Roger got the answer he was looking for.