Page 117 - ADVANCED TAXATION - Day 1 Slides

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Example

Venter and Naidoo CC purchased a house from a non-vendor

(South African resident) for a consideration equal to the open-

market value of R350 000 (they are not connected persons).
Venter and Naidoo CC will use the house for the purposes of

making taxable supplies. As the value of the fixed property is

below R600 000, no transfer duty is payable on the transfer of

the fixed property. The registration of the property in the name
of Venter and Naidoo CC occurred on 15 April 2014. Venter and

Naidoo CC borrowed money from ABC Bank and paid the full

R350 000 to the non-vendor on 20 March 2014.

Determine when and to what extent input tax may be claimed in

respect of the purchase of the house. Take note that the CC is

registered on the invoice basis.