Page 30 - F6 - Special Deductions
P. 30
Example
H Ltd sold a machine, held as trading stock, under a
suspensive sale agreement on 1 July 2014. The
agreement provided for three repayments of R149 788
each, the first to be made on the last day of June 2015
and the remaining two to be made on the last days of
June 2016 and June 2017 respectively. The cash price
of the machine sold was R300 000, plus VAT of R42
000. The cost of the machine to H Ltd was R200 000,
excluding VAT. The interest rate charged is 15% per
year. H Ltd has a year of assessment which ends on the
last day of June. The amounts due in terms of the
agreement can be analysed as follows:
