7/17/2019 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.