Compute the royalty payable on the following data of A Ltd, a Mining Company for 2018 year of assessment:
Production of resource (Volumes) 1,000,000
Revenue from sale GH¢10,000,500
Note: the revenue above contains proceeds from sale of scraps amounting to GH¢10,500
Required:
Compute the royalty payable. (2 marks)
View Solution
Rate of Royalty 5%
Revenue = 10,000,500 – 10,500
= 9,990,000
Royalty Payable:
5% * 9,990,000 = 499,500
GH¢ 499,500