(b) Calculate the amount of input tax that will be recovered by Vostok Ltd in respect of t

(b) Calculate the amount of input tax that will be recovered by Vostok Ltd in respect of the new premises in the

year ending 31 March 2009 and explain, using illustrative calculations, how any additional recoverable input

tax will be calculated in future years. (5 marks)

(b) Recoverable input tax in respect of new premisesVostok Ltd will recover ￡47,880 (￡446,500 x 7/47 x 72%) in the year ending 31 March 2009.The capital goods scheme will apply to the purchase of the building because it is to cost more than ￡250,000. Unde