Alpha Trading Ltd (Alpha) is a value added tax (VAT) general taxpayer. On 1 January 2014, Alpha lent RMB200,000 to Beta Ltd at an interest rate of 10% per annum.
What is the type and amount of turnover tax which Alpha Trading Ltd will pay on the interest income received for the year 2014?
A. Business tax of RMB1,053
Business tax of RMB1,000
C. Value added tax of RMB3,400
D. Value added tax of RMB1,200