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~~!!++FIN623 - Taxation Management 2nd Assignment has been announced Due Date Aug 08, 2014~~!!++

After going through this assignment, the students should be able to:
1. Calculate the taxable income
2. Calculate the applicable amount of tax
3. Understand the valuation of different perquisites
Following information is provided by National Company Limited for the year ended June 30, 2014. You are required
to compute the taxable income and tax payable.
Profit and Loss Account
Administration Expenses Rs. 1,372,000 Gross Profit Rs. 4,602,000
Rents and rates 87,000 Dividend 47,500
Auditor’s Fee 34,000 Bad debts recovered 4,000
Interest on long-term loans 247,500 Income tax refund 14,000
Fire insurance premium 48,000
Legal charges 93,700
Contribution to Provident
Fund
72,800
Vehicles repairs &
maintenance
188,200
Underwriting commission 14,500
Reserve for taxation 393,000
Bad debts 11,000
Depreciation expense 190,000
Stationary expenses 40,000
Net profit 1,875,800
Rs. 4,667,500 Rs. 4,667,500
Notes:
1 Administration expenses include a sum of Rs. 127,000 which is in respect of salaries paid for supervision of
expansion program of plant
2 Rent and rates include a sum of Rs. 36,000 representing custom duty on import of machinery
3 Legal charges include a sum of Rs. 12,000 paid to an Income Tax Practitioner for contesting an appeal before
Appellate Tribunal
4 Provident Fund is recognized by Income Tax Authorities
5 Deputy Commissioner of Income Tax accepts Rs. 8,000 as bad debts
6 Bad Debts recovered were originally allowed by Deputy Commissioner of Income Tax
7 Dividend is received from power project company privatized by WAPDA
DEADLINE:
· Make sure to upload the solution file before the due date on VULMS.
· Any submission made via email after the due date will not be accepted.
FORMATTING GUIDELINES:
· Use the font style “Times New Roman” or “Arial” and font size “12”.
· It is advised to compose your document in MS-Word format.
· You may also compose your assignment in Open Office format.
· Use black and blue font colors only.
RULES FOR MARKING
Please note that your assignment will not be graded or graded as Zero (0), if:
· It is submitted after the due date.
· The file you uploaded does not open or is corrupt.
· It is in any format other than MS-Word or Open Office; e.g. Excel, PowerPoint, PDF etc.
· It is cheated or copied from other students, internet, books, journals etc.

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Replies to This Discussion

Taxable Income  = 2,434,800

tax amount = 827,832

main yahi likhna lagi hun mari yahi ati han ap kasi ni yai main ab kya kar sakti hun ya hi karna lagi main

kasiay ai apki ye value?

Underwriting commission add nhi hoga kya ?

ACCORDING TO MY INFO AIK book se concern karne k baad iss nateeje par phunchi .....k bad debts add nai hone the aur legal charges add hone the aur depreciation bi add honi thi...mai n to aise submit karai ab ....ALLAH malik

aur agar info ko bi dehan se parha jaye to uss mai bi yhi likha ha k bad debts recovered by originally allowed by debuty commisioner wo recover ho gye the so unn ka koi concern nai tha solution mai...

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