BA B.COM BS Business Taxation Course Code 456 Solved Assignments No.2 Autumn 2017

Question no 1.
To implement the Income Tax Ordinance 2001. The Federal Govt. has established the institution of Federal Board of Revenue (FBR).The FBR has appointed officers to carry out the implementation on the provisions of the Income Tax Ordinance 2001.
Explain in detail the powers and functions of the FBR as provided in the Income Tax Ordinance 2001.

Answer:

Question no 2The FBR can send a notice to any person for the payment of tax. However, that person will have a right to appeal to the court for any unjustified tax demand from the FBR. Under the provisions of the Income Tax Ordinance 2001, how will you guide such a person in making appeals related to the tax matters to the concerned appellate forums ? Answer:

Question no 3.The FBR has recently introduced the filer and non-filer regime of taxation with respect to withholding tax, what is your understanding on this issue ? Explain with the help of ten transactions on which separate rate of tax are applicable for filer and non-filer.
Answer:

Question no 4The sales tax is applied on the retail price of different goods and services and is generally written on the pack of the particular product. In this regard, how would you define the following terms with reference to the Sales Tax Act 1990: a. Retailer b. Taxable supply c. Zero Rated Supply d. Exempt Supply e. Input Tax f. Output Tax g. Tax Invoice  h. Due Date i. Tax Period.
Answer:Retailer:

Taxable Supply:

Zero Rated Supply

Exempt Supply

Input Tax and Output Tax

Tax Invoice

Due Date

Tax Period

Question no 5.From the following information, calculate taxable income and tax payable by Mr.Zahoor, a trader. (Tax rates are given at the end)Income                                 Amount1. Sales in business                 15
2. Cost of sales                         750,0
3. Depreciation                         30,0004. Financial Expenses               22,00005. Salaries & Wages                  55,0006. Capital gains on saleof shares of a private companyafter 1 year of purchase              10,0007. Income from property              100,0008. Zakat Paid                                  8,0009. Donation to a school                  8,000
Answer



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BA B.COM BS Business Taxation Course Code 456 Solved Assignments No.1 Autumn 2017

Question no.1

Understanding the legal terms in taxation provides a way forward for determining the tax liability of a person. Keeping this view, define the following terms with reference to Income Tax Ordinance 2001: b. Capital Asset b. Taxable Income c. Total Income d. Dividend e. Small Company f. Resident Person g. Public Company i. Tax Year

Answer.

a. Capital Asset

b. Taxable Income

c. Total Income

d. Dividend

e. Small Company

f. Resident Person

g. Public Company

i. Tax Year

Question no.2

The Income Tax Ordinance 2001 divides income into five major head: salary, property, business, capital gains and other sources.

Explain the components of property and their taxation treatment as per the provisions of the Income Tax Ordinance 2001.

Answer:

Question no 3.

Calculate the tax liability for the tax year 2006 of Mr.Ali, a senior citizen, from the following records:

(Tax rates are given at the end)

1. Basic salary   40,000 per month

2. Dearness allowance 5,000 per month

3. House rent allowance 8,000 per month

4.Overtime 10,000 per year.

Answer

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Question no 4.

Suppose you can own a business earning monthly income of Rs.100,000. The FBR sends you a notice to pay your tax liability. Under the Income Tax Ordinance 2001,

how would you calculate your income from business on which the tax will be payable by keeping in mind the deductions allowed in calculating the tax on such income ?

Answer:

Question no 5.

What is an income tax return ?. Who is required to file the income tax return ? What are the requirements of a valid of income ? Also, wrote down the penalty for non-filing of the income tax return.

Answer:

This is the end of assignment no 1 of business taxation 

BA B.COM BS Mercantile Law Course Code 460 Solved Assignments No.2 Autumn 2017

Question no.1
A business can be conducted by forming a partnership which ensures spate rights for partners. Explain in detail the rights and duties of partners in a partnership agreement.

Question No.2

A partnership can be registered with the relevant government department. Explain in detail the procedure and benefits of registering a partnership with the government department of partnership ?

Question No.3

A negotiable instrument has the feature of endorsement which is crucial for the liquidity of a business. What is endorsement ? Explain in detail the kinds of endorsement of negotiable instruments.

Question No.4

Transportation is the key element of business activities. Who is a common carrier? Explain the rights, duties and liabilities of a common carrier.

Question No.5

Explain in detail the rights of workers under the different labor laws in Pakistan.