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.

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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.
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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
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