Tax Book 2023

Deduction / Payment of Tax Chapter- 23

CA CAF- 6 PAST PAPERS THEORETICAL QUESTIONS

Q. NO. 8 of Spring 2014 Beta & Co. is an AOP. A partner in the firm has approached you to calculate the
advance tax liability of the firm for the fourth quarter. The following information has been provided to you:

Information from tax return

for 2013

Information pertaining to Tax

Year 20X4

........ Rs. In Million ......^

Turnover - Normal tax regime 600 625

• Final tax regime 200 240
  Tax liability - Normal tax regime 13 -


• Final tax regime 14 17

The firm's turnover under normal and final tax regime, up to third quarter of the tax year 20X4 was Rs. 450
million and Rs. 140 million respectively.

Required:

Compute the advance tax payable for the fourth quarter pertaining to tax year 20X4.

Q. No. 4 (a) Autumn 2013 State the procedure to be followed when a person intends to make payment to a
non-resident person without deduction of tax.

Q. No. 6 (a) Spring 2013 Explain the term ' Value of Goods' in the context of collection of advance tax from
an importer of goods under the Income Tax Ordinance, 2001.

(b) Under the Income Tax Ordinance, 2001 the amount of tax required to be collected by the collector of
customs from an importer of goods at the specified rate shall be the final tax. What are the exceptions to
this provision of the Ordinance?

(c) Details of income chargeable to tax for the last tax year, relating to four taxpayers are tabulated below;

Name of taxpayers Salary property Business

Other

sources

(Dividend)

Total income

RUPEES

Mr. Brilliant - 60,000 375,000 80,000 515,000

Miss Educated 250,000 350,000 - 200,000 800,000

Motivated & co (An AOP) - - 150,000 - 150,000

Confident services Limited - 240,000 245,000 35,000 520,000

Required:

In respect of each of the above taxpayers, explain whether they are required to pay advance tax under the
Income Tax Ordinance, 2001.

Q.4 (a) Spring 2012 Under the Income Tax Ordinance, 2001 every prescribed person is liable to deduct tax
while making payments on account of sale of goods, rendering of services and execution of contracts.

Required: State six exceptions to the above rule.

Q.3 (a) Spring 2012 On 1 January 2012, Peetal Limited (PL) signed an annual contract with Mr. Heera for
the maintenance of IT equipment for Rs. 20,000, payable on the 7th day of each month. The payments for
January and February were made as per the agreement.

On 01- 03 - 2012, PL received a notice from the Commissioner Inland Revenue to pay income tax of Rs.
300,000 which is due from Mr. Heera.

Required: Discuss PL’s position in respect of the notice issued by the Commissioner Inland Revenue.