Tax Book 2023

Chapter 30 Solved Past Papers Income Tax Numericals of ICMAP Stage IV - (2003 to 2018)

Less: Losses b/f 155,000

Taxable income 13,430,000

d) (iv)

COMPUTATION OF TAX LIABILITY:

Alternative Corporate tax U/S 113C (A) 1,925,250

[[Accounting profit under NTR Rs. 11,325,000 x 17%]

Tax on Rs. 13,430,000 @ 20% (B) 2,686,000

Minimum tax u/s 113

Tax on Rs. 103,675,000 x 1.25% (C) 1,295,938

Tax liability: Higher of (A), (B) or (C) 2,686,000

Less:

Tax required to be on imports

802___ Conceptual Approach to Taxes

Tax required to be on imports

[ { (55,000,000 + 13,750,000) x 1.17 } x 5.5% ] 4,424,063

Advance tax paid with electricity bill 86,000

4,510,063

Balance tax refundable (1,824,063)

d) (i)

Duty payable under Custom Act, 1969.

Imported value (before custom duty and taxes) 55,000,000

Custom duty @ 25% 13,750,000

d) (ii)

Tax payable under Sales Tax Act, 1990.

Output tax:

Sales tax on sales (103,675,000 x 17%) 17,624,750

Input tax:

Sales tax on purchases [ (55,000,000 + 13,750,000) x 17%] 11,687,500

Sales tax payableSales tax payable 5,937,2505,937,250

d) (iii)

Tax payable under Federal Excise Act.

No amount is payable under this Act in tax year 2023 as SED is no more applicable.

Winter - 2007 Q. 2(b)

802___ Conceptual Approach to Taxes