Final Tax Regime and Minimum Tax Chapter- 22
CA CAF- 6 PAST PAPERS THEORECTICAL QUESTIONS
Q. NO. 5 Autumn 2017
Under the Income Tax Ordinance, 2001 certain persons are required to pay minimum tax amounting to 1%
of their turnover from all sources.
(a) Explain the term ‘Turnover’ for the purpose of determining the minimum tax.
(b) List the persons who are required to pay minimum tax.
(c) Discuss the provisions relating to carry forward of minimum tax paid to the subsequent years.
Q. NO. 3 Spring 2016 : Under the provisions of the Income Tax Ordinance, 2001 explain the following:
(d) General provisions/rules which may apply to income subject to final tax.
Q. NO. 5 Spring 2014 Under the provisions of Income Tax Ordinance, 2001, certain persons are required
to pay minimum tax at the rate of 1% of their turnover.
Required
(a) Explain the term ‘Turnover’ for the purpose of minimum tax.
(b) List the persons who are required to pay minimum tax.
(c) Discuss the rules relating to carry forward of minimum tax paid to the subsequent years.
Q.2 (b) Autumn 2012 Tax imposed at the rate of 15% on every non-resident person who receives Pakistan
source royalty is considered to be a final tax on the amount in respect of which the tax is imposed.
Identify the exceptions to the above rule, according to the Income Tax Ordinance, 2001.
Q.6 (a) Spring 2012 After completion of the audit of Chandi Enterprise (CE) under the Income Tax
Ordinance, 2001, the Commissioner Inland Revenue has ordered the following amendments in the income
tax return filed by CE.
(i) Payment of minimum tax at the rate of 0.5% on its total turnover of Rs. 45 million.
(ii) Disallowance of the following expenditures:
- Rs. 27,000 spent on Annual Eid-Milan Party arranged by the firm for its employees and their
families. - Penalty for late delivery amounting to Rs. 60,000 which had to be paid to a client on account of
negligence on the part of the Shipment Manager. - Donation of Rs. 150,000 paid to the National Institute of Cardio Vascular Diseases(NICVD),
established by the Federal Government. - Salary of Rs. 850,000 paid to the Managing Director, who is also a partner in the firm.
Required: Comment on the above amendments ordered by the Commissioner Inland Revenue, in the light
of Income Tax Ordinance, 2001.
Q.3 (a) Autumn 2011 Under the provisions of Income tax Ordinance, 2001 certain persons are required to
pay minimum tax at the rate of 1% of their turnover.
Required:
(i) Explain the term ‘Turnover’ for the purpose of minimum tax.