TAXATION ASSESSMENT

PREPARED BY : RAMAWTA ASHWAYE KUMAR ( ID 1980021)

SUBMITTED TO : MISS MADHVI RESHMA JEEBUN
DATE OF SUBMISSION: 07.05.20
1.

as per income 2,208,

Net profit statement 900

Add disallowed expenses

2,105,
wages 600
350,00
clothing from stock 0
100,00
gym membership 0
protective covers 60,000
gift to customers 18,100
donation to political party 10,000
bad debts 57,000
legal speeding issue 25,000

312,00
depreciation 0
218,00
lease for cars for spouses 0
loss on sale 20,000
loss on disposal 29,000
215,00
interest 0
personal light and heat (260,000/4) 65,000
240,00
overseas trip with family 0
3,824,
700

Less exempt income

dividend income 25,000

debt collection
capital allowance
furniture and fittings 40,000
accounting software 25,000
200,00
computer equipment 0
office equipment 28,000
293,00
0

3,556,
chargeable income 700
533,50
tax liability(15%) 5
csr payable 50,000
583,50
total tax payable 5
less tds on rent(5%*285,000) 14,250
less APS 90,000
479,25
tax payable 5

due to submit on 30 june 2020

(1
month
submission on 15 july 2020 late)

penalty for late submission 2,000

penalty on unpaid tax x(5%) 23,963
interest(5%) 1298

506,51
tax liabilities and penalties 6

workings

furniture and fittings

31 dec 2018 : 20%*250000 = 50000

21 dec 2019: 20%*200000= 40,000

Accounting software
31 dec 2018: 50%*100,000=50,000
31 dec 2019: 50%*50,000= 25,000

computer equipment
31 dec 2019 50%*400,000= 200,000

office equipment
31 dec 2019: 35%*80,000= 28,000

2.

MR Trump
1,800,
salary 000
129,00
car benefit(10,750*12) 0
intrest benefit(7%-3%+2^=6%) %+2%=6%) 60,000
6%*1,000,000
mobile benefit(5000*12) 60,000
340,00
bioveg (40%*850,000) 0
stock exchange 60,000
45,00
dividend 0
450,0
Gym 00
income of dependent 60,000
3,00
4,00
total emoluments 0

550,0
less I.E.T (cat c) 00
 2,45
4,00
0
200,00
less tuition fee 0
2,25
4,00
0
less rain water allowance(60000/2) 30,000
2,22
4,00
0
less interest on house loan (120,000/2) 60,000
2,16
4,00
0

Tax liability for Mr Trump= 15%*2,164,000 = 324,600

Tax already paid = (40,000+90,000) = 130,000

Remaining Tax Liability = 324,600 - 130,000 = Rs 194,600

Mrs Trump
580,0
salary 00
144,0
Transport allowance (12000*12) 00
72,00
school fees allowance (6000,*12) 0
510,0
bioveg (60%*850,000) 00
70,00
stock exchange 0
Total emoluments 1,37
6,00
 0
310,0
00
1,06
6,00
Less I.E.T (cat A) 0
60,00
less interest 0
1,00
6,00
0
30,00
less rain water allowance 0
976,
000

tax liability= 0.15 x 976,000 = 146,400

Tax already withheld = 60,000
Remaining tax liability = 146,400 - 60,000 = Rs 86,400

cummulative tax for Mr and Mrs Trump = 194,600 + 86,400 = Rs 281,000

3. (a)

Output vat
Sales invoices

15%*(0.95*1,900,00) = 270,750

Input vat
Purchases
(15/115)*1,050,000= 136,957
Production
(15/115)*600,00= 78,261
Laptop
(15/115)*60,000=7,826
Bad debt
(15/115)*40,000= 5,217
Repair
(15/115)* (0.7*50,000)=4,565
Telephone bill
(15/115)* (0.95*35,000)= 4,337
Electricity bill
(15/115)* (0.95*55,000) = 6,815
Total input vat = 243972

Total vat payable ; 270,750 – 243,972 = rs 26,778

(b) Yes, he should apply for VAT registration now because his turnover exceeds 6 million
rupees.
The procedure to be followed is :
Total vat payable= rs 26,778

b) Yes, he should apply for VAT

registration now because his
turnover exceeds 6 million
rupees.
The procedure to be followed is
:
He should obtain a form of
VATA1 from the MRA , then the
form must be correctly filled
and submitted to the director
general. After the director
general is satisfied that he
meets the full requirements, he
will be issued a certificate of
registration. If the limit
increases, he can also
deregister later on.