AL JAMI TRAVEL AND TORUS (PVT) LTD.

INCOME TAX ASSESSEMENT FOR 2018 - 19

ASSESSMENT YEAR 2019 - 2020
PKR
NET INCOME / EAT 3,828,685

ADD:
PKR
INADMISSIBLE EXPENSES

STEP 1
ACCOUNTING DEPRRICIATION 505,513

STEP 2 39% OF SALARY EXP. = 2,418,222 X 39% 943,107

STEP 3 NOTHING DOING IN THIS SECTION

ADVANCE TAX DEDUCTED AND PAID
45% OF 2,418,222 = 1,088,200
ADVANCE TAX DEDUCTED AND PAID
1,088,200 X 25% = 272,050/-

STEP 4 GENERAL AND ADMIN EXP. DISALLOWED 683,613

35% OF 1953180

STEP 5 NOTHING DOING

TOTAL INADMISSIBLE EXPENSES 2,132,233

GROSS TOTAL INCOME AS PER ITO 5,960,918

LESS:

ADMISSIBLE EXPENSES

TAX DEPREICIATION 5% O 9300854.95515 (465,043)

NET TAXABLE INCOME AS PER ITO 5,495,875

TAX COMPUTATION
30% TAX ON TAXABLE INCOME 5,495,875 1,648,763

TOTAL TAX PAYABLE 1,648,763

TAX ALREADY DEDUCTED AND PAID 683,613

NET TAX PAYABLE TO GOVERNMENT TREASURY /SBP/NBP/FBR 965,150
QUESTION TWO

Computation of Income tax liability of AL JAMI TRAVEL & TOURS (PVT) LTD.

NOTES.

1.    The tax depreciation is considered to be allowed @ 5% of the turnover.

2.    The tax at source have been deducted from salary of employee but the ITO disallowed salary expenses to the extent of 39
reasoning tax not paid and deducted as per relevant law and procedures.
3.    The benefits offered to employee and directors were 45% are fully taxed, deducted and paid @ of 25%.
4.    General and Administrative expenses were not acceptable to ITO to the extent of 21% of the turnover and disallowed 35%
5.    Advertisement and marketing expenses are for the purpose of business and acceptable to ITO.
6.    The company is in the levied of 30% tax.

AL JAMI TRAVEL & TOURS (PVT) LTD.

Statement of Income
For the Year Ended June 30th 2018

Required;
Sales Revenues 9,300,855
Compute the Income (6Tamarks)
Expenses:
General and administrative 1,953,180
Salaries and benefits 2,418,222
Depriciation 505,513
Advertising and marketing 139,513

Total operating expenses (5,016,428)

Operating income 4,284,427

Other expense:
Interest expense -
Other expense -
Taxation 455,742
Total other expense (455,742)

Net Income 3,828,685

y expenses to the extent of 39%,

d @ of 25%.
e turnover and disallowed 35%.

465,044

943,107

9300855
1,953,180
683,613