Q1) What is tax implication of Resident and Non-Resident with respect to taxable

income?

Answer

Resident is defined as person who has stayed in the country for a period of 183 days as a
result that person is liable to the tax implications of the specific country, this mean that his
income can be taxed according to the laws of the country.

Non-resident Is a person who doesnot permanently live in a country, meaning that if he is also
earning from abroad than only the income which he/she earns from Pakistan is taxable and
there is no requirement to have both the incomes taxed.

Q2) Musa being Iranian national and Ibrahim being Pakistani citizen started a
Partnership firm which is registered with SECP under Partnership Act. Its registered
office is situated in Islamabad, however, the total time from the day of incorporation till
June 30, 2020 was only 105 days. Musa has been in Pakistan since October 1, 2019 for
the sale of business while Ibrahim is settled in London and visits Pakistan for a month
or so once a year. Define residential status of each Person while justifying reasons for
each.

Answer

Q3) What are pre-requisites for an entity to be declared as "Industrial Undertaking"?

Answer

The pre requisites for an entity to be declared as an industrial undertaking is that the company
employees a total of ten or more people and the production also utilizes the use of electrical
energy that is transmitted mechanically but not produced by any animal source, Secondaly if
the organization is indulged in manufacturing practices also a process that subsequently
changes the original condition of the material, another aspect is of ship building and the
workings of mineral deposits.

Q4) Which entities are treated as "Company" under Income Tax Act 2001?

Answer

The entities that are treated as company under the income tax act oof 2001 are those that are listed
under the SECp and are treated as a separate legal person from the owners of the coporation, the
company is liable to all the legal and related laws for the country.