Law And Business taxation

PROJECT OF
LAW&BUSINESS
TAXTATION
Whole seller Clothing Business

Members Names
Ahsan Arif 70113571
Umer Javaid 70113575
Jeeya Mohsin 70082980
Amna Khan 70082973
Alishba Irtiza 70109294
Shahab Murtaza 70113857

DATE 31-12-2021
TO SIR AHTESHAM UL HAQ
The University Of Lahore
Contents
Introduction ................................................................................................................................................... 2

Who is Whole seller? ................................................................................................................................ 3

Our Business: ............................................................................................................................................ 3

VISION ..................................................................................................................................................... 4

Mission...................................................................................................................................................... 4

Receipts Of Purchasing and Selling and Every Expense .......................................................................... 5

Worker Wages Montly Basis Expense...................................................................................................... 7

Salaries ...................................................................................................................................................... 8

Loading Expense....................................................................................................................................... 9
Introduction

Our business is of clothing brand which is of retailing as retailing is the

section of business that acts as an intermediary between the manufacturers
and customers. It can be defined as the process of “buying clothes from the
manufacturer and selling them to the customers.
What we use to do is that purchases a variety of apparel products and
accessories from wholesalers and manufactures, then use to sell these
products directly to consumers, generally without changing and developing
them.
Who is Whole seller?

A Whole seller is a person or business that you purchase goods from. Whole
sellers typically don't manufacture their own items. They purchase goods
from a manufacturer or a wholesaler and sell these goods to consumers in
small quantities. A Whole seller, or merchant, is an entity that sells goods
such as clothing, groceries, or cars directly to consumers through various
distribution channels with the goal of earning a profit. ... Whole sellers are
the consumer-facing part of the supply chain, and most people interact with
them frequently.
i

Our Business:
In our business we all are total six members our business is of
partnership in which we all use to contribute so our business use to run very
good which is good for everyone not even for us but also for the customers
who use to buy from us the clothing product in which we offer T-shirts,
trousers, pants and caps of good quality the people use to like it a lot as we
use to purchase and then sell good fine cloth to everyone to be satisfied with
our clothing brand and will buy from us every time as they will trust us every
single time whenever they will purchase from our brand as we always
provide a fine cloth which everyone like never use to purchase bad quality
cloth.

VISION
We strive to be a global leader in fashion-knit and fashion outerwear by
empowering innovation and design to provide total customer satisfaction.
We strive to be a caring and well-managed organization for our business
partners, customers and employees, and a responsible corporate citizen to our
society.

Mission
To innovate, to lead, to enhance, to provide best-value products and services
to global customers.
To make a difference through our branding to stay ahead of fashion trends,
market changes and the latest technology.
To enhance the quality of life for our business partners, customers and
employees.
Receipts Of Purchasing and Selling and Every
Expense

Purchasing of Products from the Manufacture Company Reciepts

Expense of transport Delivery Reciepts
Worker Wages Montly Basis Expense
Salaries
Loading Expense
Selling to Whole sellers
 Sale Tax Calculate

Ahsan Enterprise
Tax Year 2021
Tax year ended 30 June 2021
Status:
Solution:
Sales Rs25,758000
Cost of goods sold
Less purchase Rs2228040 ( Rs2228040)
Rs23529960
Wages Expense Rs560000
Salaries Expense Rs311000
Transport Expense Rs61000
Loading Expense Rs176000 Total Exp
Rs 1108000
Net Income Rs 22421960
Composition OF Income tax
Income from business Rs 22421960
Zakat Rs 50000 Rs50000
Taxable income Rs22371960
Tax Rate
[Tax Rate (business Income). No Tax up Rs.400000 and
7% above 400000.
Tax on business (22421960-400000) x7%
Tax on business Rs 1541537
Total Tax = Rs1541537
ESSENTIALS OF CONTRACT

• Offer and acceptance.

One party must make the offer and the other party must give its assent to such
offer, thereby accepting it. Acceptance of offer results in promises that form
agreement. The acceptance must be communicated in an express or implied
mode. Such offer must express willingness to do or abstain from doing to
obtain other’s assent. The offer may be express or implied but the intention to
form a contract must be there and such offer must be communicated.

• Intention to create legal obligation

There is no express provision in the Act 1872 that makes an intention to
create legal obligation mandatory but over the years, various judgments have
settled the position making Intention to create legal obligation as an essential
condition.

• Consideration is must.
As per section 25 of the Act, an agreement not supported by consideration is
void. A contract without the consideration will become Nudum Pactum (Bare
Contract). Such consideration must be real and illusionary. The adequacy of
the consideration must is not necessary. But Section 25 lays down a few
exceptions where an exception without consideration is not void and the
examples of such exceptions include an agreement made on account of love
and affection between parties, an agreement where it is a promise to
compensate, a person who is already voluntarily done something for the
promisor etc.

• The parties are competent to contract.

Any person who has attained the age of 18 years, is of sane mind and is not
disqualified by any law is said to be Competent to form a contract. A contract
entered by a minor is void initio and no obligation arises from it. A minor
can plead his minority as a defense in a suit, thus the rule of promissory
estoppel is not applicable.
As per Section 12 of the Act, a person is said to be of the sound mind, if at
the time of making the contract, he is able to understand the terms of the
contract and its consequences and can form a rational opinion about it. A
person is not needed to be a lunatic to be considered of unsound mind for the
purpose of the law of Contract, mere incapability of understanding the terms
of the contract and its consequence, is enough?
When we say that the person must not be disqualified by law, it means that
certain law restricts him from entering into a contract as in the case of an
insolvent person.

• Free Consent of the parties

A mere consent is not enough for a valid contract, the consent must be free.
Sec. 13 defines consent as ‘Two are more persons are said to consent when
they agree upon the same thing in the same sense’. This is also called as
Consensus ad idem. In the case of absence of free consent, the contract is
void. As per Sec. 14 of the Contract Act, free consent is the consent which is
not obtained by coercion, undue influence, fraud, misrepresentation and
mistake.
 • The object of the contract must be lawful.
Unlawful Consideration is defined in Sec. 23 of the Act. Unlawful object or
consideration is the one which is either forbidden by law or has the capacity
to defeat the provision of law or involves inflicting injury to a person’s body
or property or court considers the object of the contract as against the public
policy or the purpose of the contract is fraudulent. For a valid contract, the
object of the contract must be lawful and must not fall into any of these.

• Must not be expressly declared to be void

The Contract Act 1872 expressly declares few contracts to be void. A few
examples of such contracts are Contract in the restraint of marriage, Contract
in restraint of trade etc. For a contract to be valid, it must have not been
expressly declared to be void by Contract Act 1872 or any other law in force.

• Contracts must not be uncertain or vague

As per section 29 of the Act, a contract is said to be certain if terms of the
contract can be understood in the way it was intended to be understood, and
also are not ambiguous and vague. Such certainty ensures the consensus ad
idem among the parties and hence trying to prevent any kind of dispute in
future.