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Taxation
Management FIN 623
VU
MODULE
19
LESSON
19.45
SALES
TAX RETURNS
Appointment
of Officer of Sales Tax Sec
30
· A collector
of Sales Tax
· A
Collector of Sales Tax
(Appeals)
· An
additional Collector of Sales
Tax
· A
Deputy Collector of Sales
Tax
· An
Assistant Collector of Sales
Tax
· A
Superintendent of Sales Tax
· An
officer of sales tax with
any other designation
Offences
and Penalties
Offences
Penalties
Any
person fails to
furnish
Rs
5,000
a
return within the due
Date.
Any
person who fails to
issue
an invoice
Rs
5,000 or 3%
of the
amount
of tax
involved,
whichever
is
higher
A
person who fails to
deposit
the amount of tax
due.
Rs
10,000 or
5% of
the
amount of
tax
involved,
whichever
is
higher
A
person who fails to apply
for
registration before
Rs
10,000
making
taxable supplies.
or
5% of
the
amount of
tax
involved,
whichever
is
higher
A
person who fails to
maintain
records
Rs
10,000
or
5% of
the
amount of
tax
involved,
whichever
is
higher
A
person who submits a
false
or
forged document to any
officer
of
sales tax
Rs
25,000
or
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100% of
the
amount of
tax
involved,
whichever
is
higher
Appeals:
Powers
of adjudication are vested in the
following officers:
Additional
Collector Cases falling under
sub-section (2) of section 11
and section 36 without
any
restriction as to
the amount of tax involved or amount erroneously
refunded.
Deputy
Collector
(a)
Cases falling under sub-section
(1) of section 11
(b)
Cases falling under sub-section
(2) of section 11 and
section 36 provided that the amount
of
tax
involved or the amount erroneously refunded
exceeds one million rupees,
but does not
exceed
two and a half million
rupees.
Assistant
Collector
Cases
falling under sub-section (2) of
section 11 and section 36
provided that the amount of tax
involved
or the amount erroneously refunded exceeds ten
thousand rupees, but does
not exceed one
million
rupees.
Superintendent
Cases
falling under sub-section (2) of
section 11 and section 36
provided that the amount of tax
involved
or the amount erroneously refunded does
not exceed ten thousand
rupees.
An
officer of sales tax with
any other designation
Such
cases as may be notified by the
Board:
CBR
and Collector may at its
own motion call for
and examine the record of
any departmental proceedings.
Appeal
to collector of Sales Tax
(Appeals) Sec 45 b
Appeal
may be filed by any person
other than officer of sales
tax within 30 days of the date of
receipt of
such
decision or order against
which appeals is
proffered.
Appeals to
Appellant Tribunal:
(1)
Any person including an
officer of Sales Tax not
below the rank of an Additional
Collector (words "
the
Sales Tax Department"
substituted by Finance Act
2006), aggrieved by:
a.
any order passed by the
Collector under sub-section (4) of
section 45A or (words
inserted by
Finance
Act 2005.) the Collector of
Sales Tax (Appeals) under
section 45B; and
b. Any
order passed by the Board or the
Collector of Sales Tax under
section 45A, may, within
sixty
days
of the receipt of such decision or order,
prefer appeal to the Appellate
Tribunal.
(2)
The Appellate Tribunal may
admit an appeal preferred after the period of
limitation specified in
sub-
section
(1) if it is satisfied that
there was sufficient cause
for not presenting it within
the specified
period.
(3)
The appeal shall be
accompanied by a fee of one
thousand rupees paid in such
manner as the Board
may
prescribe.
(4)
The Appellate Tribunal, after
giving the parties to the appeal, an
opportunity of being heard may
pass
such
orders in relation to the matter before
it as it thinks fit:
· Provided
that when any such order
amounts to an interim order
staying the recovery of tax,
such order
shall
cease to have effect on the expiration of
a period of six months following the
day on which it is
made
unless the case is finally
decided, or the interim order is
withdrawn by the Tribunal
earlier:
· Provided
further that such interim
order or orders, as the case
may be, shall cease to
have effect on the
expiration
of a total period of six months
following the day on which the
first interim order is
made,
unless
the case is finally decided, or the
interim order is withdrawn by the
Appellate Tribunal
earlier.
· Order
under this section shall be passed
within six months of the filing of
appeal.
Reference
to High Court
(1)
Within ninety days of the communication
of the order of the Appellate Tribunal
under sub-section (5)
of
section 46, the aggrieved
person or any officer of
Sales Tax not below the
rank of an Additional
Collector
may prefer an application in the
prescribed form along with a
statement of the case to the
High
Court, stating any question of
law arising out of such
order.
· A
reference to the high court under this
section shall be heard by a
bench of not less than
two judges of
the
high court.
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MODULE
20
LESSON
20.45
CAPITAL
VALUE TAX (CVT)
PROCEDURE
FOR LEVY & COLLECTION OF
CAPITAL VALUE TAX
CAPITAL
VALUE TAX RECOVERY & REFUND
RULES
Capital
Value Tax was levied with
effect from 1st July, 1989
on the capital value of
assets.
This
is payable by every individual,
association of persons, firm or a
company which acquires by
purchase
gift,
exchange, relinquishment, surrender if rights by the
owners (whether effected orally or by
deed or
obtained
through court decree) except
by inheritance an asset or a right to the
use thereof for more
than
twenty
years. An asset or a right to the
use thereof for more
than twenty years.
Levy
of tax on Capital Value of
certain assets:
· Capital
value tax shall be payable
by
Individual
Association of
persons, firm or
A
company which acquires
by:
· Purchase
· Gift
· Exchange
· Power
of attorney
· Surrender
of rights
· Relinquishment
of rights by the
owner
Exceptions:
when
capital assets acquired
by:
Inheritance
Gift
from spouse, Parents, Grand
parents, a brother and a
sister
An
asset or a right to use
thereof for more than 20
years
Capital
value tax shall be payable at the
rates specified in sub
section of 2 of Section 7
Explanation
of certain "Expressions"
· "association
of persons" and
"firm" shall have the same
meaning as contained in the Income
Tax
Ordinance,
1979 (XXXI of 1979);
and
"company"
shall
have the same meaning as
defined in the Income Tax Ordinance,
1979 (XXXI of
1979);
· "development
authority" means
an authority formed by or under any
law for the purposes
of
development of an
area and includes any
authority, society, agency, trust,
association or institution
declared
as development authority by the Central Board of
Revenue by a notification in the
official
Gazette;
and
"registration
authority" means
the person responsible for
registering or attesting the transfer of
the
asset
or of the right to use thereof
for more than twenty
years, and in the case of a
development
authority
or a cooperative society, its principal
officer.
· "Urban
area" means
area falling within the
limits of:
The
Islamabad Capital Territory;
A cantonment board;
or
A municipal
body;
In
case of Karachi up to 40 kilometers from the
outer limit of municipal or cantonment
limits;
In
case of Lahore and Faisalabad up to 30
kilometers from the outer limit of
municipal or
cantonment
limits;
In
other cases, up to 10 kilometers from the
outer limits of municipal bodies or
cantonment boards;
and
Includes
areas defined as such in the
Urban Immovable Property Tax
Act, 1958 and such
areas as
the Central Board
of Revenue may, for time to time, by
notification in the official Gazette
specify.
Capital
Value Tax-- Tax
Rates
Motor
vehicles:
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Capital
Value Tax shall be payable
on purchase of motor vehicles,
not previously used in Pakistan, at
the
following
rates:
Motor
vehicle of an engine
capacity
Tax
Rates
Not
exceeding 800 cubic
centimeters and three
wheelers.
Nil
Exceeding
800 cubic centimeters but
not exceeding 1000 cubic
centimeters
3.75%
Exceeding
1000 cubic centimeters but
not exceeding 1300 cubic
centimeters
5%
Exceeding
1300 cubic centimeters but
not exceeding 1600 cubic
centimeters
6.25%
Exceeding
1600 cubic
centimeters
7.5%
Immovable
property (other
than commercial property and
residential flats), situated in urban
areas,
measuring
at list one canal or 500
square yards whichever is
less.
Tax
Rates
(i)
Where the value of immovable Property is
recorded. 2% of the recorded
value
(ii)
Where the value of immovable property is
not
Rs. 50
per square Yard of the
landed area.
recorded.
Commercial
immovable property of any size
situated in urban area.
Tax
Rates
(i)
Where the value of immovable Property is
recorded. 2% of the recorded
value
(ii)
Where the value of immovable property is
not
Rs. 50
per square Yard of the
landed area.
recorded.
Residential
flats with
covered areas measuring 1500
sq. feet and above.
Tax
Rates
(i)
Where the value of immovable Property
is
2% of the
recorded value
recorded.
(ii)
Where the value of immovable property is
not
Rs. 50
per square Yard of the
landed area.
recorded.
Description
Rate
of Tax
Purchase
of modaraba certificates or shares of a
listed
0.02%
of the purchase value
public
company.
Imported
motor vehicle not plying
for hire customs
Landed
cost a determined by
authorities.
Motor
Vehicle Purchased from a
manufacturer in
The
price paid by the Purchase.
Pakistan.
Others
As
declared by the transferee.
· CVT
to be collected by the person responsible
for registering or attesting the
transfer of the asset.
· In
case of purchase of motor
vehicle from a manufacturer in
Pakistan, CVT shall be
collected by the
manufacturer
before making the delivery of said
vehicle.
· Collector
of customs shall collect CVT
in case of motor vehicle
imported into
Pakistan.
· Registered
stock exchange in Pakistan
shall collect CVT on the
purchase value of Modaraba
Certificates
or
shares of a public company
from the resident
persons.
· The
proceeds of the tax collected shall be
credited to the Federal Consolidated
Funds under the head
specified
by the Federal Government.
· Where
any person fails to collect or having
collected fails to pay the capital
value tax as required, he
shall
be personally liable to pay the tax along
with additional tax at the rate of 15%
per annum for the
period
for which such tax or part
thereof remains unpaid.
· The
Commissioner of Wealth Tax, on an
application by the assessee, may
revise any order made
under
this
section.
· The
Federal Government may, by
notification in the official Gazette,
exempt any person or class
of
persons
or asset or class of assets
from the Capital Value Tax.
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Annexure
First
& Third
Schedule
THE
FIRST SCHEDULE
Part
I.
Rates
of Tax
Rates
of Tax for Individuals and Association of
Persons
Division
I:
Rate
of Tax on certain
persons
Division
IA:
Rates
of Tax for Companies
Division
II:
Rate
of Dividend Tax
Division
III:
Rate
of Tax on Certain Payments to
Non-residents
Division
IV:
Rate
of Tax on Shipping or Air Transport
Income of a Non-
Division
V:
resident
Person
Rate
of Tax on Income From
Property
Division
VI:
Part
II.
Rates
of Advance Tax
Tax
on Import of Goods
Part
III.
Deduction
of Tax at Source
Division
I:
Profit on
debt
Payments to
non-residents
Division
II:
Division
III:
Payments
for Goods or
Services
Exports
Division
IV:
Income
from Property
Division
V:
Prizes
and Winnings
Division
VI:
Division
VIA:
Petroleum
Products
Petroleum
Products [Omitted]
Division
VII:
Part
IV.
Deduction
or Collection of Advance Tax
Transfer
of Funds [Omitted]
Division
I:
Brokerage
Commission
Division
II:
Transport
Business
Division
III:
Electricity
Consumption
Division
IV:
Division
V:
Telephone
users
Cash
Withdrawal from a
bank
Division
VI:
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PART
I
RATES
OF TAX
(See
Chapter II)
Division
I
Rates
of Tax for Individuals and Association of
Persons
1.
Subject
to clause (1A) the rates of tax
imposed on the taxable income of
every individual
except
a
salaried taxpayer or association of
persons to which sub-section
(1) of section 92
applies
shall
be as set out in the following
table, namely:
TABLE
S.
No.
Taxable
income
Rate
of
tax
(1)
(2)
(3)
1
Where
the taxable income does not
exceed Rs.100,000
0%
2
Where
the taxable income exceeds
Rs.100,000 but does not
exceed
0.50%
Rs.110,000
3
Where
the taxable income exceeds
Rs.110,000 but does not
exceed
1.00%
Rs.125,000
4
Where
the taxable income exceeds
Rs.125,000 but does not
exceed
2.00%
Rs.150,000
5
Where
the taxable income exceeds
Rs.150,000 but does not
exceed
3.00%
Rs.175,000
6
Where
the taxable income exceeds
Rs.175,000 but does not
exceed
4.00%
Rs.200,000
7
Where
the taxable income exceeds
Rs.200,000 but does not
exceed
5.00%
Rs.300,000
8
Where
the taxable income exceeds
Rs.300,000 but does not
exceed
7.50%
Rs.400,000
9
Where
the taxable income exceeds
Rs.400,000 but does not
exceed
10.00%
Rs.500,000
10
Where
the taxable income exceeds
Rs.500,000 but does not
exceed
12.50%
Rs.600,000
11
Where
the taxable income exceeds
Rs.600,000 but does not
exceed
15.00%
Rs.800,000
12
Where
the taxable income exceeds
Rs.800,000 but does not
exceed
17.50%
Rs.10,00,000
13
Where
the taxable income exceeds
Rs.10,00,000 but does not
exceed
21.00%
Rs.13,00,000
14
Where
the taxable income exceeds
Rs.13,00,000
25.00%
Provided
that where income of a woman
taxpayer is covered by this clause, no
tax shall be
charged
if the taxable income does
not exceed Rs.125,000/-.
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TABLE
S.
No.
Taxable
income
Rate
of tax
(1)
(2)
(3)
1
Where
the taxable income does not
exceed Rs.150,000
0%
2
Where
the taxable income exceeds
Rs.150,000 but does not
exceed
0.25%
Rs.200,000
3
Where
the taxable income exceeds
Rs.200,000 but does not
exceed
0.50%
Rs.250,000
4
.
Where the taxable income
exceeds Rs.250,000 but does
not exceed
0.75%
Rs.300,000
5
Where
the taxable income exceeds
Rs.300,000 but does not
exceed
1.50%
Rs.350,000
6
Where
the taxable income exceeds
Rs.350,000 but does not
exceed
2.50%
Rs.400,000
7
Where
the taxable income exceeds
Rs.400,000 but does not
exceed
3.50%
Rs.500,000
8
Where
the taxable income exceeds
Rs.500,000 but does not
exceed
4.50%
Rs.600,000
9
.
Where the taxable income
exceeds Rs.600,000 but does
not exceed
6.00%
Rs.700,000
10
Where
the taxable income exceeds
Rs.700,000 but does not
exceed
7.50%
Rs.850,000
11
Where
the taxable income exceeds
Rs.850,000 but does not
exceed
9.00%
Rs.950,000
12
Where
the taxable income exceeds
Rs.950,000 but does not
exceed
10.00%
Rs.1,050,000
13
Where
the taxable income exceeds
Rs.1,050,000 but does not
exceed
11.00%
Rs.1,200,000
14
Where
the taxable income exceeds
Rs.1,200,000 but does not
exceed
12.50%
Rs.1,500,000
15
Where
the taxable income exceeds
Rs.1,500,000 but does not
exceed
14.00%
Rs.1,700,000
16
Where
the taxable income exceeds
Rs.1,700,000 but does not
exceed
15.00%
Rs.2,000,000
17
Where
the taxable income exceeds
Rs.2,000,000 but does not
exceed
16.00%
Rs.3,150,000
18
Where
the taxable income exceeds
Rs.3,150,000 but does not
exceed
17.50%
Rs.3,700,000,
19
Where
the taxable income exceeds
Rs.3,700,000 but does not
exceed
18.50%
Rs.4,450,000,
20
Where
the taxable income exceeds
Rs.4,450,000 but does not
exceed
19.00%
Rs.8,400,000,
21
Where
the taxable income exceeds
Rs.8,400,000.
20.00%
Provided
that where income of a woman
taxpayer is covered by this clause, no
tax shall be
charged
if the taxable income does
not exceed Rs.200,000/-
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Division
IA
Rate
of Tax on certain
persons
The
rate of tax to be paid under
sub- section (1) of section
113A shall be 0.75% of
the
turnover.
Division
II
Rates
of Tax for Companies
(i)
The
rates of tax imposed on the taxable
income of a company shall be as
set out in the
following
table, namely:
TABLE
Tax
Banking
Public
company other
Private
company other
Year
company
than a
banking
than a
banking company
company
(1)
(2)
(3)
(4)
2003
47%
35%
43%
2004
44%
35%
41%
2005
41%
35%
39%
2006
38%
35%
37%
2007
35%
35%
35%
(ii)
Where the taxpayer is a society or a
cooperative society, the tax shall be
payable at the rates
applicable
to the public company or an individual,
whichever is beneficial to the taxpayer.
(iii)
Where the taxpayer is a small
company as defined in section 2, tax
shall be payable at the rate
of
20%
Division
III
Rate
of Dividend Tax
The
rate of tax imposed under section 5 on
dividend received from a
company shall be
(a) in
the case of dividend received by a
public company or an insurance
company, or any other
resident
company 5% of the gross amount of the
dividend; or
(b) in
any other case, 10% of the
gross amount of the dividend.
Division
IV
Rate
of Tax on Certain Payments to
Non-residents
The
rate of tax imposed under section 6 on
payments to non-residents shall be 15% of
the gross amount
of the
royalty or fee for technical
services.
Division
V
Rate
of Tax on Shipping or Air Transport
Income of a Non-resident
Person
The
rate of tax imposed under section 7
shall be:
(a) in
the case of shipping income, 8% of the
gross amount received or receivable;
or
(b) in the
case of air transport income, 3% of the
gross amount received or
receivable.
Division
VI
Income
from property: the
rate of tax to be paid under section 15
shall be 5% of the gross amount of
rent
chargeable to tax under that
Section.
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PART
II
RATES
OF ADVANCE TAX
(See
Division II of Part V of Chapter
X)
The
rate of advance tax to be collected by
the Collector of Customs under section
148 shall be 6% of
the
value of the goods.
PART
III
DEDUCTION
OF TAX AT SOURCE
(See
Division III of Part V of Chapter
X)
Division
I
Profit on
debt
The
rate of tax to be deducted under section
151 shall be 10% of the yield or
profit paid.
Division
II
Payments to
non-residents
(1)
The rate of tax to be deducted
from a payment referred to in sub-section
(1A) of section 152 shall
be
6% of the
gross amount payable.
(2)
The rate of tax to be deducted under
sub-section (2) of section
152 shall be 30% of the gross
amount
paid.
Division
II substituted by Finance Bill
2006. Before substitution it read as
follows:
The
rate of tax to be deducted under
sub-section (2) of section
152 shall be 30% of the gross amount
paid.
Division
III
Payments
for Goods or
Services
(1)
The rate of tax to be deducted
from a payment referred to in clause
(a) of sub-section (1) of
section
153
shall be:
a. In the
case of the sale of rice,
cotton seed or edible oils,1.5% of the
gross amount payable; or
b. In the
case of the sale of any
other goods, 3.5% of the
gross amount payable.
(2)
The rate of tax to be deducted
from a payment referred to in clause (b)
of sub-section (1) of
section
153
shall be 6% of the gross amount
payable.
(3)
the rate of tax to be deducted from a
payment referred to in clause of
sub-section (1) of
section
153
shall be 6% of the gross amount
payable.
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Division
IV
Exports
(1)
The
rate of tax to be deducted under
sub-section (1A) of section
153 and sub-section (1),
(3), (3A)
or
(3B) of section 154 shall be
as set out in the following
table, namely:
TABLE
S.
Nature
of goods exported.
Rate
of deduction of tax.
No.
(1)
(2)
(3)
1.
Exports
listed in Part I of the Seventh
Schedule
0.75%
of the proceeds of the
export
2.
Exports
listed in Part II of the Seventh
Schedule
1.0%
of the proceeds of the
export
3.
Exports
listed in Part III of the Seventh
Schedule
1.25%
of the proceeds of the
4.
Exports
listed in Part IV of the
Seventh
export
Schedule
1.50%
of the proceeds of the
export
(2)
The
rate of tax to be deducted under
sub-section (2) of section
154 shall be 5.
Division
V
Income
from Property
The
rate of tax to be paid under section 15
shall be 5% of the gross amount of rent
chargeable to tax
under
that section.
Division
VI
Prizes
and Winnings
(1)
The rate of tax to be deducted under
section 156 on a prize on
prize bond shall be 10% of
the
gross
amount paid.
(2)
The rate of tax to be deducted under
section 156 on winnings from a
raffle, lottery, prize
on
winning
a quiz, prize offered by companies for
promotion of sale, or cross-word
puzzle shall be
20% of the
gross amount paid.
Division
VIA
Petroleum
Products
Rate
of collection of tax under section 156 A
shall be 10% of the amount of
payment.
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PART
IV
(See
Chapter XII)
DEDUCTION
OR COLLECTION OF ADVANCE TAX
Division
II
Brokerage
and Commission
The
rate of collection under sub-section
(1) of section 233 shall be
10% of the amount of the payment.
Division
III
Transport
Business
Rates
of collection of tax under section
234,
(1)
In the case of goods transport
vehicles with registered
laden weight of:
(a)
Less
than 2030 kilograms.
Rs.
1,200.
(b)
2030
kilograms or more but less
than 8120
Rs.
7,200.
kilograms.
(c)
8120
kilograms or more but less
than 15000
Rs.12,000.
kilograms.
(d)
15000
kilograms or more but less
than 30,000
Rs.18,000.
kilograms.
(e)
30,000
kilograms or more but less
than 45,000
Rs.24,000.
kilograms.
(f)
45,000
kilograms or more but less
than 60,000
Rs.30,000.
kilograms.
(g)
60,000
kilograms or more.
Rs.36,000.
(1A)
In the case of goods transport vehicles
with laden weight of 8120 Kg or
more, advance tax after a
period
of ten years from the date of
first registration of vehicle in Pakistan
shall be collected at the
rate
of twelve
hundred rupees per
annum;
(2) In
the case of passenger transport vehicles
plying for hire with
registered seating capacity
of:
(a)
Four
or more persons but less
than ten persons.
Rs. 25
per
seat
per
annum
(b)
Ten or
more persons but less
than twenty persons.
Rs. 60
per
seat
per
annum.
(c)
Twenty
persons ore more.
Rs.100
per
seat
per
annum
(3)
Other private motor cars
with engine capacity
of:
(a)
1000cc
to 1199 cc.
Rs.
500.
(b)
1200cc
to 1299cc.
Rs.
750.
121
Taxation
Management FIN 623
VU
(c)
1300cc
to 1599cc.
Rs.
1,500
(ca)
1600cc
to 1999cc.
Rs.
2,000
(d)
2000cc
and above.
Rs.
3,000.
Division
IV
Electricity
Consumption
Rate
of collection of tax under section 235
where the amount of electricity
bill,-
(a)
does
not exceed Rs.
400.
Rs.
60
(b)
exceeds
Rs. 400 but does
not exceed Rs.
600
Rs.
80
(c)
exceeds
Rs. 600 but does
not exceed Rs.
800
Rs.
100
(d)
exceeds
Rs. 800 but does
not exceed Rs.
1000
Rs.
160
(e)
exceeds
Rs. 1000 but does
not exceed Rs.
1500
Rs.
300
(f)
exceeds
Rs. 1500 but does
not exceed Rs.
3000
Rs.
350
(g)
exceeds
Rs. 3000 but does
not exceed Rs.
4500
Rs.
450
(h)
exceeds
Rs. 4500 but does
not exceed Rs.
6000
Rs.
500
(i)
exceeds
Rs. 6000 but does
not exceed Rs.
10000
Rs.
650
(j)
exceeds
Rs. 10000 but does
not exceed Rs.
15000
Rs.
1000
(k)
exceeds
Rs. 15000 but does
not exceed Rs.
20000
Rs.
1500
(l)
exceeds
Rs. 20000
Rs.
2000
Division
V
Telephone
users
(a)
In
the case of prepaid
telephone cards
10%
of the
Amount
of sale
Price
of prepaid
Telephone
card
(b)
In
the case of post-paid telephone
bill
--
Where the monthly bill
exceed
10% of the
amount
Rs
1000
of
bill; and
122
Taxation
Management FIN 623
VU
Division
VI
Cash
Withdrawal from a
bank
The
rate of tax to be deducted under section
231A of the cash amount
withdrawn.
THE THIRD
SCHEDULE
Part
I.
Depreciation
Part
II.
Initial
Allowance
Part
II.
Pre-Commencement
Expenditure
PART
I
DEPRECIATION
(See
Section 22)
Depreciation
rates specified for the
purposes of section 22 shall
be:
I.
Building (all types)
10%
II.
Furniture (including fittings)
and machinery
15%
and
plant (not otherwise
specified), Motor
Vehicles
(all types), ships, technical
or
professional
Books.
III. Computer
hardware including
printer,
30%
monitor
and allied items [machinery
and
equipment
used in manufacture of I.T.
products],
aircrafts
and aero engines.
IV. In
case of mineral oil concerns the
income of
which
is liable to be computed in accordance
with
the rules of Part 1 of the fifth
Schedule.
a) Below
ground installations
100%
b)
Offshore platform and
production
20%
installations.
PART
II
INITIAL
ALLOWANCE
(See
Section 23)
The
rate of initial allowance under
section 23 shall be 50%.
PART
III
PRE-COMMENCEMENT
EXPENDITURE
(See
Section 25)
The
rate of amortization of pre-commencement expenditure
under section 25 shall be
20%.
123
Table of Contents:
- AN OVERVIEW OF TAXATION
- What is Fiscal Policy, Canons of Taxation
- Type of Taxes, Taxation Management
- BASIC FEATURES OF INCOME TAX
- STATUTORY DEFINITIONS
- IMPORTANT DEFINITIONS
- DETERMINATION OF LEGAL STATUS OF A PERSON
- HEADS OF INCOME
- Rules to Prevent Double Derivation of Income and Double Deductions
- Agricultural Income
- Computation of Income, partly Agricultural,
- Foreign Government Officials
- Exemptions and Tax Concessions
- RESIDENTIAL STATUS & TAXATION 1
- RESIDENTIAL STATUS & TAXATION 2
- Important Points Regarding Income
- Geographical Source of Income
- Taxation of Foreign-Source Income of Residents
- Exercises on Determination of Income 1
- Exercises on Determination of Income 2
- SALARY AND ITS COMPUTATION
- Definition of Salary
- Significant points regarding Salary
- Tax credits on Charitable Donations
- Investment in Shares
- SALARY AND ITS COMPUTATION EXERCISES 1
- SALARY AND ITS COMPUTATION EXERCISES 2
- SALARY AND ITS COMPUTATION EXERCISES 3
- Tax treatment of Gratuity
- Gratuity Exercise
- PROVIDENT FUND
- Exemptions on Business income, Treatment of Speculation Business
- Deductions Allowed & Not Allowed
- Deductions: Special Provisions, Depreciation
- Methods of Accounting
- Taxation of Resident Company
- Taxation of Companies: Exercises
- Computation of Capital Gain
- Disposals Not Chargeable To Tax
- TAX RETURNS & ASSESSMENT OF INCOME UNIVERSAL SELF ASSESSMENT SCHEME
- Normal Assessment, USAS, Provisional Assessment, Best Judgment Assessment
- ADVANCE TAX COLLECTION & RECOVERY OF TAX PENALTIES & PROSECUTION
- What is Value Added Tax (VAT)?
- SALES TAX
- SALES TAX RETURNS