Following information is provided by National Company Limited for the year ended June 30, 2009. You are required to compute the taxable income and tax payable.
|
Administration Expenses
|
Rs. 1,372,000
|
Gross Profit
|
Rs. 4,602,000
|
|
Rents and Fee
|
87,000
|
Dividend
|
47,500
|
|
Auditor's Fee
|
34,000
|
Bad debts recovered
|
4,000
|
|
Interest on long-term loans
|
247,500
|
Income tax refund
|
14,000
|
|
Fire insurance premium
|
48,000
|
|
|
|
Legal charges
|
93,700
|
|
|
|
Contribution to Provident fund
|
72,800
|
|
|
|
Vehicles repair and maintenance
|
188,200
|
|
|
|
Underwriting commission
|
14,500
|
|
|
|
Reserve for taxation
|
393,000
|
|
|
|
Bad debts
|
11,000
|
|
|
|
Depreciation
|
190,000
|
|
|
|
Stationary expenses
|
40,000
|
|
|
|
Net profit
|
1,875,800
|
|
|
|
Rs. 4,667,500
|
|
Rs. 4,667,500
|
Notes:
1. Administration expenses include a sum of Rs. 127,000 which is in respect of salaries paid for supervision of expansion program of plant
2. Rent and rates include a sum of Rs. 36,000 representing custom duty on import of machinery
3. Legal charges include a sum of Rs. 12,000 paid to an Income Tax Practitioner for contesting an appeal before AppellateTribunal
4. Provident Fund is recognized by Income Tax Authorities
5. Deputy Commissioner of Income Tax accepts Rs. 8,000 asbad debts
6. Bad Debts recovered were originally allowed by Deputy Commissioner of Income Tax
7. Dividend is received from power Project Company privatized by WAPDA