f)
Rent, rates and taxes claimed at Tk.368,212 out of which Tk.21, 640 paid as rent complied with the provision of section 53A of the ITO 1984. g) Accounting depreciation as per audited accounts is Tk. 2,979,211 and tax depreciation as calculated with reference to previous year assessment is Tk. 3,726,422. h) Technical fee of Tk. 210,000 paid to foreign collaborators charged in the accounts i) Export turnover was 10% of the total sales of the company j) The company declared 60% dividend for the year. An s we r:
Orio n Lim ited-A listed public Company I ncome Year ended 30 J une 20 05 As s es s m ent y ear 2 0 0 5 - 0 6
Notes
Taka
Taka 837,413
Net profit as per audited Profit and Loss a/c Add : Items to be considered separately:
Technical Know how fee
1
Accounting depreciation-fiscal depreciation allowable
210,000 2,979,211
Gratuity provision —payment allowed
677,937
3,867,148 4,704,561
Add. Inadmissible items:
Excess perquisites u/s 30(e)
145,000
Salaries and allowance -for non deduction of tax at source u/s 50 and u/s 30(a) of ITO 1984. Advertisement & Publicity included donation to a local sports club
176,200
Registration fee included personal entertainment Rent without deduction of applicable tax u/s 53A, Rule 17B,u/s 30(aa)
215,701 214,640
125,000 876,541 5,581,102
Deduct: Allowable or deductible items:
Gratuity paid
276,434
Fiscal depreciation Technical Know how fee allowable @2.5% of profit
3,726,422 1
39,456 4,042,312
Total Income Tax thereon Tax @ 30% reduced by 10% thereof as dividend declared more than 20% means 27% on Tk.1,538,790 Less: Export rebate of 50% on Export turnover of 10% that is 5%(50% of 10%) of Tk.415,473 Tax Payable
1,538,790
415,473 2
20,774 394,699
N ote 1: Technica l Know h ow:
Allowable upto @2.5%( 5% from 1st July 2007) of profit of Tk. 1,578,246 u/s 30(h) of ITO 1984. Note 2: Export tax rebate:
10% of sale of manufactured goods is exports, the company enjoy the opportunity of 50% tax rebate on export business under clause 28 of Part A of 6 th schedule of ITO 1984. Question 7(a) How under the Gift Tax Act, 1990 the following gifts are valued:i) Li fe i n su ran ce pol i cy; ii) Interest in partnership firm iii) S h ares in privat e compan y. Answer 7(a):