Commerce, Paper II

Write a detailed note on the benefits of CPEC to Pakistan's Economy.

"Pakistan is facing acute shortage of Foreign Exchange". What measures should be adopted to increase the Foreign Exchange Resources?

Define Business Finance. What are the main sources of Business Finance? Also explain role of Capital Markets in capital formation.

Discuss the important Documents of a Joint Stock Company.

State Bank is a regulatory body for the financial institutions in Pakistan, explain. Discuss various functions of State Bank of Pakistan.

What is Provident Fund? Discuss the treatment of various types of Provident Fund with their tax treatment in the calculation of Taxable Income.

Define Internal Audit and its objectives also compare Internal Auditor with External Auditor.

From the following data, calculate income tax payable by Anis Ahmad for the tax year ending 30th June 2018: 1- Basic salary Rs.50,000 per month in the scale (Rs.40,000-44,000-64,000). 2- Bonus Rs.125,000. 3- Entertainment allowance Rs.45,000, 4- House rent allowance at 50% of the minimum time scale. 5- Conveyance allowance Rs.80,000. 6- Tax paid by the employer Rs.35,000. 7- Zakat was deducted Rs.250,000. 8- Re-imbursement of internet bill (used for office) Rs.38,000. 9- Encashment against unavailed leave Rs.27,000. 10- Interest free loan obtained from employer Rs.12,00,000. 11- Medical allowance Rs.66,000. 12- Fixed educational allowance for children Rs.42,000. 13- Telephone bills paid by employee himself Rs.36,000 (tax paid with telephone bills Rs.2,500). 14- Tax paid on cash withdrawal from bank Rs.5,000. 15- Hotel bills paid by the company relating to official duties Rs.55,000. 16- Received Income Tax fund related to tax year 2016 Rs.20,000. 17- TV and Refrigerator provided by the employer only for the use of employee costing Rs.200,000 on which the company charged depreciation @20% in its books of accounts.. Rates of tax for salaried persons are as follows: Sr. No. Slabs Rate of Tax 1 Where the taxable income does not exceed Rs. 4,00,000 % 2 Where the taxable income exceeds Rs. 4,00,000 but does not exceed Rs. 5,00,000 2% of the amount exceeding Rs. 4,00,000 3 Where the taxable income exceeds Rs. 5,00,000 but does not exceed Rs. 7,50,000 Rs. 2,000 + 5% of the amount exceeding Rs. 5,00,000 4 Where the taxable income exceeds Rs. 7,50,000 but does not exceed Rs. 14,00,000 Rs. 14,500 + 10% of the amount exceeding Rs. 7,50,000 5 Where the taxable income exceeds Rs. 14,00,000 but does not exceed Rs. 15,00,000 Rs. 79,500 + 12.5% of the amount exceeding Rs. 14,00,000 6 Where the taxable income exceeds Rs. 15,00,000 but does not exceed Rs. 18,00,000 Rs. 92,000 + 15% of the amount exceeding Rs. 15,00,000 7 Where the taxable income exceeds Rs. 18,00,000 but does not exceed Rs. 25,00,000 Rs. 1,37,000 + 17.5% of the amount exceeding Rs. 18,00,000 8 Where the taxable income exceeds Rs. 25,00,000 but does not exceed Rs. 30,00,000 Rs. 2,59,500 + 20% of the amount exceeding Rs. 25,00,000 9 Where the taxable income exceeds Rs. 30,00,000 but does not exceed Rs. 35,00,000 Rs. 3,59,500 + 22.5% of the amount exceeding Rs. 30,00,000 10 Where the taxable income exceeds Rs. 35,00,000 but does not exceed Rs. 40,00,000 Rs. 4,72,000 + 25% of the amount exceeding Rs. 35,00,000 11 Where the taxable income exceeds Rs. 40,00,000 but does not exceed Rs. 70,00,000 Rs. 5,97,000 + 27.5% of the amount exceeding Rs. 40,00,000 12 Where the taxable income exceeds Rs. 70,00,000 Rs. 14,22,000 + 30% of the amount exceeding Rs. 70,00,000