Time Allowed: 90 minutes

Q1 (15)
Following information is available for tax year 2020 in respect of one of your clients.

Income Statement is as follows: PKR

Sales 42,000,000
Cost of Goods Sold (23,600,000)
Gross Profit 18,400,000
Other Operating Expenses (1,000,000)
Profit before tax 17,400,000

Breakup of sales is as follows: PKR

Local sales - own manufactured 26,000,000
Exports - own manufactured 10,000,000
Sale of imported goods without any value addition 6,000,000
42,000,000

Cost of goods sold comprises of: PKR

Manufacturing 20,000,000
Imports 3,600,000

23,600,000

Detail of tax deducted at source and advance tax pais is as follows: PKR
Tax deducted u/s 153 from local sales - own manufactured 1,040,000
Advance tax paid u/s 148 on imports 300,000
Tax deducted u/s 154 from exports 100,000

You, being tax consultant, are required to calculate tax liability, if your client is
a) Individual
b) Listed Company
(Ignore minimum tax u/s 113 and alternative corporate tax u/s 113C)

Q2 (15)
Following information is available for tax year 2020 in respect of one of your client (type of person is Individual) ;
PKR
Export Sales 10,000,000
Cost of Sales (5,000,000)
Operating Expenses (4,000,000)
Profit before tax 1,000,000

Tax deducted u/s 154 100,000

Advance tax on cash withdrawals u/s 231A 50,000
Advance tax on purchase of motor vehicle u/s 231B 200,000
Requirement:
(i) Being a tax consultant, suggest whether your client should avail option under section 154(5) of ITO 2001
(ii) What will be your answer if in above data operating expenses are nil and rest of figures remain same.
(Ignore minimum tax u/s 113 and alternative corporate tax u/s 113C)
 Time Allowed: 90 minutes

ar 2020 in respect of one of your client (type of person is Individual) ;