Compute the Tax payable of M/s Alpha Pvt Ltd on the basis of following information: (Note: - Tax Rate is 29% on corporate entities.)

Accounting Profit ..............................................................................2,000,000/-

Accounting depreciation (including assets under Leasing) ..........275,000/-

Head office expenses .........................................................................225,000/-

Computer software cost-Capitalized in accounts ..........................100,000/-

Finance charges on assets taken on Lease .....................................75,000/-

Lease Rental ......................................................................................130,000/-

Interest paid to other Branches Abroad .........................................15,000/-

Require:-

1) identify what are the expenses in this data and what the accounting profit ?

2) Compute Tax Liability of M/s Alpha Pvt Ltd?

Answer rating: 100% (QA)

1 Accounting Profits 2000000 Accounting depreciati... View the full answer