M/s Virlpool (Pvt.) Ltd. declared a profit of Rs. 700,000 during the Tax Year 2020. Further examination of record reveals that a loss of Rs. 150,000 b/f from Tax Year 2017 and depreciation of Rs. 1400,000 are adjusted in the above said loss.

Total turnover of the company during Tax Year 2020 was Rs. 20,000,000 out of which Rs. 3,400,000 was the amount of sales tax.

Following are some excess paid minimum taxes during previous years that are still unadjusted:

 

Tax Year                     Excess paid Tax

2016                            100,000

2018                            500,000

2019                              25,000

 

REQUIRED:

You have to calculate the tax payable / (refundable) by the company for the Tax Year 2020. Normal tax rate is 30% and the minimum turnover tax rate is 1.5%.     

Answer rating: 100% (QA)

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