tax assessment procedure
DESCRIPTION
Md. Rokon AhmadBBA (AIS)TRANSCRIPT
Welcome Welcome everybody to this everybody to this
glamorous glamorous Presentation Presentation
Program.Program.
Images of textile machines & goodsImages of textile machines & goods
TopicsTopicsCorporate taxation procedureCorporate taxation procedure
((Manufacturing concernManufacturing concern))
Group Name : D
Section : B
Selected Company : Textiles
Presented by: MD.Rokonusz-zaman
Ashis saha
Indispensable Part of DiscussionIndispensable Part of Discussion
The followings have the paramount importance to get an idea concerning the – • Textile Industries
• Its Importance
• Contribution to GDP
• Contribution to govt. revenue
• Current export volume
• International market position
Textile industry includes every business involved in- - Growing or producing fiber
- Making the fibers into threads
- Making the threads into cloth
- Dyeing cloth
- Bleaching and finishing the cloth
Textile Industry also include chemical companies that make – -Synthetic Fibers and all that resultant products
Significance :
Textile Industry is of supreme importance because it –
• Has great contribution in earning foreign exchange.
• Increases export volume
• Creates huge employment opportunity
• Contributes to the govt. revenue
• Contributes to the GDP
• Helps in attaining economy growth
• Creates vast employment opportunity for women.
• Develops infrastructure.
International Market PositionInternational Market Position
Export Market
Year USA E.U
Textile Clothing Textile Clothing
Market Share
1995 3% 4% 3% 3%
Market Share
2004 3% 2% 3% 4%
CurrentCurrent export volume :export volume :
Textile exports from Bangladesh to USA did Textile exports from Bangladesh to USA did increase by 10% in 2009.increase by 10% in 2009.
Contribution of textile industry
Year Heads Percentage
2008
GDP 17.78%
Economic growth 5.92%
Employment 10.92%
Assessment Procedures Assessment
Assesse Receiving IT – 88IT-30
Appeal (if not satisfied)
Assessing officer
Filling
ReturnAudited Reports
Vouchers Ledgers
Accepting return, Audited Reports
Vouchers
Preparing IT – 88 and IT 30 to be sent to Assesse
Sending demand Notice
Receipt of Tax
Getting demand notice (If satisfied)
Tax payment
Universal Self -AssessmentUniversal Self -Assessment
The Company own self may practice self assessment to determine taxable income and tax liability. (U/S 82BB)
Documents to be attached with the return (in case of self-assessment)
• Statement of A/C audited by Chartered Accountant. • Depreciation chart as per 3rd schedule. • Computation of income according to income tax law.
Profile of CompaniesProfile of Companies we visitwe visit
UTAH Spinning Mills Ltd.
Sales Status : 100% export oriented Status : Non publicly traded companyCommencement of production: 2000
HR Textile Mills Ltd.In-corporation : 1994 Status : Publicly traded companyCategory : B
Asian Textile LtdStatus : Non publicly traded companySales Status : Export oriented Commencement of production: 1999
Tallu Spinning Mills Ltd.Incorporation : 1985Status : Publicly traded company Business Line : Import raw cotton and manufacture of yarn.
Square Textiles Ltd.Status : Publicly traded company Business Line : Manufacturing and marketing of yarn. Category : A
Saiham Textile Mills Ltd.Status : Publicly traded company Sales status : Local & Export oriented. Category : B
Company Assessment show: 01
Company Name : H.R. Textile Mills Ltd.Status : Public CompanyAssessment year : 2007-2008Income year : 2006-2007
Computation of total taxable income
IT-88 (Large)
Particulars Tk. Tk.
Net profit as per audited reports
Add. For separate consideration
Depreciation expense
Entertainment expense
Less. Non-business income
Dividend income from investment
Interest on tax-free govt. securities
Profit on sale of machinery
*****
*****
*****
*****
*****
*****
*****
*****
Add. Inadmissible expenses
Office rent
Telephone & Telegram
Electricity charge
Provision for tax
Provision for gratuity fund
Others expenses
Advanced tax payment
Printing expense
Subscription & donation
Office maintenance
Fines paid in port
Car maintenance & repairs
Reserve
Fuel expenses
Dividend equalization fund
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*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
Due to non-deduction of taxes & VAT at source and non-submission of vouchers applicable in respect of expenses.
Less. admissible expenses
Depreciation as per 3rd schedule
Entertainment allowance
Add. Revenue income on sale of machinery
Total business income
*****
*****
*****
*****
**********
*****
*****
Total income from business: *****
Add. Others income
Dividend income from investment *****
Capital gain on sale of machinery *****
*****Total taxable income
Computation of tax liability
Tk. Tk.
On dividend @20%
On capital gain@15%
On the balance@15%
Total tax
Less. Advance tax payment
Net tax liability
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***** *****
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IT-30
Company Assessment show: 02
Company Name : …………………..Status : Non Public CompanyAssessment year : 2007-2008Income year : 2006-2007Accounting period : 01.0 1. 06 - 31.12.06
Computation of total taxable income
IT-88 (Large)
Particulars Tk. Tk.
Net profit as per audited reports
Add. For separate consideration Depreciation expense
Entertainment expense
Sample expense
40070357
630
978560
15479587
41049547
56529134
Add. Inadmissible expenses
Conveyance allowance
Stationary expenses
Office maintenance
Others expenses
Business promotion
Traveling expenses
Car fuel
Telephone bill (Mobile)
Telephone bill (T&T)
Rest house expenses
Foreign employment expenses
Subscription & donation
Sundry expenses
5000
4000
40000
3000
500000
80000
50000
30000
10000
100000
20000
5000
70000
56529134
917000
57446134
Due to non-deduction of taxes & VAT at source and non-submission of vouchers applicable in respect of expenses.
Less. admissible expenses
Depreciation as per 3rd schedule
Entertainment allowance
Sample expenses
43039950
978560
630
57446134
44019140
13426994Total business income (Taxable)
Computation of tax liability
Tk. Tk.
On the taxable income@15%
Less. TDS
Add. Interest @10% (2307800X.10)*2
Net tax payable
2014049
356637
1657412
230780
1888192
IT-30
Company Assessment show: 03
Company Name : Asian Textile Mills Ltd.Status : Non Public CompanyAssessment year : 2007-2008Income year : 2006-2007Accounting period : 01.0 7. 06 - 30.06.07
Computation of total taxable income
IT-88 (Large)
Particulars Tk. Tk.
Net profit as per audited reports
Add. For separate consideration Depreciation expense
Entertainment expense
1318784
27569
343225
1346353
1689578
Add. Inadmissible expenses
Printing & stationary
Electricity bill
Postage & stamp
Audit & professional feeSundry expenses License & renewal expenses
Sales commission
Carriage outward
Less. Admissible expenses Depreciation as per 3rd schedule
Total taxable income
8000
10000
5000
20000
6000
6000
296570
100000
1689578
451570
2141148
2141148
0
Due to non-deduction of taxes & VAT at source and non-submission of vouchers applicable in respect of expenses.
Notes :
1. Current year depreciation 2171467
Previous year depreciation 1424337
3595804
Which has been adjusted against income & the balance (3595804-2141148) =1454656 will be treated as admissible expense in the next year
2. There is no entertainment allowance since there is no taxable income.
3. The company is not required to pay tax since its taxable income is zero.