Quick Tution - Accounts, Finance & Tax Concepts in Short & Easy to Remember Format

Definitions Basic Salary There is no definition of Basic salary in the law. However common practice due to historical reasons is that Basic salary is 100/155 of “Gross salary”. Gross salary being monthly “fixed” amount. As common practice “House rent allowance” is set at 45% of Basic salary and “Utility allowance” is set at 10% of Basic salary. In some pay structures fixed “Conveyance allowance” (usually 300 rupees) is made part of Gross salary. Under current tax laws Gross salary is taxable hence the break up has no importance for taxation. Minimum Time Scale of Basic Salary The concept is due to government pay structures. A Basic salary pay scale is like “20,000 – 1,000 – 30,000”, wherein for certain “grade” Basic salary starts at 20,000 (the minimum time scale of basic salary) and each year Basic salary is increased by 1,000 till it reaches maximum scale of 30,000 thereafter no increase is made in that grade.

The rate of minimum tax on turnover has been enhanced from 1% to 1.25%. Source: https://www.pwc.com.pk/en/tax-memorandum/Memorandum%20on%20Finance%20Bill%20-%202017%20(FINAL).pdf

Corporation tax 2018 30 %. However,for a banking company,it is 35 %

Payment of goods In case of company: 4% & 7% (filer & non filer) In case of other tha company: 4.5% & 7.75% (filer & non filer) Payment for services In case of company: 8% & 14% (filer & non filer) In case of other tha company: 10% & 17.5% (filer & non filer)

Method 1: Use the "Format as Table" option To use the Format as Table option to shade rows in a worksheet, follow these steps: Open the worksheet. Select the cell range that you want to shade, or press Ctrl+A to select the whole worksheet. Click the Home tab. In the Styles group, click Format as Table, and then click the style of formatting that you want. In the Format as Table dialog box, click OK. Method 2: Use the "Conditional Formatting" option To use the Conditional Formatting option to shade rows in a worksheet, follow these steps: Open the worksheet. Select the cell range that you want to shade, or press Ctrl+A to select the whole worksheet. Click the Home tab. In the Styles group, click Conditional Formatting, and then click Manage Rules. Click New rule. Click Use a formula to determine which cells to format. In the Format values where this formula is true box, type =MOD(ROW(),2)=1, and then click Format. On the Fill tab, click the color that you want to use to shade every other row, and then click OK. Click OK to close the New Formatting Rule dialog box. Click Apply, and then click OK to close the Conditional Formatting Rules Manager dialog box.

Sales tax refund case arises if the company buys stock in large quantities but could not be able to sell the all stock. Then output tax will be less than the input tax. In this case, the company may apply for sales tax refund.

Income tax refund is possible under two cases: 1. In advance tax case - because advance tax is paid after every quarter on the basis of previous year sales. 2. Withholding tax - if the tax liability of the company is less than the total tax deducted by the suppliers.