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147 Reply Sample - Reason For Decrease in Tax Liability

reason for decrease in tax

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2 views3 pages

147 Reply Sample - Reason For Decrease in Tax Liability

reason for decrease in tax

Uploaded by

shaikhaman1
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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No.

FIRMTAX/2019/
June 13, 2022

TAX OFFICER
Assistant / Depty Commissioner Inland Revenue
Unit-AEOI -2, Range – 1, Zone - AEOI,
Large Taxpayers’ Unit,
Lahore.

Ref: COMPANY NAME (PRIVATE) LIMITED

Subject: ESTIMATE OF ADVANCE TAX UNDER SECTION 147(6) OF INCOME


TAX ORDINANCE 2001 - FOR JUNE QUARTER, TAX YEAR 2022

Respected Madam,

This is with reference to your letter dated 07 April, 2022, we are pleased to submit our
estimate as required under Section 147(6) of the Income Tax Ordinance, 2001 whereby
our estimate is believed to be less than amount required by your goodself in the notice
under section 147(1). Therefore, our estimated tax payable for the current tax year is as
follows:

Turnover
Amount in Rs.
Estimated Turnover for current quarter 5,800,000,000
Turnover for from 01 July 2021 to 31 March 2022 17,490,724,285

Estimated tax payable


The turnover is not decreased during the year, however tax liability under normal tax is
estimated to be less than prior year. The estimate of tax payable as required by Section
147(6) is as follows:
TAX YEAR : 2 0 2 1

NTR

Ratio Net Sales 100.00%

Rupees
TURNOVER - Net of Sales Tax 23,324,965,714
Discount -
TURNOVER excluding Sales Tax 23,324,965,714
Cost of Sales
Salaries 11,183,896,856
Repair 1,101,297,343
Other direct expenses 5,963,292,116
Accounting Amortization 1,974,551,087
Accounting Depreciation 769,886,256

Cost of Sales 20,992,923,657


Operating Income 2,332,042,057
Administrative & Dist Expenses ###
Donation 23,942,313
Other Indirect expenses 2,195,771,453
Total (Admin+Distri+Finance+Other) 2,219,713,766
A/C Profit 112,328,291
ADD
Accounting Deprecation - COS 769,886,256
Accounting Amortization 1,974,551,087
Lease Finance Charges 1,855,062,153
4,599,499,496
4,711,827,786
LESS
Tax Depreciation U/S 22 & 23 769,886,256
Lease rentals 2,764,308,491
3,534,194,747
Taxable Income for the year 1,177,633,040

Actual Taxable Income for the year 1,177,633,040

Normal Tax Liability 341,513,582


Less: Tax credit under sec 61 (Donation) -
Net- Normal Tax Liability 341,513,582
Revenue 23,324,965,714
Rate 1.250%
Minimum Tax as per turnover 291,562,071
Higher of ACT, Minimum and Normal 341,513,582
Advance tax:
U/S 147 270,000,000
ELECTRICITY BILL 17,000,000
TELEPHONE BILL 17,000,000
Reason for decrease in tax liability
The educational institutes were closed during the lockdown duration, however during
the current year the expenses of the institute increased substantially while increase in
turnover is subject to permission by District Regulatory Authority constituted by the
provincial government.

This estimate is worked out under section 147(6) of The Income Tax Ordinance, 2001
which require the taxpayer to provide estimated turnover for completed and remaining
quarters of the year along with reasons for such decline.

It is requested to please acknowledge receipt and oblige.

Kindly acknowledge its receipt and oblige

Thanking you,

Yours truly,
For ………….ASSOCIATES

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