Question
MYX Exports (Pvt) Ltd is engaged in the business of exporting Tea. The following information was extracted from the books of accounts for the Y/A
MYX Exports (Pvt) Ltd is engaged in the business of exporting Tea. The following information was extracted from the books of accounts for the Y/A 2018/19: Turnover **** Note 1 12,500,000 Less: Direct Cost ( 5,150,000) Gross Profit 7,350,000 Other Income- Interest Income from FD 1,000,000 Distribution Exp (2,000,000) Administration Exp (1,500,000) Finance Exp ( 500,000) Profit before Tax 4,350,000 Notes: 1. Turnover breakup: Export Turnover Rs. 10,000,000 Local Sales Rs. 2,500,000 2. Administration expenses included donation made to government Rs. 50,000/- and entertainment expenses Rs. 150,000/- 3. Capital assets ( Building) purchased during the year was Rs. 4,000,000/- and depreciation charges Rs. 500,000/- 4. During the Y/A the company paid Rs. 50,000/- as gratuity for employees and provision for gratuity charged was Rs. 25,000/- 5. All other expenses are allowable for the purposes of taxation. 5 6. Tax installment paid Rs. 10,000/- and ESC paid Rs. 5,000/- Required:
1. Calculate the assessable income for the year of assessment 2018/19
2. Calculate the taxable income and Calculate balance income tax liability for Y/A 2018/19. According to the Sri Lankan context. rates should be considered after 2017 amendments
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