Taxation

~~with focus on tax education~~

Tax History

Bookmark and Share

Taxes represent a transfer of wealth from the citizens of a country to the ruling power of that country. As such, they have existed since ancient times. The Bible speaks of them and it is clear from the biblical text that tax collectors were generally reviled. Almost anything can be taxed and there are various ways in which taxes can be applied.

The first taxes of which we have a documentary record were applied in ancient Egypt. In ancient times, it is clear that taxpayers were expected to offer up a portion of the agricultural produce they raised from the land to the ruling power of the day.

As economies have evolved, governments and rulers have chosen to raise taxes in different ways. For a long time, many countries raised revenue primarily through taxing imports into the country.

In modern times, the income tax, which is charged as a percentage of all income earned in a period of time has become the most popular method by which governments in developed countries raise revenue. Corporation tax, a tax charged as a percentage of the profits made by incorporated companies, is also significant. Many countries also have sales taxes, or value added taxes, which are charged as a percentage of the selling price of a product or service.

Labels:

posted @ 12:09 PM, , links to this post

Sales Tax - hotels / restaurants

Bookmark and Share

The Federal Board of Revenue has launched a campaign to collect due sales tax from hotels / restaurants sector.

Labels:

posted @ 9:12 AM, , links to this post

Delivery of goods outside Pakistan‏ - Accounting and Tax Treatment

Bookmark and Share

Tax Treatment:
Section 101(2) states that "Business income of a resident person shall be Pakistan-source income to the extent to which the income is derived from any business carried on in Pakistan". As the business in connected in Pakistan irrespective whereever the delivery of goods is, all relevant provision of Income Tax would be applicable over this transaction including deducting of witholding tax while making payment with applicable rate.
Accounting Treatment:
First you have to record its normal purchase at cost in Pak Rupee and then you can book sale at the time you deliver the goods to the party.

Labels:

posted @ 2:55 PM, , links to this post


Light Within

Enter your email address:


Blog Roll

ss_blog_claim=eebcdd26d5c32d5838ede03f68f01f91 ss_blog_claim=eebcdd26d5c32d5838ede03f68f01f91