12-27-2011, 02:46 PM
We have to file income tax return of a small size private limited company whose principal activity is to design web sites and export them as well as supply those in local markets. The total revenue of the entity is Rs. 100 out of which Rs. 80 is related to exports and Rs. 20 is related to local supply. The profit before tax is Rs. 13. According to Clause 133 of 2nd schedule the export income of web designing is exempt from tax. Also according to clause 11A (x) part IV exemptions from specific provisions of The second schedule of the income tax ordinance, section 113 of minimum tax is not applicable to export income. Now what is the tax liability of the company.