05-26-2006, 03:15 PM
ok here we go
1)"Gross Turnover" means "Gross receipts from sale of goods, rendering of services or execution of contracts exclusive of sales tax or any other tax or trade discount". u r going to provide services, so in ur case gross receipts exclusive of any tax or discount will be ur "Gross turnover". and it does not include other income or gain, not arising from core activities of biz.
2)Roughly u can say , Taxable income=gross receipts-cost of services-other indirect expenses+other income
and cost of services and other indirect expenses will be calculated as per tax laws.
3)Clause 133, Part 1, Second Schedule, Income Tax Ordinance, 2001
4)Well u can take a rate lower than 30% for ur own bookkeeping, but to ascertain the taxable income u must take a rate of 30%.
The issue of carrying forward this depreciation is quite complex. I know that i u were taxed on taxable income basis and u sustain a loss, then in that case u can carry forward the depreciation until the income arises and u can set it off then. but as u r going to be assessed on turnover basis, The Ordinance is not clear about it. i will try to ask someone more knowledgeable than me and let u know.
5)Yes u can find this treaty on www.cbr.gov.pk and for the purpose of ascertaining the implications of this treaty u have to go through it. but as far as my knowledge if u r going to run a permanent establishment in Pakistan, u will be taxed in Pakistan and not in US. but u shud go through the treaty. and u can also have a look at section 105 of the Income tax ordinance, 2001.
1)"Gross Turnover" means "Gross receipts from sale of goods, rendering of services or execution of contracts exclusive of sales tax or any other tax or trade discount". u r going to provide services, so in ur case gross receipts exclusive of any tax or discount will be ur "Gross turnover". and it does not include other income or gain, not arising from core activities of biz.
2)Roughly u can say , Taxable income=gross receipts-cost of services-other indirect expenses+other income
and cost of services and other indirect expenses will be calculated as per tax laws.
3)Clause 133, Part 1, Second Schedule, Income Tax Ordinance, 2001
4)Well u can take a rate lower than 30% for ur own bookkeeping, but to ascertain the taxable income u must take a rate of 30%.
The issue of carrying forward this depreciation is quite complex. I know that i u were taxed on taxable income basis and u sustain a loss, then in that case u can carry forward the depreciation until the income arises and u can set it off then. but as u r going to be assessed on turnover basis, The Ordinance is not clear about it. i will try to ask someone more knowledgeable than me and let u know.
5)Yes u can find this treaty on www.cbr.gov.pk and for the purpose of ascertaining the implications of this treaty u have to go through it. but as far as my knowledge if u r going to run a permanent establishment in Pakistan, u will be taxed in Pakistan and not in US. but u shud go through the treaty. and u can also have a look at section 105 of the Income tax ordinance, 2001.