Reference no: EM13481809

Following information is provided by National Company Limited for the year ended June 30, 2009. You are required to compute the taxable income and tax payable.

Administration Expenses	Rs. 1,372,000	Gross Profit	Rs. 4,602,000
Rents and Fee	87,000	Dividend	47,500
Auditor's Fee	34,000	Bad debts recovered	4,000
Interest on long-term loans	247,500	Income tax refund	14,000
Fire insurance premium	48,000
Legal charges	93,700
Contribution to Provident fund	72,800
Vehicles repair and maintenance	188,200
Underwriting commission	14,500
Reserve for taxation	393,000
Bad debts	11,000
Depreciation	190,000
Stationary expenses	40,000
Net profit	1,875,800
	Rs. 4,667,500		Rs. 4,667,500

Notes:

1. Administration expenses include a sum of Rs. 127,000 which is in respect of salaries paid for supervision of expansion program of plant

2. Rent and rates include a sum of Rs. 36,000 representing custom duty on import of machinery

3. Legal charges include a sum of Rs. 12,000 paid to an Income Tax Practitioner for contesting an appeal before AppellateTribunal

4. Provident Fund is recognized by Income Tax Authorities  

5. Deputy Commissioner of Income Tax accepts Rs. 8,000 asbad debts

6. Bad Debts recovered were originally allowed by Deputy Commissioner of Income Tax

7. Dividend is received from power Project Company privatized by WAPDA