SULTAN TAX ASSOCIATES

TAXATION OF MINIMUM TAX

TAX YEAR
2013
MINIMUM TAX
SECTION 113
TAX YEAR 2013 (1
st
JULY 2012 to 30
th
JUNE, 2013)
SEC.113. MINIMUM TAX ON THE INCOME OF CERTAIN PERSONS
THIS SECTION SHALL APPLY TO
a) To a Resident Compan!
") To an indi#id$a%& 'a#in( t$)no#e) o* *i*t mi%%ion )$pees o) a"o#e in t'e ta+ ea) 200, o)
in an s$"se-$ent ta+ ea))! and
.) To an asso.iation o* pe)sons &'a#in( t$)no#e) o* *i*t mi%%ion )$pees o) a"o#e in t'e ta+
ea) 200/ o) in an s$"se-$ent ta+ ea))
MINIMUM TAX AT THE RATE OF 0.!" PERCENT OF TURNO#ER $HICH IS
i0 Not %ia"%e to pa ta+ o) 'as not paid ta+ *o) t'e ta+ ea) *o)
an )eason 1'atsoe#e)2 o)
ii0 Lia"%e to pa ta+ o) 'as paid ta+ %ess t'an 0034 pe).ent o*
its t$)no#e) *)om a%% so$).es o* t'e ta+ ea)0
Minim$m ta+ 1i%% not "e app%i.a"%e to a )esident Compan de.%a)in( ()oss %oss "e*o)e set
o** o* dep)e.iation and ot'e) inadmissi"%e e+penses $nde) t'e In.ome Ta+ O)dinan.e5 20010
Commissione) 'as t'e po1e) to i(no)e t'e %oss and to .omp$te t'e ta+ as pe) 'isto)i.a%
a..o$ntin( patte)n in a..o)dan.e 1it' t'e p)o#ision o* t'e Se.tion and A%% ot'e) p)o#ision o* t'e
o)dinan.e s'a%% app% a..o)din(%0
T'e te)m t$)no#e) 1as a"o%is'ed " t'e Finan.e 6i%% 2007 'as "een )e8int)od$.ed and t'e
same 'as "een de*ined as!
9)oss sa%e o) ()oss )e.eipts *)om sa%e o* (oods e+.%$din(
sa%es ta+5 Fede)a% e+.ise :$t &FE%) and t)ade dis.o$nt s'o1n
on in#oi.es o) "i%%s0
9)oss sa%e o) ()oss *ees *o) )ende)in( o* se)#i.es o) "ene*its
in.%$din( Commission0
9)oss )e.eipts *)om t'e e+e.$tion o* .ont)a.t 2 and
A )esident .ompan;s s'a)e o* a*o)esaid ()oss )e.eipts and
*ees o* an Asso.iation o* <e)sons &AOP) o* 1'i.' s$.'
.ompan is a mem"e)0
=o1e#e)5 ()oss sa%e5 ()oss )e.eipts and *ees s$">e.t to *ina% ta+ation Re(ime 'a#e "een
e+.%$ded *o) dete)minin( t$)no#e)0
<a(e 1 o* 3
SULTAN TAX ASSOCIATES
TAXATION OF MINIMUM TAX
TAX YEAR
2013
Minim$m ta+ paid in e+.ess o* a.t$a% ta+ s'a%% "e .a))ied *o)1a)d and ad>$sted a(ainst
ta+ %ia"i%it *o) s$"se-$ent *i#e ta+ ea)s 1'i.' means t'at initia%% a pe)son 'ad to pa ad#an.e
in.ome ta+ *o) t'e ta+ ea) ? 1034 as a(ainst 14 %e#ied as pe) .%a$se 11 a"o#e &instead o*
a.t$a% ta+ paa"%e *o) t'e ea))0
Minim$m ta+ is paa"%e *o) a ta+ ea) s'a%% "e d$e *o) pament on t'e date o* *$)nis'in(
t'e )esident .ompan;s )et$)n o* in.ome *o) t'e )e%e#ant ta+ ea)0
@a)io$s e+emptions ea)%ie) a#ai%a"%e to .e)tain instit$tions *)om t'e app%i.ation o* Se.tion
113 'a#e a%so "een )e8int)od$.ed0
Sma%% .ompanies a)e no1 e+.%$ded in t'e %ist o* e+emption .%a$se in t'e ea)%ie) ea)s
1'e)eas no1 sma%% .ompanies a)e a%so %ia"%e to pa minim$m ta+ ? 0034 <e).ent o* its
t$)no#e)0
As a .onse-$en.e t'e )ed$.ed )ate o* minim$m ta+ in *o%%o1in( .ases a%so stands
)ed$.ed as $nde)
NATURE REFERENCE RE%UCE RATE
COM<ANY EN9A9E: IN T=E 6USINESS
OF :ISTRI6UTION OF CI9RATTES
MANUFACTURE: IN <AAISTAN0
CLAUSE &/) OF
<ART III OF 2
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SC=E:ULE
00104 FROM
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:ISTRI6UTORS OF <=ARMACEUTICAL
<RO:UCTS5 FERTILIBERS AN:
CONSUMERS 9OO:S INCLU:IN9 FAST
MO@IN9 CONSUMER 9OO:S
CLAUSE &7) OF
<ART III OF 2
nd
SC=E:ULE
00104 FROM
00204
OIL MARAETIN9 COM<ANIES5 OIL
REFINERIES5 SUI SOUT=ERN 9AS
COM<ANY LIMITE: AN: SUI NORT=ERN
9AS <I<ELINES LIMITE: <RO@I:E: T=E
TURNO@ER EXCEE:S RS0 ONE 6ILLION
CLAUSE &,) OF
<ART III OF 2
nd
SC=E:ULE
00234 FROM
00304
FLOUR MILS CLAUSE &10) OF
<ART III OF 2
nd
SC=E:ULE
00104 FROM
00204
<AAISTAN INTERNATIONAL AIRLINE
COR<ORATION
CLAUSE &12) OF
<ART III OF 2
nd
SC=E:ULE
00234 FROM
00304
<ETROLEUM A9ENTS AN:
:ISTRI6UTORS C=O ARE RE9ISTERE:
UN:ER SALES TAX ACT 1,,0 AN: RICE
MILLS AN: :EALERS
CLAUSE &13) OF
<ART III OF 2
nd
SC=E:ULE
00104 FROM
00204
<OULTRY IN:USTRY INCLU:IN9
<OULTRY 6REE:IN95 6ROILER
<RO:UCTION5 E99 <RO:UCTION AN:
<OULTRY FEE: <RO:UCTION
CLAUSE &1D) OF
<ART III OF 2
nd
SC=E:ULE
00234 FROM
00304
MOTORCYCLES :EALERS RE9ISTERE:
UN:ER SALES TAX ACT 1,,0
CLAUSE &13) OF
<ART III OF 2
nd
SC=E:ULE
001234 FROM
00234
<a(e 2 o* 3
SULTAN TAX ASSOCIATES
TAXATION OF MINIMUM TAX
TAX YEAR
2013
<a(e 3 o* 3