And this one is especially drafted for you -;)

Questions asked form my friend in interview on 12 july, 2016.

First Friend ??

1. District name ??
2. Sales tax is a regressive tax, is it true ?

What Is a Regressive Tax?

A regressive tax is a tax applied uniformly, taking a larger percentage of income from
low-income earners than from high-income earners. It is in opposition to
a progressive tax, which takes a larger percentage from high-income earners.

KEY TAKEAWAYS

 A regressive tax is a type of tax that is assessed regardless of income, in which

low- and high-income earners pay the same dollar amount.
 This kind of tax is a bigger burden on low-income earners than high-income
earners, for whom the same dollar amount equates to a much larger percentage of
total income earned.
 A regressive system differs from a progressive system, in which higher earners
pay a higher percentage of income tax than lower earners.
 In the U.S. and certain other developed nations, a progressive tax is applied to
income, but other taxes are levied uniformly, such as sales tax and user fees.

3. Kehtay hen kiBaqiduniya indirect taxes kitarafjari h, is it so ??

What Is an Indirect Tax?

An indirect tax is collected by one entity in the supply chain (usually a producer or
retailer) and paid to the government, but it is passed on to the consumer as part of the
purchase price of a good or service. The consumer is ultimately paying the tax by paying
more for the product.

Understanding an Indirect Tax

Indirect taxes are defined by contrasting them with direct taxes. Indirect taxes can be
defined as taxation on an individual or entity, which is ultimately paid for by another
person. The body that collects the tax will then remit it to the government. But in the case
of direct taxes, the person immediately paying the tax is the person that the government
is seeking to tax.1

Excise duties on fuel, liquor, and cigarettes are all considered examples of indirect
taxes.2 By contrast, income tax is the clearest example of a direct tax, since the person
earning the income is the one immediately paying the tax. Admission fees to a national
park are another clear example of direct taxation.
Some indirect taxes are also referred to as consumption taxes, such as a value-added
tax (VAT).2

  
Regressive Nature of an Indirect Tax
Indirect taxes are commonly used and imposed by the government in order to
generate revenue. They are essentially fees that are levied equally upon taxpayers, no
matter their income, so rich or poor, everyone has to pay them.

But many consider them to be regressive taxes as they can bear a heavy burden on
people with lower incomes who end up paying the same amount of tax as those who
make a higher income.3

For example, the import duty on a television from Japan will be the same amount, no
matter the income of the consumer purchasing the television. And because this levy has
nothing to do with a person's income, that means someone who earns $25,000 a year
will have to pay the same duty on the same television as someone who earns $150,000;
clearly, a bigger burden on the former. 

There are also concerns that indirect taxes can be used to further a particular
government policy by taxing certain industries and not others. For this reason,
some economists argue that indirect taxes lead to an inefficient marketplace and
alter market prices from their equilibrium price.

Related Terms
Direct Tax
A direct tax is a tax paid directly by an individual or organization to the entity that levied the tax, such as
the U.S. government.
 more
What Is a Value-Added Tax (VAT)?
A value-added tax (VAT) is a consumption tax placed on a product whenever value is added at each
stage of the supply chain, from production to the point of sale.
 more
Duty
A duty can refer to either a form of taxation that is imposed on imported goods or the responsibilities that
are held by an individual such as a CEO.

4. Witholding tax kiya h, kiya ye saheeh h yagalat ??

What Is a Withholding Tax?

A withholding tax is the amount an employer withholds from an employee’s wages and
pays directly to the government. The amount withheld is a credit against the income
taxes the employee must pay during the year. It also is a tax levied on income (interest
and dividends) from securities owned by a nonresident alien, as well as other income
paid to nonresidents of a country.1  Withholding tax is levied on the vast majority of
people who earn income from a trade or business in the United States.2

KEY TAKEAWAYS

 A withholding tax takes a set amount of money out of an employee’s paycheck

and pays it to the government.
 The money taken is a credit against the employee’s annual income tax.
 If too much money is withheld, an employee will receive a tax refund; if not enough
is withheld, an employee will have an additional tax bill.

5. Accounting and tax ka aapas men kiya relationship h ?

There are several very common types of taxes:

 Income Tax—a percentage of individual earnings filed to the federal government

 Corporate Tax—a percentage of corporate profits taken as tax by the government
to fund federal programs.
 Sales Tax—taxes levied on certain goods and services
 Property Tax—based on the value of land and property assets
 Tariff—taxes on imported goods imposed in the aim of strengthening internal
businesses
 Estate tax—rate applied to the fair market value of property in a person's estate at
the time of death

What Is Tax Accounting?

Tax accounting is a structure of accounting methods focused on taxes rather than the
appearance of public financial statements. Tax accounting is governed by the Internal
Revenue Code, which dictates the specific rules that companies and individuals must
follow when preparing their tax returns.

KEY TAKEAWAYS

 Tax accounting is the subsector of accounting that deals with the preparations of
tax returns and tax payments.
 Tax accounting is used by individuals, businesses, corporations and other entities.
 Tax accounting for an individual focuses on income, qualifying deductions,
donations, and any investment gains or losses.
 For a business, tax accounting is more complex, with greater scrutiny regarding
how funds are spent and what is or isn't taxable.
Understanding Tax Accounting
Tax accounting is the means of accounting for tax purposes. It applies to everyone—
individuals, businesses, corporations, and other entities. Even those who are exempt
from paying taxes must participate in tax accounting. The purpose of tax accounting is to
be able to track funds (funds coming in as well as funds going out) associated with
individuals and entities.

6. Accounting and book-keeping men kiya difference h ?

The distinctions between accounting and bookkeeping are subtle yet important to
understand when considering a career in either field. Bookkeepers record the day-to-day
financial transactions of a business. There are a lot of minutiae involved, and keen
attention to detail is paramount. Accountants, by contrast, focus more on the big picture.
At specified intervals, they review and analyze the financial information recorded by
bookkeepers and use it to conduct audits, generate financial statements and forecast
future business needs.

The two careers are similar and accountants and bookkeepers often work side by side.
These careers require many of the same skills and attributes. However, important
differences exist in the nature of work conducted in each career and what is required to
be successful. The following analysis compares the education requirements, skills
needed, typical starting salaries and job outlooks for accounting and bookkeeping.

KEY TAKEAWAYS

 Although they are job titles used interchangeably, bookkeepers and accountants
are different positions with different requirements.
 Bookkeeping is where accountants generally start their careers as the barriers to
entry are lower and pay is decent.
 Accountants, though not formally required to do so, traditionally acquire their CPA
certification as well as their Master's degrees.
 Bookkeepers can be considered as the ones who line up all the small pieces into
place where accountants view and arrange those pieces.

7. CA is a prestigious profession and y are leaving this career ?

8. Tax system ko hum kesebehtrkrsaktay hen, aorkon say new direct taxes layejasaktayhen ??
9. Public accounts committee?

Functions

 The Committee shall examine the accounts showing the appropriation of sums granted by the
Assembly for the expenditure of the Government, the Annual Finance Accounts of the
Government, the report of the Auditor-General of Pakistan and such other     matters as the
Minister for Finance may refer to it. [National Assembly (N.A) Rule 203 (1)]
  In scrutinizing the Appropriation Accounts of the Government and the reports of the Auditor-
General of Pakistan thereon, it shall be the duty of the Committee to satisfy itself
a)  that the money shown in the accounts as having been disbursed were legally available for, and
applicable to the service or purpose to which they have been applied or charge;
b) that the expenditure conforms to the authority which governs it; and
c) that every re-appropriation has been made in accordance with the provisions made in this
behalf under rules framed by the Ministry of Finance. [N.A Rule 203 (2)]

 It shall also be the duty of the Committee:-

a) to examine the statement of accounts showing the income and expenditure of state
corporations, trading and manufacturing schemes, concerns and projects together with the
balance sheets and statements of profit and loss accounts which the President may have required
to be prepared or are prepared under the provisions of the statutory rules regulating the
financing of a particular corporation trading or manufacturing scheme or concern or project and
the report of the Auditor-General of Pakistan thereon;
b) to examine the statement of accounts showing the income and expenditure of autonomous
and semi-autonomous bodies, the audit of which may be conducted by the Auditor-General of
Pakistan either under the directions of the President or under an Act of the (Parliament); and
c)  to consider the report of the Auditor-General of Pakistan in cases where the President may
have required him to conduct the audit of any receipts or to examine the accounts of stores and
stocks. [N.A Rule 203 (3)]

 If any money has been spent on any service during a financial year in excess of the amount
granted by the Assembly for that purpose, the Committee shall examine with reference to the
facts of each case the circumstances leading to such an excess and make such recommendations
as it may deem fit. [N.A Rule 203 (4)]

 The report of the Committee shall be presented within a period of one year from the date on
which reference was made to it by the Assembly unless the Assembly, on a motion being made,
directs that the time for the presentation of the report be extended to a date specified in the
motion:
Provided that extension in the time for the presentation of the report shall be asked for
before the expiry of the time allowed under the rule.

* Unfinished Work of the Committee

Any report, memorandum or note that the committee may have prepared, or any evidence that
the Committee may have taken before the dissolution of the Assembly, shall be made available
to the new Committee. [N.A Rule 204]
* Continuity of the Proceedings
The Public Accounts Committee may proceed from the stage where the previous Committee left
the proceedings before the dissolution of the Assembly [N.A Rule 205]

10. AGPR k functions kiya hen, aurwokisay report submit krtah ?

Accountant General Pakistan Revenues (AGPR) is responsible for the centralised accounting and reporting
of federal transactions.
Additionally the AGPR is responsible for the consolidation of summarised financial information prepared by
federal self-accounting entities. The AGPR receives accounts and reports from the DAOs, PAOs, Federal
Treasuries and SBP/NBP, and provide Annual Accounts (to the AGP) and Consolidated Monthly Accounts
(to the Federal Finance Division).
There are AGPR sub-offices in each of the Provinces who also act as the DAO in respect of Federal
Government transactions relevant to the Provincial Headquarters. The Controller General of Accounts is
the administrative head of the AGPR.

11. Filer and non filer ??

'Filer' as defined in the Ordinance means a taxpayer whose name appears in the active
taxpayers' list issued by the Federal Board of Revenue from time to time or is a holder of a
taxpayers' card. A 'Non-Filer' is a person who is not a filer

Second Friend ??

1. Capital Gain tax ??

What Are Capital Gains Taxes?

A capital gains tax is a tax on the growth in value of investments incurred when
individuals and corporations sell those investments. When the assets are sold, the
capital gains are referred to as having been "realized." The tax doesn't apply to unsold
investments or "unrealized capital gains," so stock shares that appreciate every year will
not incur capital gains taxes until they are sold, no matter how long you happen to hold
them.1

Day traders and others taking advantage of the greater ease of trading online need to be
aware that any profits they make from buying and selling assets held less than a year
are not just taxed--they are taxed at a higher rate.

2. Which taxes are collected by Sindh govt ??

3. Sindh Services Tax
4. For the year 2011-12, SRB was assigned the functions of administration, levy and
collection of sales tax under the Sindh Sales Tax on Services Act, 2011, which reduced
the standard rate of tax from 17% to 16%
 5. Which are local taxes ??

What Is a Local Tax?

A local tax is an assessment by a state, county, or municipality to fund public services
ranging from education to garbage collection and sewer maintenance. Local taxes come
in many forms, from property taxes and payroll taxes to sales taxes and licensing fees.
They can vary widely from one jurisdiction to the next.

Taxes levied by cities and towns are also referred to as municipal taxes.

Understanding Local Tax

The U.S. Constitution gives the federal government the authority, and the states the
right, to impose taxes on their residents.1

Local taxes fund government services including police and fire services, education and
health services, libraries, road maintenance, and other programs and projects which
benefit the community at large. Many of these services also receive federal funds in the
form of grants.

State, county, and municipal taxes may be referred to as local taxes, as opposed to
federal taxes.

KEY TAKEAWAYS

 Most states impose an income tax, which is withheld from employee paychecks.
 Most states and some cities and towns impose sales taxes on goods and services.
 For most homeowners, the property tax bill is the biggest single local tax they pay.
Unlike federal taxes, the benefits arising from local taxes are generally apparent at the
community level. Municipalities face a constant balancing act with regards to levying
local taxes, since high taxes meet with resistance while low taxes lead to cutbacks in
essential services.

Among the common types of taxes that many states impose are personal income
tax, corporate income tax, estate tax, fuel tax, and sales tax.

Types of Local Taxes

The Property Tax
The largest single tax bill that is received by most people is the local residential property
tax imposed on homeowners. This is generally based on the assessed value of the
home.

Each state establishes the guidelines under which local governments can
impose property taxes.
Miscellaneous Local Taxes
States and cities that impose a local income tax withhold the tax from employee wages.
Local wage taxes are relatively rare. A total of 16 states permit them. In addition, Ohio
and Pennsylvania impose local levies known as school district taxes to help fund
education costs.

A sales tax is imposed on goods and services sold to residents of a state or municipality.
This is known as a regressive tax rather than a progressive tax because every customer
pays the same percentage regardless of income.

 
Education, public safety, and road maintenance are among the priorities of local
governments.

All but five states have sales taxes (Alaska, Delaware, Montana, New Hampshire, and
Oregon). Many have complex sales tax laws that exclude some goods like food and
reduce the percentage charged on others, such as cars. A number of states impose
higher "sin taxes" on cigarettes and liquor.

In some states, a smaller city tax may be added to the state tax. Many states also have
a use tax, which is due on major items purchased outside of the state, most notably
vehicles.

Other Government Funding Sources

Municipal authorities typically issue bonds to fund some capital projects in the
community.

Investors who purchase municipal bonds are lending money to the government which

promises to repay a set amount of interest and repay the principal on a future date.

To service the debt, that is, to fulfill interest and principal repayment obligations on the
bonds, a municipal government may issue a new tax or raise existing local taxes.

6. What is the % of sales tax in total tax revenue ??

17%
sales tax rates in Pakistan
The standard sales tax rate in Pakistan is 17%.

7. Amortization ?

Amortization vs. Depreciation: An Overview

The cost of business assets can be expensed each year over the life of the asset.
Amortization and depreciation are two methods of calculating value for those business
assets. The expense amounts are subsequently used as a tax deduction reducing
the tax liability for the business. In this article, we'll review amortization, depreciation,
and one more common method used by businesses to spread out the cost of an asset.
The key difference between all three methods involves the type of asset being
expensed.

KEY TAKEAWAYS

 Amortization and depreciation are two methods of calculating the value for
business assets over time.
 A business will calculate these expense amounts in order to use them as a tax
deduction and reduce their tax liability.
 Amortization is the practice of spreading an intangible asset's cost over that
asset's useful life.
 Depreciation is the expensing of a fixed asset over its useful life.
 A third method for expensing business assets is the depletion method, which is an
accrual accounting method used by businesses that extract natural resources from
the earth—such as timber, oil, and minerals.
Amortization
Amortization is the practice of spreading an intangible asset's cost over that asset's
useful life. Intangible assets are not physical assets, per se. Examples of intangible
assets that are expensed through amortization might include: 

 Patents and trademarks
 Franchise agreements
 Proprietary processes, such as copyrights
 Cost of issuing bonds to raise capital 
 Organizational costs

Unlike depreciation, amortization is typically expensed on a straight line basis, meaning

the same amount is expensed in each period over the asset's useful life. Additionally,
assets that are expensed using the amortization method typically don't have any resale
or salvage value, unlike with depreciation.

It's important to note the context when using the term amortization since it carries
another meaning. An amortization schedule is often used to calculate a series of loan
payments consisting of both principal and interest in each payment, as in the case of
a mortgage.

 
The term amortization is used in both accounting and in lending with completely different
definitions and uses.
Depreciation
Depreciation is the expensing of a fixed asset over its useful life. Fixed assets are
tangible assets, meaning they are physical assets that can be touched. Some examples
of fixed or tangible assets that are commonly depreciated include:

 Buildings 
 Equipment
 Office furniture
 Vehicles
 Land
 Machinery

Since tangible assets might have some value at the end of their life, depreciation is
calculated by subtracting the asset's salvage value or resale value from its original cost.
The difference is depreciated evenly over the years of the expected life of the asset. In
other words, the depreciated amount expensed in each year is a tax deduction for the
company until the useful life of the asset has expired. 

For example, an office building can be used for many years before it becomes rundown
and is sold. The cost of the building is spread out over the predicted life of the building,
with a portion of the cost being expensed in each accounting year.

Depreciation of some fixed assets can be done on an accelerated basis, meaning that a

larger portion of the asset's value is expensed in the early years of the asset's life. For
example, vehicles are typically depreciated on an accelerated basis. 

Special Considerations
Depletion is another way the cost of business assets can be established. It refers to the
allocation of the cost of natural resources over time. For example, an oil well has a finite
life before all of the oil is pumped out. Therefore, the oil well's setup costs are spread out
over the predicted life of the well.

The two basic forms of depletion allowance are percentage depletion and cost depletion.

The percentage depletion method allows a business to assign a fixed percentage of
depletion to the gross income received from extracting natural resources. The cost
depletion method takes into account the basis of the property, the total recoverable
reserves, and the number of units sold.

With depreciation, amortization, and depletion, all three methods are non-cash

expenses with no cash spent in the years they are expensed. Also, it's important to note
that in some countries, such as Canada, the terms amortization and depreciation are
often used interchangeably to refer to both tangible and intangible assets

8. Finance lease and Operating lease ??and what is their treatment in tax ??\
Operating & Finance Lease Benefits. A finance lease transfers the risk of ownership to the individual
without transferring legal ownership. ... Operating lease on the other hand, is an asset funding option for
businesses that don't want to take on the risk of selling the vehicle at the end of the lease
Finance lease
With a finance (capital) lease, the owner buys the vehicle and rents to the user who will have a purchase
option at the end of the lease. The lessee will not face a high upfront cost as when purchasing the vehicle
outright:

 They will be responsible for all risks, just as if they owned the asset and the vehicle will be shown on
the balance sheet.
 The lessor retains ownership but the lessee has exclusive use in line with the terms of the agreement.
 Rental payments are made by the user during the lease period, with a balloon payment at the end if
preferred.
 The term of the agreement is normally for the useful lifespan of the asset.
 At the end of the lease, the customer can pay the balloon payment and keep the vehicle.

Operating lease
Think of an operating lease as a type of rental agreement. Because it has a shorter term, you are able to
upgrade to a new vehicle regularly. You may even be able to do this whilst the lease is still in force. The
difference between an operating lease and a finance lease is that the user will not be able to buy the vehicle
during the period of the lease.

 The user has access to the vehicle for a set time period in return for making regular monthly
payments.
 The customer is able to use the vehicle for the full term of the agreement, paying rental sums each
month.These payments are not equal to the full value of the vehicle, as with a finance lease.
 Risks remain with the lessor with the plan being for the vehicle to be returned to them at the end of the
term.
 At the end of the agreement, the vehicle is expected to maintain a residual value, which is forecast at
the beginning of the lease.
 Vehicle maintenance may be built into the payments.
 Ownership remains with the lessor and at the end of the agreement, the vehicle can be returned or a
new lease taken out.
 As of 2019 in Australia,companies must now list all operating leases on the balance 

9. Public accounts committee ??

 10. How can a client manipulate closing inventory ??

Questions asked form me in interview held on 19 July, 2016

1st Person (Chairman of the panel)

Member : What is Silro ?

Me: Sir it is my cast and our city’s full name is with the name of our cast i.e“ SilraShahdadkot”
Member :Acha to apshahdadkot say hen, weseitnechotay say shehir say ap CA krne aye, kese ?
Me: actually sir jb men matric men tha, to hamaray coaching centre pay hamary teacher ne ekCA k
student ko presentation k liye invite kiyatha, aor us ki presentation ne mujhybuhut impress kiyatha,
aorwahi say mene decide kiyatha k men CA kroonga, so inter k exams khatmhonay k baaddosray din he
men Karachi aagayatha CA krnay.
Further Questions were as follows:
1. Why I left my previous company / audit firm?
2. IF I am made the head of entire taxa system of Pakistan, what changes would I bring which will prove to
be beneficial for the system?
3. What is your father ?

2nd person (personnel from FBR)

1. Ap ne kahakihumen direct taxes kitarafjanachahiye, so kiyaap kindly btasaktay hen ki hum direct taxes
kitrfkesayjayen ??
2. Kehtay hen kihamara tax base buhat narrow hai, is it so ??
3. Log return file nikrtay, Q ??

3rd person ( Other member of FPSC)

1. Difference between Duty and Tax??

2. What is “USHR” ?