PUNJAB PUBLIC SERVICE COMMISSION
COMBINED COMPETITIVE EXAMINATION FOR
RECRUITMENT TO THE POSTS OF
PROVINCIAL MANAGEMENT SERVICE-2019
SUBJECT: COMMERCE (PAPER-II)
TIME ALLOWED: THREE HOURS MAXIMUM MARKS: 100
NOTE: Attempt Five Questions in All. Attempt at least ONE question each from Section A to D. Calculator is allowed (Not programmable).
SECTION A
Q No. 1: Write a detailed note on the benefits of CPEC to Pakistan’s Economy. (20 Marks)
Q No. 2: “Pakistan is facing acute shortage of Foreign Exchange”. What measures should be adopted to increase the Foreign Exchange Resources? (20 Marks)
SECTION- B
Q No. 3: Define Business Finance. What are the main sources of Business Finance? Also explain role of Capital Markets in capital formation. (20 Marks)
Q No. 4: Discuss the important Documents of a Joint Stock Company. (20 Marks)
SECTION-C
Q No. 5: State Bank is a regulatory body for the financial institutions in Pakistan, explain. Discuss various functions of State Bank of Pakistan. (20 Marks)
Q No. 6: What is Provident Fund? Discuss the treatment of various types of Provident Fund with their tax treatment in the calculation of Taxable Income. (20 Marks)
SECTION-D
Q No. 7: Define Internal Audit and its objectives also compare Internal Auditor with External Auditor. (20 Marks)
Q No. 8: From the following data, calculate income tax payable by Anis Ahmad for the tax year ending 30 June 2018:
1- Basic salary Rs.50,000 per month in the scale (Rs.40,000-44,000-64,000).
2- Bonus Rs.125,000.
3- Entertainment allowance Rs.45,000,
4- House rent allowance at 50% of the minimum time scale.
5- Conveyance allowance Rs.80,000.
6- Tax paid by the employer Rs.35,000.
7- Zakat was deducted Rs. 250,000.
8- Reimbursement of internet bill (used for office) Rs.38,000.
9- Encashment against unavailed leave Rs.27,000.
10- Interest free loan obtained from employer Rs.12,00,000.
11- Medical allowance Rs. 66,000.
12- Fixed educational allowance for children Rs.42,000.
13- Telephone bills paid by employee himself Rs.36,000 (tax paid with telephone bills Rs.2,500)
14- Tax paid on cash withdrawal from bank Rs.5,000.
15- Hotel bills paid by the company relating to official duties Rs.55,000.
16- Received Income Tax fund related to tax year 2016 Rs.20,000.
17- TV and Refrigerator provided by the employer only for the use of employee costing Rs.200,000 on which the company charged depreciation @20% in its books of accounts.
Rates of tax for salaried persons are as follows: (20 Marks)
| Sr. No. | Slabs | Rate of Tax |
| 1. | Where the taxable income does not exceed Rs.4,00,000 | % |
| 2. | Where the taxable income exceeds Rs.4,00,000 but does not exceed Rs.5,00,000 | 2 % of the amount exceeding Rs.4,00,000 |
| 3. | Where the taxable income exceeds Rs.500,000 but does not exceed Rs.7,50,000 | Rs.2,000+5% of the amount exceeding Rs.5,00,000 |
| 4. | Where the taxable income exceeds Rs.7,50,000 but does not exceed Rs.14,00,000 | Rs.14500+10% of the amount exceeding Rs.7,50,000 |
| 5. | Where the taxable income exceeds Rs.14,00,000 but does not exceed Rs.15,00,000 | Rs.79,500+12.5% of the amount exceeding Rs. 14,00,000 |
| 6. | Where the taxable income exceeds Rs.15,00,000 but does not exceed Rs.18,00,000 | Rs.92,000+15% of the amount exceeding Rs.15,00,000 |
| 7. | Where the taxable income exceeds Rs. 18,00,000 but does not exceed Rs.25,00,000 | Rs.1,37,000+17.5 % of the amount exceeding Rs.18,00,000 |
| 8. | Where the taxable income exceeds Rs.25,00,000 but does not exceed Rs.30,00,000 | RS.2,59,500+20 % of the amount exceeding Rs.25,00,000 |
| 9. | Where the taxable income exceeds Rs.30,00,000 but does not exceed Rs.35,00,000 | Rs.3,59,500+22.5 % of the amount exceeding Rs.30,00,000 |
| 10. | Where the taxable income exceeds Rs.35,00,000 but does not exceed Rs.40,00,000 | Rs.4,72,000+25% of the amount exceeding Rs.35,00,000 |
| 11. | Where the taxable income exceeds Rs.40,00,000 but does not exceed Rs.70,00,000 | Rs.5,97,000+27.5 % of the amount exceeding Rs.40,00,000 |
| 12. | Where the taxable income exceeds Rs.70,00,000 | Rs.14,22,000+30 % of the amount exceeding Rs.70,00,000 |