ABC Limited has reported 85,000 as per tax profit in first quarter and expects a loss of 25,000 each in subsequent quarters. It has corporate tax rate slab of 20% on the first 20,000 earnings and 40%

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Ritik · Answer

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Anu · Answer

Weighted average nikalna hoga pehle, so total tax divide by total income. Since the total income is 10000 (85000 - 25000*3) , tax on 10000 will be 2000 (10000*20%). Therefore weighted avg rate will be 20% (2000/10000*100) so tax for Quarter 1 will be 17000 (85000*20%).

ABC Limited has reported 85,000 as per tax profit in first quarter and expects a loss of 25,000 each in subsequent quarters. It has corporate tax rate slab of 20% on the first 20,000 earnings and 40%

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