Commission is paid by the company at a certain rate for the agent at selling the service. Commission is expressed in terms of percentage(%). As the business increases the commission also increases.
A company related to selling and purchasing of land in Biratnagar receives 5% of the selling price from the land owner after arranging the selling of the land.
A foreign motor car company provides the following amount on sales to its company authorized agent or dealer for the purpose of the promotion of the sale at the following rate:
4% on the annual sale up to Rs. 4000000.
5% on the annual sale up to Rs. 5500000.
7% on the annual sale to Rs. 10000000.
But the same company provides 5.5% of the total sale to the sales person of a jeep. Therefore, the amount received by the sales person on the sale of the jeep for Rs. 5500000.
While solving the problems relating to commission, following formulae are used:
A person, organization, industry or company pays the amount at a fixed rate or under certain criteria to the government or the government institutions (like VDC, municipality, metropolitan, tax office) for the earning of capital. The money so paid is called a tax. There are different kinds of taxes like income tax, transportation tax, entertainment tax, value added tax, etc.
Income tax is levied on the income. In our country, a person or the institution pays a certain rate to the government on the amount earned above the fixed amount. Persons, minimum expenditure depends on the personal status like married or unmarried, the number of dependent family members etc. Income tax is levied to the earning above the minimum expenditures (called the allowances). The limit of allowances is fixed by the government. The rate is subject to change by the time.
Example:
A teacher's monthly salary is Rs. 13500, and the annual allowances are Rs. 140000. If the income above this is taxable at the rate of 15%, how much salary does he receives per month after the deduction of the income tax?
Monthly salary = Rs.13500
Annual salary = 12 \(\times\) Rs. 13500
= Rs. 162000
Allowances = Rs. 140000
Taxable income = Rs. 162000 - Rs. 140000
= Rs. 22000
Annual income tax = 15% of Rs. 22000
= \(\frac{15}{100}\) \(\times\) Rs. 22000
= Rs. 3300
Monthly Income tax = Rs. \(\frac{3300}{12}\) = Rs. 275.
\(\therefore\) Monthly Salary Received = Rs. 13500 - Rs. 275
= Rs. 13225.
If a factory or a company or any other business organization makes a profit, they distribute a certain amount of profit to their staff to encourage at their work.This additional amount of profit is called the bonus.The bonus is expressed in percentage.The percentage is decided by the body o executive committee of an organization. Therefore, the bonus is provided by the annual general meeting (AGM) of an organization.
A shopkeeper marks price (MP) fixed before selling to earn more profit but he deducts a certain amount in mark price due to various reason. Discount is the deducted amount given to a customer by shopkeeper while purchasing goods.The price at which the good is sold after the deduction of a discount amount is called selling price (SP).
Vat is a tax levied on the supply of goods and services. Vat rely on a country which is determined annually by state govern. In a case of Nepal, currently, 13% VAT is charged. VAT is determined by adding taxes for different purposes. And it is charged on the actual selling price.
Tax free income = Rs.120 , 500
Annual income = Rs.165 , 000
Taxable income = Rs . 165 , 000 - Rs. 120 , 500 = Rs. 44 , 500
Rate of income tax = 30%
Actual income
Annual income = Rs. 1 , 89 , 500
tax free amount = Rs. 34 , 500
Taxable amount = Rs. 1 ,89 500 - Rs. 34 , 500 = Rs. 1 , 55 , 000
Here , 30% income tax should be paid up to Rs. 1 , 46 , 000
Initial income tax = Rs . 1 , 46 , 000 \(\times\) \(\frac{30}{100}\) = Rs. 43 , 800
Taxable Income on which 40% tax is levied = Rs. 1 , 55 , 000 - Rs. 1, 46 , 000
= Rs . 9000
Again , income tax of Rs. 9000 = RS. 9000 \(\times\) \(\frac{40}{100}\) = Rs. 3 , 600
Total income tax = Rs. 43 , 800 + Rs. 3 , 600 = Rs. 47 , 400 Ans.
Annual income = Rs. 82 , 000
Tax free amount = Rs. 31 ,000
Taxable amount = Rs. 82 , 000 - Rs. 31 , 000 = Rs. 51 , 000
Total income tax paid = Rs. 14 , 820
Rate of income tax = \(\frac{rs.14 , 820}{rs.51 , 000}\) \(\times\) 100 = 28%. Ans.
What will be total sales in order to receive Rs.1200 at the rate of 3(frac{1}{3})% as commission?
Rs.50000
Rs.36000
Rs.2300
Rs.21000
Mahesh receives a monthly salary of Rs.8750 plus a 2% commission on his total sales for the month. If his total sales of the month is Rs.87500, What will his gross amount?
Rs.1234
Rs.2222
Rs.7480
Rs.6500
A man gets commission of 12% on the sales which amounts to Rs.8500. How much will the businessman get from the sales?
Rs.2100
Rs.7480
Rs.5600
Rs.2000
An agent gets a commission of 15% on the sales which amounts to Rs.6750. How much will the businessman get from the sales?
Rs.5737.50
Rs.42000
Rs.2100.0
Rs.8900
Last year, the yearly income of serviceman was Rs.96000. Income tax was not levied upto yearly income Rs.75000 and 10% of his yearly income was invested in civil investing fund which was also tax free. If 15% tax was levied on the rest income, how much yearly tax should he pay?
A civil servant had a salary of Rs.9600. Tax upto Rs.85000 per year would be exempted . If he paid Rs.377.50 as a tax per month, how much percent of tax was imposed?
15%
22%
25%
20%
Rs.85000 was exempted in the yearly income of a government service holder. If he paid tax Rs.8850 in a year at the rate of 15%, what was his monthly income?
Rs.20000
Rs.12500
Rs1000
Rs.12000
Sweta's yearly income is Rs. 186000. If Rs.125000 in a year is tax free, Find the income tax at 15% per year.
Rs.1000
Rs.9150
Rs.1230
Rs.1204
The tax free amount of a man is Rs.100000. Find the income of a man in a year if he pays annual tax of Rs.15000 at the rate of 20%?
Rs.124000
Rs.126000
Rs.162500
Rs.175000
The monthly salary of a civil servant is Rs.7500. If 15% tax is allowed on the yearly income of more than Rs.60000, how much tax should he pay?
Rs.4500
Rs.6500
Rs.1200
Rs.3500
ASK ANY QUESTION ON Commission Taxation and Bonus
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commission taxation
in 2071 the monthly salary of the chief justice of nepal was Rs.53580. if 1% tax was levied on first Rs.300000 and certain rate on remaining so that the chief justice paid Rs.4537 monthly tax.how much was the tax percentage on remaining?
Mar 12, 2017
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yuresh thapa
why is their no answer in question number 1
Jan 12, 2017
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A business firm Has monthly income has a monthly income rs 5600.the business firm is free of tax upto income upto the income of 200000 was taxed at th rate of 15 percent and rest at 25percent find the amount of tax payed by business firm
H
Dec 30, 2016
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pawan
the monthly salary of a married civil servant is rs 25700 and 10%of his salary is deducted as his provident fund. howb much income tax should he pay in a year?
Dec 27, 2016
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