BBS Taxation in Nepal

What is tax?

Differentiate between income year and assessment year.

State the meaning of "Canon of Economy".

Define indirect tax with example.

Explain the meaning of "Canon of Certainty".

Define direct tax with example.

Explain the meaning of "Canon of Certainty"?

(a) What is tax assessment? Briefly describe the self-assessment of tax.

(b) "Tax is the compulsory contribution from a person to government". Explain. 

Define direct tax with an example.

Differentiate between income year and assessment year.

Explain the meaning of "Canon of Equity".

Define an assesses. Mention the provision for a natural tax payer to be a resident as per the Income Tax Act..

What is Permanent Account Number?

What do you mean by Permanent Account Number (PAN)?

What do you mean by Permanent Account number (PAN)?

Thomas is foreign citizenship holder arrived in Nepal on 1st Poush 2078 and stayed in Nepal at the end of Ashad 2079.

Required : His residential status for the income year 2078/79.

William is foreign citizenship holder arrived in Nepal on 1st Falgun, and stayed in Nepal at the end of Ashadh of previous income year. He earned in Nepal Rs. 500,000 as consultancy fee.

Required: Residential status and tax liability of William.

Thomas is foreign citizenship holder arrived in Nepal on 1st Baishakh 2078 and stayed in Nepal till the end of Kartik, 2079.

Required: His residential status for the income year 2078/79 and explanation as per Income Tax Act.

Susan runs small business in Kathmandu Metropolitan city annual turnover Rs. 3 Million and taxable income amount Rs. 3 LacksRequired : Tax liability he selected presumptive taxation.

Smrity is presumptive taxpayer located in Walling Municipality and her total turnover Rs. 2 million and total operating

expenses Rs. 1.8 million during the previous income year.

Required: Smrity opted presumptive taxpayer status and compute tax liability with explanation.

Binod is presumptive taxpayer has total turnover and income amount Rs. 3 million and Rs. 3 lacs respectively. Firm is situated in Pokhara Metropolitan City. What will be the tax payable of such presumptive taxpayer?

Rajan is presumptive taxpayer located in Kathmandu Metropolitan City and his total turnover is Rs. 19 lacs and total operating expenses Rs. 17 lacs during the previous income year.

Required: Rajan elected presumptive taxpayer status and compute tax liability with explanation.

Mr. Rai has received the salary from a company as an employee Rs. 6,00,000. The vehicle and accommodation facility is provided by office to him.Required: The amount of vehicle and accommodation facility to be included in his income

Mrs. Muna an employee of government office was appointed on 1st Magh 2076 with a pay scale of Rs. 30,000 -

1000 - 42,000. The other particulars of her for previous year are given below.

Entertainment allowance Rs. 3,000 p.m.

Dearness allowance Rs. 3,000 p.m.

Meeting allowance Rs. 12,000

Accommodation and vehicle facility was provided by the office.

House keeper's salary provided by office Rs. 5,000 p.m. and Mrs Muna's contribution to housekeeper was Rs.

3000 p.m.

Her electricity bill of Rs. 1,000 p.m. was paid by the office.

Office provided soft loan Rs. 5,00,000 at interest rate of 5%. Market interest rate was 12%.

Her office is located at Zone B

She claimed following expenses for deduction:

Approved medical expenses spent by her of Rs. 3,000.

Life insurance premium (self) of Rs. 50,000 (on a policy of Rs. 10,00,000).

Health insurance premium of Rs. 23,000 on her own policy

She had donated Rs. 50,000 to a religious heritage of Nepal (an exempt organization approved by IRD).

Required:

a. Net (assessable) income from employment

b. Statement of total taxable income

c. Tax liability

Briefly describe the provision related to quantification of vehicle facility provided to an employee.

Basnet is an officer of government office. He was promoted to this post on 1st Shrawan 2073, at a salary scale of

Rs. 50,000 - 1,500 - 53,000 - EB - 2,000 - 63,000. The other details provided by him for the previous years as 

follows:

❖ Family allowance Rs. 10,000 p.m.

❖ Dearness allowance 20% of basic salary.

❖ City compensatory allowance 10% of current salary and one month equal Dashain allowance.

❖ Travelling and Daily allowance (TADA) Rs. 20,000.

❖ Interest from fixed deposit amount Rs. 30,000.

❖ Office provided him car facility along with driver. Fuel expenses Rs. 25,000. Driver salary Rs. 20,000 p.m. and

repairs & maintenance cost Rs. 30,000 paid by office.

❖ Office has also provided a free quarter for his accommodation.

❖ A domestic assistant provide by the office, his monthly salary Rs. 6,000 paid by office. Basnet contribution

 towards this facility was Rs. 2,000 pm.He claimed the following expenses for deduction:

❖ He is a member of Recognized Provident Fund contributing 10% of his salary towards this fund.

❖ He contributed amount Rs. 30,000 in the citizen investment trust.❖ He paid life insurance premium Rs. 35,000.

❖ Donation paid to social welfare organization Rs. 30,000.

❖ Basnet claimed medical expenses Rs. 20,000 and 50% paid by office.

Required : a. Net (assessable) income from Employment.

 b. Statement of Total Taxable Incomec. Tax liabilities

What are the income that should be excluded while calculating employment income as per the section 10 of the Income Tax Act. 2058?

Satyam is a disable government officer. He was promoted to this post on 1st Shrawan 2072, at a salary scale of Rs. 57,000-1000-60,000-EB-2,000-72,000. The other details provided by him for the previous years are as follows : a. Chief allowance Rs. 15,000 P.m. b. Remote area allowance: 10% of salary. c. Life subsistence allowance Rs. 4,000 P.m. d. Salary in lieu of leave Rs. 50,000 e. Overtime income received Rs. 30,000 f. Office has provided a free quarter and car facilities. g. A Cook facility was provided by the office. Cook salary was Rs. 6,000 P.m. and his contribution towards this facility was Rs. 2,000 P.m. h. Meeting allowance Rs. 18,500 (Net) per meeting for 20 meetings i. Interest on fixed deposit (Net) Rs. 95,000.

He claimed the following income and expenses: a. Assessable (Net) income from business Rs. 200,000 b. He is a member of Recognized Provident Fund contributing 10% of his salary towards this fund and office also contributed 12 percent. c. Salary of guard Rs. 1,500 P.m. who was appointed by Satyam. d. Life insurance premium Rs. 3,000 P.m. policy of Rs. 500,000. e. Unabsorbed medical tax credit amount Rs. 2,000. f. He paid advance income tax Rs. 1,500 P.m. g. Donation to government local bodies Rs. 110,000 and political party Rs. 40,000.

Required:

a. Net (assessable) income from Employment

b. Statement of Total Taxable Income

c. Tax liabilities

Briefly describe the provisions related to quantification of accommodation facilities provided to an employee.

Mr. Nepal is a retired government employee and received pension income Rs. 652,000 including one month equal Dashain allowance.

Required: Tax liability of Mr. Nepal.

Suman is an Executive Director in an office. He was promoted to this post on 1st Shrawan 2080, at a salary scale of Rs. 50,000 - 1,500 - 53,000 - EB - 2,000 - 63,000. The other details provided by him for the previous years as follows:

Director allowance: Rs. 10,000 p.m.

Dearness allowance : 20% of basic salary.

City compensatory allowance : 10% of salary and one month equal Dashain allowance.

Meeting allowance : Rs. 1,700 (Net) per meeting for 10 meetings.

Interest from Mega Banks' saving deposit account (Net) Rs. 28,500

Office provided him car facility along with driver. Fuel expenses Rs. 25,000, driver salary Rs. 20,000 p.m. and repairs & maintenance cost Rs. 30,000 paid by office.

Office has also provided a free quarter for his accommodation.

A domestic assistant provide by the office, his monthly salary Rs. 6,000 paid by office. Suman contribution towards this facility was Rs. 2,000 p.m.

He claimed the following expenses for deduction:

He is a member of Recognized Provident Fund contributing 10% of his salary towards this fund.

Donation paid to rural municipality and private school Rs. 75,000 and Rs. 20,000 respectively.

Health insurance premium Rs. 2,000 per month.

Suman himself spends for his personal medical treatment Rs. 20,000 and unabsorbed medical tax credit amount carry forward from last year Rs. 1,000.

Required:

 a. Net (assessable) income from Employment

b. Statement of Total Taxable Income

c. Tax liabilities and the selected family status.

What do you mean by "Non Changeable Business Assets"?

What do you mean by "Non-chargeable business assets"?

Given is the summarized statement of cash pertaining to Doctor, Abhinay for the previous income year.

Further information:

a. Other professional incomes includes: i. Bad debt recovered Rs.10,000 which not allowed in previous year.

ii. Income from pathological test Rs. 50,000

iii. Gifts received from patients Rs. 10,000

b. Water/electricity expenses are used equally for professional and personal purpose.

c. Outstanding office salary Rs. 30,000 is yet to be paid.

d. Visiting fees includes Rs. 2,000 relating to three years ago professional income.

e. Advance consultation fees Rs. 50,000 is not shown in above receipts account.

Required: a. Assessable (Net) income from profession

b. Statement of taxable income

c. Tax liability

Sole Trader Organization provided the following information:The opening written down value (Block D) is Rs. 5,00,000.Addition is made in 2nd Chaitra of Rs. 3,00,000.Actual repair and improvement cost is Rs. 50,000.Required: Allowable amount of repair and improvement cost of the year.

ABC manufacturing Company supplied the following information.

• Opening stock of raw material and closing stock of finished goods Rs. 10,000 and Rs. 20,000 respectively.

• Import during the year Rs. 500,000, Custom duty to Rs. 40,000 and administrative expenses Rs. 25,000.

Required : Cost of trading goods.

A trading organization supplied the following information. a. Beginning inventory of merchandise of Rs. 175,000 b. Import of merchandised during the year Rs. 500,000 c. Customs duty paid Rs. 50,000 for merchandised products. d. Freight charges Rs. 25,000 for merchandised products. e. Ending inventory value costing Rs. 50,000 but the market value Rs. 70,000.

Required: Cost of trading goods.

(a) Following are the details of the fixed assets of proprietorship organization:

Required:

a. Allowable repairs and depreciation

b. Written down value of fixed assets at the end of fiscal year.

(b) Following are the profit and loss position of a trader for the previous income year:

a. On scrutiny, it revealed that profit of 6th year was derived after deducting donation Rs. 50,000 to tax exempt entity.

Required: Taxable income of the firm giving explanation wherever necessary.

Given below is the trading, profit and loss account of a proprietorship organization.

Further information:

a. Opening and closing stock were undervalued by Rs. 25,000 and Rs. 30,000 respectively.

b. Purchase includes Rs. 250,000, the value plant purchased on Kartik of previous year, beginning depreciation base amount of plant was Rs. 50,000. No part of plant was sold during the previous year.

c. 70% of donation was paid to non-approved institution by Inland Revenue Department and balance paid to TE organization.

d. Sixty percent of bad debts recovered were allowed previously.

e. General expenses include:

a. Rs. 60,000 printing and stationery expenses paid at a time by cash, while banking facility is available within 10 KM.

b. Rs. 5,000 fine paid to the Nepal Electricity Corporation.

f. Loss from business last year stood Rs. 150,000

Required:

a. Net (assessable) Income from business.

b. Statement of total taxable Income.

c. Tax liabilities .

A trading organization supplied the following information:

Opening stock of raw material and finished goods Rs. 10,000 and Rs. 20,000 respectively.

Import during the year Rs. 500,000, Custom duty Rs. 100,000 and administrative expenses Rs. 25,000.

Value of closing stock Rs. 20,000 but the market value Rs. 15,000.

Required: Cost of trading goods.

(a) Following are the details of the fixed assets of XYZ Company.

Beginning written down value block - C Rs. 400,000

Beginning written down value block - D Rs. 500,000

The company has purchased a new plant & machinery as on 10th Baishakh, Rs. 600,000

The company has also purchased two second hand maruti cars on 1st Bhadra, worth Rs. 300,000 each.

Repair and maintenance cost incurred during the year under block D Rs. 80,000 and Block C for Rs. 60,000.

During the year company has sold a small part of plant and machinery having book value. Rs. 90,000 sold for Rs. 100,000.

Required:

a. Allowable depreciation

b. Value of fixed asset at the end of the fiscal year.

(b) Following are the profit and loss position of a businessman for the previous income year :

Additional information

a. On scrutiny, it revealed that profit of 6th year was derived after deducting donation Rs. 20,000 to tax exempt entity

b. Profit of the 9th year was derived before deducting research and development cost Rs. 70,000.

Required: Taxable income giving explanation wherever is necessary.

Given below is the trading, profit and loss account of a proprietorship organization:

Further information:

a. Closing stock was undervalued by Rs. 10,000.

b. Closing stock was valued Rs. 30,000 on last stock taking, however, it was not shown on the opening date.

c. Legal expenses include Rs. 5,000 for income tax penalty.

d. 60% of donation was given to a private hospital and rest was given to tax exempt organization.

e. Seventy percent of bad debts recovered were allowed previously.

f. Allowable repairs and depreciation were Rs. 30,000 and Rs. 40,000 respectively.

g. Unabsorbed business loss of last year stood Rs. 50,000.

Required:

a. Net (assessable) income from business.

b. Statement of total taxable Income

c. Tax liabilities

(a) SS Trades provided the following details of its fixed assets under block B and C.

Required:

(i) Allowable depreciation

(ii) Closing value of fixed asset of the year

(b) The operating results of a company are provided:

The company has incurred loss in its 2^nd year of operations. The unrecovered loss of 2^ndyear, 3^rd year,  \( 4^{th} \) year and 5^th year is Rs. 30,000, Rs. 40,000, Rs. 50,000 and Rs. 60,000 respectively. The profit of the 6^th year is derived without deducting interest on bank loan Rs. 20,000 and profit of the 7^th year is derived without adding commission income Rs. 10,000. In year 9, profit was calculated after deducting donation to PADT Rs. 100,000 and the profit of 7^th year was ascertained deducting pollution control cost of Rs. 300,000. Required: Taxable income and explanation wherever necessary.

Given below is the trading, profit and loss account of a proprietorship firm:

Further information:

• i. Opening and closing stock were over valued by Rs. 10,000 and Rs. 50,000 respectively.

• ii. Purchase include purchase of plant costing Rs. 120,000 which was purchased on 15th Chaitra of previous year and the opening WDV of the plant was Rs. 400,000. A part of plant costing Rs. 80,000 was disposed during the previous year.

• iii. Business loss of last year is Rs. 50,000.

• iv. Donation was given to private nursing home and public hospital equally.

• v. Legal expenses include Rs. 5,000 incurred for domestic purpose.

• vi. 30% of bad debt recovered was not allowed previously by Inland Revenue Office.

Required: * i) Net (assessable) income from business

• ii) Statement of total taxable income

• iii) Tax liability

The following receipts and payments accounts of an auditor are given below:

Additional information:

• 20 percent of car expenses were paid for personal purpose.

• Office salaries include Rs. 10,000 paid to domestic servant.

• 40 percent of donation was given to an organization which was not approved by IRD.

• Half of domestic expenses were spent for general expenses of the office.

• Allowable depreciation for the year was not shown in account.

Required:

• a. Assessable (Net) income from profession

• b. Statement of taxable income

• c. Tax liabilit

What do you mean by capital and revenue expenditure?

Briefly describe the provision related to quantification of accommodation facilities provided to an employee.

Bikram, a resident of Nepal furnished the following particulars of his income for the previous year.

a. Assessable income from garment business Rs. 500,000

b. Assessable loss from trading business Rs. 100,000

He has claimed the following deductions:

Pollution control cost Rs. 225,000

Required: a. Adjusted taxable income and allowable Pollution control cost.

Personal and household expenses are expressly disallowed amounts in computation of taxable income as per the Income Tax Act, 2058 under section (21). Explain.

Given is the summarized statement of cash pertaining to an artist for the previous income year.

Further information:

a. Water/electricity expenses are used equally for professional and personal purpose.

b. Compensation of Rs. 200,000 for the breach of contract from a producer has not has not been received yet.

c. Other professional incomes include Rs. 5,000 bad debts recovered which is not allowed for deduction previously.

d. Outstanding office rent Rs 20,000 is yet to be paid.

e. Receipt from script playing includes Rs. 2,000 relating to three years ago income and advance consultation fees Rs. 20,000 is not shown in above receipts account.

Required :

a. Assessable (Net) income from profession

b. Statement of taxable income

c. Tax liability

Mention the exemption of individual working in a remote area.

What are the allowable reductions in calculation of taxable income of a national person?

Differentiate assessable income and taxable income.

Mr. Nepal is retired government employee and received pension income Rs. 6,50,000 including one month equal Dashain allowance.

Required : Tax liability of Mr. Nepal he selected family status.

(a) Shisir furnished you following particulars of income and expenses for the previous income year.

i. Income from profession Rs. 200,000

ii. Mining rent (natural resources after TDS) Rs. 510,000

iii. Lottery income received after TDS Rs. 25,000

iv. Gifts & present received in respect of investment Rs. 100,000

v. Birthday gifts received Rs. 5,000

vi. Dividend received foreign and domestic country Rs. 50,000each

vii. Rent from building Rs. 100,000

viii. Rent received from property after TDS Rs. 180,000

ix. Gain on sales of vacant agriculture land Rs. 120,000

x. Interest received from saving deposit Rs. 42,500

xi. Interest received from local money transaction Rs. 60,000

He claimed the following expenses to deduct.

i. Collection charge related with natural resources Rs. 10,000

ii. One and half month equal commission paid to agent for natural resources.

iii. Other allowable investment related expenses Rs. 45,000

iv. Insurance premium of building Rs. 6.000

v. Donation paid to red cross society amount Rs. 20,000

Required: a. Net assessable income from investment

b. Statement of total taxable income

(b) State the business on which additional depreciation (1/3 of the depreciation base) is allowed as per Income Tax Act. 2058

(a) Regmi furnished you following particulars of income and expenses for the previous income year.

Regmi claimed the following expenses to deduct.

a. Collection charge of building let out Rs. 10,000

b. Rent paid to subletting of building Rs. 120,000

c. Allowable depreciation of plant and machinery Rs. 10,000.

d. Life insurance premium Rs. 50,000

e. Previous year cumulative investment loss Rs. 50,000

Required:

a. Net assessable income from investment.

b. Statement of total taxable income

(b) Described the provision of withholding method of tax collection as per the Income Tax Act, 2058 with example.

(a) Susan furnished you following particulars of income and expenses for the previous income year:

i. Rent from natural resources after TDS — Rs. 510,000

ii. Consultation fees received after TDS — Rs. 170,000

iii. Casual income received after TDS — Rs. 75,000

iv. Gifts received in respect of investment — Rs. 100,000

v. Birthday gifts received — Rs. 10,000

vi. Dividend received foreign and domestic country — Rs. 50,000 and Rs. 20,000 respectively

vii. House rent received — Rs. 85,000

viii. Rent received from plant and machinery after TDS — Rs. 90,000

ix. Gain on sales of vacant agriculture land — Rs. 100,000

x. Interest received from bank deposit — Rs. 19,000

xi. Interest received from indigenous bankers — Rs. 50,000

He claimed the following expenses to deduct:

i. Collection charge related with natural resources Rs. 3,000.

ii. One month equal commission paid to agent for natural resources.

iii. Other allowable investment related expenses Rs. 45,000.

iv. Life insurance premium Rs 3,000 per month policy of Rs. 500,000.

Required:

 a. Net assessable income from investment

b. Statement of total taxable income

(b) What are the incomes that should be excluded while calculating employment income as per the section 10 of the Income Tax act, 2058.

Miss. Hira, a government employee, earned taxable income from employment Rs. 11,20,000.Required: Tax liability of Miss Hira.

(a) Mr. Hari disclosed the following incomes and expenditures for the previous year.

Dividend from resident company Rs. 25,000

Income from natural resources Rs. 340,000 (net)

Royalty income Rs. 170,000 (net)

Interest from private money lending transactions Rs. 210,000

Interest from fixed deposit Rs. 9,500

Rent from house let out Rs. 180,000

Rent received by letting an asset Rs. 90,000 (after TDS)

Compensation received relating to investment Rs. 50,000

Dividend from foreign company Rs. 85,000

He claimed the following expenses for deduction:Donation to Pasupati Area Development Trust Rs. 50,000

Collection cost of natural resources income Rs. 1,000

Interest collection charge relating to money lending transactions Rs. 2,000

House rent collection charges Rs. 500

Collection cost of fixed deposit Rs. 400

Tax paid to foreign government Rs. 15,000

a. Assessable (Net) income from profession

b. Statement of taxable income

c. Tax liability

(b) Mention the conditions for an assesses to be resident person in case of natural person, partnership firm, trust and company.

Given is the summarized statement of cash pertaining to a lawyer for the previous income year.

  Further information : 

a. Water / electricity expenses are used equality for professional and personal purpose . 

b. Office expenses include Rs 10,000 paid to domestic helper . 

(a) Following are the details of the fixed assets of XYZ Company.

Beginning written down value block - C Rs. 500,000

Beginning written down value block - D Rs. 500,000

The company has purchased a new plant & machinery as on 10th Jestha Rs. 600,000

The company has also purchased two second hand Maruti cars on 1st Ashwin, worth Rs. 300,000 each.

Repair and maintenance cost incurred during the year under block D Rs. 100,000 and Block C for Rs. 60,000.

During the year company has sold a small part of plant and machinery having book value. Rs. 90,000 sold for Rs. 100,000.

Required : a Allowable depreciation

b. Value of fixed asset at the end of the fiscal year.

(b) Following are the profit and loss position of a firm for the previous income year :

Additional information:

• a. On scrutiny, it revealed that profit of the 9th year was derived before deducting research and development and donation Rs. 132,500 and Rs. 50,000 respectively.

• b. The company had unabsorbed loss of 1st year, 2nd year, 3rd year, and 4th year Rs. 600,000, Rs. 75,000, Rs. 50,000 and Rs. 25,000 respectively.

Required: Taxable income and explanation wherever necessary.

Given below is the trading, profit and loss account of a sole trade organization for the previous income year.

Further information:

• a. Closing stock was undervalued by Rs. 10,000.

• b. Purchase include purchase of sofa set of Rs. 50,000.

• c. Legal expense include Rs.10,000 penalty paid to Nepal Tele-communication.

• d. 40% of donation was given to a private school and rest was given to public school.

• e. Seventy percent of bad debts recovered were allowed previously.

• f. Allowable depreciation of all fixed assets Rs. 40,000.

• g. Unabsorbed business loss of last year stood Rs. 50,000.

Required:

• a. Net (assessable) income from business.

• b. Statement of total taxable income.

• c. Tax liabilities (Assume-Individual).

Mr. Nepal is retired government employee and received pension income Rs. 612,500 including one month equal Dashain allowance.

Required: Compute tax liability with explanation.

What do you mean by "Tax Deduction at Source"?

(a) What are the circumstances under which the Inland Revenue Department can make jeopardy Assessment of tax?

(b) Describe the instalment method of tax collection as per the Income Tax Act, 2058 with example.

(a) An importer imported goods paying VAT amounted Rs. 5,200. He (importer) incurred carriage expenses of

Rs. 3,000 and sold them to a retailer charging 10% margin on cost. The retailer sold the goods to customer

charging 20% margin on outlay with Rs. 1,000 as selling expenses there on.

Required:

(i) Cost price of customer (ii) Total VAT payable to government at each stage(b) "Value Added Tax is levied on added value of goods and services."Explain in brief.

(a) Sharma purchased goods from retailer at Rs. 7,910 including VAT. The retailer purchased goods from importer at Rs. 5,000 excluding VAT.

The importer imported the goods for Rs. 4,000 excluding value added tax.

Required: i. Value added by importer and retailer.

ii. Total VAT to government.

(b) Enumerate any five goods/services exempt from value added tax.

(a) An importer imports certain goods of Rs. 100,000. No VAT was paid on it. The goods pass through importer to retailer before reaching to final customer. Additional packaging and administrative costs incurred by each Rs. 5,000. Profit charged by importer and retailer 20 percent on their cost price.

Required:

a. Cost price of the final consumer. 

b. Total VAT to government.

(b) Define value added tax and it objectives.

(a) A Final consumer Shital paid value added tax Rs. 39,000 while purchasing consumable goods. The goods was imported by ABC Ltd and sold to retailer. Make up 20 percent on cost price was included in all levels.

Required:

i. Import price of the importer

ii. Total VAT to government.

(b) Value added tax is based on added value of goods and service." Explain.

(a) Explain the historical development of income taxation in Nepal.

(b) What are the duties of taxpayer (accesse) as per Income Tax Act 2058?

(a) What are the circumstances under which the Inland Revenue Department can make jeopardy Assessment of tax?

(b) What is tax clearance certificate? What documents must be submitted to Inland Revenue Office for issue of such certificate?

What do you mean by internal check? How does it differ from internal control?

What do you mean by tax auditing? Explain the major features of tax auditing.

Define cash basis of accounting.

What do you mean by internal check? How does it differ from internal control?

What do you mean by tax auditing? How does it differ from financial auditing?