03-09-2011, 03:53 PM
Currently we dealt the same situation and we had to write off nearly 114 million from our long term loan as per our new contract with the banks. Our auditors treated the written off amount as "Other Income" and according to tax Laws of Pakistan this sort of "Other income" whether it is in cash or not, is Taxable at company taxable rate in case of Pakistan it is 35%
