Question

actually what is tax liability ??
with example ? Also value based from the business

Answer 1

A tax liability implies the amount that an entity is liable to pay to the authorities. Suppose the net income is Rs 5,00,000 and tax rate is 10%. Thus, Rs 50,000 is the tax liability.

Value based from the business can be as follows.
A company calculate the profits honestly and pays the tax to the authorities. What values ​can be judged through this statement?

Through the above statement the values that can be judged are:

1. Company maintaining the accounts on honesty basis
2. Company fulfilling his responsibility for using the resources from society