LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
M.Com. DEGREE EXAMINATION – COMMERCE
|
SECOND SEMESTER – APRIL 2006
CO 2950 – BUSINESS TAXATION
Date & Time : 02-05-2006/9.00-12.00 Dept. No. Max. : 100 Marks
PART – A
Answer ALL the questions (10 ´ 2 = 20 marks)
- How is residential status of a company determined?
- Distinguish between Direct and Indirect Taxes.
- What are the constitutional provisions relating to excise duty?
- What is excisable goods?
- What are the objectives of customs duty?
- Which are the basic VAT Rates?
- What are the goods exempted from customs duty?
- What is Cess?
- Can an assessee deduct all his personal debts from his Net wealth?
- What is Tax cascading?
PART – B
Answer any FIVE questions (5 ´ 8 = 40 marks)
- How to determine the residential status of an individual?
- Briefly explain any eight incomes that are exempt from Tax under section 10.
- Explain the bases of excise duty stating the importance of each method.
- Enumerate the types of customs import duties regulated by the Customs Act 1962.
- What is VAT? Explain the salient features of VAT.
- Explain the Law relating to the valuation of excisable goods for the purpose of charging excise duty.
- What are the deemed assets u/s 4 of the wealth Tax Act?
- Profit and Loss account of xyz (a firm of (x, y, z) for the year ending march 31 2005 is as follows:
| Rs. | Rs. | ||
| Cost of goods sold | 2,69,000 | Sales | 1,78,000 |
| Interest to partners | 64,000 | Net loss | 2,45,000 |
| Remuneration to partners | 40,000 | ||
| Other expenses | 50,000 | ||
| 4,23,000 | 4,23,000 |
Out of other expenses of Rs.50000, 18700 is not deductible under sections 30 to 37. Moreover interest to partners is not deductible to the tune of Rs.24000 u/s 40 (b). Find out the amount of net income of the firm for the assessment year 2005-06. The firm satisfies all conditions fo sections 184 and 40 (b).
PART – C
Answer any TWO questions (2 x 20 = 40 marks)
- X furnishes the following particulars of his income for the assessment year 05-06.
Profit and Loss A/c |
|||
| Salary to staff | 24,000 | Gross Profit | 3,01,000 |
| Repairs: House property
Machinery |
10,000
2,000 |
Rent of House Property Received from tenant | 27,000 |
| Municipal taxes of house property | 8,000 | Refund of deposit from a supplier | 21,000 |
| Fire Insurance: House Property
Machinery |
2,000
3,000 |
Interest on such refund | 1,000 |
| Office Expenses | 6,500 | ||
| Depreciation: House Property
Business assets |
3,000
8,000 |
||
| Interest on capital borrowed for the construction of House Property |
10,000 |
||
| Net Profit | 2,73,500 | ||
| 3,50,000 | 3,50,000 | ||
Mr. X owns a House Property, 50% of the area is let out to a tenant @ Rs.3000 per month; 25% of the area is used by X for his own Residence and the Remaining portion is used by him for his business purposes.
Determine the taxable income and Tax liability of Mr.X for the Assessment year 2005-06.
- X Ltd is a company carrying on business of construction, request you to compile wealth Tax returns and Determine Tax payable.
Rs.
- Land in rural area, it is within 5 km of Chennai
construction not permissible 92,78,600 - Land in urban area, construction not permissible 23,00,000
- Motor cars none of them is held as stock in Trade 11,30,000
- Jewelery not being held as stock in Trade 18,00,000
- Air craft for the use of directors 1,58,00,000
- Bank balance 4,80,000
- Guest house situated in rural area 8,00,000
- Flats provided to six employees (Salary of two of them
exceeds Rs.50000) 15,00,000
- Residence provide to managing Director 10,00,000
(Salary exceeds Rs.500000)
- Flats remaining unsold held as stock-in-Trade 30,00,000
- Three let out houses given on rent, value being
Rs.50 Lakhs, one of it let out for only 50 days.
The Company has taken a loan of Rs,600000, Rs.700000
and Rs.50000 for acquiring property numbers 3,5, and 10
respectively.
- a) What are the conditions to be satisfied for the levy of excise duty?
- b) Explain the procedure for the clearance of imported goods under customs Act.
Latest Govt Job & Exam Updates: