- JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
END SEMESTER EXAMINATION – SEPT/OCT. 2015
MCOM – III SEMESTER
P114305: INDIRECT TAXATION
Duration :3 hours Max Marks:100
Section – A
I .Answer any SEVEN questions. Each carries 5 marks (7×5=35)
- What are the guidelines for determination of date for Rate of Duty and Tariff Valuation of Imported and exported Goods.
- Explain briefly any five mega exemptions in the context of services.
- How is point of taxation determined under RULE 3 of the POT RULES, 2011?
- How many kinds of registrations are available under VAT? Explain briefly.
- Distinguish between transshipment and transit of goods.
- Write a note on Form C, Form D, Form E(i),form H, Form I.
- Explain with examples, what is ‘not sale at the time of removal of goods’?
- ABC Ltd manufactures two products A and B. Product A is specified under section 4A of CEA, 1944. Permissible abatement is 40%. The MRP of the product is Rs. 40 per unit. The company has cleared 300000 units of this product. Compute Basic excise duty and cess on the same. The company also cleared 200000 units of Product B, which is sold at Rs. 50 per unit inclusive of excise duty @12% plus cess@3%, and CST @2%. Calculate excise duty liability in the case of Product B.
- Cum duty sale price of a product ( excluding sale tax) is Rs. 1000. The manufacturer is allowing trade discount of Rs. 50. The excise duty rate is 10% plus cess as is applicable. Calculate Excise duty payable per piece.
- Explain with a court decided case law, the significance of “Trade Parlance” in classification of goods.
Section – B
- II) Answer any THREE questions. Each carries 15 marks. (3×15=45)
11 (a) Explain the terms derelict, floatsam goods under customs act 1962,in India. Briefly explain import procedure. Compute CIF value for the following :
FOB Yen 200000
Freight Yen 20000
Design charges Yen 1500
Loading and unloading Yen 2500
Insurance not ascertainable.
(b) Product X is taxable @ 5.5% and Product Y is taxable @14.5%. Product X is sold for Rs. 100,000 and Product Y for Rs. 50,000. Total input tax credit is available for Rs. 5,000. What would be the net VAT payable?
12 (a) Discuss following service taxability provided:
- Basic mail services by Government services Rs 1,00,000
- ii) Transfer of money by Government services through money order Rs 5,00,000
iii) Operations of saving accounts Rs. 1,50,000
- iv) Rural postal life insurance services Rs. 1,50,000
- v) Distribution of mutual funds 2,00,000
- vi) Collection of telephone and electricity bills Rs 50,000
(b).Compute the taxable services and service tax liability:
- Entry fees received for cultural programme =Rs 5 lakhs.
- Receipts on account of standlone ride in a mall =Rs 20lakhs.
- Receipts of video exhibition= Rs 2 lakhs.
- Auxillary services provided in the capacity of the manager=15 lakhs.
- Receipts from Appu circus=10 lakhs
- (a) 1500 pieces of a Product A were manufactured during the financial year. Its list price (ie. Retail price) is Rs. 250 per piece, exclusive of taxes. The manufacturer offers 20% discount to wholesalers on the list price. During the year, 840 pieces were sold in wholesale, 510 pieces were sold in retail, 35 pieces were distributed as samples. Balance of 115 pieces werein stock at the end of the year. The rate of duty is 10% plus cess as applicable. Compute the total duty payable during the financial year.
(b) Price of X is Rs. 100 if sold from the factory at Ahmedabad, Rs. 120 ex-depot Mumbai and Rs. 130 ex- godown of consignment agent at Chennai. M/s ABC Ltd, sold 200 pieces from factory at Ahmedabad on 30-10-2001. On the same day, 30 pieces were cleared for Mumbai depot and 70 pieces were cleared for Chennai godown of consignment agent. The prices are exclusive of taxes. What is the assessable value in each case?
- (a) A, the assesse sold certain goods to G Ltd for Rs. 17000 on 29.2.2011. The buyer is a related person as defined u/s 4(3)(b) of the CE act. The buyer did not sell the goods but used it as an intermediary product. The cost of production of the goods was Rs. 16000. What will be the assessable value? What would be the assessable value if the goods were sold to an unrelated person for Rs. 20,000 who also used it as an intermediary product.
(b) “For a process to be termed as manufacture, it must result in a commodity, that has become fit for commercial use, owing to a particular process” – explain the above with case laws.
- Explain with relevant case laws, when “goods” acquire the character of “excisable goods”
Section – C
III) Compulsory questions. (20 marks)
- a) Determine the amount of service tax payable @14% for the following details, certain services have become taxable for the first time on 1-07-2015 :
| Invoice no. | Date of provision of service | Value of taxation | Date of service | Date of receipt of payment |
| 1 | 01.06.2015 | 10,00,000 | 25.06.2015 | 30.06.2015 |
| 2. | 01.06.2015 | 15,00,000 | 30.06.2015 | 05.07.2015 |
| 3. | 30.06.2015 | 25,00,000 | 14.07.2015 | 30.06.2015 |
| 4. | 01.07.2015 | 10,00,000 | 30.07.2015 | 15.07.2015 |
| 5. | 15.06.2015 | 25,00,000 | 15.06.2015 | 30.06.2015 Rs 10,00,000
15.07.2015 Rs 15,00,000 |
| 6. | 1.07.2015 | 30,00,000 | 16.07.2015 | 30.06.2015 |
- b) Compute import duties of customs from the following data:
Machinery imported from USA by air US$ 3000
Accessories US$ 2000
Air freight US$ 100
Insurance Rs 45000
Customs duty on machine 10% ad valorem
Additional customs duty 8%
- c) Write a note on registration procedures under VAT. Explain the term ‘ TIN’ and why is beneficial to take a registration.
- d) Briefly explain any 5 duties under customs Act.
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