- JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
End Semester Examinations – OCTOBER 2014
m.com – III semester
INDIRECT TAXATION
Duration: 3 Hrs Max. Marks: 100
Section – A
- Answer any SEVEN Each carries 5 marks. (7 x 5 = 35)
- Explain whether packing, relabeling and branding amounts to manufacture?
- Explain briefly the significance of trade parlance test with respect to classification of excisable goods under the central excise act, 1944.
- Explain briefly the various type of duties on which cenvat credit can be taken in terms of Rule 3(1)of Cenvat Credit Rules,2004.
- Explain briefly the provisions of Rule 19 of the Cenvat Credit Rules, 2004. Regarding export without payment of duty to a place other than Bhutan.
- What do you mean by point of taxation? How is it determined?
- Explain negative list in respect of renting of immovable property.
- Explain briefly transaction value of identical goods (Rule 4) and similar goods (Rule 5) .
- Briefly explain transshipment and transit of goods.
- Explain Goods under VAT. Also define Capital Goods under VAT.
- Explain due date of payment of service tax payment in case of LLP, Companies, Individuals and Public or Private limited companies.
Section – B
- Answer any THREE Each carries 15 marks. (3 x 15 = 45)
11) (a) Enumerate the procedure for e-payment of service tax .
(b) Calculate service tax on following after considering the provisions of TDS
- i) Architect fees of Rs 4, 48,500 .
- ii) Commercial rent of a building situated in Chennai at Rs 16,85,400 per
12) Define “Input services “as per Cenvat Credit Rules,2004.Explain whether the following eligible for Cenvat Credit:
- a) Technical testing and analysis services.
- b) Commission paid to foreign agents
- c) Transportation of employees
- d) Landscaping of garden
- e) Telecommunication services to MD’s residence.
13) Compute the service tax liability
- a) Commission from acting as clearing and forwarding agents :Rs 3 lakhs.
- b) Commission from acting as commission agent of agricultural produce :Rs 14 lakhs.
- c) Commission from acting as commission agent of consumers goods Rs 10
- d) Margin earned from trading in derivatives Rs 3 lakhs.
- e) Margin earned from trading in futures Rs 4 lakhs.
14) C Ltd imported a lift from England at an invoice price of Rs 20 lakhs. The assessee had supplied raw materials worth Rs 5 lakhs to the supplier for the manufacture of said lift. Due to safety reasons ,the lift was not taken to jetty .This costed extra Rs 25,000 as unloading charges. The importer was also required to pay ship demurrage charges of Rs 10000.The lift was imported at an actual cost of Rs45000 and an insurance charges of Rs 20000.Compute the assessable value.
15) Compute net VAT liability from the following information:
| a)Raw material form the foreign market Rs 120000 |
| b) Raw material form the local market Rs 250000+ |
| Excise duty 40000+ |
| VAT @4% 11600 |
| c) Raw material form the neighboring state Rs 51000 |
| d) Storage and transportation cost Rs 9000 |
| e)Manufacturing expenses Rs 30000 |
The assessee sold goods at a profit of 12%on cost of production. Vat rate is 4%.
Section – C
- Compulsory Case study. (1 x 20 = 20)
- a) Explain briefly how value is to be determined for the purpose of rule 4 of the Central Excise Act,1944.
- b) From the following calculate the Assessable value.
| Manufactures units | 1000 |
| Cleared for sister concern units | 800 |
| Stock lying units | 200 |
| Direct material | Rs 2,20,600 |
| Direct labour | Rs 1,60,000 |
| Works overhead | Rs 40,000 |
| Research and development | Rs 25,000 |
| Administration overhead | Rs 80,000 (75% related to production) |
| Input received | Rs 35,000 |
| Abnormal loses | Rs 24,000 |
| VRS compensation to employees | Rs 1,20,000 |
| Realisable value of scrap | Rs 20,000 |
| Selling cost | Rs 36,000 |
- c) Comment on the case law:
“Clearance of one type of retail pack for repacking into another type of retail pack known as assorted pack” cannot be said to be a wholesale package.