LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

M.Com. DEGREE EXAMINATION – COMMERCE

TH 45

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)

 

1. How is residential status of a company determined?
2. Distinguish between Direct and Indirect Taxes.
3. What are the constitutional provisions relating to excise duty?
4. What is excisable goods?
5. What are the objectives of customs duty?
6. Which are the basic VAT Rates?
7. What are the goods exempted from customs duty?
8. What is Cess?
9. Can an assessee deduct all his personal debts from his Net wealth?
10. What is Tax cascading?

 

PART – B

Answer any FIVE questions                                                              (5 ´ 8 = 40 marks)

 

11. How to determine the residential status of an individual?
12. Briefly explain any eight incomes that are exempt from Tax under section 10.
13. Explain the bases of excise duty stating the importance of each method.
14. Enumerate the types of customs import duties regulated by the Customs Act 1962.
15. What is VAT? Explain the salient features of VAT.
16. Explain the Law relating to the valuation of excisable goods for the purpose of charging excise duty.
17. What are the deemed assets u/s 4 of the wealth Tax Act?
18. 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)

 

19. 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.

 

20. X Ltd is a company carrying on business of construction, request you to compile wealth Tax returns and Determine Tax payable.

Rs.

1. Land in rural area, it is within 5 km of Chennai
   construction not permissible                           92,78,600
2. Land in urban area, construction not permissible 23,00,000
3. Motor cars none of them is held as stock in Trade 11,30,000
4. Jewelery not being held as stock in Trade 18,00,000
5. Air craft for the use of directors 1,58,00,000
6. Bank balance 4,80,000
7. Guest house situated in rural area 8,00,000
8. Flats provided to six employees (Salary of two of them

exceeds Rs.50000)                                                                      15,00,000

9. Residence provide to managing Director 10,00,000

(Salary exceeds Rs.500000)

10. Flats remaining unsold held as stock-in-Trade 30,00,000
11. 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.

 

21. a) What are the conditions to be satisfied for the levy of excise duty?
22. b) Explain the procedure for the clearance of imported goods under customs Act.

 

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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

TH 43

M.Com. DEGREE EXAMINATION – COMMERCE

SECOND SEMESTER – APRIL 2007

CO 2950 – BUSINESS TAXATION

 

 

Date & Time: 26/04/2007 / 1:00 – 4:00      Dept. No.                                           Max. : 100 Marks

 

 

SECTION – A

Answer ALL questions:                                                                        ( 10 x 2 = 20 )

 

1. Distinguish Direct Tax from Indirect Tax.

 

2. What is the Rule pertaining to the manner of payment of duty as referred in Central

Excise Rules.

 

3. M/s. XYZ Distillery purchased yeast from the market and mixed the same with

Molasses .The  mixture called wash is used for production of alcohol. M/s. XYZ

contends that ‘wash’ is not excisable as it has no shelf-life of more than 8 hours.

Please offer your considered views with the help of decided case law.

 

4. Define ‘Duty’ under the Customs Act.

 

5. Find the customs duty payable from the following particulars :

– Customs value (Assessable value) of imported goods is Rs.3,00,000.

– Customs duty payable 50%

– Had the goods been produced in India the excise duty payable would have been
10%

 

6. What are the conditions a firm should fulfill under section 184?

 

7. State the basic conditions to determine residential status of an Individual.

 

8. Who are exempted from paying Wealth Tax?

 

9. State the maximum permissible limit on remuneration to partners of a firm
   carrying on Profession.

 

10. Give an account of various professions which have been referred to in section
    44AA.

 

 

 

 

 

 

 

 

 

 

 

 

SECTION – B

Answer any FIVE questions:                                                                    ( 5 x 8 = 40 )

 

11.  Define the term ‘Goods’ under Central Excise Act.

 

12. How would you arrive at the assessable value for the purposes of levy of excise
    duty from the following particulars :

Cum-duty selling price exclusive of sales tax	Rs.10,000
Rate of excise duty applicable to the product	15%
Trade discount allowed	Rs.1,200
Freight	Rs.750

 

13. Bring out the salient features of Refund procedures under Customs Act.

 

14. What is VAT? What are its objectives?

 

15.What is Agricultural income? Is income from agriculture fully exempt from tax in

the hands of all the assesses? Explain the provisions of income tax Act relating to

agricultural income.

 

16. Xerox ltd. Is engaged in the business of carriage of goods. On April 1,2006 it owns 10 trucks (of which 6 are heavy goods vehicle). On may 6, 2006 one of the heavy goods vehicles is sold by X Ltd. to purchase a light goods vehicle on may 10^th 2006 which is put to use only from June 17,2006. Find out the net income of Xerox Ltd. for the assessment year 2007-08 taking into account the following data:

 

Freight collected                     Rs.8,90,000

Operating expenses                 Rs.6,40,000

Depreciation                           Rs.1,90,000

Other expenses                        Rs.15,000

Net profit                                Rs.45,000

Other income                          Rs.70,000

 

17.What are deemed assets  under section 4 of the wealth tax Act? Explain .

 

18. Surian Ltd. is owning the following assets on the valuation date. It seeks your help to determine wealth tax payable.
19. Cash balance as per cash book Rs.47,000
20. House (value Rs.20 lakhs) allotted to its director whose gross salary is

Rs.8,50,000 p.a  and another house( value Rs.15 lakhs) allotted to an
employee whose gross salary is Rs.4,85,000 p.a

iii. Motor cars used for the purpose of running them on hire Rs.50 lakhs.

( loan borrowed to acquire cars Rs.10 lakhs)

1. land in Chennai with construction approval Rs.28,00,000

( loan borrowed to acquire the above Rs.12,00,000)

1. land purchased in1995 for industrial purpose (which remain unused)

Rs.16,00,000.

1. Bank balance as per pass book Rs. 5,70,000

 

SECTION – C

Answer any TWO questions:                                                                 ( 2 x 20 = 40 )

 

19. (a) Discuss the amendments made by the Finance Act, 2006 with reference to the

Customs Act.

(b) What are the reasons for prohibiting imports / exports under the Customs Act.

 

20. Profit and loss a/c of X Co.(a firm of X, Y and Z which satisfies all conditions of sections 184 and 40(b) ) for the year ending March 31,2007 is as follows :

Rs.                                                                   Rs.

Cost of goods sold                  7,90,000          Sales                                        13,50,000

Remuneration to partners                                Rent of house property

X                     1,50,000                    (half portion)                      50,000

Y                     1,00,000          Interest on debentures(non-

Z                         55,000                         trade investment)          60,000

Fringe benefit tax                         8,000

Interest to Partners @ 13.5%

X                        40,000

Y                        10,000

Z                         60,000

Municipal tax of house

Property (entire property)            5,000

Other expenses                        2,10,000

Net profit                                   32,000

———–                                                              ———-

14,60,000                                                          14,60,000

————                                                             ———-

Other Information:

1. Out of other expenses, Rs. 48,500 is not deductible under section 36,37(1) and 43B.

 

2. On January 15, 2007, the firm pays an outstanding sales tax liability of Rs.2,922 of the previous year 2004 – 05.As this amount pertains to the previous year 2004 – 05, it has not been debited to the aforesaid profit and loss account.

 

3. Z is not a working partner.

 

4. The firm owns a house, the ground floor is used for business purposes, and the first floor is given on rent. Municipal tax is paid on May 10,2007.

 

Find out the net income of the firm (and tax treatment of the payment to partners in their hand) for the assessment year 2007- 08.

 

 

 

 

 

 

 

 

 

 

 

21. 21. X furnishes the following particulars of his income relevant for the assessment year 2007-08:

Profit and loss account for the year ending March 31, 2007

Rs                                                        Rs

Salary to staff                                     15,000   Gross profit                           4, 86,000

Advertisement                                                  8,000   Rent of house property            24,000

Repairs to house property                     2,000   Dividends from a foreign

Company         12,500

Municipal tax of house property           3,000   Profit on sale of import

License           63,800

Fire Insurance:

• House property 1,600
• Office and go-down 2,000

Office expenses                            4,500

Life insurance premium

on own life policy                         3,000

Depreciation:

• House property 6,000
• Business assets           13,400

Wealth tax                                     6,000

Patent rights (1/2 of Rs.70,000

being cost of such right

acquired on April 6,2006)             35,000

 

Income tax penalty                               1000

Interest on capital borrowed:

• For business 3,800
• For reconstruction

of house property                     5,000

 

• For investment in shares 2,000

 

Rent paid to X (for using 25 percent

Portion for business purposes)            10,000

Net profit                                            4,65,000

———–                                              ————

5,86,000                                              5,86,000

———–                                              ————

X owns a house property (outside the jurisdiction of any Rent Control Act), erection of which was completed in March 1998. There are three residential units in the house. Unit 1 (consisting of 50 per cent of the carpet area) is let out to a tenant at Rs.2,000 per month. Unit 2 (25 percent of the carpet area) is used by X for own residential purposes. Unit 3(25 percent ) is utilized by him for his business purposes. Determine the taxable income and tax liability of X for the assessment year 2007 -08.

 

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RO 44

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

M.Com. DEGREE EXAMINATION – COMMERCE

SECOND SEMESTER – APRIL 2008

CO 2950 – BUSINESS TAXATION

 

 

 

Date : 02-05-08                  Dept. No.                                        Max. : 100 Marks

Time : 1:00 – 4:00

PART – A

 

Answer ALL questions. Each carries TWO marks.                            (10×2=20 marks)

1. State the Basic conditions to determine the residential status of an Individual.
2. Define ‘Duty’ under Customs Act.
3. What are the functions of Customs Houses?
4. What is the meaning of Zero Rating under VAT?
5. The Karta of a HUF goes to a foreign country for the first time on 20^th April, 2004. He returns to India on 10^th July 2006. During this period, he managed the affairs of the business owned by the HUF from there. Determine the residential status of HUF for the P.Y 2006-07.
6. What are the two conditions should be satisfied for the levy duty under central excise?
7. Distinguish Professional income from Salary Income.
8. Define the term ‘Block of Asset’.
9. What is Net Wealth?
10. From the following information find out the value of Jewellery as on 31-3-2007:

Value of Jewellery determined by a registered values and accepted by the department as

on 31-3-2006.

Gold 2000gm @ Rs. 900 per gm        ———–          Rs. 18,00,000

Value of gems and pearls set in ornaments                 Rs.   2,00,000

on 31-03-2007 the rate of gold is Rs. 950 per gm.

 

PART – B

Answer any FIVE questions. Each carries EIGHT marks.                   (5×8=40 marks)

1. Explain the Assets exempted from wealth Tax.
2. Explain the objectives of VAT.
3. What are the different types of Customs Import duties?
4. From the following information computer depreciation allowable to XY&Co. for the A.Y. 2007-08.

Assets                                                              W.D.V. as on 1-4-2006

Rs.

a)	Computers                   ………………………………………….	1,40,000
b)	Type writers                ………………………………………….	30,000
c)	Furniture & fittings     ………………………………………….	1,00,000
d)	Office building           ………………………………………….	5,00,000
e)	Staff quarters – Area not exceeding 80 sq. metre ………..	15,00,000
f)	Sold old office building for Rs.15 lakhs and purchased a new office building for 40 lakhs in Dec. 2006
g)	Purchased books for professional Purposes	40,000

 

1. How would you treat the following under Wealth Tax Act:

• Ram gifted to his daughter-in-law jewellery worth Rs. 1 lakh in May 1972.

The jewellery is held by her on 31-03-2007 and its value on valuation date is 5 lakhs.

• Shyam gifted to his daughter-in-law jewellery worth Rs.2 lakh in 1999. The jewellery is held by her on 31-3-2007 and its value on the valuation date is Rs. 2,50,000.
• A minor son Shyam of Mr. Krishnan received jewellery worth Rs. 1,00,000 from his maternal uncle as a gift.
• Ganesh formed a trust in 2001 for the benefit of his daughter-in-law. He transferred his urban land valued at Rs. 20 lakhs to the trust? The income from land will be available to the daughter-in-law for her whole life.

 

1. The business income of a firm before charging the following is Rs.2,20,000:

Rs.

• Remuneration to working partners as per deed ……..                    1,20,000
• Brought forward business loss ………………………… 1,50,000
• Unabsorbed depreciation ……………………………….. 50,000
• Unabsorbed capital expenditure on Scientific Research 30,000

Compute the total Income of the firm.

1. Mr. X is a registered medical practitioner. He keeps his books on cash basis and his summarized cash account for the year ended 31^st March 2007 is as under:

Rs.                                                            Rs.

To Balance b/d  ……….	1,22,000	By cost of medicines	10,000
To loan for Private Purpose	3,000	By Surgical equipment	8000
To sale of medicines	25,250	By motor car	1,20,000
To consultation fees	1,55,000	By car expenses	6000
To visiting fees	24,000	By salaries	4,600
To interest on Govt.bonds	4,500	By rent of dispensary	1,600
To Rent from property	3,600	By General expenses	300
		By personal expenses	1,11,800
		By Life insurance premium	3,000
		By interest on loan	300
		By insurance of property	200
		By Balance c/d ……………..	71,550
	3,37,350		3,37,350

Compute is income from profession taking into account the following

information:

• 1/3 of motor car expenses are in respect of personal use
• Depreciation allowable on motor car and surgical equipment is

15%.

1.  Define Agricultural Income and Partly Agricultural Income with illustrations.

 

PART – C

 

Answer any TWO questions . Each carries TWENTY marks. (2×20=40marks)

1. Y Ltd is engaged in the construction of residential flats for the valuation date

31-03-2007 furnishes the following data and requests you to compute taxable wealth and tax payable.                                                                                               Rs. (in lakhs)

(a).	Land in Urban Area (construction not permitted)	20
(b).	Motor Cars (in the use of the Company)	5
(c).	Jewellery (Investment)	10
(d).	Cash balance (As per books)	2
(e).	Bank Balance (As per books)	3
(f).	Guest House 9situated in Rural Area)	4
(g).	Residential flat occupied by M.D. (Annual remuneration of whom is Rs.6 lakh)	8
(h).	Residential house let out for 100 days in the year	7
(i).	Loans obtained:

For purchase of motor car                                   2

For purchase of Jewellery                                   2

The reason for inclusion or exclusion should be stated.

1. C Ltd is a company in which public are substantially interested. It should a net profit of Rs. 3,35,000 during 2006-07. Scrutiny of the accounts revealed the following:

Debits to P & L A/C

1. Donation paid to approved public charitable trust Rs. 20,000
2. Provision for income Tax Rs. 1,00,000
3. Family planning expenses Rs. 25,000
4. Capital expenditure on family planning Rs. 1,00,000

Credits to P & L A/C

1. Bad debts allowed earlier recovered during the year Rs. 10,000
2. Interest on Bank deposits Rs. 30,000
3. Long term capital gain Rs. 1,00,000
4. Dividend from Indian Company Rs. 20,000 (Gross)

There was @ unabsorbed depreciation of Rs. 35,000 and @unabsorbed capital loss of Rs.40,000 brought forward.

Compute the total income of the company for the A.Y. 2007-08.

1. Write about the significant changes made in the Duty Drawback Rules of 1995.

 

 

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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

M.Com. DEGREE EXAMINATION – COMMERCE

SECOND SEMESTER – APRIL 2011

CO 2953 – BUSINESS TAXATION

 

 

Date : 07-04-2011             Dept. No.                                        Max. : 100 Marks

Time : 1:00 – 4:00

 

SECTION – A                     Answer ALL questions                             ( 10 x 2 = 20 )

 

1. Define person as per Income Tax Act.

 

1. Give any four examples of inadmissible expenses under the head business and profession.

 

1. Identify any two differences between Direct Taxes and Indirect Taxes.

 

1. Define Factory under Excise Duty?

 

1. Give any four arguments in favour of Value Added Tax.

 

1. Sri. Y has the following incomes for the previous year ending on 31^st March 2010.

Income from salary in India from a company                        Rs.50,000

Dividend from a Indian company received in England and spent there Rs.10,000

Income from house property in India received in Pakistan     Rs.20,000

Dividend from a foreign company received in England and deposited in a bank there
Rs.10,000. Compute the GTI, if he is (i) ROR, (ii) RBNOR and (iii) NOR.

 

1. What are the assets exempt from Wealth Tax?

 

1. WDV of block of plant and machinery on 1-4-2009 was Rs.5,95,000.  During the year 2009-10 a new item costing Rs.1,50,000 was acquired in May 2009 and an item was sold on 15-9-2009 for Rs.79,000.  Calculate the WDV of the block of assets given the depreciation rate at 15% in relation to assessment year 2010-11.

 

1. Calculate the customs duty payable from the following details:

Customs Value (A.V.) of imported goods Rs.5 lakh, custom duty payable 60%. Had the goods been manufactured in India, the exercise duty payable would have been 20%.

 

10. Rao has a brand name PQ. He gets the goods manufactured from Mr.X under the brand name PQ at Rs.30 per article.  Mr.Rao sold the goods at Rs.50 per article.  Assuming that the rate of excise duty is 20%, compute the assessable value and excise duty payable.

 

 

 

 

 

 

 

SECTION – B                  Answer any five questions                                ( 5 x 8 = 40 )

 

11. Identify the points on which an individual is taxed as ROR, RBNOR and NOR.

 

12. What are the rules pertaining to registration of manufacturer under Excise Duty?

13. Briefly explain the salient features of White Paper on VAT

 

14. The total income of A Ltd. Computed under the Income Tax is Rs.5,00,000. However, the Book profit of the company calculated under section 115 JB amounts to Rs.24,50,000. Calculate the tax liability of company for assessment year 2010-11.

 

15. Discuss how the following items are to be dealt with in the Income Tax assessment:

(a) Payment in U.K. of salaries and interest amounting to Rs.80,000 and Rs.30,000 respectively without deduction of tax at source;

(b) income tax paid on behalf of a non resident in respect of whose income the assessee was assessed as agent;

(c)Expenditure incurred outside India to promote the sales of the company although no sale was made during the accounting year;

(d) Provision of Rs.2,80,000 for doubtful debts.

 

16. Compute the Net wealth and wealth tax liability of ABC (P) Ltd. for the assessment year:
17. Gold jewellory 50,00,000
18. Stock of gold and silver 20,00,000
19. Purchase of land for factory              60,00,000
20. Motor cars 5,00,000
21. Show room and business office 18,00,000
22. Residential bungalow at Chennai 20,00,000
23. Loan taken to purchase gold for trade 15,00,000
24. Bonds of public sector co. 20,000
25. Cash in hand as per cash book 1,00,000

 

17. How much to pay as VAT, if the rate is 10% in the following cases –

(a) purchase price Rs.100 and sale price Rs.120

(b) purchase price Rs.200 and sale price Rs.250

 

18. A new industrial undertaking set up on 1-4-2009 has acquired following assets as per dates mentioned against each:

Assets	Date of acquisition	Date of use	Cost  (Rs.)	Rate of depreciation
Machinery	31.3.2009	5.9.2009	6,00,000	15%
Electric motor	1-7-2009	1.10.2009	78,000	15%
Plant	12.11.2009	15.12.2009	12,00,000	15%

Calculate amount of written down value as on 1.4.2010.

 

 

 

 

 

 

SECTION – C                Answer any TWO questions                           ( 2 x 20 = 40 )

 

19. From the following particulars compute the net wealth and wealth tax liability of a Resident Indian citizen :

		Rs.
(1)	Self-occupied property	14,00,000
(2)	Let-out house property for residential purposes for the whole previous year	15,00,000
(3)	Let-out house property for residential purpose for eight months and self-occupied for four months during the previous year	15,00,000
(4)	Cash in hand	1,70,000
(5)	Jewellery held for personal use	25,00,000
(6)	Flat in Delhi used as business office	10,00,000
(7)	Shares in companies	4,00,000
(8)	Motor car for personal use	1,80,000
(9)	Fixed deposit in the name of minor son	2,00,000
(10)	Flat in London	10,00,000
(11)	Unused land in Chennai acquired on 1.6.2003 and held for industrial purpose	10,00,000
(12)	Loan taken for purchase of jewellery	10,00,000

 

20. Aswath Pvt Ltd. furnish the following information:

Interest on securities (computed)                                            Rs.10,000

Income from house property (computed)                               Rs.20,000

• Textile manufacturing

Profit as per P&L account before depreciation Rs.2,00,000

Depreciation Rs.95,000

• Hosiery manufacturing

Profit as per P& L account before depreciation Rs.75,000

Depreciation Rs.18,000

Agency business loss brought forward from 2003-04 Rs.18,000

Income from other sources Rs.25,000

Book profit u/s 115 JB Rs.7,00,000

Compute the total income and tax liability for the assessment year 2010-11.

 

21. A, B and C are partners in a firm assessed as firm sharing profits and losses in the proportion of 3:2:1. The firm’s profit and loss account for the year ended 31^st March, 2010 showed a net profit of Rs.1,17,360 after debiting the following amounts:

1. salary of Rs.4,000 paid to C (only C is a working partner)
2. rent of Rs.9,000 paid to A for the portion of building owned by A in which the firm’s office was situated
3. interest on capital at 10% is Rs.1,000; Rs.2,000 and Rs.3,000 to A, B and C respectively
4. Commission on sale to B Rs.1,000
5. Expenses on current repairs of the business premises belonging to partner A Rs.1,000. The rent agreement does not contain any provision regarding repairs by the firm
6. Donation to approved bodies Rs.5,000

The net profit included Rs.10,400 from interest on government securities. Compute firm’s total income for the assessment year 2010-11.

 

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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

M.Com. DEGREE EXAMINATION – COMMERCE

SECOND SEMESTER – APRIL 2012

CO 2953/2950 – BUSINESS TAXATION

 

 

Date : 26-04-2012             Dept. No.                                        Max. : 100 Marks

Time : 9:00 – 12:00

 

SECTION – A                                Answer ALL questions                                                 ( 10 x 2 = 20 )

 

1. Give any two differences between Capital and Revenue Expenditure.

 

1. From the following, find the amount deductible as  expense for the previous year 2010 – 11.

Bonus of Rs.1,40,000 relating to the previous year 2010-11 was payable to employees in December 2010 but was distributed in instalments on 1-12-2010 Rs.50,000; on 1-6-2011 Rs.50,000 and balance of Rs.40,000 was paid on 1-11-2011. The date of filing of return is 31-10-2011.

 

1. Identify which of the following income is taxable in the hands of (a) Resident, (b) Resident and Not ordinary resident and (c) Not ordinary resident:

• Income accrued in India
• Income received outside India from the business controlled from India
• Income accrues from outside India from the business controlled outside India
• Non business income received from outside India

 

1. What are entities not liable to tax under the Wealth Tax Act?

 

1. Which of the following is an asset under the Wealth Tax Act and why?

• Resident house held as stock in trade
• Motor car used for transporting employees

 

1. Enumerate any cannon of taxation and explain.

 

1. How ‘dutiable goods’ is defined under Customs Act?

 

1. Calculate the customs duty payable from the following details:

Customs Value (A.V.) of imported goods Rs.5 lakh, custom duty payable 60%. Had the goods been manufactured in India, the exercise duty payable would have been 20%.

 

1. Mr. X went to West Germany for diploma course on 5^th August 2010 and came back to India on 25^th February 2011. He had never been out of India before. What is his residential status for the year ending on 31^st March 2011?

 

1. The net profit of a partnership firm is Rs.45,000, after providing interest and salary to partners.  The firm has a working partner who draws remuneration of Rs.1,00,000. He get interest at 15%, which amounts to Rs.75,000. Calculate the taxable income.

 

 

SECTION – B                  Answer any five questions                                  ( 5 x 8 = 40 )

 

11. Discuss in detail, the provision of Minimum Alternative Tax under section 115JB.

 

1. What are the ‘assets’ identified by the Wealth Tax under section 2(ea)?

 

1. What are the provisions relating to small scale industries under the Excise Duty?

 

1. What are the different types of customs Import Duties?

 

1. Write a note on CENVAT.

 

1. Mr. B purchased on 30^th April 2010, a new machine at a cost of Rs.1,00,000. In bringing it to factory site he incurs expenses on clearing, freight and loading and unloading amounting to Rs.5,000, Rs.1,000 and Rs.500 respectively. In installing the machine a further cost of Rs.10,000 is incurred. It is then found that a part is broken and in repairing such broken part an additional expenditure of Rs.7,500 becomes necessary. Ultimately on 31^st January, 2011 the machinery is ready for use and is actually brought into use on that day. If the rate of depreciation is 15%, determine the actual cost of the machinery for purposes of depreciation and also the amount of written down value as on 31^st March 2011.

 

1. From the following detail, compute taxable wealth:

• Land in urban area (construction not permitted as per municipal law) 20 lacs
• Motor car (in the use of company) 5 lacs
• Jewellory (investment) 10 lacs
• Cash balance (as per books) 2 lacs
• Bank balance (as per books) 3 lacs
• Guest house (situated in rural area) 4 lacs
• Residential flat occupied by Managing Director 8 lacs

(annual remuneration of whom is Rs. 6 lacs)

• Residential house let out for 100 days in the financial year 7 lacs
• Loan obtained – for purchase of motor car Rs. 2 lacs and for purchase of

Jewellery Rs. 2 lacs.

 

1. Mr. Amy is the seller, Mr. Bali is the buyer and Mr. Camy is the consumer, assuming the sale price of the goods fixed as Rs.100 and the VAT rate charged is 12.5% and Rs.10 is retained as profit, find the Net VAT payable by each parties.

 

SECTION – C                          Answer any TWO questions                          ( 2 x 20 = 40 )

 

19. What is the law relating to valuation of excisable goods for the purpose of charging excise duty?

 

20. M/s. Vijay Traders Ltd. is a company has derived the following incomes:
21. Profit from the manufacturing unit at Madurai 3,20,000
22. Profit from trading activities at Madurai 1,00,000
23. Interest on debentures issued by another company 25,000
24. Dividend from a foreign company 10,000
25. Profit from hotel business 2,10,500

(Depreciation Rs.60,000)

1. f) Royalty income received from foreign company 2,10,000
2. g) Brought forward unabsorbed depreciation 39,000
3. h) Book profit of the company as per sec.115JB 25,00,000

you are required to calculate total income and tax liability of the company.

 

21. From the following compute the net wealth and tax liability for the assessment year:

Land in rural area (within 5 kms of Aligarh – purchased in 1993)

Construction on which is permissible                                                             Rs.90 lacs

Land in urban area (for construction of mall)                                                  Rs.20 lacs

Land in urban area (held as stock in trade since 1993)                                    Rs.50 lacs

Motor car (including one imported car worth Rs. 6 lacs)                                 Rs.11 lacs

Jewellory (held as stock in trade)                                                                     Rs.18 lacs

Aircraft for use of directors and auditors                                                         Rs.158 lacs

Bank balance                                                                                                   Rs.5 lacs

Cash in balance as per cash balance                                                                Rs.2.70 lacs

Guest house and land appurtenant thereon in rural area                                              Rs.8 lacs

Residential flats of identical size provided to six employees

For their use near factory in rural areas (salaries of two such

Employees exceed Rs. 5 lacs p.a)                                                                    Rs.15 lacs

Residence provided to managing director (salary exceed

Rs.5 lacs p.a)                                                                                                   Rs.10 lacs

Flats constructed remaining unsold (not held as stock)                                                Rs.30 lacs

Residence provided to whole time director (salary

Rs.15,000 p.m)                                                                                                            Rs.17 lacs

The company has taken the following loans –

1. For purchase of jewellory   6 lacs
2. For purchase of aircraft 7 lacs
3. For flats constructed remaining unsold 2 lacs
4. For residence provided to whole time director 9 lacs

 

 

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