TyBcom.com Logo  
 Home >>
 
 
Direct and Indirect Taxation
Time: 3 Hours October – 2004 Marks: 100
 

N.B. :

(1)

Q.1 from Section I is compulsory carrying 22 marks.

 
 

(2)

Answer any three questions from remaining questions from Section I carrying 16 marks each.

   
 

(3)

Attempt all the questions from Section II carrying 10 marks each.

   
 

(4)

Answers to both the sections are to be written in same answer book.

   
 
SECTION – I

Q.1.

 

Mr. Wadekar gives you the following profit and loss account for the year ended 31st March, 2003.

 

Rs.

 

Rs.

To opening stock

1,60,000

By Sales

18,50,000

To Purchases

14,05,000

By Closing stock

1,08,500

To Salaries

1,84,350

By Wining from lottery

5,000

To Office expenses

70,400

By Interest on Fixed deposits with bank

15,000

To Office Rent

20,000

By Interest on RBI bonds (exempt u/s. 10)

16,000

To Staff Welfare

13,000

By Bad debts recovered

20,000

To Advertisement expenses

65,000

By Dividend from Indian companies

9,000

To Donations

10,000

   

To RDD

21,000

   

To Mediclaim insurance paid                         in cash

10,000

   

To Income tax

8,000

   

To Depreciation

20,000

   

To Net profit

37,110

   

Total

20,23,500

Total

20,23,500

Additional Information :

(a)

Advertisement expenses include Rs. 11,000 for advertisement in a soveniour of a local political party and Rs. 20,000 for introducing a new product in the market.

(b)

Donations are given for the following purpose:

Chief Minister’s Relief fund                Rs. 7,500

Donation of books to poor students    Rs. 2,500

(c)

On 10th August, 2002, furniture of Rs. 20,000 was purchased on Credit, the payment for which was made on 2nd April, 2003. The same was not recorded in the books of accounts. The rate of depreciation on furniture is 15% p.a. On other fixed assets depreciation was charged as per Income Tax Rules.

(d)

Bad Debts recovered of Rs. 20,000 were allowed during previous year 2000-01.

You are required to compute the taxable income of Mr. Wadekar for A.Y. 2003-04.

 
       

Q.2.

Mr. Kambli who is  suffering from a permanent disability received the following emoluments from BCA Ltd. his employers for last 10 years ended 31st March, 2003;

(a)

Basic Salary (Net of Profession Tax and Tax Deducted at Source)

01-04-2002 to 30-09-2002

01-10-2002 to 31-03-2003

Rs.10,000 p.m.

Rs.12,000 p.m.

(b)

Tax Deducted at Source

01-04-2002 to 30-09-2002

01-10-2002 to 31-03-2003

Rs. 600 p.m.

Rs. 700 p.m.

(c)

Professional Tax Deducted from Salary

Rs. 2,350 p.m.

(d)

Dearness Allowance

40% of basic salary

(e)

Entertainment Allowance

Rs.500 p.m.

(f)

Actual amount spent for entertainment

Rs.300 p.m.

(g)

Bonus for the year

Rs.8,000

(h)

Conveyance allowance

Rs.1,000 p.m.

(i)

Actual amount spent out of conveyance allowance

Rs. 800 p.m.

(j)

Commission from employer

1 % of turnover of Rs. 10 Lakhs achieved by him

 

(k)

He needs a personal physical attendant whose salary of Rs. 2,000 p.m. was paid by the employers.

(l)

He paid mediclaim insurance of Rs. 12,000 for himself and Rs. 5,000 for his brother.

You are required to compute his total income for the Assessment Year 2003-04

 
       

Q.3.

Mr. Balaji, an Indian Citizen and a professional cricketer toured South Africa, Australia, U.K., West Indies and Zimbabwe on various dates. The details of departure from and arrival to India are as under:

Country

Date of Departure

Date of Arrival

South Africa (for the first time)

01-03-2000

25-03-2002

Australia

15-04-2002

01-05-2002

U.K.

05-05-2002

11-07-2002

West Indies

31-08-2002

14-09-2002

Zimbabwe

01-01-2003

23-03-2003

 
       

Q.4.

Mr. Agarkar, a resident of Mumbai, is owner of three houses. House No. 1 is occupied by him for his own residence. House No.2 and 3 are let out. Following are the details of all three houses during the three years ended 31st March, 2003.

 

House No.1

House No.2

House No.3

Date of completion of construction

10-02-1997

15-03-1998

15-08-2001

Interest on construction loan

Rs. 75,000

Rs. 1,10,000

Rs. 1,20,000

Municipal Valuation

Rs. 95,000

Rs. 1,60,000

Rs. 2,25,000

Fair Rent

Rs. 1,00,000

Rs.1,80,000

Rs.2,50,000

Rent per month

--

Rs. 12,000

Rs. 20,000

Vacancy period (months)

--

(2 months)

--

Repairs charges paid

Rs. 25,000

Rs. 15,000

Rs. 10,000

Municipal taxes paid

Rs. 10,000

Rs. 16,000

Rs. 22,500

Unrealized rent of last year recovered during the year

--

--

20,000

 
   
 

Municipal taxes of House No. 2 paid on 28-03-2003 out of which 50% was borne by the tenant whereas Municipal taxes of House No. 3 were fully paid by Mr. Agarkar on 2-5-2003.

During the year he received an income tax refund of Rs. 2,600. He also received Rs. 12,000 as royalty on books.

You are required to compute his taxable income for assessment year 2003-04.

 

Q.5.

a)

Write a note on agricultural income under Income Tax Act 1961.

 
 

b)

Write any eight items of perquisites which are not taxable at all under Income Tax Act, 1961.

 
       

Q.6.

a)

Mr. Gavaskar purchased a residential house on 01-06-1979 for Rs. 1,00,000. He incurred expenses of Rs. 50,000 toward cost of improvement on 02-07-1983. The fair market value of the house on 01-04-1981 was Rs. 1,50,000. He sold the house on 10-10-2002 for Rs. 10 Lakhs. The cost of inflation index for F.Y. 1981-82 is 100, for F.Y.1983-84 is 116 and F.Y. 2002-03 is 447. You are required to compute his capital Gains for Assessment Year 2003-04.

 
 

b)

Answer ant five with brief reasons wherever necessary:

(i)

Mr. Badani who earns taxable salary from T.N.Ltd.  requests the employers not to deduct tax from his salary and offers to pay the income tax on his own. Whether it is correct?

(ii)

Mr. Raju earns Rs. 2,00,000 during Assessment Year 2003-04 as interest on PPF account maintained with state Bank of India. Whether tax needs to be deducted at source?

(iii)

Mr. Patil made a fixed deposit  of Rs. 2,50,000 in his wife’s name on which she earned an interest of Rs. 15,000. She offers the same as her income in her income tax return. Whether it is correct?

(iv)

Mr. Sachin gives a gift of Rs. 1,00,000 to his friend Mr. Vinod which he invested in Shares. The dividend on such shares is whose income?

(v)

Mr. Pawar paid life insurance premium of Rs. 10,000 on behalf of his wife and claims rebate u/s. 88. Can he do so?

(vi)

Mr. Umrigar aged 70 years claims rebate u/s. 88B against tax on long term capital gain? Can he do so?

 
       
    SECTION II  

Q.7.

a)

Define and explain the term "Dealer" as per the provisions of the Central Sales Tax Act, 1956.

 
 

b)

State with reasons whether the following person is a Dealer or not as per the

 provisions of the Central Sales Tax Act, 1956 (any two):

(i)

A film star

(ii)

A professor teaching in coaching class

(iii)

A doctor selling all kinds of medicines

   

OR

 

Q.7.

How and when the laibilty to pay tax arises unser the Central Sales Tax Act, 1959? Are there any exceptions?

 
       

Q.8.

Explain the provisions regarding Purchse Tax payable by a dealer as per the provisions of the Bombay Sales Tax Act, 1959.

 
   

OR

 

 Q.8.

(a)

Define and explain the term “Manufacture” as per provisions of the Bombay Sales Tax Act, 1959.

 
 

(b)

Explain with reasons whether the following activities are manufacturing activities or not as per the provisions of the Bombay Sales Tax Act, 1959 (ant two):

(i) Assembling TV from various parts. (ii) Polishing of furniture.  (iii) Retreading of old tyres.

 

Q.9. 

Mr. Anand is a dealer. Find out from which month he will ne liable for registration as per provisions of the Bombay Sales Tax Act, 1959. Give reasons:

Month

Year 2003

Purchases

Sales

Taxable

(Rs.)

Tax Free

(Rs.)

Taxable

(Rs.)

Tax Free

(Rs.)

April to June

3,500

18,500

2,500

14,000

July

2,500

24,000

2,000

26,000

August

3,500

52,000

1,000

65,000

September

3,00

25,000

4,000

28,000

October

4,500

72,000

2,500

75,000

November

6,000

25,000

4,500

26,000

December

9,000

75,000

7,000

84,000

 
   

OR

 

Q.9.

Sensex Marketing, a registered dealer, gives you the following details of sales:

Particulars

May 2003

Rs.

June 2003

Rs.

Gross sales including sales tax @13%(Schedule “C”goods)

2,26,000

1,13,000

Labour charges received

40,000

60,000

Sale against form 14 (excluding sales tax)

1,00,000

80,000

Resale (Schedule “A” goods)

60,000

1,00,000

Sales (Excluding sales tax) our of Maharashtra

94,000

47,000

Total Turnover

5,20,000

4,00,000

 

Compute sales tax liability under Bombay Sales Tax Act, 1959, monthwise.

Top
Concept & Design : Web1 
- Home - Notes N' Tips - University Papers - Notice Board - Discussion Forums - Career Options - Express It - Contact Us -
Copyright © 2017 TyBcom.com. All Rights Reserved.