QBService tax calculation
5 marks medium
Farm Heroes is engaged in providing services for the last five years. The value of taxable services provided by Farm Heroes during the financial year was ₹ 45 lakhs. It has received the following sums (Exclusive of service tax) in the month of January 2014. Calculate the value of taxable services and tax payable thereon for the month of January 2014.
(1) Supply of farm labour ₹ 55,000
(2) Trapping of soil of farm land ₹ 1,65,000
(3) Value of Services provided free ₹ 50,500
(4) Processing of raw material to make it fit for production and this process is not liable to Excise Duty ₹ 6,35,000
(5) Advance Received for such services (As mentioned in para 4) ₹ 2,13,000
QCVAT calculation
5 marks medium
Mr. Vijay a registered dealer from Gujarat, submits the following information pertaining to the month of January 2014.
(1) Purchase of Raw material A for ₹ 2,50,000 which was exempt from levy of VAT and utilized for production of X.
(2) Purchase of Raw material B for ₹ 7,60,000 on which VAT is paid @ 1% and utilized for the production of product Y.
(3) Purchase of Raw material C for ₹ 10,00,000 on which VAT is paid @ 12.5% and utilized 50% each for production of product Z and product E.
Q1AIncome Computation - Salary, House Property, Speculative Bus
10 marks hard
From the following details compute the total income of Kamal, A resident individual aged 54 years for the year ended 31-3-2014. Tax payable need not be calculated.
1. Salary including Dearness Allowance: ₹ 5,70,000
2. Bonus: ₹ 15,000
3. Salary to servant provided by Employer: ₹ 12,000
4. Bill paid by Employer for Gas, Electricity and water provided free of cost in his flat: ₹ 14,500
5. Cost of Laptop provided by the employer (Used both for official and personal purposes): ₹ 40,000
Additional Information:
(1) Kamal purchased a flat in a Cooperative Housing Society in Delhi for ₹ 10,75,000 in April, 2010 by taking loan from State Bank of India amounting to ₹ 5,00,000 @ 15% p.a annum interest, ₹ 65,000 from his own savings and a deposit from a Nationalized Bank in whom this flat was given on lease for 10 years at a monthly lease rental of ₹ 5,500. The outstanding amount of loan is ₹ 1,60,000.
(2) Municipal Taxes paid by Kamal ₹ 4,500 P.A
(3) Insurance in respect of the said flat ₹ 1,275
(4) Kamal earned a profit of ₹ 15,000 in share speculation business and incurred a loss of ₹ 20,200 in speculation business of cotton.
(5) In the year 2008-09, he had gifted ₹ 50,000 to his wife and ₹ 30,000 to his son who was aged 11 years then. These amounts were advanced to Mr. Mohan @ 15% per annum interest.
(6) Kamal received a gift of ₹ 25,000 each from his four friends on the occasion of his birthday.
(7) He contributed ₹ 10,500 to Public Provident Fund and ₹ 6,000 to Unit Linked Insurance plan.
(8) He deposited ₹ 60,000 in tax saver deposit with a Nationalised Bank in the name of his married son.
(9) He has taken a policy on life for his married daughter on 1-4-2013 and paid a premium of ₹ 25,000. The sum assured for policy is ₹ 2,00,000.
Q2Depreciation and asset disposal
8 marks hard
JK Ltd., a manufacturing company purchased the following Plant and Machinery:
Date of Acquisition and Installation | Actual Cost (in ₹ Crores)
25-05-2013 | 90.00
31-08-2013 | 20.00
15-04-2014 | 120.00
From the above information compute the amount of depreciation available u/s 32(1), additional depreciation, if any and deduction u/s 32 AC for the Assessment Years 2014-15 and 2015-16.
What will be the consequences of asset acquired on 31-08-2013 is sold on 01-09-2016?
Q2Revision of income return, section 80 TTA
4 marks medium
(A) Mr. Vineet submits his return of income on 12-09-2014 for AY 2014-15 consisting of income under the head house property and other sources. On 21-01-2015, he realized that he had not claimed deduction under section 80 TTA in respect of his interest earned on the Savings Bank Account. He wants to revise his return of income, since one year has not elapsed from the end of the relevant Assessment Year. Discuss.
Q2HUF taxation, return of income procedures
4 marks easy
(B) Where the Karta of an Hindu undivided family absent from India, the return of income can be signed by only male member of the family. (?) Give reasoning for the statement to be true or false.
Q3Advance tax, taxpayer liability
4 marks medium
Who is liable to pay Advance Tax? What is the procedure to compute the Advance Tax payable?
Q3AIncome Tax - Medical Benefits
8 marks hard
Mr. Rakh is an employee in a private company. He receives the following medical benefits from the company during the previous year 2013-14: (A) On treatment of his self employed daughter in a private clinic ₹ 4,000 (B) On treatment of himself by Family doctor ₹ 8,000 (C) On treatment of her Mother-in-law she dependent on her, in a Nursing Home ₹ 5,000. Discuss about the taxability of above benefits and allowances in the hands of Rakh.
Q4VAT payable calculation
5 marks medium
Particulars of Sales are:
(A) Sold X for ₹ 5,00,000 in Gujarat on which VAT is levable at 4%.
(B) Sold Y for ₹ 6,00,000 in Gujarat on which VAT is levable at 0%.
(C) Sold Z for ₹ 4,00,000 in Delhi @ CST 2%.
(D) Sold E for ₹ 12,00,000 which is exempt from levy of VAT.
Assuming there is no opening and closing inventory, calculate the amount of VAT payable for the relevant month.
Q4Service tax valuation, foreign exchange transaction
4 marks medium
Ajit who entered into a roll over contract, approached ABC Bank Ltd for selling US $2.6000 at the rate of ₹60 per US dollar. RBI Reference rate at that time was ₹60.50 per US Dollar. However the rate of exchange declared by CBEC for the day is ₹61.50 per US dollar. Calculate the value of taxable service with reference to rule 28 of the service tax (Determination of value) Rules, 2006 and Service Tax payable thereon.
Q5(C)VAT - Input Tax Credit
4 marks easy
State with reasons whether the following statements are true or false with reference to the credit of VAT:
Q5BService Tax
4 marks medium
Raj Associates is a consultancy firm. During the financial year 2013-14, it received ₹ 18 lakh as professional fee on which tax has been deducted u/s 194 J. You are required to compute the value of taxable service and service tax liability of Raj Associates for the year 2013-14 assuming that the receipt is inclusive of Service Tax.
Mr. Javed, a resident of Delhi for a calendar year, sold goods in a retailer Mr. Mohan for ₹ 5,500. The wholesaler sells goods to a retailer Mr. Mohan for ₹ 6,000 who inturn sells it to end user for ₹ 7,000. Compute the VAT liability, input credit availed and tax payable by the manufacturer, wholesaler and retailer under invoice method assuming: (i) VAT Rate is 12.5% (ii) Input on excluding VAT component.
Q6(A)Income Tax Computation
4 marks medium
Mr. Garg, a resident individual, furnishes the following particulars of his income and other details for the previous year 2012-13: Income from Salary: ₹15,000; Income from Business (before providing expectation): ₹60,000; Long-term capital gain on sale of Land: ₹10,800; Loss on maintenance of Race Horses: ₹15,000; Loss from Gambling: ₹9,100. The other details of unabsorbed depreciation and brought forward losses pertaining to Assessment Year 2013 are as follows: Unabsorbed depreciation: ₹11,000; Loss from Speculative business: ₹22,000; Short term capital loss: ₹9,800. Compute the Gross total income of Mr. Garg for the Assessment Year 2014-15 and the amount of loss, if any, that can be carried forward, or not.
Q6(B)Section 80 CCG - RGESS
4 marks hard
Case: Ris, Horna and Raj, three new retail investors under Rajiv Gandhi equity savings scheme
Ris, Horna and Raj, three new retail investors, have made the following investments in equity-oriented fund of Rajiv Gandhi equity savings scheme for the previous year 2013-14: [Investment in listed Equity Shares: Ris ₹50,000, Horna ₹23,000; Investment in equity oriented Mutual Funds: Ris ₹10,000, Horna ₹12,000, Raj ₹55,000; Cross total income: Ris ₹10,80,000, Horna ₹11,50,000, Raj ₹12,60,000]. Calculate the amount of deduction allowable under section 80 CCG in all the three cases for the Assessment Year 2014-15. What would be the Tax-treatment in the hands of Raj, if he sells his investment in the Financial Year 2014-15?
Q6(C)Service Tax - Taxable Event
4 marks medium
Mr. X provides some taxable services to Mr. Y. In the course of providing such services, Mr. X incurs some expenditure such as travelling, Telephone, etc. and includes these amounts in the value of taxable services. Discuss whether Service Tax has to be charged on these items of expenditures. Will your answer be different if Mr. X indicates these items separately in the invoice?
Q6(D)VAT Administration
4 marks medium
Invoices are crucial documents for Administering VAT. Discuss.
Q6BService Tax
4 marks medium
Explain the provisions regarding adjustment of Excess amount of Service Tax paid in case of renting of Immovable Property Service, owing to Property Tax Payment.
State the circumstances under which VAT registration can be cancelled.
Q7TDS provisions, tax deduction at source
4 marks medium
Answer any two of the following three sub-divisions. (a) What are the provisions relating to tax deduction at source with respect of: ABC and Co. Ltd. paid ₹19,000 to one of its Directors as sitting fees on 01-01-2014. (b) Mr. X sold sub House to Mr. Y on 01-02-2014 for ₹60 lacs ?
Q12VAT calculation, input tax credit
4 marks medium
(C) Mr. X furnishes the following particulars for the month of December 2013. Compute the VAT payable and input tax carried forward to Next period, if any. Inputs purchased during the month (from within state) (inclusive of VAT 12.5%): ₹2,25,000; Raw Material purchased intra state (including CST 2%): ₹51,000; Transportation charges: ₹35,000; Balance of VAT Credit as on 1-12-2013: ₹6,700. 90% of the stock was sold during the month at the profit of 20% on cost. Assume there was no opening stock of goods. The VAT Rate on sale is 4%.