Q2(a)(i)Residential Status
4 marks medium
How is the residential status of a company determined for the purposes of Income-tax Act, 1961, for the assessment year 2016-17?
Q2(a)(ii)Definition of Assessee
4 marks medium
How is the term 'Assessee' defined under the provisions of the Income-tax Act, 1961?
Q3(a)Income Computation
0 marks easy
Compute the total income of the assessee for the assessment year 2016-17, under proper heads of income. Listed share were sold in recognized stock exchange.
Q3(a)(i)Income Tax - Political party exemption conditions
4 marks medium
State the conditions to be fulfilled by a political party for enjoying exemption in relation to certain incomes, under the Income-tax Act, 1961.
Q3(a)(ii)Income Tax - SEZ deduction under Section 10AA
4 marks medium
Mr. Suresh has set up an undertaking in SEZ (Unit A) and another undertaking in DTA (Unit B) in the financial year 2010-11. In the previous year 2015-16, total turnover of the unit A is ₹ 180 lacs and total turnover of Unit B is ₹ 120 lacs. Export turnover of Unit A for the year is ₹ 150 lacs and the profit for the unit A is ₹ 60 lacs. Calculate the deduction available, if any, to Mr. Suresh under Section 10AA of the Income-tax Act, 1961, for the Assessment year 2016-17, if the manufacturing started in Unit A in the financial year 2010-11.
Q3(b)Service Tax Computation
6 marks hard
Case: Dharmendra Ltd. gives the following particulars relating to the services provided by it to its various clients for the month of January, 2016: (i) Total bills raised for ₹17,50,000, out of which bill for ₹1,50,000 was raised on a SEZ unit for services rendered in the said unit and payment for bills for ₹2,00,000 were not received until 31-01-2016. Service tax is separately charged on the bills raised, wherever applicable. (ii) Amount of ₹1,14,500 (including service tax) was received as an advance from Ramotar Ltd. on 25-01-2016 to whom the services were provided in March, 2016. Assume that ser…
Dharmendra Ltd. gives the following particulars relating to the services provided by it to its various clients for the month of January, 2016: (i) Total bills raised for ₹17,50,000, out of which bill for ₹1,50,000 was raised on a SEZ unit for services rendered in the said unit and payment for bills for ₹2,00,000 were not received until 31-01-2016. Service tax is separately charged on the bills raised, wherever applicable. (ii) Amount of ₹1,14,500 (including service tax) was received as an advance from Ramotar Ltd. on 25-01-2016 to whom the services were provided in March, 2016. Assume that service tax is separately charged in the bills as well as for advance payment, wherever applicable. Assessee is not a small service provider. Compute: (i) Value of taxable services, (ii) Amount of service tax payable, (iii) Last date for service tax payment.
Q4(a)Income-tax Act taxability, gifts, property transfers, advanc
8 marks very hard
Discuss the taxability or otherwise in the hands of the recipients, as per the provisions of the Income-tax Act, 1961
Q4(c)VAT Computation
4 marks medium
Compute net VAT liability of Rohan from the following information for the month of February, 2016: Raw material from foreign market (including duty paid on imports @ 20%) ₹1,50,000; Raw material purchased from local market: Cost of raw material ₹3,00,000, Excise duty @ 12.5% ₹37,500, subtotal ₹3,37,500, VAT@4% ₹13,500, total ₹3,51,000; Raw Material purchased from neighbouring state (including CST @ 2%) ₹51,000; Storage and Transportation costs ₹11,000; Manufacturing expenses ₹25,000. Rohan sold goods to Arya and earned profit @ 12% on the cost of production. VAT rate on sale of such goods is 4%. There were no opening and closing stocks.
Q4bService Tax - SSP Exemption
4 marks medium
When can an assessee avail the benefit of Small Service Provider (SSP) exemption for the purposes of service tax? Name two situations in which such SSP exemption is not available.
Q4cCentral Sales Tax Act
4 marks easy
State with reason, whether the following transactions are true or false, as per the provisions of the Central Sales Tax Act, 1956:
Q5(b)Service Tax - taxable services valuation and service tax com
4 marks medium
Mandi & Co. is providing taxable information technology software services. The firm furnishes the following information relating to the services rendered, bills raised, amount received pertaining to the services, for the quarter ending 31-03-2016: Amount received being 10% of the assignment fees on 31-03-2016 for the upgradation and enhancement of the software services (including service tax): ₹ 7,00,000; Services provided to UNICEF, an international organization in Delhi, for design and programming of IT services: ₹ 4,00,000; Services provided to A Ltd. for IT services. Service Tax was not received from the client due to some dispute: ₹ 3,00,000; Services provided to B Ltd. for providing software services. However, Mandi & Co. failed to recover the service tax amount from B Ltd. due to insolvency of client. Summary of the bills (all issued in January, 2016): Charges for Software service ₹ 5,00,000, Services tax @ 14.50% ₹ 72,500, Total ₹ 5,72,500; Amount received from other clients during January to March, 2016 including service tax ₹ 70,00,000. Compute the value of total taxable services and service tax payable thereon for the quarter ending 31-03-2016 by Mandi & Co. The assessee had rendered taxable services of ₹ 110 lacs during the year ended 31-3-2015.
Q5aIncome Tax - Depreciation
8 marks hard
Venus Ltd., engaged in manufacture of pesticides, furnishes the following particulars relating to its manufacturing unit at Chennai (for the year ending 31-3-2016): Opening WDV of Plant and Machinery: ₹20 lacs; New machinery purchased on 1-9-2015: ₹10 lacs; New car purchased on 1-12-2015: ₹8 lacs; Computer purchased on 3-1-2016: ₹4 lacs. All assets were put to use immediately. Computer has been installed in the office. During the year ended 31-3-2015, a new machinery had been purchased on 31-10-2014, for ₹10 lacs. Additional depreciation, besides normal depreciation, had been claimed thereon. Depreciation rate for machinery may be taken as 15%. Compute the depreciation available to the assessee as per the provisions of the Income-tax Act, 1961 and the WDV of different blocks of assets as on 31-3-2016.
Q5bService Tax - Composition Rates
4 marks medium
Briefly explain the concessional/composition rates of service tax applicable to Air travel agents.
Q5cService Tax - Chargeability
4 marks hard
Discuss whether the following services are chargeable to service tax or not; in March, 2016:
Q6Income Tax - Brought Forward Losses, Service Tax
0 marks easy
Following are the brought forward losses: (1) Losses from owning and maintaining of race horses pertaining to A.Y. 2015-16 ₹ 2,000. (2) Brought forward loss from trading business ₹ 5,000 relating to A.Y. 2012-13. Compute the total income of Mr. Aditya and show the items eligible for carry forward.
Q6(c)Customs Duty - calculation with varying BCD rates
4 marks medium
Madhav Enterprises imported some goods from USA. The assessable value of the imported goods is ₹ 20,00,000. Compute the custom duty payable from the following additional information: Date of Bill of entry: 30-09-2015 (Rate of BCD is 10%), Date of entry inward: 25-09-2015 (Rate of BCD is 8%), C.V.D. is payable @ 12.5%, Special C.V.D. @ 4%
Q6aIncome Tax - Computation of Income
8 marks hard
Case: Loss from speculative business A: ₹25,000; Income from speculative business B: ₹5,000; Loss from specified business covered under Section 35AD: ₹20,000; Income from Salary: ₹2,50,000; Loss from House Property: ₹1,50,000; Income from trading business: ₹45,000; Long-term Capital Gain from sale of urban land: ₹2,00,000; Long-term Capital Loss on sale of shares (STT not paid): ₹75,000; Long-term Capital Loss on sale of listed shares in recognized stock exchange (STT Paid): ₹82,000
Mr. Aditya furnishes the following details for the year ended 31-03-2016
Q7Income Tax - TDS, Service Tax, CENVAT
0 marks easy
Answer any two of the following three sub-divisions (i), (ii) and (iii):
Q7(b)CENVAT credit, excise duty, service tax on input goods
4 marks medium
Yahoo Pvt. Ltd. is not a SSI unit. Determine the CENVAT credit that can be availed by Yahoo Pvt. Ltd. during the month of March, 2016.
Q7(c)Central Excise Duty, transaction value calculation, machiner
4 marks medium
Determine the transaction value and the Central Excise Duty payable of M/s. Rajiv Enterprises from the following particulars: (1) Price of machinery, excluding taxes and duties ₹6,00,000; (2) Installation and erection expenses (Machinery has been fixed to the earth) ₹35,000; (3) Packing charges (Primary and secondary) ₹12,000; (4) Design and engineering charges ₹4,500.