University of Delhi 2010-2nd Year M.Com Commerce PRINCIPLES AND PRACTICE OF TAXATION AND INDIAN TAX PLANNING UNIVERSITY - exam paper

This question paper contains 7 printed pages]

Your Roll No

6485

M.Com./II    J

COURSE 447PRINCIPLES AND PRACTICE OF TAXATION AND INDIAN TAX PLANNING (Admissions of 2008 and before)

Time 3 Hours    Maximum Marks 75

WW : 3    yvifa : 75

Note The maximum marks printed on the question papr are applicable for the candidates registered with the School of Open Learning These marks will, however, be scaled down proportionately in respect of the students of regular colleges, at the time of posting of awards for compilation of result

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Note Answers may be written either in English or m Hindi, but the same medium should be used throughout the paper

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Attempt All questions All questions carry equal marks

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Explain the following concepts

()    Minimum Alternate Tax (MAT)

()    Tax capitalization

(c) The neutrality approach to taxation frHfafei Ube*R135 We    _:

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Distinguish between *

(a)    Tax Evasion and Tax Avoidance

(b)    CENVAT and VAT

(c)    Vertical and Horizontal Equity

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(a)    Explain the objectives of India's Tax Policy Do they satisfy the canons of taxation ⁹

(b)    What is the rationale of distinguishing income m the form of income from agriculture and non-agricultural income for income tax purposes in India ⁹ What problems are involved m levying tax on agricultural income ⁹

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(a)    Tax reform is a process and not an event Explain

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(b)    Both direct and indirect taxes are needed to make up an equitable and adequate tax system Illustrate this statement m the Indian context

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3. (a) What is incidence of a tax ^? What factors determine incidence of income tax and custom duties ⁰

(6) Explain the modern concept of incidence as propounded by Richard A Musgrave

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()    Explain the theory of federal finance Describe briefly the important features of existing financial relations between the Centre and the States in India

()    Review briefly the mam recommendations of the Twelfth Finance Commission regarding Centre-State financial relations

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(a)    Explain the tax ciedit method of alleviating international double taxation

(b)    What do you understand by ^ktaxable capacity ⁹ On what factors does it depend ⁹

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()    Consider the desirability of different rate of tax on distributed and undistributed profits

()    Would you expect a tax on profits to have disincentive effects ⁹ Give reasons for your answer

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5 Write notes on any two of the following

()    Buoyancy and elasticity of a tax system

()    Transfer pricing

(c) Progressive, proportional and regressive taxes

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Attachment: university-of-delhi-2010-m-com-commerce-35601-1.pdf

Earning:   Approval pending.