Institute of Chartered Financial Analysts of India (ICFAI) University 2008 C.A Accounts -PCC--08_ – 5 TAXATION.doc - Question Paper

provided above.
The other details of unabsorbed depreciation and brought forward losses are:
Rs.
(i) Unabsorbed depreciation 9,000
(ii) Loss from speculative business 16,000
(iii) Short term capital loss 7,800
(iv) Unrealised rent 17,000
calculate the gross total income of Mr. P, for the Assessment year 2008-09, and the
amount of loss that can or cannot be carried forward. (6 Marks)

(b) Mr. Prasad is the Karta of Hindu undivided family. The family declares gross total
income Rs. 4,00,000 for the assessment year 2008-09. The gross total income includes
taxable long term capital gain Rs. 65,000 and short term capital gain Rs. 35,000 which is
taxable @ 10% under part 111A of the Income-tax Act, 1961. The details of HUF fund
investment made during the year 2007-08 are:
Rs. Rs.
(i) Amount deposited in public provident fund in the name of
members of HUF
10,000
(ii) Medical insurance premium paid by cheque –
a) in the name of Karta 4,000
(b) in personal name “Prasad” 5,000 9,000
(iii) Contribution made to –
(a) Indira Gandhi Memorial Trust 7,000
(b) Delhi University (declared as an institution of national
eminence)
3,000
(c) Zila Saksharta Samiti 5,000
(d) An approved charitable institute 30,000
(e) Government for the purpose of promoting family planning 10,000
(f) Hanuman Temple in Mohalla 20,000 75,000
calculate the total income of HUF chargeable to tax for the Assessment year 2008-09 (8 Marks)

ques. 5

ans any 4 of the subsequent 5 sub-divisions with regard to the provisions of the Incometax
Act, 1961:

(a) Mrs. X, an individual resident woman, wanted to know whether income-tax is attracted on
sale of gold and jewellery gifted to her by her parents on the occasion of her wedding in
the year 1979 which was purchased at a total cost of Rs.2,00,000?

(b) Can an Assessing Officer make a request for withdrawal of approval which was granted
to an institution by the National Committee for carrying out any eligible project or
scheme, under part 35AC of the Income-tax Act, 1961?

(c) discuss the concept of “Marginal Relief” under the Income-tax Act, 1961.
(d) Briefly discuss provisions of part 80U of the Income-tax Act, 1961, in respect of
deduction available on permanent physical disability.

(e) discuss with brief cause whether the return of income can be revised under part
139(5) of the Income-tax Act, 1961 in the subsequent cases:
(i) Defective or incomplete return filed under part 139(9).
(ii) Belated return filed under part 139(4).
(iii) Return already revised once under part 139(5).
(iv) Return of loss filed under part 139(3). (4 x four = 16 Marks)

ques. 6

ans any 5 of the following:

(a) Can we say that levy of VAT will have effect on retail price of goods?

(b) discuss as to how and when the amendments made in Finance Bill, in respect service tax
matters come into force?

(c) Who is responsible to pay service-tax when the recipient of sponsorship services is
located outside India?

(d) Whether “free services” after sale of motor vehicles, provided by the authorized dealers, for
which they are reimbursed by the vehicle manufacturers, are subject to service tax?

(e) Who is liable to pay E-payment of service tax?

(f) Whether life insurer carrying on life insurance business has choice to compute service
tax at various rate? (2 x5 = 10 Marks)

ques. 7
(a) Mr. X, the owner of a property had entered into an agreement with a bank. The
agreement was entered into on first April, 2007 to provide ground floor of the property on rent
on monthly rent of Rs. 75,000 p.m. The bank had taken the property for commercial
purpose. discuss whether Mr. X is liable to pay service tax on the transaction with bank?

(b) Mr. Y, a consulting engineer raised a bill of Rs. 2,24,720 (including service tax) on his
client for consulting services rendered by him in the month June, 2007. A partial
payment of Rs. 1,68,540 was received by Mr. Y in the month March, 2008. calculate the
service tax amount payable by Mr. Y and the due date by which service tax can be
deposited. (3 x two = six Marks)

ques. 8

ans any 3 of the following:

(a) Can service-tax return be revised by a person?

(b) discuss “Input Tax Credit” in situation of VAT.

(c) elaborate the exceptions to input tax credit?

(d) elaborate the due dates for payment of Service tax? (3 x three = nine Marks)

Earning:   Approval pending.