NMIMS University 2006 Diploma Business Administration Corporate Taxation (Direct & Indirect) - Question Paper

NARSEE MONJEE INSTITUTE OF MANAGEMENT STUDIES [DEEMED UNIVERSITY]
DISTANCE LEARNING PROGRAMME
DBM/DHRM/DFM/DMM/PGDBM/PGDHRM/PGDFM/PGDMM (FIRST YEAR)

CORPORATE TAXATION

Date: 24.5.06 Marks : 100
Time: 2.00 to 5.00 p.m.
CORPORATE DIRECT TAXES

ans any 4 of the 5 ques.
every ques. carries equal marks. Total Marks (50).
State ques. Numbers clearly in left margin
Total pages in this ques. Paper = two (two)

1. Write a note to your top management on (a) Tax benefits of infrastructure projects u/s 80IA and (b) Special Economic Zones

2. Is it necessary for governments to collect taxes? What is role of taxation in fiscal policy?

3. discuss the salient features of Short Term and Long Term Capital Gains. provide illustrations to support your explanation.

4. discuss the features of International Taxation and Tax Treaties.

5. You are the Income Tax Officer assessing the Income Tax Returns of Gadbad Limited. On scrutiny of the records, you come across the following:

- An equipment purchased for Rs. two lakhs has been debited to the P&L Account as Purchases.

- A machine has been comprehensively overhauled, involving an expenditure of Rs.5 lakhs. The overhaul increases the capacity by 20% and enhances the asset life by five years. The overhauling costs have been debited to repairs and maintenance.

- Loans have been received to the extent of Rs.15 lakhs. It is suspected that these amounts are unaccounted sales, disguised as disguised. Your suspicions are confirmed when the lender are untraceable and no TDS of interest payments are recorded.

- Closing inventories have been valued at Rs. 12 lakhs as at 31.3.2005. The stock statements submitted to the banks total to a value of Rs. 15 lakhs.

- Interest cost includes interest of Rs.1 lakh paid to a bank on behalf of a group company that has a weak financial position.

discuss the tax treatment in respect of every of the above, giving sound reasons.


CORPORATE INDIRECT TAXES

part II

Note :
I. ans Any 4 ques..
II. All ques. carry 10 marks every.
III. Total number of ques. are Eight.

Q1. Write short notes on ANY TWO

a) MRP under part A of CEA 1994 .
b) Appeal to CESTAT.
c) Appeal to commissioner (Appeals).
d) Appeal to Supreme court and High court under CEA 1944.

Q2. explain briefly the “Service tax”.

Q3. explain briefly the salient features of Custom Act 1962.

Q4. explain briefly the Central Excise evaluation Rules 2000.

Q5. explain briefly the import and export procedures under the Customs Act 1962.

Q6. explain briefly the salient features of Central Excise Act 1944.

Q7. Write short notes on ANY TWO.

a) Inter-State sale.
b) Customs Tariff Act 1975.
c) Declared goods.
d) Central Excise Tariff Act 1985.

Q8. State whether the subsequent statements are actual or False.

a) VAT is a single point tax.
b) CST covers only those sales which are taxable under part 3(a) and 3(b) of CST.
c) Branch transfers are exempt under CST.
d) Section – three of CST overrides part – 4.

Earning:   Approval pending.