Ranchi University 2009 M.B.A Corporate Tax FM (3102) - Question Paper

Full marks: 70 Time: three hours

Candidates are needed to provide their answers in their own word as far as practicable

The figures in the margin indicate the full marks.

ans any 5 ques. including Q. No. one which is compulsory.

1. India sugar Co. Ltd. Is registered as a private company in India. The company manufactures and
sells sugar. The profit and loss account of the company for the year ending 31st march, 2008
disclosed profit of Rs. 5, 00,000 only. This was arrived after debiting the subsequent expenses:
(a) Expenses incurred on the cultivation of 2,000 quintals of cane.
The avg. market price is Rs. 40 per quintals Rs.80,000.
(b) Expense incurred on the salaries and wages Rs 2,000
(c) Pension paid to Mr. James a retired employee residing in Kenya with no income Tax deducted at
source. Rs 3,000
(d) Depreciated debited Rs 5,000
(e) Legal expenses incurred on income tax appeal debited to profit and loss account Rs. 25,000
(f) Bad debts previously written off and allowed ad deduction recovered in the year but not
shown as receipt in profit & loss account Rs. 30,000
(g) Allowable depreciation on new machinery needed and installed in the month of July, 2006
Rs. 3,65,000
calculate the total income tax of the company for the assessment year 2008-09. [Marks 14]

2. elaborate the rules regarding set off and carry forward of loss of a company? [Marks 14]

3. elaborate the deductions allowed to company out of gross total income? [Marks 14]

4. Write short notes on the following: [Marks 14]
(a) Tax on distributed dividends
(b) Minimum option Tax

5. elaborate the different kinds of companies? discuss [Marks 14]

6. elaborate the deductions the company assesses are entitled to claim under part 80 of income
tax act? [Marks 14]

7. Distinguish ranging from the following: [Marks 14]
(a) Tax avoidance and tax evasion
(b) Tax planning and Tax management

8. Determination of total income of a company depends upon its residential status.
Elucidate. [Marks 14]

9. What is book profit? How is it computed? explain the provisions regarding its
adjustments. [Marks 14]
10. calculate the tax payable by a company for the assessment year 2008-09 if: 14
(a) Its total income is Rs. 4,00,000 and book profit is Rs. 18,00,000.
(b) Its total income is Rs. 5,50,000 and book profit is Rs. 14,50,000.

Earning:   Approval pending.