Rashtrasant Tukadoji Maharaj Nagpur University 2009-2nd Sem M.B.A Financial Management Nagpur s :- s-09 - Question Paper

MDN/KS/09 - 1877
Second Semester Master of Business Administration (M. B. A.) exam
(New Course)
(Group - B)
FINANCIAL MANAGEMENT
Paper - I
(Corporate Taxation)
Time : 3 Hours I [ Max. Marks : 80

N. B. :(1) Attempt 5 ques. atleast 2 ques. from every part are compulsory. (2) All ques. carry equal marks.


part A
1. elaborate the various categories of Assessee divided with regard to residence : discuss the incidence of residence on tax liability.
2. The Profit and Loss Account of XYZ Ltd, for the year ended 31'1 March, 2008 indicates a net profit of Rs. 15,00,000. The credits and debits in the profit and Loss account include the subsequent items among others :­

Credits : Rs.
(i) Dividend from an Indian
company (Gross) 1,00,000
(ii) Net Rent from House
property (let out to outsiders) after debiting repairs Rs. 1000 and municipal . tax Rs. 3,000
Debits :
(i) Provision for Taxation _ 20,00,000
(ii) Salary-to sales manager, @Rs.
8500 per month, cost of perquisites allowed to him
Rs. 14,000 for.the year. 1,16,000
(iii) Cost of maintenance of a liaison
office in New York for promoting
exports. 60,0()0
(iv) Legal expenses for contesting a
suit for eviction from a
premises used as a show room 3,000
(v) Expenses for obtaining a loan
from a financial institution for
acquiring new maehin--ry. 20,000
(vi) Amount embezzled b,• the
cashier of the companv,
which is irrecoverable 15,000
The company has distribution dividend Rs. 9,00,000 on 16.10.2007
calculate the income from Business of the company for the assessment year 2008-09.
3. Mr. P. Bros. Chennai running an industrial undertaken were ordered by city corporation, Chennai to shift their unit from urban area of chennai. They shifted their concern during 2007-08and in the process sold a few of the assets whose details are provided beneath.


Assets
Acquired in P&M
1989
Rs. Land
June 1983
Rs. Building
1989
Rs.
Sale proceeds 10,00,000 8,00,000 12,00,000
W. D. V. on 1. 4. 2007
[cost u/s. 50(2)] 4,40,000 - 7,32,500
Cost of acquisition 6,00,000 1,40,000 10,00,000
Amount invested
during Dec. 2006
due to shifting 8<00,000 2,00,000 5,00,000
calculate the taxable capital gain for the assessment year 2008-09 (C • 1• 1• for 1983-84 is 116; 198'8-89 is 161 ; 2007-08 is 551).
4. elaborate the provisions governing the set-off of losses ?
o. While commencing a new business what factors should be kept in mind for taking decision regarding the form of organisation so that he gets the maximum tax facilities and concessions ?

part B
6. discuss constitutional provisions authorising the levy and collection of duties of Central Excise, Customs and Central Sales Tax.
7. elaborate the steps involved in classifying products in Central Excise % discuss the provisions regarding Recovery and Refund of duties.

8. State the history objects and main features of Central Sales Tax Act 1956.
..9) What is Value Added Tax : discuss in detail Value Added Tax on sale or purchase of goods under State Sales 'Fax Act 1959.
10. What do you mean by `Custom duty' : Write nature and kinds of custom duty in India.

Earning:   Approval pending.