Kurukshetra University 2007 M.Com Insurance Management Corporate Tax Planning & Management Theory - Question Paper
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Code No. 324 CORPORATE TAX PLANNING AND MANAGEMENT THEORY Paper : MC-215
Time: Thm hours I I Maximum Marks 1<
Note: Attempt any FIVE questions. Allquestions carry equ marks.
1. The total income of a lirm XYZ in which X, Y and Z, tl partners share profits and losses in the ratio of 1:2:3, w< as per P & L A/c Rs. 31,800 for the previous year 2005-06. Ift computing the total income of Rs. 31300, the following haw been debited to the P& L A/c: I
(i)S alaries of Rs. 30.000 and Rs. 20,000 to X and respectively.
(ii) Interest on capital calculated @ 20% of Rs. 3,0 Rs.14,000 and Rs. 10,500 k?X,Y and Z respectively. I
(iii) Bonus toZ Rs. 15,000.
(iv) Commission of Rs. 5,000, Rs. 12,500 and Rs. 17,500 X, Y and Z respectively.
(v) Z has borrowed capital for his investment in the fii and had paid interest of Rs. 7,500 separately to tl lender.
Compute the total income of Ihe firm and taxable income the three partners in the firm. All the pertners are worku partners. The firm fulfils the conditions of Sec. 184.
2. Compute thenel wealth nt .tinnip.iny Imhh IIm> iiiloiih.ilitm given below:
Us
(a) Bank balanu* ,inm I WM .(Kk. V(KI,(KK)
(b) Value of pi,ml ami mai hmery ftr Ihe vo.tr
ending Marih M. IK,00.(KK)
IX'btsowl on I In* m*% urilvot a how pl.ml
and machinery 8,00,000
(c) Value of invest nteuls lu*UI by Ihetoinpany I l,(K),(K)()
(d) Value ol molor carsas jht BalanieSheel
(market value Iving Rs. 5,50,000) 3,00,000
(e) Value ol land and building used as business premises including a hotel site unused for
5 years in the Delhi valued at Rs. 6,00,000 24,00,000
(f)U nrecorded cash in hand on 31-3-2006 5,000
20
3. Define'asset'under Wealth Tax Act. 20
4. (i)D iscuss the provisions of Minimum Alternate Tax
(MAT) u/s 115 jB.
(ii) Write a note on Value Added Tax (VAT). 10,10
5. What are the factors to be considered while making a lease or buy decision? When a leasing be preferred over purchase? 20
6. Writeshort noteson:
(i)Ta x Provision and Free Trade Zones
(ii) Infrastructure and Backward Areas. 10,10
7. What do you understand by Advance Payment of Tax? Explain clearly the provisions of the income Tax Act in this respect. 20
8. "Tax incentives have been provided for amalgamation to amalgamating company, Ote shareholders of amalgamating company and Ihe amalgamated company." Enumerate the incentives provided to the amalgamating company and its shareholders. 20
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