University of Mumbai 2006 B.A Economics Direct and Indirect Taxation omber - Question Paper

Mr. Sharad Bhide paid a Medical Insurance Premium to GIC of Rs. 6,000/- in cash on 15th February, 2005. Can he claim deduction U/s 80 D?
Mr. Manoj Shinde is physically handicapped (45%) as certified by medical authorities. He claims a deduction of Rs. 75,000/- U/s 80U Is he correct?
Mr. Shrinivas Gupte purchased a residential flat on first January, 2002 and sold it on 30th Dec, 2004. He claims the capital Gain as Long term. Is he correct?
Mr. Narayan has attained the age of 65 years on 15th November, 2004. Can he claim rebate U/s 88?
Mr. Kartik donated clothes and grains worth Rs. 25,000 to an approved Charitable Institution on 16th March, 2005. Can he claim deduction U/s 80 G?
Mr. Yogesh Datey has provided his commercial property on rent of Rs. 1,00,000 p.m. He claims this as a business income. Is he right?
An Indian Company has its entire business in London. What is the residential status of the Company?
Mr. Mohan, son of Mr. Yeshwant, completed age of 18 years on 31st March, 2005. He earned Rs. 20,000 as interest on fixed deposits during the previous year 2004-05. In whose hands the income will be taxed?
Mr. P. has debited Rs. 20,000 as sales-tax to his P & L A/c which is unpaid till the due date of filing of his Income-tax return. Can he claim this as a allowable deduction?
Q.6 (a) describe and discuss the subsequent according to the Income Tax Act, 1961 (any two): eight
Person.
Previous Year.
Assessee.
(b) discuss the deductions u/s 24 available from income from House property for assessment year 2005-2006. eight
part – II
Q.7 (a) discuss when is a Sale or Purchase of Goods stated to take place outside a state as per the provisions of the Central Sales Tax Act, 1956. 10
OR
(a) describe and discuss the term 'Dealer' as per the provisions of the Central Sales Tax Act, 1956.
(b) State with reasons whether the subsequent persons are dealers as per the provisions of the Central Sales Tax Act 1956:
(i) Company Secretary in Practice.
(ii) Excise Consultant.
(iii) Trader in Computers.
Q.8 discuss "Value Added Tax" (VAT) briefly. elaborate the benefits derived from VAT? 10
OR
discuss with reasons whether the subsequent are 'Sales' as per the provisions of the Maharashtra Value Added Tax Act, 2002.(10)

(a) Sale of scrap by a scrap dealer.
(b) Mortgage of land.
(c) Sale of liquor.
(d) Consultancy given by a Chartered Accountant.
(e) Sale of 2nd hand furniture by a dealer in furniture.

Q.9The subsequent info regarding the turnover of purchases and sales transactions is submitted by Mr. Hrishikesh, who started business on first May, 2005. obtain out whether as per the provisions of the MVAT Act 2002, he is liable for registration and payment of Tax. provide reasons for your ans. (10)

Year & Month Details of Purchases Details of Sales
Within state Outside the State Taxfree Goods Taxable Goods
2005 Taxfree Goods Taxfree Goods Taxable Goods Rs. Rs.
Rs. Rs. Rs.
May 90,000 4,000 5,500 85,000 4,000
June 1,02,000 3,500 3,500 1,50,000 3,500
July 1,50,000 6,000 2,500 1,75,000 1,500
Aug. 1,10,000 2,500 4,000 1,00,000 3,000
Sept, 1,75,000 1,500 3,000 2,50,000 3,500

OR
A dealer purchases the:-
Particular Total
Rs. Input Tax
Rs. Net Purchases
Rs.
4% VAT Goods 7,80,000 30,000 7,50,000
12.5% VAT Goods 15,75,000 1,75,000 14,00,000
VAT Exempt Goods 1,50,000 NIL 1,50,000

Additional Information:
(a) VAT payable on sales made during the month is Rs. 3, 27,500/-.
(b) During December, 2005, the dealer utilized 4% VAT Goods costing Rs. 1, 50,000/- as input for manufacturing Exempted Goods.
(c) On first December, 2005 there was an opening balance of Rs. 10,000/- in VAT Credit Receivable/set off Account.
(d) The dealer has received a refund fo Rs. 2,500/- out of VAT credit Receivable Account.
Prepare a statement of calculation of Tax to be paid under the provisions of Maharashtra Value Added Tax Act 2002.

Earning:   Approval pending.