University of Mumbai 2007 B.A Economics Direct and Indirect Taxation2006 - Question Paper

Q.5 ans any 8 of the subsequent ques. with reference to Assessment Year 2005-06:- 16

Does clubbing of income include clubbing of losses also?
What is the amount of exemption available u/s. 10 when income of minor child is clubbed with the parent?
Mrs. Anuradha Patil who earns an 'Income from Business' attained the age of 65 years on 15th February, 2005. What is the maximum rebate she can claim?
Mr. Santosh Katdare has a gross salary of Rs. 96,000/- before giving any deduction u/s. 16, which is not less than 90% of his Gross Total Income. His allowable, investments for Sec. 88 are Rs. 20,000/-. He claims a rebate u/s. 88 @ 20%. Is he correct?
State whether remuneration received by a Member of Parliament is taxable as 'Income from Salary’?
Mr. Kapil Sawant purchased a flat on first June, 2002 for Rs. 4, 00,000/ and sold it on first February, 2005 for Rs. 4, 75,000/-. He claims the capital gain as 'Long Term’. Is he correct?
"Rebate u/s. 88 is available to a partnership firm". Is the statement correct?
Mr. Ameya Patwardhan has paid Medical Insurance Premium of his brother who is totally dependent on him. Can he claim deduction u/s. 80 D?
A partner has received interest on capital from his partnership firm and claims it as "Income from Other Sources". Is he correct?
Mr. Ramesh transferred his tenanted house to Mr. Rajesh and received Rs. 3, 00,000 towards transfer of tenancy rights. Is he liable for Capital Gain Tax?

Q.6 a) describe and discuss the subsequent according to the Income Tax Act, 1961. (Any two) eight

Assesses.
Assessment Year.
Person.
b) discuss the different deductions u/s. 16 of the Income Tax Act, 1961 available from 'Income from Salary' for Assessment Year 2005-06. eight

part II
Q.7 "Rates of Tax differ in varied Circumstances". discuss with reference to the provisions of Central Sales 10 Tax Act, 1956. 10
OR
discuss with reasons whether the subsequent are "Business Activities" as per the provisions of the Central Sales Tax Act, 1956.

(a) Running of a Private Engineering College.
(b) Plantation of Teak Trees.
(c) Motor car purchased for personal use.
(d) Export of Ice creams.
(e) Running of a Restaurant.
Q.8 (For REVISED COURSE)
describe and discuss the terms 'Purchase Price' and 'Sale Price'as per the provisions of the Maharashtra Value Added Tax Act.2002. 10 State with reasons whether the subsequent are 'Goods' as per the provision of Maharashtra Value Added Tax Act, 2002:
(a) newsprints.
(b) Mango Trees.
(c) Equity Share of Siemens Ltd.
(d) Residential Flat used for business.
(e) Malai Kulfi.
Q.9 (For REVISED COURSE)
Mrs. Divya commenced her business from first April, 2005. From subsequent info furnished to you by her regarding purchase and sales transactions, obtain out from which month she will be liable for Registration and to pay tax as per the provisions of Maharashtra Value Added Tax Act, 2002. provide reasons for your ans. 10
Year and Month Details of Purchases Details of Sales
Taxfree Goods Taxable Goods Taxfree Goods Taxable Goods
Rs. Rs. Rs. Rs.
April to July 2005 45,000 9,000 60,000 8,000
August 2005 1,00,000 20,000 1,20,000 25,000
September 2005 1,50,000 40,000 1,75,000 50,000
October 2005 80,000 50,000 20,000 15,000
November 2005 20,000 10,000 50,000 20,000
December 2005 1,00,000 25,000 1,20,000 40,000

OR
(9) Mr. Vinu, a Registered Dealer of a Product covered under Schedule 'E' Sells Goods for Rs. 7,50,000/-.
The purcahses needed for the product is procured from Registered Dealers within the state as under: Material X Covered by Schedule 'C' Rs. 2,00,000.
Material Y covered by Schedule 'E' Rs. 4,00,000.
Mr. Vinu had an Opening Balance (Credit) in VAT credit receivable Account of Rs. 15,000/-Mr. Vinu had utilised material Y for manufacture of Exempted Goods.
compute the tax payable under MVAT Act, 2002.

Earning:   Approval pending.