The Institute of Cost and Works Accountants of India 2008 Certification CWA/ICWA Applied Indirect Taxation - Test 4 - Question Paper
APPLIED INDIRECT TAXATION
Test Paper II/10/AIT/2008/T-4
Paper-10
Time Allowed-3 Hours Full Marks-100
Answer Question No. 1 which is compulsory and any 10 questions from rest. Q 1 carries 20 marks and other questions carry 8 marks each
Q1] (a) Following is information pertaining to inter-state sales effected by a registered dealer:
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Products | |||
|
L |
M |
N | |
|
Local State Sales tax |
12.5% |
8% |
2% |
|
Total sales value |
7,84,000 |
5,40,000 |
4,12,000 |
Additional information (i) In respect of product L sold in May, 2007, goods of total sales value of Rs. 67,200 were returned in July, 2007 and Rs. 44,800 in December, 2007: Rs. 56,000 were rejected and returned in January, 2008. (ii) Buyer of product N did not produce C forms. (iii) Buyer of product M for total sale value Rs. 43,200 did not furnish C form as the product was not covered in his registration certificate. - -Compute the taxable turnover and the sales tax liability of the three products L, M and N, for the financial year 2007-08.
Q1] (b) Distinguish between Zero rated sale and exempt sale with reference to Vat.
Q2] Explain restrictions on State Government on imposing sales tax.
Q3] Explain use of C, F and H form under CST Act.
Q4] What are advantage of VAT over conventional system of taxation?
Q5] Define inter-State sale and explain its ingredients.
Q6] Discuss the instances wherein the goods move out of the selling State, but do not amount to inter-State sales under section 3 of the Central Sales Tax Act, 1956. How does a dealer prima facie discharge the burden of proof that he is not liable to tax in the course of inter-State transaction?
Q7] State giving brief reasons, whether sales tax can be levied on following transactions: (i) Sale of
newspapers (ii) Giving utensils on rental basis (iii) Supply, erection, testing and commissioning of water supply line (iv) Development of software
Q8] Define works contract. Can sales tax be levied on activity of textile processing?
Q9] State correct or incorrect, giving correct legal position - All goods purchased by registered dealer are eligible for concessional rate of tax under the Central Sales Tax Act, 1956.
Q10] Explain the expression sale in the course of import. A person while returning to India from abroad purchased goods in duty free shop in the International Airport. Is he liable to pay sales tax?
Q11] Write note on Goods of special importance.
Q12] Write a note on White Paper on Vat.
Q13] write note on cancellation of registration obtained under CST Act.
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Attachment: |
| Earning: Approval pending. |
