Roll No………………… | |
Time allowed : 3 hours | Maximum marks : 100 |
Total number of questions : 8 | Total number of printed pages : 5 |
PART — A | |
(Answer Question No. 1 which is COMPULSORY and any three of the rest from this part) |
1. | (a) | Prudent Ltd. intends to take a ‘keyman insurance policy’ in the name of its CEO and mentor. The company seeks your advice as to tax implications of such policy in the hands of company and the CEO. Explain. |
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(3 marks) | ||||||||
(b) | “Every assessee is a person, but every person need not be an assessee.” Critically examine the statement with reference to the relevant definitions under the provisions of the Income-tax Act, 1961. |
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(3 marks) | ||||||||
(c) | Who is responsible to collect tax at source? When tax has to be collected at source? | |||||||
(3 marks) | ||||||||
(d) | Telefast Ltd., a company providing telecommunication services, obtains a telecom licence on 20th April, 2003 for a period of 10 years which ends on 31st March, 2013 (license fee being Rs.18,00,000). Find out the amount of deduction under section 35ABB of the Income-tax Act, 1961, if—
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(3 marks) | ||||||||
(e) | Who are the persons not liable to pay wealth-tax in respect of their net wealth under the Wealth-tax Act, 1957? |
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(3 marks) | ||||||||
2. | (a) | Discuss the provisions regarding tax on income from bonds or global depository receipts purchased in foreign currency or capital gains arising from their transfer under section 115AC of the Income-tax Act, 1961. |
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(5 marks) | ||||||||
(b) | Hitesh was holding 3,000 shares in Jay Ltd., purchased by him on 8th August, 1997 @ Rs.60 per share. He gifted these shares to his girlfriend Mona on 10th February, 1998. Hitesh married Mona on 1st March, 1998. Mona was allotted bonus shares by the company at the rate of one share for every three shares held on 10th September, 2003. Mona sold all the shares including the bonus shares on 31st March, 2004 @ Rs.150 per share. State in whose hands capital gains on sale of shares is taxable. Also compute the capital gains.
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(5 marks) |
12/2004/TL | P.T.O. |
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: 2 :
(c) | Teji, a citizen of India, is an export manager of Arjun Overseas Ltd., an Indian company since 1st May, 1999. He has been regularly visiting USA for export promotion. He spent the following days in USA during the last five years :
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Determine his residential status for assessment year 2004-05 assuming that prior to 1st May, 1999 he had never travelled abroad. |
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(5 marks) | |||||||||||||||||||||||||||||
3. | (a) | Mrs. Kalyani, a retired central government employee, furnished the following particulars :
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(5 marks) | |||||||||||||||||||||||||||||
(b) | Bhaskar owns two houses and both are used by him for his own residence. He intends to treat one such house as self-occupied and the other as deemed to be let-out. Your advice is sought as to the beneficial option based on the following information for the assessment year 2004-05 :
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(10 marks) |
12/2005/TL | Contind... |
223
: 3 :
4. | (a) | An analysis of the profit and loss account and the balance sheet of kapil as at 31st March, 2004 reveals that the following expenses which were due, were though debited to the profit and loss account, but have been paid after 31st March, 2004 :
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The due date for filing of return is 31st October, 2004. In which previous years can the above payments be claimed as a deduction ? |
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(10 marks) | |||||||||||||||||||||||||||||||||||||||||
(b) | What is ‘defective return’ ? What are the consequences and remedies available where such return is a defective return ? |
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(5 marks) | |||||||||||||||||||||||||||||||||||||||||
(c) | With reference to the provisions of the Income-tax Act, 1961, critically examine the proposition that ‘the Commissioner (Appeals) has no power to decide a matter that was not raised before him’. |
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(5 marks) | |||||||||||||||||||||||||||||||||||||||||
5. | (a) | Rakshit and Co., a partnership firm, is engaged in the business of textile trading at Pune. Their minor son, Vivek has been admitted to the benefits of partnership. The abridged balance sheet of the firm as on 31st March, 2004 is as under :
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The following further information are made available :
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12/2004/TL | Contind... |
223
: 4 :
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On the basis of above information, find out the interest of all partners in the firm as on 31st March, 2004 for the purpose of computation of net wealth in their respective hands. In whose hands the net wealth of minor son will be assessed ? |
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(10 marks) | ||||||||||||
(b) | Explain the taxation aspects when a capital asset is converted into stock-in-trade. |
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(5 marks) | ||||||||||||
PART — B | ||||||||||||
(Answer ANY TWO questions from this part) | ||||||||||||
6. | (a) | Define the concept of ‘deemed manufacture’ under the Central Excise Act, 1944. Give at least six examples of the concept. |
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(6 marks) | ||||||||||||
(b) | Discuss the special provisions relating to goods imported or exported by post under the Customs Act, 1962. |
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(6 marks) | ||||||||||||
(c) | With reference to the provisions of the Central Sales Tax Act, 1956, answer the following :
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(2 marks) | ||||||||||||
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(2 marks) | ||||||||||||
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(4 marks) |
12/2004/TL | Contind... |
223
: 5 :
7. | (a) | How is customs duty levied in case imported goods are pilfered before the clearance ? |
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(6 marks) | |||||||||||||||
(b) | Shiva and Co., an assessee, transferred a consignment of 10 tons paper to the depot from Delhi to Chandigarh on 10th July, 2003 for value of Rs.12,500 per ton. The transport cost was Rs.500 per ton. The same variety and quality of paper normally being sold at Chandigarh depot on 10th July, 2003 was at a transaction value of Rs.15,000 per ton to unrelated buyers.
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(6 marks) | |||||||||||||||
(c) | Is registration under the central excise mandatory ? Who shall get registered under the central excise law ? State the procedure for obtaining registration. |
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(8 marks) | |||||||||||||||
8. | (a) | From the following information, compute the taxable turnover and tax liability of four products, namely, A, B, C and D. The State sales tax rate of Product-A is 12%, it is 8% for Product-B, Product-C is the declared good for which tax rate is 3%. The local sales tax on Product-D has been declared by the State Government generally to be 2%. Total sales value including central sales tax applicable against Form-C :
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Additional information :
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(10 marks) | |||||||||||||||
(b) | When are the goods said to be in transit within the meaning of the Customs Act, 1962 ? |
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(5 marks) | |||||||||||||||
(c) | Is there any difference between ‘baggage’ and ‘bonafide baggage’ ? Explain. |
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(5 marks) |
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12/2004/TL |