| 1. | (a) | Fill in the blanks: | | |
| | | (i) | Under section 194–I of the Income–tax Act, 1961 the rate at which tax has to be deducted at source is _______ per cent for the use of any machinery and _______ per cent for the use of land owned by a firm. | 2 | (0) |
| | | (ii) | The expenses relating to special audit under section 142 (2A) of the income–tax Act, 1961 is payable by _______ . | 1 | (0) |
| | | (iii) | Subsidy received from Govt. which is directly relatable to an individual clearance is _______ (includible/not includible), since _______ (state brief reason). | 2 | (0) |
| | | (iv) | Steamer agents can file application for entry outwards _______ days in advance. | 1 | (0) |
| | (b) | State with reasons whether True or False: | 2x7 | |
| | | (i) | A computer manufacturer purchases mouse and sells them to buyers of personal computer, along with the computer. The value of the mouse does not form part of assessable value of the computer for excise duty purpose, chargeable to duty at 10%. | | (0) |
| | | (ii) | Import report in case of a vehicle is to be submitted prior to the arrival at customs station. | | (0) |
| | | (iii) | Only ‘branded’ software are regarded as ‘goods’ under the Central Sales Tax Act, 1956; ‘unbranded’ software is not so regarded. | | (0) |
| | | (iv) | The maximum amount which an eligible assessee can invest in long–term specified assets like NABARD Bonds for claiming exemption under section 54EC is fifty lakhs rupees. | | (0) |
| | | (v) | Where an application for settlement of a wealth tax case is rejected by the Settlement Commission, the information furnished in the settlement application are confidential and cannot be made use by the WTO in any subsequent proceeding. | | (0) |
| | | (vi) | Additional duty of customs u/s. 3(5) of the Customs Act is payable only on import of industrial products and not on import of agricultural products. | | (0) |
| | | (vii) | Central Government is empowered to publish names and other particulars of defaulters of central excise. | | (0) |
| 2. | Krishnan (HUF) furnishes the following particulars of income and expenditure for the year ended 31.3.2008: | Rs. | | Rs. | To staff salaries
„ Mediclaim premium
„ Life Insurance Premium
„ PPF
„ Loss under short–term capital gain
„ Net Surplus | 2,40,000
18,000
80,000
22,000
40,000
5,20,009
9,20,009 | By Gross Profit from own business
„ I.T. refund
„ Interest on bank deposits
„ Interest accrued on PPF
„ Share income from firm
„ Interest on Capital from firms. | 7,00,000
14,000
10,009
14,000
92,000
90,000
9,20,009 |
The following additional information are available: | (a) | I.T. refund includes interest of Rs. 1,000. | | (b) | Assessee is a partner in a firm Hema & Co. in which Mr. Sugavanam, the kartha represents the HUF. Interest on capital is at the rate of 15%. In addition to share income and interest on capital, Mr. Sugavanam who is a working partner in the firm, was paid a salary of Rs. 2,40,000 by the firm. Another working partner was paid a salary of like amount. Under section 40(b), the amount deductible in the firm’s hands in respect of salary to working partners, may be taken as Rs. 3,60,000. Mr. Sugavanam is not a senior citizen. | | (c) | Mr. Sugavanam runs his own individual business. For the year ended 31.3.2008, the result of the said business are:
Unabsorbed depreciation ............................ Rs. 50, 000
Unabsorbed business loss ............................ Rs. 40,000.
Mr. Sugavanam had received interest on bank deposits to the tune of Rs. 30,000.
Compute the total income of Krishnan (HUF) and Mr. Sugavanam (individual) for the assessment year 2008–09, and the tax payable. |
| 16 | (0) |
| 3. | From the following information pertaining to Vivitha Petrochemicals Ltd. for the year ended 31.3.2008, compute the tax liability for the company under section 115–JB of the Income Tax Act, 1961 (you may ignore computation as per normal provisions): | (a) | The net profit of the company, after the adjustments/information given hereinafter, is Rs. 30 crores. | | (b) | FBT paid by the assessee is Rs. 50 lacs. | | (c) | Provision for income–tax of current year Rs. 8 crores, Deferred tax Rs. 2 crores. | | (d) | Depreciation debited to the P & L A/c is Rs. 2.3 crores. This includes depreciation on account of Revaluation of assets to the tune of Rs. 50 lacs. A sum of Rs. 30 lacs was withdrawn from the Revaluation Reserve and credited to the P & L A/c. | | (e) | Assessee sold shares held in A Ltd. for 12 months, for Rs. 20 crores. STT on sale was 0.1%. The same had been purchased 3 years back for Rs. 12 crores (excluding STT of 0.075%) Brokerage of 10 lacs was paid on sale. The Profit arising from sale was not credited to the P & L A/c, but taken directly to Capital Reserve Account.
(All workings may be in Rupees in crores) |
| 16 | (0) |
| 4. | (a) | "Short–term capital loss can be set off only against short–term capital gains" Discuss. | 6 | (0) |
| | (b) | Mr. A has the following assets on 31.3.2008: | Assets | Market Value
on 31.3.2008
Rs. lakhs | Loan outstanding
on 31.3.2008
Rs. lakhs
(loans taken to
acquire the asset) | Security given
for taking
the Loan | Gold and silver
Shares
Residential House A
Residential House B
Commercial House C (used for carrying
on own business)
Boat
Motor cars
Bank deposit
Residential House D (Let out throughout
the Financial Year 2007–o8)
Commercial complex (having 20 offices) | 80
10
50
42
95
8
11
1
55
190 | 6
3
4
38
5
12
1
1
40
100 | Shares
House B
Gold
Personal
Personal
Gold
Silver
—
House D
Commercial
complex |
A also took a bank loan of Rs. 75,000 against the security of his car for his friend’s marriage. Out of the Rs. 12 lakh loan taken by him for purchasing the boat, he utilized Rs. 1 lakh for his foreign visit. Compute the net wealth for assessment year 2008–09. | 10 | (0) |
|
| 5. | (a) | Explain highlights of new section 14 of Customs Act for valuation of imported goods. | 8 | (0) |
| | (b) | Deepak Bazar Ltd., a trading company, supplies fabrics to an independent processor. The cost of fabrics supplied is Rs. 8,150. The job worker charges Rs. 4,500 which includes Rs. 3,500 as processing charges and Rs. 1,000 as its profit. Deepak Bazar Ltd. sells the goods from the factory of job worker at Rs. 18,000. The rate of excise duty is 14% plus education cess as applicable. Determine the assessable value of the goods. | 8 | (0) |
| 6. | (a) | Explain the non–applicability of "transaction value" with reference to section 4 of the Central Excise act, 1944. | 8 | (0) |
| | (b) | Discuss various circumstances where the small scale exemption will be available to the manufacturer of excisable goods bearing the brand name of another person. | 8 | (0) |
| 7. | (a) | Discuss the principles relating to "Promissory Estoppel". | 8 | (0) |
| | (b) | Enumerate transactions, which are not ‘sale’ for purposes of CST Act. | 8 | (0) |
| 8. | Write short notes on any four of the following: | 4x4 | |
| | (a) | (i) Customs Port, (ii) Goods, both with reference to Customs Act. | | (0) |
| | (b) | Dutiability of waste and scrap. | | (0) |
| | (c) | Conditions for allowing deduction of bad–debts under Income Tax Act. | | (0) |
| | (d) | Declared goods under CST Act with six instances. | | (0) |
| | (e) | "Manufacture" under Central Excise Act. | | (0) |
| | (f) | Remission of customs duty on lost, destroyed or abandoned goods. | | (0) |
