CS Final :: Direct And Indirect Taxation - Law and Practice : June 2006

What are the various opportunities available to a Company Secretary in Practice under the Income-tax Act, 1961 ?

How will the income be determined in case of outsourcing of business processes by non-residents/ foreign companies to business process outsourcing (BPO) units in India under section 9 of the Income-tax Act, 1961 ?

From the following particulars of Sigma Ltd., calculate the amount of tax payable by the company for the assessment year 2006-07 :

(i)	Business income from sale of equity shares and units of equity oriented mutual fund (non-delivery based)	8.00
(ii)	Speculative income from other transactions	4.00
(iii)	Non-speculative business income	12.00
(iv)	Income other than business income	9.00
(v)	Securities transaction tax (it is not deducted from above incomes)	2.50
(vi)	Deductions allowed under section 80CCC to 80U	3.00
(vii)	Fringe benefit advance tax (not deducted from above income)	0.01

Explain briefly the propositions of law in case of any conflict between the provisions of the Double Taxation Avoidance Agreement (DTAA) and the Income-tax Act, 1961.

As the Company Secretary of Alpha Ltd., an Indian company, ascertain from the following particulars the minimum amount of advance tax payable by way of different instalments to ensure that interest liability under section 234C is not attracted :

		Rs.
—	Business income	2,00,000
—	Long-term capital gain on sale of government securities on 10th October, 2005	20,000
—	Winning from lottery on 31st December, 2005 (out of which tax deducted at source is Rs.31,365)	1,00,000

Briefly mention the cases in which the authority shall not allow the application under ‘advance ruling’ filed by a non-resident applicant.

What are the conditions in which a merger will not be called as amalgamation as per the provisions of the Income-tax Act, 1961 ?

Explain the concept of ‘related person’ under section 4 of the Central Excise Act, 1944.

State the circumstances under which refund of export duty is permissible under the Customs Act, 1962.

When is the sale or purchase said to take place in the course of import or export of goods under the Central Sales Tax Act, 1956 ?

Discuss the revisionary powers of the Commissioner of Central Excise in relation to service tax.

What are the powers of the Settlement Commission under the Customs Act, 1962 ?

Summarise the provisions of the Central Sales Tax Act, 1956 relating to rates of tax on sales made to unregistered dealers in the course of inter-State trade or commerce.

PQR Ltd., Ghaziabad purchased plastic granules valued Rs.1,16,000 (inclusive of central excise) for manufacture of plastic moulded chairs. It availed CENVAT credit of excise duty of Rs.16,000 paid on the said inputs. It subsequently cleared the said inputs as such from the factory in the following manner :

(i)	Sales to Sansar Ltd. (purchase price : Rs. 20,000)	Rs. 40,000
(ii)	Sales to Krishna Trading Co. (purchase price : Rs. 10,000)	Rs. 10,000
(iii)	Clearance to PQR Ltd.’s own factory at Kanpur (purchase price : Rs. 70,000)	Free of Cost

PQR Ltd. has sought your advice on the excise duty payable by it on the above clearances. Give your advice in the matter.

What is the penalty leviable in the following cases under Chapter-V of the Finance Act, 1994 :

(i)	failure to pay service tax;
(ii)	suppressing value of taxable service; and
(iii)	contravention of any of the provisions of the aforesaid chapter for which no penalty is separately provided in the chapter ?

The clearances of Akash Electric Co. Ltd. were Rs.350 lakh during the financial year 2004-05. The following are included in the said clearances :

The company is of the view that it is not liable to pay any duty on its clearances in the financial year 2004-05 as per Notification No.8/2003 dated 1st March, 2003. Do you agree with the company ? Give reasons for your answer.

What are the documents on the strength of which CENVAT credit can be taken under the CENVAT Credit Rules, 2004 ?

How do you determine the duty when imported goods consist of articles liable to different rates of duty ?

Peter is running a sound recording studio and has obtained registration for the purpose of payment of service tax. He proposes to transfer his entire business to Akash. Is it necessary for Akash to obtain a fresh certificate of registration ? Give reasons for your answer.

The goods manufactured by Bright Ceramics Ltd. were included in the First Schedule to the Central Excise Act, 1944 for the first time with effect from st March, 2005. Bright Ceramics Ltd. cleared the goods manufactured by it in the month of February, 2005 on 15th March, 2005 from the factory. The department of central excise has demanded excise duty on the goods cleared in March, 2005. Examine the validity of the demand in the light of decided case law, if any.

Ashok imports consignment of goods which were chargeable to duty at 60% ad valorem. The goods were warehoused on 18th October, 2005 after filing the bill of entry for warehousing. The government issued notification on 31st October, 2005 reducing the rate of customs duty to 30% ad valorem. Ashok filed bill of entry for home consumption on 15th November, 2005 specifying the rate of duty as 30%. However, the customs department charged duty at 60%. Ashok wants to know from you whether the charging of duty at 60% is valid. Examine the issue in the light of the provisions of the Customs Act, 1962 and give your advice to Ashok.

Kishan purchased cameras made in Japan from a hawker in Delhi. He did not have any document relating to the goods. While he was travelling from Delhi to Jaipur, the officers of the customs department seized the cameras under the reasonable belief that they were smuggled goods. Subsequently, they were confiscated. Cameras are not notified goods under section 123 of the Customs Act, 1962. Discuss the validity of confiscation of cameras in the light of decided case law, if any.

Explain the provisions of Chapter-V of the Finance Act, 1994 relating to classification of taxable services.

A rice miller purchased paddy and rice procured out of such paddy was sold to an exporter, who further exported the rice. Explain with brief reasons, whether purchase of paddy by rice miller will be exempt under section 5(3) of the Central Sales Tax Act, 1956.

State, giving reasons, whether the following statements are correct or incorrect:

(i)	An unregistered dealer can collect sales tax on sales made by him in the course of inter-State trade or commerce.
(ii)	Service tax has to be paid on half-yearly basis on or before 25th October and 25th April.
(iii)	A single declaration in Form-C is sufficient to cover all transactions between the two same dealers in a financial year.