| 4. |
(a) |
Dinesh Ltd. wishes to shift one of its industrial undertakings situate at Bangalore city to a non-urban area. The relevant details are:
| (Rs. in lacs) |
Capital gains u/s 50 in respect of plant and machinery
(all assets purchased 30 months back)
Capital gains u/s 50 in respect of factory building
(acquired before 40 months)
Capital gains on transfer of land portion of the above factory building |
20
12
8 |
|
8 |
|
|
The expenses of shifting to the new non-urban area unit are Rs. 2lacs. What will be the capital gain for the assessment year 2005-06, if the assessee is willing to invest Rd. 13 lacs in new plant and machinery and Rs. 16lacs in new factory land and building. Six months prior to the date of transfer, the assessee has acquired new machinery costing Rs. 3 lacs for this new unit. |
|
|
(b) |
Prestige Internationals Ltd. manufacture coffee makers, from their plant at Bangalore from where the products are moved to various depots. The company packs them in plain white carton from the factory, for protecting the goods during transportation. At the depots, the plain cartons are discarded and put inside a printed carton before effecting sales. The company includes the value of printed carton in the assessable value, but not the cost of plain white cartons. Is the same correct under the Central Excise Act, 1944? |
5 |
|
(c) |
X availed Cenvat credit of Rs. 42,000 for manufacture of an item chargeable to duty. These goods were lying in his factory till 28.2.2005, from 1.3.2005, the final product was made exempt from duty. Now, when the final goods are cleared, should the Cenvat credit of Rs. 42,000 availed earlier be reversed? |
3 |
| 5. |
(a) |
Mr. Ram furnishes the following information pertaining to inter-state sales effected by him: |
9 |
|
|
| | Products |
| | L | M | N |
Local State Sales tax
Total sales value | 12%
7,84,000 | 8%
5,40,000 | 3%
4,12,000 |
|
|
|
|
Additional information
| (i) | In respect of product L sold in May, 2004,goods of total sales value Rs. 67,200 were returned in July, 2004 and Rs.44,800 in December, 2004:Rs. 56,000 were rejected and returned in January, 2005. |
| (ii) | Buyer of product N did not produce C forms. |
| (iii) | A 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 2004-05. |
|
|
|
(b) |
The turnover of Mr. Rajesh, an individual, for the assessment year 2004-05 was Rs. 50lakhs. On 28.11.2004, he made a payment of Rs. 2 lakhs to a building contractor of factory building. What is the tax to be deducted at source from the payment to contractor? |
3 |
|
(c) |
Discuss whether inter-State sales of computer readable floppy discs containing standard computer software attract CST. Will your answer be different if the floppy contains software developed for a customer specifically? |
4 |
| 6. |
(a) |
M/s. Srivastava Heavy Electricals Ltd. manufactures industrial boilers, which are normally loaded openly on a containerised truck. A company having a unit in Kodaikanal Hills has ordered a boiler with special plastic packing as a safeguard to boiler during hazardous mountain climbing. Briefly discuss whether the cost of plastic packing should be included in the assessable value under section 4 of the Central Excise Act, 1944. |
5 |
|
(b) |
An importer realised that he paid excess customs duty at the time of import. These goods were not sold to customers but had been used for manufacture of other goods. Is his claim for refund of the excess duty paid, valid under the Customs Act? |
3 |
|
(c) |
Discuss the provisions relating to claim of refund under the Central Excise Act, where the refund arises due to Cenvat credit being in excess. |
8 |
