Roll No………………… | |||
Time allowed : 3 hours | Maximum marks : 100 | ||
Total number of questions : 8 | Total number of printed pages : 4 | ||
PART—A (Answer any two questions from this part.) |
1. | (a) | Distinguish between ‘domestic company’ and ‘foreign company’. Are they treated alike under the income-tax rate structure ? |
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(8 marks) | ||||||||||||||||||
(b) | P Ltd. owns two undertakings. Undertaking-A is eligible for deduction under section 80-IA and Undertaking-B is not eligible for such deduction. Date of commencement of operation in both the undertakings is 14th September, 2001.
The profits earned by both the undertakings are as under :
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(6 marks) | ||||||||||||||||||
(c) | Discuss the liability to deduct tax at source on the following payments:
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(6 marks) | ||||||||||||||||||
2. | (a) | What is the tax base for the purpose of ‘fringe benefit tax’ (FBT) ? Who is liable to pay FBT ? What is the current FBT rate ? |
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(4 marks) | ||||||||||||||||||
(b) | Will the FBT liability arise, even if (i) the employer is not liable to pay income-tax on his total income; and (ii) the employer does not have any employee ? |
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(4 marks) | ||||||||||||||||||
(c) | Are all companies liable to wealth-tax ? What is wealth-tax rate applicable in case of companies ? |
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(4 marks) | ||||||||||||||||||
(d) | Discuss whether the wealth-tax is attracted in the following cases :
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(1 mark each) |
P.T.O |
( 2 )
3. | Write notes on any four of the following :
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(5 marks each) | ||||||||||||
PART—B
(Answer any four questions from this part) |
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4. | (a) | “Though taxable event is ‘manufacture’, duty payable is as applicable on the date of removal under central excise.” Critically examine and state whether there are any exceptions to this rule. | ||||||||||
(4 marks) | ||||||||||||
(b) | What are the propositions laid down under section 12 of the Customs Act, 1962 to levy customs duty ? |
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(4 marks) | ||||||||||||
(c) | Is there any exemption to small service providers from the scope of service tax levy ? If so, indicate the limit, if any. Are there any other general exemptions available under section 93 of the Finance Act, 1994 ? |
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(4 marks) | ||||||||||||
(d) | Can government be treated as ‘dealer’ for the purposes of the Central Sales Tax Act, 1956 ? What is the rate of tax applicable, if the inter-State sale is made by the government to a registered dealer ? | |||||||||||
(3 marks) | ||||||||||||
5. | (a) | State whether all Company Secretaries are covered by the service tax levy ? What is ‘taxable service’ in the context of a Company Secretary ? What will be the value of such taxable service ? | ||||||||||
(3 marks) | ||||||||||||
(b) | Distinguish between the following:
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(4 marks each) | ||||||||||||
6. | (a) | The management of your company is unable to determine the value of excisable goods manufactured by it. It wants to opt for provisional assessment for the present. As a Company Secretary, prepare a note on provisional assessment for the benefit of your company. | ||||||||||
(3 marks) | ||||||||||||
(b) | An importer provided the producer with a mould to be used in production of imported goods. The cost of mould is Rs.5,00,000 which is expected to produce 25,000 pieces. The importer has imported 5,000 pieces in the first lot. Is it necessary to add the cost of mould in transaction value ? If yes, what will be the amount to be added ? The importer is expecting an increase in the rate of customs duty next month, so he has requested to the proper officer that if cost of mould is required to be added in transaction value, the full cost of mould, i.e., Rs.5,00,000 may be added in the transaction value of first lot of 5,000 pieces itself. Is his demand valid in law ? | |||||||||||
(3 marks) | ||||||||||||
(c) | Smart Computers Ltd. is engaged in manufacturing of mini computer processing system with floppy drive, keyboard and CPU. Though, it did not manufacture monitors and printers, it bought duty-paid monitors and printers from market and supplied to customers, if required by them. Such supply of monitors and printers was made in approximately 30% of the cases.
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(3 marks) |
Contind... |
( 3 )
(d) | The consignments imported by Young Ltd. were assessed provisionally under section 18 of the Customs Act, 1962 and provisional duty was paid. On final assessment, the finally assessed duty was adjusted against the provisional duty paid and the excess duty paid became refundable to the assessee under section 18(2) of the Act.
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(2 marks each) | ||||||||||||||||
7. | (a) | Examine the following statements with reference to CENVAT Credit Rules, 2004 and indicate, giving brief reasons, whether they are true or false:
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(2 marks each) | ||||||||||||||||
(b) | Pearl Ltd. is a manufacturer of mineral water. It has declared all the retail prices meant for different States on each bottle. The department has proposed to levy duty on the basis of the highest retail price printed on the bottles. But, Pearl Ltd. claims that each such price should be taken depending on the State to which the goods are being cleared. Discuss the validity of the stand of the department. | |||||||||||||||
(3 marks) |
Contind... |
( 4 )
(c) | Anthony has stored excisable goods in a warehouse. He is neither a manufacturer nor a producer nor a procurer of excisable goods. Is Anthony liable to pay excise duty on removal of goods from the warehouse? | |||||||||||||
(2 marks) | ||||||||||||||
8. | Attempt any five of the following :
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(3 marks each) |
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