This Paper has 25 answerable questions with 0 answered.
| Roll No………… | |
| Time allowed : 3 hours | Maximum marks : 100 |
| Total number of questions : 8 | Total number of printed pages : 3 |
PART—A
(Answer any two questions from this part.) |
| Marks |
| 1. | Explain the concept of &lsquoamalgamation’ with reference to companies. Under the Income–tax Act, 1961, what benefits accrue to the (i) shareholders; (ii) amalgamating company; and (iii) amalgamated company.
Explain the same with reference to settled case laws and specific provisions of the aforesaid Act. | 20 | (0) |
| 2. | (a) | The incidence of income–tax of a company depends upon its residential status. Explain. | 10 | (0) |
| | (b) | As a company secretary, prepare a report for the Board of directors of your company pinpointing the relevance of ‘minimum alternate tax’ (MAT). | 5 | (0) |
| | (c) | As a company secretary, what are your duties to file annual TDS return ? | 5 | (0) |
| 3. | (a) | Discuss and differentiate between the concepts of ‘tax avoidance’ and ‘tax evasion’ with the help of relevant legal pronouncements. | 10 | (0) |
| | (b) | Smile Ltd. is a wholly–owned subsidiary company of Happy Ltd., an Indian company. Smile Ltd. owns Plant–A and Plant–B (depreciation rate 40%, depreciated value of the block Rs.3,00,000 on Is1 April, 2002). Plant–B was purchased and put to use on 10lh November, 2000 (cost being Rs.70,000). Plant–B is transferred by Smile Ltd. to Happy Ltd. on 14th December, 2002 for Rs.20,000. It is put to use by Happy Ltd. on the same day. Happy Ltd. owns Plant–C on 1st April, 2002 (depreciation rate 40%, depreciated value Rs.60,000). Find out the amount of depreciation in the hands of Smile Ltd. and Happy Ltd. for the assessment year. | 10 | (0) |
PART—B
(Answer any four questions from this part) |
| 4. | (a) | Adarsh, an NRI in collaboration with Sunshine Ltd. in India, wants to undertake the activity of manufacturing high technology registration number plates for motor vehicles and, thereafter, stamped them with chromohologram. Can they seek an advance ruling from the authority for advance ruling as to whether this process amounts to manufacture Under the Central Excise Act, 1944. | 6 | (0) |
| | (b) | What are the owner’s right to deal with the goods kept in a warehouse under the Customs Act, 1962 ? | 6 | (0) |
| | (c) | Define ‘sale price’ under the Central Sales Tax Act, 1956. | 2 | (0) |
| | (d) | Are the provisions of service tax applicable in the State of Jammu and Kashmir. | 1 | (0) |
| 5. | (a) | Is the administrative charge collected from the buyers on behalf of the State government in terms of section 8(5) of the U.P. Sheera Niyantran Adhiniyam by a sugar factory for molasses sold, deductible from the price of molasses for the purpose of levying central excise duty ? | 4 | (0) |
| | (b) | An electricity company generates electricity by using coal. In the process, cynder (unburnt coal) is left as the residue. Is the duty of excise chargeable on such cynder ? | 4 | (0) |
| | (c) | What are the ‘relevant dates’ for the purpose of issuing the show cause notice for demanding customs duty not levied ? | 4 | (0) |
| | (d) | Can the goods imported and stored in a warehouse be re–exported without payment of import duty after expiry of warehousing period? | 3 | (0) |
| 6. | (a) | Your company is manufacturing readymade garments falling under heading 6201.00. Tariff value under section 3(2) of the Central Excise Act, 1944 for such goods has been prescribed as 60% of the retail sale price of such goods as specified on the package.
The managing director of your company is interested to pay duty on assessable value under section 4 of the Central Excise Act, 1944. As a secretary of the company, prepare a note explaining the legal validity of the intention of your managing director. | 5 | (0) |
| | (b) | U&V Ltd. manufactures 10,000 units of Product–W, assessable value of which is Rs.400 per unit. Duty payable is 16%. Duty paid on raw material is Rs.3,00,000. U&V Ltd. sells 2,000 units in India and 8,000 units are exported through a merchant exporter. What is CENVAT credit available and what is the duty payable through personal ledger account (PLA) ? Can U&V Ltd. get any refund of CENVAT credit ? | 5 | (0) |
| | (c) | A company is manufacturing ‘kitchen sink’ and classifying it as ‘sanitaryware’. The department is insisting that correct classification of ‘kitchen sink’ should be as ‘household article of iron and steel’: The company intends to take the issue before settlement commission. Give your advice in the matter. | 5 | (0) |
| 7. | (a) | What are the circumstances in which conveyances are liable to confiscation under section 115 of the Customs Act, 1962? | 6 | (0) |
| | (b) | Rapid Ltd. imported non – prohibited goods from China. They had under – valued the goods to the extent of 50%. The commissioner of customs has ordered absolute confiscation of the said goods. Whether the prayer of Rapid Ltd. for release of goods on payment of certain fine is justified under the Customs Act, 1962 ? | 3 | (0) |
| | (c) | Mention the relevant date for determination of rate of duty in respect of the following goods imported/exported : | (i) | If bill of entry is presented before the date of entry inwards of the vessel. |
| (ii) | In the case of entry for export under section 50 of the Customs Act, 1962. |
| (iii) | In respect of goods imported by post. |
| 2each | (0) |
| 8. | State, giving reasons in brief, whether the following statements are correct or incorrect, in the context of relevant laws : | 3each | |
| | (i) | Central sales tax payable shall be collected in and retained by the State from which the movement of goods commenced. | | (0) |
| | (ii) | Central Government can levy tax on consignment of goods. | | (0) |
| | (iii) | In case of loss of revenue to the State Government, there would be no question of any promissory estopple. | | (0) |
| | (iv) | Service tax is payable by a practicing company secretary on services regarding legal or taxation consultancy provided to clients. | | (0) |
| | (v) | It is advisable to raise separate bills for fee/service charges and reimbursement of expenses under the service tax laws. | | (0) |
