TAXATIONI

Timeallowed3hours
TotalMarks100

[N.B. The figures in the margin indicate full marks. Question must be answered in English. Examiner will
takeaccountofthequalityoflanguageandofthewayinwhichtheanswersarepresented.Different
parts,ifany,ofthesamequestionmustbeansweredinoneplaceinorderofsequence.]

Marks
1. DefinethefollowingaspertheIncomeTaxOrdinance:
8
(a) Perquisite
(b) Business
(c) Profession
(d) Capitalasset

2. (a) Whoisrequiredtopayadvancetax?
(b) Howadvancetaxiscomputed,estimatedandpaid?

3
5

3. CananassesseechangeonesannualaccountsclosingdateasperITO1984?Supportyouranswer
withbriefexplanation.

4. (a) What do you mean by depreciation allowance? Identify the different categories of
depreciationallowabletoanassessee,carryingonbusinessorprofession.
(b) PLtd.BoughtamachineforTk.10,00,000;writtendownvalueofwhichisTk.3,00,000.Itwas
soldforTk.2,00,000.Whatwouldbethetaximpact?

4
4

5.

(a)

Whatarethestatutorydatesforfilingofreturnofincomeby:
(i) anindividual
(ii) afirm
(iii) anassociationofpersons;and
(iv) acompany.

(b) WhatdocumentsaretoaccompanythereturnofincomeofanindividualundertheIncome
TaxOrdinance?

6. Ahmed Ahmed Ltd. Filed their income tax showing income of Tk.660,090 for the year ended
December31,2009.OnscrutinyofthedocumentssubmittedbytheCompany,theDCTmadethe
followingobservationswhilecompletedtheassessment:

a) OfficeRentpaidTk.600,000totheLandLordagainstwhichnoincometaxwasdeducted.
b) StaffsalariespaidduringtheyearwereTk.2,550,000againstwhichrequiredincometaxwere
deductedbutnoVAThasbeendeducted.
c) An amount of Tk.300,000 paid to a Director as Loan has been debited as Directors
remuneration.
d) General expenses include Tk.50,000 being the advertisement expenses as published in the
souvenirofaRotaryClub.
e) An amount of Tk.600,000 paid as employer contribution to recognized Provident Fund has
beendebitedtoProfit&LossAccount.
f) BankchargesincludesTk.15,000spentfortakingloanforpurchaseoffilecabinettobeusedin
theresidenceoftheManagingDirector.
g) Accounting depreciation to the amount of Tk.560,000 has been debited in the account as
againsttheallowabledepreciationofTk.650,000.
h) EntertainmentExpensesclaimedTk.450,000.

From the above compute the total income and tax liability of the company mentioning the
assessmentyear.

15

[Pleaseturnover]

7.

8.

Writeshortnotesonthefollowing:
a) UniversalSelfAssessment
b) BestJudgementAssessment
c) Assessmentofdiscontinuedbusiness
d) TaxavoidanceandTaxevasion.

10

Mrs. G. Akhter, General Manager of a Private Limited Company, had the following for the year
endedJune30,2010:

Basicpay
FestivalBonus
HouseRentAllowance
EntertainmentAllowance
MedicalAllowance

Tk.35,000p.m.
Tk.70,000p.m.
Tk.15,000p.m.
Tk.1,000p.m.
Tk.5,000p.m.

She has been provided with a car for official and private use. Employers contribution to
recognizedP.F.is@10%oftheBasicPay.Sheisentitledto2monthsBasicpayasgratuityatthe
timeofretirement.

a) Income from the trading of share business of a listed company during the year were
Tk.525,000
b) ShehasearnedTk.1,500,000bytransferringhershareofaprivateLtd.companyduringtheyear.

Mrs.Akhterpurchased5yearsBangladeshSanchayPatraforTk.50,000.

ComputetotalincomeandtaxliabilitiesofMrs.G.Akhterfortheassessmentyear20102011.

9. a) Whataretheconsequencesoffailuretodeductanddeposittaxtoexchequer?
b) MentionthereferencesectionsandapplicableTDSratesforthefollowingitems:
i) InterestonSecurities
ii) IndentingCommission
iii) CommissiononLetterofCredit
iv) CigaretteManufacturers
v) ShippingAgencyCommission.

10. DefinethefollowingtermsinlightwithVAT:
i) OutputTax
ii) TaxPeriod
iii) Turnover
iv) Goods
v) TotalReceipts

11. DiscusstheformalitiesinrespectofVATRegistration:
a) WhenRegistrationarerequiredforthepurposesofVAT?
b) PersonsrequiredtoregisterforthepurposesofVAT?
c) DocumentstobesubmittedforVATregistration?
d) WhenregistrationmaybecancelledforthepurposeofVAT?

TheEnd

10
5
5

15