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Master of BusinessAdministration- MBA Semester 3 MF0012– Taxation Management -4 Credits
Note: Assignment (60 marks) must be written within 6-8 pages. Answer all questions. Kindl note that !0 marks questions should not e"#eed $00 words and % marks should not e"#eed &00 words. '!. ("plain the ob)e#ti*es o+ ta" planning. ,is#uss the +a#tors to be #onsidered in ta" planning. (Objectives of tax planning 5 marks; Factors in tax planning 5 marks) '&. 10 marks

("plain the #ategories in -apital assets. .r. - a#quired a plot o+ land on !% th /une0 !112 +or !00000000 and sold it on % th /anuar 0 &0!0 +or $!0000000. 3he e"penses o+ trans+er were !0000000. .r. - made the +ollowing in*estments on $ th 4ebruar 0 &0!0 +rom the pro#eeds o+ the plot. a) 5onds o+ 6ural (le#tri+i#ation -orporation redeemable a+ter a period o+ three ears0 !&0000000. b) ,eposits under -apital 7ain 8#heme +or pur#hase o+ a residential house 80000000 (he does not own an house). -ompute the #apital gain #hargeable to ta" +or the A9&0!0-!!. (Explanation of categories of capital assets 4 marks ; Calc lation of in!exe! cost of ac" isition # marks; Calc lation of long term capital gain # marks; calc lation of taxable long term capital gain # marks) 10marks


: ;td. has <nit - whi#h is not +un#tioning satis+a#toril . 3he +ollowing are the details o+ its +i"ed assets:
Asset ;and 7oodwill (raised in books on 2! .ar#h0 &00%) .a#hiner =lant % April0 !111 !& April0 &00$
th th st

Date of ac uisition !0 4ebruar 0 &002

Boo! "a#ue $.s' #a!%& 20 !0 &0 $0

3he written down *alue (>,?) is Rs. &% lakh +or the ma#hiner 0 and 6s.!% lakh +or the plant. 3he liabilities on this <nit on 2! st .ar#h0 &0!! are 6s.2% lakh. 3he +ollowing are two options as on 2!st .ar#h0 &0!!: @ption !: 8lump sale to 9 ;td +or a #onsideration o+ 8% lakh. Rs.$8 lakh0 goodwill Rs.&0 lakh0

@ption &: Andi*idual sale o+ assets as +ollows: ;and ma#hiner 6s.2& lakh0 =lant 6s.!B lakh.

3he other units deri*e ta"able in#ome and there is no #arr +orward o+ loss or depre#iation

Summer 2013

+or the #ompan as a whole. <nit - was started on !st /anuar 0 &00%. >hi#h option would ou #hoose0 and wh C (Comp tation of capital gain for bot$ t$e options 4 marks ; Comp tation of tax liabilit% for bot$ t$e options 4 marks ; Concl sion # marks) 10marks '$. >hat do ou understand b #ustoms dut C ("plain the ta"able e*ents +or

imported0warehoused and e"ported goods. ;ist down the t pes o+ duties in #ustoms. An importer imports goods +or subsequent sale in Andia at D!00000 on assessable *alue basis. 6ele*ant e"#hange rate and rate o+ dut are as +ollows: (xc%ange )ate Dec#ared *+CB(,C Rs.$%ED )ate of Basic Customs Dut+ 8F


Date &%th 4ebruar 0 &0!0 %th .ar#h0 &0!0

,ate o+ submission o+ bill o+ entr ,ate o+ entr inwards granted to the *essel



-al#ulate assessable *alue and #ustoms dut . (&eaning an! explanation of c stoms ! t% # marks; Explanation of taxable events for importe!'(are$o se! an! exporte! goo!s ) marks; *isting of ! ties in c stoms # marks; Calc lation of assessable val e an! c stoms ! t% )marks) '%. 10marks

("plain the 8er*i#e 3a" ;aw in Andia and #on#ept o+ negati*e list. >rite about the e"emptions and rebates in 8er*i#e 3a" ;aw. (Explanation of +ervice ,ax *a( in -n!ia 5 marks ; explanation of concept of negative list #marks; Explanation of exemptions an! rebates in +ervice ,ax *a( ) marks) 10marks


("plain ma)or #onsiderations in #apital stru#ture planning. >rite about the di*idend poli# and +a#tors a++e#ting di*idend de#isions. (Explanation of factors of capital str ct re planning . marks; Explanation of !ivi!en! polic% # marks; factors affecting !ivi!en! !ecisions # marks) !0marks

Summer 2013

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