ASO-10/15 2016 TAXATION LAWS AND PRACTICE Time Allowed +: 3 Hours Full Marks + 100 If the questions attempted are in excess of the prescribed number, only the questions attempted first up to the prescribed number shall be valued and the remaining ones ignored. Answers may be written either in English or in Bengali but all answers mist be in one and the same languag Answer any five questions (a) State the head of income under which the following incomes are tobe ed under the Income Tax Act + (4) Amount received under Keyman Insurance Policy. (14) Salaries received byt he partners of the partnership firm, (144) Salaries required by the Central or State Ministers. 3 (b) Sea Horse India Ltd Gongatic company, 18 the owner of @ ship which carries passengers and goods, The ship leaves Kolkata Por on 4,1,16, Total fare collected for carrying passengers and goods Le t.4,50,000/= Write in which jament year the above income is to be assessed. (c) Mr, Asit Roy is an Indian citizen left India first time for the purpose of employment on April 5, 2013 and returned back to India on January 10, 2016. Determine his residential status for t assessment year 2016-17, 2 (4) Mr, Deepak Basu is a non-ri 2016-17, From the following incom for the a (4) Pension for service Japan &.50,000/~, (44) Income from a business situated in Bangladesh &.1,25,000/~, (444) Profit froma business in U.K, controlled from India 715,000/=. 3 (e@) Discuss the tax treatment in respect of the following 1 (1) Mr. A received a gift of TV worth &.12,000/- from his employer on the occasion of his marriage. (44) The employer provides to Mr.A, a Maruti Alto Car cost ini 3,50:000/~ Far his privace The running and maintenance of the car &,30,000/- p.a, are barne by Mr. A. The car is driven by Mr. A himself. ident in India for the at information given below, ment year 2016-17 t= rendered in India but received in sment year out Atl (444) Mr. A purchased a motor car from his employer on April 10, 2015 for &.1,40,000/-. The car has been purchased by the employer on April 2, 2012 for W&.4,00,000/-, 1443 (£) Mr, Ramit Banerjee is an employee of a private concern in Kolkata. He furnishes the following particulars of his salary income for the previous year 2015-16 :- Basic salary &-20,000 p.m, Dearness Allowance (part of retirement benefit) m.10,000'p.m,, Medical Allowance &.2,000 p.m., House Rent Allowance 4,000 p.m, on August 1, 2015 he hi transferred from Kolkata Office to Kanpur Office on the similar scale of pay and allowances. He has arranged there a rented flat for him at a monthly rent of &,6,000, He stayed in his own house while he in Kolkal . Calculate the amount of taxable house rent allowance for the assessment year 2016-17, 5 P.T.O4 ‘Scanned with CamScannerASO-10/15 “1 2 + (2) Mr, Gopal Gupta 1s employed in a Private Lta. co. in Kolkata. We’ cagetanes the following partiegieee oe hia iacobe SOtNEES year 2015-16. Compute his income from salary. ec salary ag on 1.4.15 &.30,000 p.m,, Dearness Allowance riss00 pom. Ceormtig’ part “of angabiy's Meateer Rit eae 1,000 p.m. (actual expenditure for medical treatment f-6 000 during the year), Travelling Allowance ™,500 p.ms He retired on October 31, 2015 after completing 30 years and 4 months of service. His pension is fixed at &.20,000 p.m. payable from the month of Novenber, 2015, He commted 40x of pension «nd received m.4,20,000 as commted value of pension on January 31,2018. He also received Gratuity (covered by Payment of Gratuity Act ,1972) ,8,25,000 and accummlated balance of Recognised Provident Fund ¥.6,00,000, He has taken leave during the tenure of service is S months, Professional Tax paid by him &.2,000- 10 (b) Mr Curesh Jana is the owner of two houses. From the following information compute his income from house-property for the eas ment year 2016-17 :~ House-1 House=-Ir Nature of occupation Depont €& residence Sel#-occypted & & Munietpal value 70,000 90,000 Fair Rone 781000 89,000 Standard Rent 80,000 85,000 Rent per month 8,000 ‘ Municipal Taxes + Paid by ow 4,000 3,000 Paid by tenant 3,000 Repairs 16,500 4,000 Fire Insurance Premium 4,800 2,500 Date of completion of construction 31,5,.2015 30.4,2013 Other Information 1~ (4) He has taken loan for the construction of Houge-I from SBI on 1.2.13 of %.4 lakhe with 10% p.a, rate of intereat. The gonetruction of the house started'on 1,4.2013, He hae repaid 50% of the loan on 31,8,2015 but interest 1s still pending, (44) He has also taken loan from UBT of 6.3 lakhs for the co truction of House-II on 1.5.11 with 10x peas rate of inte The conatruction of the house started on'i.4,2011 but 30% of the loan was utilised for interior decoration, He hes repaid the entire amount of loan on 31.3.2015, 10 te 3. (a) Bengal pvt. Ltd. purchased a machine on gune 1, 2012 for w.3 lakhe for inhouse scientific research related to its business, After the gompletion of said research work the machine is sold on November 20, 2015 without having been used for other purposes. Discuss the tax treatment if the machine is sold for = (4) .1,85,000 (44) &.4,00,000 5 (b) Sunshine Ltd, 18 an Indian Company, unit, Tt incurs the following expen| unit = which sets up a new industrial in connection with the new Market Servey &.4,50,000, Preparation of project report ™.2,50,000, Legal and other charges for issue of addi€isnal carical micron ont Purther information 1- Cost of Project &.30 lakhs and 8.40 lakhs. Calculate the amount of deduction u/s 38D, (c) Discuss the admissibility in respect of the following payments for computation of income from business for the assessment veer S016c17s (4) X Ltd, purchased goods from ¥ Ltd. on credit for & November 5, 2015, f3.15,000 on November 12, 2015 an on November 20, 2015, The entire payment S£ %,&0 cash on December 10, 2015, capital employed in the new unit 4 Contd...P/3, ‘Scanned with CamScanner4 (4 ASO~10/15, mhO3 ae Employer's contribution to Provident Fund &.40,000 - out of which fs.20,000 paid on March 20, 2016 and &.20,000 paid on June 15, 2616, (441) Salary of %.45,000 p.m, paid to an employee posted at Srilanka, «ay (ay (b) fe) Tax has not been deducted at source from his salary before paying such salary. 24242 Mr, Samir Guha submits the following particulars 1- Income from Salary W&.1,25,000, Business profits (before deprecia- tion) f.75,000, Current year depreciation ¥,80,000, Unabsorbed depreciation m.30,000, Income from other sources %.20,000. Determine taxable income of Mr. Guha for the assessment year 2016-17. 5 Mr. Pradip Dutta ie the owner of a residential house property at Kolkata, He purchased it on August 12, 1991 for #.90,000, on May 5, entered into an agreement to’ sell the house’ to Mr. Amit for B&,5 lakhs and received advance of f.25,000. But Mr. failed to pay the remaining amount within stipilated period and Mr. Datta forfeited the advance money. On January 12. 1959 Mr, Dutta died and Mrs, Dutta became the owner of the property, Mre. Dutta made an agreement on June 10, 2007 to sell the property to Mr. Prabin Paul for m8 lakhs and received advance of m, 30,000, But Mr. Paul failed to pay the remaining amount within stipulated period ‘and she forfeited tne advance money” Mra, Dutta ultimately sold the property to Mr. Ganesh Gomes on July 5, 2015 for &.25 lakhs, Discuss the tax effect in respect of the above transactionsin the hands of Mr. Dutta and Mrs.Dutta for Gifgerent assessment years, Also calculate the net income of Mrs. Dutta for the assessment years 2016-17, (C 11 1 90-91% 162 4 91-92 1 199 ; 06-07 + 519 + 07-08 + 51 ; 14-15% 1024 ; 15-16 + 1081) 5 Mr. Mohan Ghosh furnishes the following information for the previous year 2015-16 1- Building Debentures in a Company Date of acquisition 04.05.09 10.09.11 Date of sale 10.06 :15 20711715 Cost of acquisition (&.) _1,50,000 1,00,000 Sale price (i.) Stamp duty vaiue (.) Compute income from capital gain of Mr. Ghosh for the ement Year 2025617. (Ea? ¢ Bags 7sa2°% BE: GhOMR SOF the, ase wr 11-12 1 785 } 15-16 1 1081) 5 4,00,000 Mra.Monorama Singh submits the following particulars of her income and outgoings for the previous year 2018-6 y~ (A) Rent of building along with machinery f&,50,000 ; Depreciation Be Pugg ting 2nd machinery &,3,000 7 Fire insurance premium (14) Winnings from lottery (net) &.35,000 ; Expenses related for the same %.2,000, (444) Income by way of owning and maintaining ra Expenses incurred for the same 8:18-008, (Av) Family pension t.18,000 p.m. (Her husband was a Govt employee, @4ed on February 5,°2014), (v) She gets a gift from her friend on Soth birthday a motor cer, fair market value of which is fs.3 lakhs, (vi) Interest from Post Office Savings Bank &,10,000. Sompute her income from other sources for the assessment year 2016-17. horses &.45,000 + 10 P.T. 0. ‘Scanned with CamScannerASO-10/15 foe S. (a) Naren, Biren and Suren are partners of a partnership firm sharing Profits & losses in the ratio 3: 2: 1. The Profit & Loss A/e of the firm for the year ended 31,3,2016 is given below t= oe me. &, ee To Trading Expenses 24,000 By Gross Profit B/D 3,33,000 To Depreciation 18,000 py piviaend from To Provision for Bad debt 6,000 "foreign company 25,000 To Interest on Capital 220% peas Company Deposit 30,000 - Naren . - Biren By Long-term Capital = suren Gain 40,000 To Remuneration to partners: = Naren 90,000 = Biren 60,000 = Suren 50/000 To Donation to chief Minister Relief Fund 10,000 To Net Profit 1,40,000 00 4528,000 Other information (4) The firm satisfies all the conditions of Section 184. (44) All the partners are working partners and payment of interest and remineration is authorised by partnership deed. (AL) Trading expen, include f.5,000 being the expenses incurred for ° ital ann (49), Bepreclathin Ss pee WY ture 2.24.00. Cv) THe Firm wance to set off the fsllewing brought forward losses for the previous year 2014-15 1 Business loee &.10,000 ) shore= term capital loss &.15,000 ; Long-term capital loss &. 20,000, Find out income from busines 2016-17. (b) Mr. Shyamal Sarkar submits the following particulars of his incomes and losses for the assessment year 2016-17 t= Income from house property &.10,000 ; Income from bueiness-r %,29,500 ; Loas from business-Ii m.11,400 7 Speculation Basin Loss'm.6,000 ; Long-term Capital gain’®.3,200°7 Short-term capical gain &.6,200 ; Share of profit from partnership firm Bi4,000'> Winnings from Lottery §.30,000 ; Lose from horse race &.10,000. Brought forward losses for the assessment year 2015-16 :- Loss from house property %.7,000~7 Long-term Capital loss t%.9, 5007 Loss from business=1 W.5,000, s of the firm for the assessment year 1 ° Compute hie total income for the assessment year 2016-17, 7 (c) Mr. Manab Majunder transferred a um of 50 lakhs to his wife Mere. Majumdez without any consideration. Mrs, Majumder deposited the money into a bank for § years, She purchased a flat from the interest income. During the previcus year 2015-16, she received rent from the ténant of the above flat fs,30,000. Discuss in whose hands the rental income will be assessed, 3 (a) ABC Company Ltd., a domestic company, furnishes the following particulars for the previous year 2014-15 and 2015-16. You are required to calculate its tax liability as per Section 115 JB for the assessment years 2015-16 and 2016-17 : Previous Year Total/Taxable Income (&.) Book Profit(s.) 2014-15 4,10 ,000 20, 50,000 2015-16 210, 30,000 15,70,000 8 roma w/e ‘Scanned with CamScanner(») fc) Te fay (b) (e) (a) (ey AS0-10/15 vt oS ge Give two examples of Capital gain which are exempt from tax, 2 Mr. Bikash Biswas (50 years) eubmits the following part{culars for the previous year 2015-16 :- wee eo om, SatAEY 1,20,000 + Income from house property 0.000 + Income from’ busin sterm Capital f4in"ts.50,000° 7 Shoreceens f listed shares) 28,000 } Interest from fix (gross) #8225;000, Following contributions made by Mr, Bisvas during the year 1= DEE premianniumst221000 1 LIC premium of spouse 1if6 9.000 4 Farce prena ogpencent brother's ite wea G09; weaese{ og! and exbenasa™ Pale, on hie own health to Gict by cneeesce! 17a PraskyPEnges, dneurred for preventive healen chLokne ect Ass family t,4,500. Pasi eno e Pindar ime Minister's National Relief Fund m.4,000 ; promot ine oeme sensation 8. 7,000 Approved Local authority sey ETa95959 fAmi2Y Planning 26,000 ; NotiFied temple foe tepaie Br18,0009 Compate his total income for the assessment year 2016-17, 10 (4) Purchase of Schedule-¢ goods t.3,00,000, Purchase of Schedule-ca goods &,.3,40,000. (44) Sale of Scheduie-c goods &.5,00.000, Sale of Schedule-ca goode f,3, 19.000, (114) Goods transferred to Delhi branch 356,000. (iv) Purchase goods from Bihar against ¢ Form 1,70,000, (Vv) Sale goods to a dealer of sharkhand against ¢ Form 90,000. (vi) Sales return of Schedule-ca goods within 15 days from sale &.19,000. Compute VAT for the month of pecenbe: 2015, 7 Pep Prabir Pandey 1s a registered dealer in Bihar. He made the following inter-state sale for the month oP January, 2016 :- (4) Sale to an unregistered dealer in Bhopal %.50,000, (Rat iT] be the Cs? cate applicable for the above tran (Assume local sale tax rate in Bikes 4° 0. Moonlight (P) Ltd. manufactured gooda on 10.11.15, These goods feenths She Pane e ne tate Of manufacture but race of excise dut ie nil. The Tarif rate Peen increased from nil to 14% wet, aos isd5: So08s are cleared from faststy en 30.11.15. Te Moonlight (P) Led. liable to pay excise duty on these goods ? 2 X Ltd. is the manufacturer of excisable Goods in India. The sale cence gej200 per unit. Te includes 12%se exciee duty and 2% fentral sale tax. During the month of February, 2016, goods Sleatedfrom the factory are 10,000 unite, Determine the assessable value and amount of excise duty Ilability, 5 Sgitshing of cloth ; converting ordinary Cotton into surgical cotton 01] cake from mstaray 3 $556 558565659 ‘Scanned with CamScannerASNO-8/16 2016 DIRECT AND INDIRECT TAXATION Time Allowed : 3 Hours Full Marks =: 100 Hf the Questions attempted are in excess of the prescribed number, only she Questions attempted first up to tne preseribed nee Snail be valued and the remaining ones ignored. Anowers may be written either in English or in Bengali but sil answers ust be in one and the same languaie, Answer any five questions 1. (a) Mr. B. Baner, Kolkata. He let out 50% of his hou pea 2014-2015. Fair rent for let out portion wi Municipal tax was pase for the house @ 10K &.9,000/-. He paid Seago e eee Be28,000/-. He took a loan of ie'2,00,000/—Pah 2,2-2010 @ 10% interest’ pia, for the construction of oe, house, Pye house was completed on 30th May, 2012. The loan wee nue pepaid yet. Compute incone from house property of Mr.B. Banerjee for the Assessment Year 2015-2016. 10 (b) Write notes on Tex avoidance, Tax planning and Tax evasion. 10 2. (a) Mr. D, Chowdhury, a registered dealer under W.B, Vat Act, makes the following sales during the month of May, 2014. Sa. a Vat charged separately(t.) Schedule 'c! goods (5%) 3,12,500 15,625 Schedule 'CA' goods (14.5%) 85,000 12,325 Schedule 'a' goods 1,50, 000 NIL OTHER INFORMATION ; (4) His purchases during the month of May, 2014 are as follows i Schedule ‘A! goods &.1,00,000 Schedule 'C' goods fs. 2,50,000 (Excluding Vat) Schedule 'CA' goods &, 80,150 (Ineluding Vat) (44) Return of Schedule 'c! goods within six months of Sale &.65,625/— (inclusive of Vat) Find out Sale price, Input Vat, Output Vat & Net Vat, 10 (&) What are the conditions for levying Central Exet, Duty under Central Excise Act, 1944 7 5 (c) State the types of transactions which are not chargeable to csr, 5 2+ (a) Specity the abatement rates for the following taxable services :- 1). Transport of goods by rail. ii), Renting of guest house for lodging purposes. Ail) Services of goods transport agency in beistion to transportation of goods. (a Renting of a motor cab including radio taxi. v) A Tour, ‘Scanned with CamScannerASNO-8/16 Po 2 oe (b) Determine whether the following assets are Capital assets or not i= 4) 7% Gold Boné 1980 44) Goodwill of busine! 411) Stock-in-trade iv) A leasehold right Vv) A route permit vi) Archeological collection vil) Paintings viii)Special Bearer Bonds 1991 4x) Bullions used for worship x) Jewellery. 5 (c) Mr. X sold the foliowing properties during the financial year 2014-2015 + (1) Agricultural land situated in Urban areas in West Bengal %s-20,00,000/~, The land was acquired by the Government for tting up of Industrial Park. The lend was acquired by him in January, 1993 for t.2,00,000/-. (11) Sale of another agricultural land situated in Urban are: of W.B. for f.8,00,000/-. The land was acquired in March, 1993 for &.1,10,000/-. This old to @ private sector company for setting up a factory. In the same financial year on 2.4,2014 @ residential flat was purchased by him in Kolkata for &.3,90,000/- for his Feaidential purpose, That flat was giveh on rent @ B.6000/- Werte 1.6,2014, P. Find out the taxable capital gain of Mr, X for the previous year 2014-2015, relating to Assessment Year 2015-2016, NOTE : CII - 1992 - 93 4 223 2014 - 15 » 1024 10 4. (a) Mr. ¥ 48 an employee of ABC Co. Ltd. The following particulars are provided for the year 214-2015 "in respect of MF. Y~ / Compute his gross total income for the Assessment Year 2015-2016, Interest received from fixed deposit in @ Bank B40, 000/-. Housing loan interest paid during the year 2014-2015 wes s.35,000/-. Income from long-term capitel gein was ®.1,00,000/-. Basic salary drawn &.60,000/- in March, 2015 (last increment was in January, 2015 %.5,000/-). Dearness allowance @ 80% of Basic salary received (40K forms part of retirenont benefit). eceived H.R.A. 10% of Basic salary (he resides in nis own house). Transport allowance was received is.2,000/- p. Personal electric bill of f.20,000/-"p.a. - he paid only t.5,000/- and balance paid by nis employer Interest credited to R.P.F. @ 11% was i.12,100/. Both the employer & Mr. ¥ contributed 14% of salary to R.P.F. Mr. Y used his own car (1.8 litres) both for private and of ficie use. All expenses are met by him, Expenses calculated for his private use of car was k.80,000/-. His L.I.c. Premium paid by his employer was &.40,000/-. Professional tax paic by his employer &.2,400/- A lap top costing 8.45 ,000/- was provided’ by hi: private as well as official u He made @ contribution to Na employer for 40,000/-, 15 (b) State the situations when return of loss U/S 139 (3) is filed, . Write the benefits of submission of sucn return. 5 \ al Defence Fund Contd. ..P/3, ‘Scanned with CamScanner‘ASNO~6/16 Boa 5, (a) The following is the P/L A/e of Mr. Z for the year ended L 31.3.2015 == P/L a/c for the ended 2015 To General Expenses 8,200 By Gross Profit 1,98,200 To Salaries 25,600 By Bad Debt recovered 12,500 To Depreciation 7,800 By Indian Company 7 Bad Debt 4,700 Dividend ” 17,600 To advertisement 8,300 To Charities & Donation 15,900 To Salary to Z 18,800 To Commission to self 3,500 To Rent for e house owned by 2 3,800 To Interest on Capital 13,500 To Net Profit 1,18, 200 The following information are to be considered :- (4) Bad debt is disputed one and is under Court of law, not yet settled. (441) Charities and donation include :. §5.3,000/- to 2 tradeassociation, %.8,200/- to a University in Nepal, fs.2,800/- to National Defence Fund. (414) Bad debt recovered is in relation to a debt of &.15,000/= Claimed to be bad in the year 2013-14 but allowed by the A.O. amounting to %&.10,000/~, (av) Written down value of Plant and Machinery on 1.4.2014 was s,35,000/-. New Wachinery was purchased for &.12,000/- and put to use in May, 2014. Depreciation on Plant &’ Machinery is provided @ 15%’p.a. There was no other Plant & Machinery except those menticned above, (v) General expenses include &.2,300/~ for penalty for delayed payment of sales tax and &.3,500/- paid to a lawyer for 8 suit in the Court regarding title of the properties of the business, Find out total income of ifr.Z for the previous year 2014-15, Assessment Year 2015-2016. a5 (b) Write notes on :- 80.GG & 680 DDB 5 6. (a) Write notes on :- Assessment through limited scrutiny U/S 143 (3), Best Judgement Assessment U/S 144. 10 (b) State the rules of cnarging interest in case advance tex is not paid in due time U/S 234¢, 10 P.T. 0. « aes Zee w ‘Scanned with CamScannerASNO-8/16 7. (a) What is CENVAT ? 5 (b) Give the meaning of continuous supply of services under service tax. State the names which are called "Continuous supply of services" in terus of Rule 2 (c) of Point of Taxation Rules, oll. (¢) Calculate the turnover and C.S.T. payable by Mr. B carrying on business in Kolkata. The gross turnover was '.8,12,785/-. The turnover includes the following :~ Trade discount for which credit note have been issued separately §5.13,750/=. Excise duty &.50,000/-, Installation charges sepe- rately charged &.15,000/-, Freight’& Insurance separately charged ®,11,250/-,'one dealer has returned goods within five months &.22,000/-.'C.S.7. rate @ 2% against form ‘cl, 5 (d) What is meant by 'excisable goods’ under Central Excise Act, 1944 7 "On the date of nenufacture the rate of duty is 15% and on the Gate of removal it is 0%" - What will be the chargeable rate of duty 7 5 BIISHVISGSB ‘Scanned with CamScanner2017 INAS(O)-5/17 DIRECT AND INDIRECT TAXATI ‘Time Allowed + 3 Hours Pull Marks 1 100 2. Ca) 1. (b) If the questions attempted are in excess of the prescribed number, only the questions attempted first up to the pres- ¢ribed number shall be valued and the remaining ones ignored. Answers may be given either in English or in Bengali but all answers must be in one and the same language. Answer any five Questiéns Mr, A, 2 resident individual, has submitted the following information. for the assessment year 2017-18. Calculate taxable income and tax liability of Mr. A for the Assess- ment Year 2017-18, Rs. Long term Capital gain 50, 000 Short term Capital gain 96,000 Loss from Business 32,000 Income from Salary 3,94, 000 Winning from horse race, 35,000 Life Insurance Premium paia on the life of Mrs. A 1,01, 000 Donation to the Welfare fund of Indian Army 4,000 Medical Insurance Premium (Paid by Cheque) on his own health Contribution towards Pension fund fund of L.1.c, 94.750 Expenditure on medical treatment of & dependant relative ( @ person 250 of disability) 10, 000 Donation to the Govt, of India for Family Planning 1, 20, 000 Show all workings also. 15 Nr. 5. Ke Roy, @ performing artist, has received during the month of September, 2016 the following amounts for his involvement in different artistic activities. 4) For performing in a 7.V.Serial ms. 3,80, 000 ii) Services rendered as a brana ambassador 411) Coaching fee received for giving 13, 00, 000 Coaching of artistic activities 2,00, 000 iv) Sculpture making activities 3,00, 000 v) Performing outstanding Wester dance 1,00, 000 vi) Performing in very popular Classical dance Be 1,.00,000 felculate Value of taxable service and Service tax payable by Mr. S. K. Roy for the month of September, 2016. 5 ‘Scanned with CamScannerNAS(O}-5/17 S]o2 Be 2. (a)(4) Birla & Co, a registered dealer of Kolkata, has furnished the following information for interstate sales during Tuly, 2016 = Septenber, 2016. Invoice No.1 dated 10-07-2016 me, 2,12, 400 (tax not shown separately). Invoice No.2 dated 10-06-2016 fm. 1,50,000 plus tax @ 4% Invoice No.3 dated 12-09-2016 fs. 30,000 plus tax ea. Invoice No.4 dated 20-09-2016 i. 31,200 (tax not shown separately). Goods returned within 6 months & 28,400 (inclusive of taxes). Sales tax rate is 4% if the qoods are sold within the state, Consider there is no 'C* form the buyer, Calculate Tumover and what is the amount of tex to be paid. 2. (a) (44) Haragobina Stores, a registered dealer in W.B., has nade inter-state sale of &.6 lakhs during June, 2015 - March, 2016. The sale included sales tax at appropriate rate. I£ goods are sold in W.B., the sales tax rate is 4%. Out of the goods sold, goods returned by a buyer valued f- 50,000 in the month of May, 2016 which was sold to the buver in the month of Pebruary, 2016. Some goods was sold to another buyer in Decenber, 2015 vaiued &. 40,000 were rejected by the buyer and sent back in November, 2016, Find out taxable turnover 1f 'C* form was received from ll the buyers. 2. (b) Mr. % purchased 1,000 (non-listed) shares in Y Ltd. on 14th August, 1990 for #&.8,000. On 16th May, 1992, he was allotted 500 bonus sharas. On 22nd October, 2013, he ecquired 1,500 right shares for &.13,794. Mr. Z sold 3,000 (non-listed) shares in ¥ Led, on 12th Pebruary, 2017 @ %.110 per share. Brokerage was given 1%. Mr. 2 purchased a residential house property on 30th dune, 2017 for fe.2,90,000, He has one residential house property also. Determine tne amount of capital gains chargeable to tex for the Assossment Year 2017 ~ 2018. Give details of workings. Cli ~ 2016-17 2125 Cil - 2013-14 939 CIT = 1990-92 182 10 3. (a) State the exemption available for the following allowance: Under Section 10(14) read with rule 2B By Underground allowance. Hl] Compensatory allowance. Tribal areas allawance. Island duty allawance 10 ne conditions Under Section 64(1) (viii) for Clubbing (>) SE'Eicome from assets tronefersea to 8 person for the bene= fit of son's wie. state also the conditions Under Section 64(1A) for clubbing of income of minor child in the hand o1 father or mother. State its exceptions also. ‘Scanned with CamScanner4. (a) 4 (b) 5. (ad 3 NAS(O}-5/17 Mr. A, Banerjee has three houses at Bhopal. For the finan- cial year 2016-17 the following information were available for House No.I, House No.II and House No.III. ‘The House No.I was let out to a friend at a monthly rent of 10,000 upto 31st January, 2017, The house was Constructed in 2015. After 31st January, 2017 it was let out at its fair rent of ®»i5,000 per month, Municipal tax was paid for &.15,000 @ 10% of Municipal Value. Fire Insurance Premium was also paid by him B.2, 000. The House No.II has two floors, Ground Floor and First Ploor. Pirst Floor was indenti¢al to ground floor is occupied by him for his residential purpose. Ground Ploor is let out @ 20,000 per month, Municipal taxes paid @ 20% was %.80,000, House No.IiI - This ‘s used for his ow business. Annual Value for this house was %.1,00,000 and #&.5,000 was paid for Municipal taxes and %.2,000 was paid for repairs. This house was constructed in 2006, A loan was taken on 01-06-2024 for w.40,00,000 for Construction of House No.II ana Construction was Completed on 01-06-2015, Entire loan was repaid on 31-12-2016. Rate of interest on loan was 12% peas Compute income from house property of Mr. A. Banerje for the Assessment Year 2017 - 2018, 10 State the tax treatment of gratuity for Govt. employees, Non=Govt. employees covered by payment of Gratuity Act, 1972, Non-Govt. employees not covered by payment of Gratuity act, 1972. 10 Mr, A, 8 dealer in Delhi, dealing in consumer goods, submitted the following particulars for the month of March, 2016. 'A' category goods was purchased for 2,00, 000 and sold for &.2, 50,000, Category 'B' goods was purchased for is.2, 25,000 (including VAT) and sold at a Profit of 10% on purchase (var rate 12.50X). Goods of ‘ct category purchased for &.1,00,000 (excluding VAT) and sold for 8,1, 50,000 (VAT rate 4x). He has unutiliged balance in.VaT input credit on 01-03-2016 #41, 500, Calcu- late turnover, input'vaT output VAT and net VAT of Mr. A. 10 5. (b)(1) Distinguish between ‘excluded excisable goods' and 5. (b) (44) 5. (b) (444) ‘exempted goods' in relation to Central Excise Duty with examples. . ABC Ltd. sold a machine to Mr. X at a price of B,3 lakhs on 15th April, 2016 and the same was removed from factory at Bombay. The excise duty rate was 12.50% on the date of removal. Mr. X refused to take delivery of the machine when this was sent to his plece. In the meantime the price of the similar machine was increased to &.4 lakhs wee.f. 16th April, 2016, The machine as refused by Mr. X was sold on 21st May, 2016 to Mr. ¥ at B.4 lakhs, The excise duty rate was applicable @ 13.50% w.e.f. 01-05-2017, Cost of production of that machine was #.2, 25,000. Pind out accessable value and determine the excise aity rate to be applicable in this case. . Calculate assessable value and Central excise duty payeble from the following particulars. Total invoice price inclusive of taxes fs. 65,000 state VAT Be 6, 500 Insurance charges for despatch of final product Be. 325 Packing charges Bs. 2,200 Outwardfreight beyond the place of removal 3,100 Central Excise duty rate is 12.50% ‘Scanned with CamScannerNAS(O)-5/17 mall-scale industry. gis Ret Profit as per P/L Account was %.36,000 for the fipancla year 2016-2017. On investigation’ the following information were avai lab 4) He took goods valued for &.8,000 for Personal use and regarding this sales Account was credited by %.6,000 only. 44) The P/L Account was debited by %.2, 400 for his remuneration and also 1,200 was debited as his interest on Capital. 441) Opening and Closing stock were valued at f.4, 500 and t47,200 respectively which were undervalued by 10%. iv) An amount of 841,500 was debited in P/L Account for rent paid for the godown owned by him, v) P/U Account was credited by ts.2,500 as interest on Pixed deposit with Bank and dividend (gross) was credited by b-5,000 also (Dividend was from Indian Co,). vi) P/L is excess debited by i.2, 500 on account of depreciation, vit) An amount of &.4,000 was debited in P/L Account for donation to National Defence Pund, 6. (a) Bangulate Gross total income and taxable income of Mr. Biren Banerjee for the Assessment Year 2017 - 2018, 10 6. (b) State the rules of carryforward of losses for House Property 1088, Speculation and Non-Speculation business loss, Capital loss (Short-tem & Long-term); Loss from activity of horse races, 10 7. (a) (4) Compute interest payable Under Section 2345 by Mr. B. Sanyal for the Assessment Year, 2017-18, Tax Payable on assessed income Be 2, 48,040 Tax Deducted at source B. 20,040 Advance Tax paid Be 2,021,600 Due date of return 31-07-2017 Date Of assessment order (Assume) = 20-12-2017 5 7. (a)(44) Calculate amount of deduction available Under Section 80 GG of Mr. Roy for the Assessment Year, 2017-2018, Business income Bs. 2, 70,000 Income from other source Be 30,000 Rent paid by him for nouse occupied for his residential purpose in Kolkata B. 5,000 p.m, He contributed to P.P.F. during the financial year, 2016 - 17 B. 45,000 Mrs. Roy, his wife, paid rent of 48,000 pems for her accomodation in Kolkata, Mr. Roy or his wife does not own any house in Kolkata. s 7, (b) Write notes on i= Defective Return, ‘Scanned with CamScannerSSA(O)-RS 2020 DIRECT AND INDIRECT TAXATION Time Allowed — 3 Hours Full Marks — 100 W the questions attempted are in excess of the prescribed number, only the questions attempted first up to the prescribed number shall be valued ‘and the remaining ones ignored. Answers may be given either in English or in Bengali but all answers must be in one and the same language. Answer any five questions ) During the financial year 2019-20, Mr A had the following incomes. Compute the income liable to be taxed in India of Mr. A if he ts (1) Not Ordinarily resident, and (I) Non-resident in India. (4) Income from profession in India but received in USA - Rs. 1,00,000 (i) Agricultural income accrued and received in Australia - Rs.20,000 410) Income from business in Indonesia not brought into India - Rs. 3,00,000. The business is controlled from India (iv) Property income accrued and received in London (out af which Rs. 40,000 was remitted to India) - Rs. 130,000 (©) Interest from deposits with an African company but received in India - Rs. 75,000 we S (age 37 years) a share broker, sold a building to his friend Mr. A, who is a dealer in aul spare pans, fr Rs. 120 lakh on 10.11.2019, when the amp duty value was RS 10 akh, The agreement was, however, cnteved into on 01.09.2019 when the stamp duty value was Rs 140 lakhs. Mr. S had received a down payment of Rs. 15 lakh by a crossed cheque from NIA on the date of agreement. Mr. purchased the building for Rs, 95 lakh on 10.08.2017 Further, Mr. S also sold an agricultural land (situated in a village which has a population af $800) for Rs, 60 lakhs to Mr. V on (1.03.2020, which he acquired on 15.06.2014 for Rs. 45 lakhe Stamp duty value of agricultural land ay on 01.03.2020 is Re TElakhs. CU for EY 2014-15; 240; FLY, 2017-18: 272, FY. 2019-20: 289. {In the light of the above facts, you are required to answer the following: (0) Te there any requirement to deduct tax at source on consideration paid oe payable on transfer of building and agricultural tand? (0) In respect of transfer of building. what will be the capital gains chargeable wo tat hands of Mr. S? ‘ sine ‘ax payable (excluding surcharge and health and cess in sable encladig archarge and education cess) om transfer of building (09) Inrespect of purchase of building from M.S, what will be the hargeable to tax i the iembof te ae au income ef folurin 19151 Scanned with CamScanner ‘Scanned with CamScannerSSA(O)-8/18 (2) Tansee ear. 8citizen of India, serving inthe Ministry of Finance in India, was transferred to Indian Embassy in Austria on 15th March, 2019. His income during the financial year 2019- 20s given hereunder: Particulars [Rs Rent from a house situated at Austra, received in Ausra Thereafier. | 5.25,000 emitted to Indian bank account. Interest on Post Office savings bank account ia India 4.500 Salary from Government of India 9.25,000 Foreign Allowances from Government of India 8,00,000 Mr. Sdid not come to India during the financial ‘year 2019-20. Compute his Gross Total Income for the Assessment year 2020-2) (4) Calculate the amount of eligible input tax credit: Particulars (OJA Mini bus having seating Sapacity of 15 persons (including driver) jused for running on hire (i) [Car having seatin (i) D. A. 41% of basic pay (1) Deputation allowance Rs. 300 pm. AY) Lunch allowance Rs. 00 pm, 15% of hs Basic and DA to RP interest credit (0 RPF @ 12%p.a. was Rs. 6,000. wy “sed (vii) He is Provided with a rent free furnished ion i i ton in Kolkata havin, munici value of Rs. 36,000 and furnished with furniture costing Rs. 25,009, smn (viii) ar breve withacarot 1 tes bothferotneng i rcp and private, Purpose. Entis PENses, are ome bythe cimplones Entire ex; (ix) He received leave travel assistance for {ip to Andaman Rs. 50,000 for his whole ‘Scanned with CamScannera3) SSA(O}-8S ye ompute total income of Mr. M for the assessment year 2020-21 from the following information furnished by him for the financial year 2019-20: Particulars —_ Re Salary income (computed) - #.70,000 Lows from self-occupied house property 2.00.00 | Loss from let out house property 60.000 |Loss from speculation business-X 80,000 Profit from speculation business-Y 40.000 _| Income from trading and manufacturing business @ 8% 3.50000 Interest on PPF deposit - 95,000 Long-term capital gain on sale of Vacant site (Computed) 2.10.00 | [ Short-term capital losson sale oflewellety =—=S*~S~«* 1,50,000 lnvestinent in tax saver deposit on 31-03-2020 60.000 | 40| Brought forwand loss of business a 5.50,000 Donation to a charitable trust recognized under section DAA 110.000 | and approved under section 80G paid by cheque | ~| Enhanced compensation received from government for compulsory | 3.00,000 acquisition of land (held for a period of $ years) in the year 2006 10410820 (pan a resident of India, owns a house property at Panipat in Haryana, ‘The Municipal value of the property is Rs. 8.50,000. Fair Rent of the property is Rs. 7,30,000 and Standard Rent is Rs 20,000 per annum, ‘The property was let out for Rs. 85.000 per month for the period April 2019 to December 2019 Thereafter, the tenant vacated the property and Mrs. D used the house for self-oceupation. Rent for the months of November and December 2019 could not be realized from the tenant Mrs, D has not instituted any legal proceedings for n 'y of the unpaid rent She paid municipal taxes @ 12% during the year and paid interest of Rs. 50,000 during for amount borrowed towards Fepairs of the house property ‘You are required to compute her income from house Property for the (b) R gifted Rs, 15 lakhs tohis wife, § o Out of the gifted amount tw K on Ist Mm which she rece: “ Wed interest of Rs. 80,000, The said sum of Rs. 80,000 was tnvested in shares of a listed company an th October, 2019, which was sold for Rs, 96,000 on, 28th Mareh, 2020, Sccunties transactions 14x was paid on purchase and sale of such share the year AY, 2020-24 m her birthday on, 24rd February, 20019, § lent Rs, §,00,000 April, 2019 for six months The balance amount of gift was invested on, Ist April, 2019, as Capital by § in her new business, She suffered le PRs. $2. i the business in Financial Year 2019-20, ie Tea ‘Scanned with CamScannerSSA(O)-8/18 (4) In whose hands the above income and loss shall be included in Assessment Year 2020-21, assuming that capital invested in the business was entirely out of the funds gifted by her husband. Support your answer with brief reasons, (c) (i) Holiday Guest House, situated at Shimla, provides boarding and lodging services to tourists at economical cost, The charges of a single deluxe room per day are Rs. 999. Mr. X has booked one deluxe room for two days during Christmas holidays. You are required to determine whether GST is payable by Holiday Guest House on the above booking. If yes, determine the amount of GST so payable. Will your answer change, if the charges of a single deluxe room per day charged by Holiday Guest House are Rs. 1,000? (G8) Mis Damodar Lid. provides services by way of storage of seasonal fruits and vegetables in {udhiana, Punjab, The monthly rental for a godown is Rs. 15,000. Exarnine whether GsT is payable by M/s Damodar Ltd. 8+64(343)=20 + (@) Z.Lid. has following assets as on Ist April, 2019: Assets Rs. Depreciation Rate Building A 50,000 10% Furniture B 30,000 10% Building C 10,000 + 10% | [Machinery a 40,000 i L Machinery B $0,000 - Mr. Ava Fegistered person Me. Ba registered person Mr. C, an unregistered perso Mr. D, an unre; istered person Mr. P. an unre; istered person Me Rarepmce et —| Sine — Person ‘Scanned with CamScanner“) SSA(O}-BMS ‘The aggregate annual turnover of Mr. G in the preceding financial year was Rs. 1.20 crore. With reference to rule 59 of the CGST Rules, 2017, discuss the manner in which the details of above supplies are required to be furnished in GSTR-1. 644410220 5. (a) Mr. X, aresident individual, age $3 years provides consultancy services in the field of Taxation, His Income and Expenditure account for the year ended 31st March, 2020 is as follows: Income and Expenditure Account for the year ending 31st March, 2020 Expenditure Amount (Rs.) Income Amount (Rs.) To Salary 4,00,000 | By Consulting fees | $8,00,000 To Motor Car expenses 88,000 | By Share of Profit 55,000 from HUF ‘To Depreciation 87,500 | By Interest on saving 25,000 _| bank deposits To Medical expenses 70,000 | By Interest on income] 26,000 tax refund To Purchase of Computer L 90,000 To Bonus 25,000 To General expenses 1,05,000 LC To Office & Administrative 115,000 | | | To Excess of Income over 49,25,500 Expenditure | 59,06,000 59,06,000 The following other information relates to the financial year 2019-20 (i) Salary includes a payment of Rs. 22,000 per month to his sister-in-law who is in-charge of the marketing department. However, in comparison to similar business, the reasonable salary of a marketing supervisor is Rs. 18,000 per month, (Gi) Written down value of the assets as on Ist April, 2019 are as follow: (D)_ Motor Car (25% used for personal use) Rs. 3,50,000 (I) Furniture and Fittings Rs. 80,000 (iii) Medical expenses includes: (©) Family planning expenditure Rs, 15,000 incurred for the ‘employees which was revenue in nature. (ID) Medical expenses for his father Rs. 55,000. (Father's age is 65 years and he is not covered under any medical insurance policy.) Rs, 2,500 incurred in cash and remaining by credit card. ‘Scanned with CamScannerSSA(O)-8/18 (6) i invoice was paid in the ‘on credit. The total invoice was paid in (iv) The computer was purchased on Sth June, 2019 following manner: id is the date of purchase. (1) Rs. 18,000 paid in cash as down payment on August. 2019. (I) Remaining amount was paid through account payee cheque on 10th August, (¥) Bonus was paid on 30th September, 2020. , (vi) General expenses include commission payment of Rs. 42,000 to Mr. X for the promotion of business on 17th September, 2019 without deduction of tax at source. (vii) He also received gold coins from a family friend on the occasion of marriage anniversary on 15th November, 2019, The market value of the coins on the said date was Rs. 85,000. (viti) The consultancy fees for the previous year 2019-20 were Rs. 52.50,300. Compute the total income and the tax liability of Mr. M for the assessment year 2020-21. (©) State the salient features of composite supply under the GST Act. Give an example of composite supply. (©) Discuss the correctness of the following statements: () Once generated, an e-way bill cannot be cancelled. (ti) E-way bill generated in one State is valid in another State. 1244+4=20 ye te (ollowing information, compute income from other sources of Mrs. B for the AY, 2020.21: (i) Family pension @ Rs. 4.500 p.m, (Gi) Dividend received from an Indian company Rs. 7,000 and from a foreign company 000, (iit) Sub-letting of house @ Rs. 6,000 per month. Rent paid to landlord Rs, 4,500 per month, ‘municipal tax paid Rs. 2,000. tT Explain the provisions ‘relating to taxation of winnings from lotteries. 64+6+444=20 ‘a Afr. G submits the follow: , FH Sooo the following particulars of his incomes and losses for the assessment year [jrcome from house property Income from textile business {[ Loss from stationery business ulation loss Short-term capital gains Income from the activity of owning and Tmaintan (wim from lottery ating race horses ‘Scanned with CamScanner(7) SSA(O)-8/18- ‘The losses of G brought forward from the assessment year 2019 - 20 are as follows: Loss from house property Rs. 8,000 Loss from stationery business Rs. 7.000 Loss under the head capital gains Rs. 4,300 ‘Loss from the activity of owning an maintaining | Rs. 14,700 race horses All the above losses were first computed in the ‘assessment year 2019 - 20. Compute his total income for the assessment year 2020-21. 56 Mr. S, aged 66 years, furnishes the following particulars for the year ending 31.03.2020: (i) Life Insurance premium paid Rs. 40,000, actual capital sum of the policy assured for Rs. 1,50,000; (ii) Contribution to Public Provident Fund Rs. 50,000 in the name of father; (iii) Tuition fees payment Rs. 5,000 each for 3 sons pursuing full time graduation course in Mumbai: Tuition fee pad for daughter pursuing Ph.D. in Melbourne University, Australia Rs, 3.50 lakhs; (©) Housing loan principal repayment Rs. 30,000 to HDFC Bank. This property is under construction at Bangalore as on 31. 03.2020; (©) Principal repayment of housing loan taken from a relative Rs. 60,000. The Property is self-occupied and situated at Chennai; (vi) Deposit under Senior Citizens Savings Scheme Rs. 15,000; (vii) Five-year deposits in an account under Post Office Time Deposit Scheme Rs. 20,000; (viii) Investment in National Saving Centificate Rs. 25,000; (ix) Subscription to bonds issued by NABARD Rs. 30,000. Compute the quantum of eligible deduction under Section 80C of the Income Tax Act, 1961 for AY. 2020-21, (c) Write short notes: (i) Related party as per CGST Act, 2017 (ii) Distinct person under GST Act, 2017. 8+6+(343)=20 ‘Scanned with CamScanner