CWA ICWA Exam Papers Inter Group II
Applied Indirect Taxes June 2009
This Paper has 25 answerable questions with 0 answered.
Time Allowed : 3 Hours Full Marks : 100
The figures in the margin on the right side indicate full marks.
Answer Question No. 1 which is compulsory and any five from the rest.
1. (a) Fill in the blanks: 2×5=10
(i) Goods under Central Excise must be ________ (movable/immovable) and ________ (marketable/packaged). (0)
(ii) CETA specifies some ________ (process/operations) as amounting to manufacture. This will be said to be manufactured ________ (even if/unless) as per court decisions they do not amount to manufacture. (0)
(iii) Processing can amount to manufacture if a ________ (new/existing) and ________ (identifiable/similar) product known in the market emerges. (0)
(iv) Exclusive economic zone extends to ________ (200/300) nautical miles from the base line of the cost. Beyond ________ (100/200) nautical miles is High Seas. (0)
(v) General Free Allowance (GFA) under Customs Act is ________ (allowed/not allowed) on unaccompanied baggage; GFA is ________ (allowed/not allowed) on alcoholic liquor or wines up to two litres. (0)
(b) State with reasons, whether true or false: 5×3=15
(i) Brand owner is considered as manufacturer under Central Excise. (0)
(ii) Under Central Sales Tax Act, for an activity to be classified as business profit motive is immaterial. (0)
(iii) The concession under Customs Act for person who is transferring his residence to India whereby he is eligible to bring used personal and household articles to India without duty is applicable to Indian residents returning from overseas after 2 years but not available to foreigners. (0)
2. (a) What do you understand by transit and transhipment of goods? Under what conditions do they enjoy exemptions from duty under the Customs Act, 1962? 10 (0)
(b) The assessable value of an imported items is Rs. 1,00,000. Basic customs duty is 20%, additional duty of customs is 2% and secondary and higher education cess is 1% on duty. No additional duty of customs is chargeable on such goods u/s 3(5) of the Act.
Compute the ammount of customs duty payable. Also state the amount of credit available to the importer. 5 (0)
3. Write short notes on any three of the following 5×3=15
(a) Appeals to appellate authority under CST Act; (0)
(b) Meaning of “accessory” for excise duty purpose; (0)
(c) Duty Entitlement Pass Book (DEPB) scheme; (0)
(d) Specific Audit as per S. 14A of Central Excise Act, 1944. (0)
4. (a) Who is a job worker? State how is value determined when the goods are manufactured on job work basis. 3+6 (0)
(b) A Ltd. supplies raw material to a job worker J Ltd. After completing the job–work, the finished product of 5,000 packets are returned to A Ltd. putting the retail sale price as Rs. 20 on each packet. The product in the packet is covered under MRP provisions and 40% abatement is available on it. Determine the assessable value under Central Excise Law from the following details:
Cost of raw material supplies
Job worker’s charges including profit
Transportation charges for sending raw material to the job worker
Transportation charges for returning the finished packets to A Ltd. Rs.
5. (a) Outline the provisions relating to registration under service tax. 7 (0)
(b) Explain ‘Export of Service’ under service tax. What is the exemption available to exporter of service from service tax? 8 (0)
6. (a) A dealer effected following inter–state sales during the quarter July 2008–September, 2008, (a) Invoice No. 25 dated 5th July, 2008; Rs. 1,12,400 (tax not shown separately), (b) Invoice No. 26, dated 13th August, 2008; Rs. 50,000 plus tax @ 4% i.e. Rs. 2,000. Total Rs. 52,000, (c) Invoice No. 27 dated 18th September, 2008; Rs. 20,000 plus tax @ 4% Rs. 800 i.e. Total Rs. 20,800, (d) Invoice No. 2B dated 27th September, 2008; Rs. 31,200. Tax not shown separately. Goods returned within 6 months were Rs. 8,400 (inclusive of taxes). Sales Tax rate is 4% if goods are sold within the State.
What is the turnover and what is tax payable, if the buyers did not issue C Form? 8 (0)
(b) What is the inpact of VAT of CST? 7 (0)
7. (a) Explain the provisions relating to cenvat credit on goods, services and capital goods under Central Excise. 8 (0)
(b) An assessee cleared various manufactured final products during June, 2008. The duty payable for June, 2008 on his final products was as follows: Basic Rs. 2,00,000, Education Cesses–as applicable. During the month he received various inputs on which total duty paid by suppliers of inputs was as follows: Basic duty Rs. 50,000, Education Cess Rs. 1,000, SAH education Cess Rs. 500. Excise duty paid on capital goods received during the month was as follows: Basic duty Rs. 12,000, Education Cess Rs. 240, SAH Education Cess Rs. 120.Service Tax paid on input service was as follows: Service Tax Rs. 10,000, Education Cess Rs. 200, SAH Education Cess Rs. 100.
How much duty the assessee will be required pay by GAR–7 challan for the month of June2008, if assessee had no opening balance in PLA account? What is last date for payment? 7 (0)
8. (a) Mention briefly any five illustrative cases under the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995, where all the industry Drawback rates will not apply. 6 (0)
(b) Write notes on Special Brand Rate. 4 (0)
(c) ABC Co. Ltd. provided services valuing Rs. 8 lakhs during the financial year 2007–08. During 2008–09, it has provided taxable services valuing Rs. 10 lakhs and has received payments towards payable services Rs. 8.5 lakhs. It has also received services in the nature of transport of goods by road valuing Rs. 50,000, in respect of which it is the person liable to pay service tax.
Compute the service tax, if any, payable by ABC Co. Ltd. for the financial year 2008–09. It is given that goods transport service is exempt to the extent of 75% of value thereof. 5 (0