<\/p>\n
<\/p>\n
<\/p>\n
This\u00a0Paper\u00a0has 25 answerable questions with 0 answered.<\/p>\n
Total No. of Questions\u2014 6]
\nTime Allowed : 3 Hours<\/p>\n
Maximum Marks : 100
\nAnswers to questions\u00a0are to be given only in English except in the cases of candidates who have opted for Hindi medium. If a candidate who has not opted for Hindi medium,\u00a0answers\u00a0in Hindi, his\u00a0answers\u00a0in Hindi will not be valued.
\nQuestions of both the Sections have been given together without the Sections being mentioned in the question-paper. Candidates are advised to attempt all the required questions in the same answer-book.
\nAttempt all questions
\nMarks
\n1. (a) Dr. Krishna furnishes you the following information:
\nIncome\u00a0and Expenditure Account for the year ended 31st March, 2004
\nRs. Rs.
\nTo Medicines consumed
\nTo Staff salary
\nTo Hospital consumables
\nTo Rent\u00a0paid
\nTo Administrative expenses
\nTo Net\u00a0Income 2,42,000
\n1,65,000
\n47,500
\n60,000
\n1,23,000
\n2,46,000 By Free receipts
\nBy Rent
\nBy Dividend from Indian
\nCompanies 8,47,500
\n27,000<\/p>\n
9,000
\n8,83,500 8,83,500
\n(i) Rent paid includes rent for his residential accommodation of Rs. 30,000 (paid by cheque)
\n(ii) Hospital equipments\u00a0(eligible for depreciation @ 25%)
\n01.04.2003 Opening WDV Rs. 5,00,000
\n07.12.2003 Acquired (Cost) Rs. 2,00,000
\n(iii) Medicines consumed include medicines (cost) Rs. 10,000 used for Dr. Krishna’s family.
\n(iv) Rent received – relates to a property situated at Mysore (Gross Annual Value). The municipal tax of Rs. 2,000 paid in December, 2003 has been included in the “administrative expenses”.
\n(v) He received Rs. 5,000 per month as salary from Full Cure Hospital. This has not been included in the “fee receipts” credited to\u00a0income\u00a0and expenditure account.
\n(vi) He sold a vacant site in July, 2003 for Rs. 5,00,000. It was inherited by him from his father in January, 1998. The site was acquired by his father in December, 1990 for Rs. 1,50,000.
\n15 (0)
\n(b) Ramesh retired as General Manager of XYZ Co. Ltd, on 30.11.2003 after rendering service for 20 years and 10 months. He received Rs. 3,00,000 as gratuity from the employer. (He is not covered by Gratuity Act, 1972)
\nHis salary particulars are given below:
\nBasic pay
\nBasic pay
\nDearness allowance
\n(Eligible for\u00a0retirement benefits)
\nTransport allowance Rs. 10,000 per month upto 30.06.2003
\nRs. 12,000 per month from 01.07.2003<\/p>\n
50% of basic pay
\nRs. 1,500 per month
\nHe resides in his own house. Interest on monies borrowed for the self-occupied house is Rs. 24,000 for the year ended 31.03.2004.
\nFrom a\u00a0fixed deposit\u00a0with a bank he earned interest\u00a0income\u00a0of Rs. 18,000 for the year ended 31.03.2004.
\nCompute taxable\u00a0income\u00a0of Ramesh for the year ended 31.03.2004.<\/p>\n
9 (0)<\/p>\n
EITHER<\/p>\n
2. (First Alternative)
\n(i) State the conditions for claiming exemption in the case of a infra \u2013 structural company. 6 (0)
\n(ii) When a charitable trust can avail benefits under Sec. 11 & 12 of the\u00a0Income Tax\u00a0Act, 1961? 6 (0)
\n(iii) State the provisions relating to the deduction in respect of repayment of loan taken for higher education. 5 (0)<\/p>\n
OR<\/p>\n
2. (Second Alternative)
\n(i) What are the consequences of demerger as to the accumulated loss and unabsorbed depreciation? 6 (0)
\n(ii) State the provisions relating to expenditure by way of payment to institutions carrying rural development programmes. 6 (0)
\n(iii) What are the requisites for filing a revised return. 5 (0)
\n3. (a) Mr. A furnishes you the following information for the year ended 31.03.2004.
\n(i) Income\u00a0from plying of vehicles (computed as per books)
\n(He owned 5 heavy goods vehicle throughout the year) 2,10,400
\n(ii) Income\u00a0from retail trade of garments
\n(computed as per books) (Sales turnover Rs. 21,70,000) 75,000
\n(iii) He has brought forward depreciation relating to assessment year 2003-04 1,00,000
\n(iv) He deposited Rs. 1,00,000 into his PPF account on 6.01.2004
\nCompute taxable\u00a0income\u00a0of Mr. A and his tax liability for the assessment year 2004\u201305 with reasons for your computation.<\/p>\n
6 (0)
\n(b) Bala sold his vacant site on 21.09.2003 for Rs. 7,00,000. It was acquired by him on 01.10.1994 for Rs. 1,50,000
\nThe State stamp valuation authority fixed the value of the site at the time of transfer @ Rs. 13,00,000.
\nCompute capital gains in the hands of Bala and your reasons for computation.
\nCost inflation index : (1994-95 = 259 and 2003-04 = 463) 6 (0)
\n(c) Determine the value of perquisite in the following cases with brief reasons for your answer:
\n(i) Motor car (cubic capacity of engine below 1.60 litres) owned by employer and provided to employee since 1.04.2003. It is partly used for official and personal purposes by the employee. Expenditure fully met by the employer Rs. 25,600. (Car is self \u2014 driven by the employee)
\n(ii) 100 shares allotted to an employee under ESOP scheme on 1.09.2003 by a limited company (the share allotment scheme is in accordance with the guidelines issued by the Central Government). Market value of each share on the date of allotment is Rs. 70.
\n4 (0)
\n4. Write short notes on any three of the following: 3×6=18
\n(i) Amortization\u00a0of expenditure under voluntary retirement scheme. (0)
\n(ii) Carry forward and set off of losses by closely held companies. (0)
\n(iii) Rectification of mistake apparent from record. (0)
\n(iv) Revision by Commissioner of\u00a0Income Tax\u00a0U\/S 263 of the Act. (0)
\n5. (a) Discuss the term \u2018sale\u2019 under CST Act. 3 (0)
\n(b) When a Government can be treated as a dealer? 3 (0)
\n(c) When a certificate of registration can be cancelled? 3 (0)
\n(d) Mr. X reported sales turnover of Rs. 36,20,000. This includes the following:
\n(i) Excise duty Rs. 3,00,000 and
\n(ii) Deposit for returnable containers and packages Rs. 5,00,000.
\nSales tax\u00a0was not included separately in the sales invoice. Compute tax liability under the CST Act, assuming the rate of tax @ 4%. 3 (0)
\n(e) Mr. Y of Mumbai purchased declared goods from Nagpur by paying\u00a0sales tax\u00a0at 3%. Subsequently, the commodity is sold to a dealer at Chennai. The dealer Y while collects and remits tax on the Interstate sale, wants refund of tax paid on sale within State (i.e. purchase from Nagpur). Is he correct? 3 (0)
\n6. Discuss the following, with brief reasons, whether they are True\/False under CST Act. 5×2=10
\n(a) Appeal against an order passed by the registration authority must be filed within 90 days of the service of order to the Central\u00a0Sales Tax\u00a0Appellate Authority. (0)
\n(b) Excise duty would form part of sale price and turnover. (0)
\n(c) Where the dealer beings a proprietor dies \u2013 the certificate of registration will be cancelled. (0)
\n(d) \u2018Place of business\u2019 does not include place of business of the agent. (0)
\n(e) A dealer who does not get himself registered is liable for penalty. (0)<\/p>\n","protected":false},"excerpt":{"rendered":"
CA PE II Question Papers \u00a0Group\u00a0II \u00a0Income Tax\u00a0and Central\u00a0Sales Tax May 2004 This\u00a0Paper\u00a0has 25 answerable questions with 0 answered. Total No. of Questions\u2014 6] Time Allowed : 3 Hours Maximum Marks : 100 Answers to questions\u00a0are to be given only in English except in the cases of candidates who have opted for … Read more<\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":""},"categories":[4731,120,4930],"tags":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts\/24537"}],"collection":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/comments?post=24537"}],"version-history":[{"count":0,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts\/24537\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/media?parent=24537"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/categories?post=24537"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/tags?post=24537"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}