<\/p>\n
<\/p>\n
This Paper has 26 answerable questions with 0 answered.<\/p>\n
Maximum Marks : 100 EITHER<\/p>\n 2. (First Alternative) OR<\/p>\n 2. (Second Alternative) 12 (0) OR<\/p>\n X, an Export House of Delhi, first enters into a contract of sale with Y of New York, USA and subsequently purchases these goods from Z of Chennai for the purpose of export to Y of New York. Is the sale by Z to X (last sale before export) be termed as sale in the course of export? 4 (0)<\/p>\n","protected":false},"excerpt":{"rendered":" CA PE II Question Papers Group II \u00a0Income\u00a0Tax and Central\u00a0Sales Tax November 2003 This Paper has 26 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 … 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\/24539"}],"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=24539"}],"version-history":[{"count":0,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts\/24539\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/media?parent=24539"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/categories?post=24539"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/tags?post=24539"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nTotal No. of Questions \u2014 6]
\nTime Allowed : 3 Hours <\/em><\/p>\n
\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, answers in Hindi, his answers in 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) Mr. Murali provides the following information for the year ending 31\u201303\u20132003:
\n(i) Sales (Retail Trade\u00a0in Garments) (no book of Accounts maintained) Rs. 32,00,000
\n(ii) Rent from house property at Chennai (per month) Rs. 10,000
\n(iii) Vacant site Lease Rent Rs. 12,000
\n(iv) Murali purchased 20,000 shares of X Co. Ltd., who declared 1 : 1 bonus on 1-01-2000
\nMurali sold 1,000 bonus shares in September, 2002 for Rs. 1,20,000.
\n(v) Received Rs. 50,000 on 12-02-03 being amount due from Mr. C relating to Electronic goods supplied by Murali\u2019s father, which was written off as Bad debt by his father in A.Y.2001-02 and allowed as deduction. Murali\u2019s father died in August, 2001.
\n(vi) Brought forward business loss relating to discontinued automobile business of Murali relating to A.Y. 2001-02. Rs.2,00,000
\n(vii) Brought forward depreciation relating to discontinued automobile business of Murali Rs. 1,50,000
\n(viii) Murali contributed Rs. 15,000 to Prime Minister\u2019s National Relief Fund and Rs. 10,000 to Heritage Charitable Trust enjoying\u00a0exemption\u00a0u\/s 80G.
\nCompute taxable\u00a0income\u00a0of Mr. Murali for the previous year ended 31-03-03. (A.Y. 2003-04).
\n15 (0)
\n(b) Gopichand Industries furnishes you the following information:
\n01-04-02 (Rupees)
\nBlock I Plant and Machinery (consisting of 10 looms)
\nRate of depreciation 25%
\nWDV 5,00,000
\nBlock II Building (consisting of 3 buildings)
\nRate of depreciation 10%
\nWDV 12,50,000
\nAcquired on 5-07-02 \u20145 looms for 4,00,000
\nSold on 7-12-02 \u201415 looms for 10,00,000
\nAcquired on 10-01-03 \u20142 looms for 3,00,000
\nCompute depreciation claim for the Assessment year 2003-04. 6 (0)
\n(c) Ms. Vimla sold a residential building at Jodhpur for Rs. 15,00,000 on 01-07-02.
\nThe building was acquired for Rs. 1,50,000 on 01-06-96.
\nShe paid brokerage @ 2% at the time of sale of the building. She invested Rs. 7 lakhs in purchase of a residential building in December, 2002 and deposited Rs. 2 lakhs in NABARD Capital Gains Bond in March, 2003.
\nCost inflation index:
\n1996 \u2014 97 305
\n2002 \u2014 03 447
\n4 (0)<\/p>\n
\n(a) Sri Hari is the General Manager of ABC Ltd. From the following details compute the taxable\u00a0income\u00a0for the Assessment year 2003-04:
\nBasic salary Rs. 20,000 per month
\nDearness allowance 30% of basic salary
\nTransport allowance Rs. 2,000 per month
\nMotor car running and maintenance charges fully paid by employer Rs. 36,000
\n(The motor car is owned and driven by employee Hari. The engine cubic capacity is below 1.60 litres. The motor car is used for both official and personal purpose by the employee).
\nExpenditure on accommodation in hotels while touring on official duties met by the employers Rs. 30,000
\nLoan from recognized provident fund
\n(maintained by the employer) Rs. 40,000
\nValue of lunch provided by the employer during office hours. Cost to the employer Rs. 12,000
\nResidence telephone bill of Hari paid by the employer Rs. 15,000
\nComputer (cost Rs. 50,000) kept by the employer in the residence of Hari from 01-10-02
\nHari made the following payments:
\nMedical\u00a0insurance\u00a0premium:Paid in cash Rs. 2,000
\nPaid by cheque Rs. 3,200
\n12 (0)
\n(b) Discuss about Rate of Rebate and quantum of Rebate u\/s of the\u00a0Income Tax Act, 1961. 4 (0)<\/p>\n
\n(a) Mr. A and B constructed their houses on piece of land purchased by them at New Delhi. The Built up area of each house was 1,000 sq. ft. Ground floor and an equal area in the First floor. A started construction on 1-04-01 and completed on 31-03-02. B started the construction on 01-04-01 and completed the construction on 30-06-02. A occupied the entire house on 01-04-02. B occupied the Ground floor on 01-07-02 and let out the First floor for a rent of Rs. 15,000 per month. However, the tenant vacated the house on 31-12-02 and B occupied the entire house during the period 01-01-03 to 31-03-03.
\nFollowing are the other informations:
\nRs.
\n(i) Fair Rental value of each unit (Ground floor\/First floor) 1,00,000 per annum
\n(ii) Municipal value of each unit (Ground floor\/First floor) 72,000 per annum
\n(iii) Municipal taxes paid by A \u2014 8,000
\nB \u2014 8,000
\n(iv) Repair and Maintenance charges paid by A \u2014 28,000
\nB \u2014 30,000
\nA has availed a housing loan of Rs. 20,00 lakhs @ 12% p.a. on 01-04-01. B has availed a housing loan of Rs. 12.00 lakhs @ 10% p.a. on 01-07-01. No repayment was made by either of them till 31-03-03. Compute\u00a0Income\u00a0from House Property for A and B for the previous year 2002-03 (A.Y. 2003-04).<\/p>\n
\n(b) (i) Distinguish between Foregoing of Salary and Surrender of Salary. 2+2=4 (0)
\n(ii) An employee instructs his employer to pay a certain portion of his salary to a charity and claims it as exempt as it is diverted by overriding charge\/title\u2014Comment (0)
\n3. (a) Discuss briefly about Returns to be filed under Section 139(1) proviso; i.e. under Economic Criteria. 6 (0)
\n(b) When is an individual\/HUF is said to be \u201cResident and ordinarily Resident\u201d under theIncome Tax Act, 1961? 6 (0)
\n(c) Discuss about deductions in respect of remuneration for services rendered outside India u\/s SORRA of the\u00a0Income Tax Act, 1961. 6 (0)
\n4. (a) What are the transactions not regarded as transfer as per Sec. 47 under the\u00a0Income Tax Act, 1961. (List at least six of such transactions). 6 (0)
\n(b) Self assessment tax u\/s 140A of the\u00a0Income Tax Act, 1961. 6 (0)
\n(c) Discuss about set off and carry forward of losses under the head Capital Gains. 5 (0)
\n5. Answer any five from the following with brief reasons whether they are True\/False under CST Act: 5×2=10
\n(a) Both registered and unregistered\u00a0dealers\u00a0can collect tax under CST. (0)
\n(b) Cost of Freight separately charged in the invoice shall be deducted from Sale\u00a0price. (0)
\n(c) Subsidy given by Government to manufacturers to Compensate Cost of Production will from part of Sale\u00a0price. (0)
\n(d) All Directors of Private Company (present and past) are personally liable for any tax due under the CST Act. (0)
\n(e) Indian Railways which sells unclaimed\/uncollected goods is a dealer. (0)
\n(f) \u201cGoods\u201d include Shares and\u00a0Securities. (0)
\n(g) When goods are sent by VPP, the sale is said to take place in the State from where the parcel is sent. (0)
\n6. Answer the following as per the CST Act, 1956:
\n(a) Ansari and Co. transferred its goods from its factory at Cochin to its Branch at Mysore. Comment on the procedure to be adopted for branch transfer. 4 (0)
\n(b) ABC Ltd. is located in Special Economic Zone. It wants to know the concessions or benefits under the CST Act. Advise. 4 (0)
\n(c) Mr. A reports his turnover at Rs. 52,00,000 for the year ended 31-03-03. Also he reported that goods sold in March, 2003 have been returned by the customers to the value of Rs. 5,20,000 in May, 2003. He has not charged tax separately in the sale invoices. Assuming the tax rate @ 4% compute his tax liability under the\u00a0Sales Tax\u00a0Act. 4 (0)
\n(d) X of Mumbai books his goods by air to his Branch Office at\u00a0London. Subsequently, he transfers the documents of title to the buyer at Scotland after the goods have crossed the Customs Frontiers of India. Is this a sale in the course of export. 4 (0)<\/p>\n