This Paper has 24 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, 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\u2013paper. Candidates are advised to attempt all the required questions in the same answer\u2013book.
\nAttempt all questions
\nMarks
\n1. (a) Mr. Vignesh, Finance Manager of KLM Ltd, Mumbai, furnishes the following particulars for the financial 2002-03:
\n(i) Salary Rs. 46,000 per month
\n(ii) Value of\u00a0medical\u00a0facility in a hospital maintained by the company Rs. 7,000
\n(iii) Rent\u00a0Free accommodation\u00a0owned by the company
\n(iv) Housing Loan of Rs. 6,00,000 at the\u00a0interest rate\u00a0of 5% p.a. (No repayment made during the year)
\n(v) Gifts made by the company on the occasion of Wedding anniversary of Mr. Vignesh Rs. 4,750
\n(vi) A Wooden table and 4 chairs were provided to Mr. Vignesh at his residence (dining table). This was purchased on 1.5.99 for Rs. 60,000 and sold to Mr. Vignesh on 1.8.2002 for Rs. 30,000
\n(vii) Personal Purchases through Credit Card provided by the Company amounting to Rs. 10,000 was paid by the Company. No part of the amount was recovered from Mr. Vignesh
\n(viii) An ambassador can which was purchased by the Company on 16.7.99 for Rs. 2,50,000 was sold to the assessee on 14.7.02 for Rs. 80,000.
\nOther Income Received by the Assessee during the previous year 2002\u201303:
\n(a) Interest on Fixed Deposits with a Company. Rs. 5,000
\n(b) Income from specified Mutual Fund Rs. 3,000
\n(c) Interest on Bank Deposits of minor married daughter. Rs. 3,000
\n(d) Income from UTI received by his handicapped Rs. 1,200
\n(e) Contribution to LIC towards premium U\/S 80CCC. Rs. 10,000
\n(f) Deposit in PPF Account made during the year 2002-03. Rs. 75,000
\n(g) Bonds of ICICI (Tax Savings) eligible for Tax rebate. Rs. 25,000
\nCompute the taxable Income of Mr. Vignesh and the tax thereon for the Assessment year 2003-04.
\n15 (0)
\n(b) Compute the deduction U\/S 80HHC from the following particulars given by a individual Trader for the Assessment year 2003-04:
\nExport Sales (Received in convertible Foreign Exchange Rs. 45,00,000 in India)
\nTotal Sales Rs. 70,00,000
\nDirect Cost of Goods exported Rs. 30,00,000
\nAllocated Indirect Costs relating to Export Rs. 8,00,000
\nExport Incentives. Rs. 5,00,000
\n3 (0)
\n(c) M\/s QQ & Co., a sole proprietory concern, was converted into a Company on 31.8.2002. Before the conversion, the sole proprietory concern had a Block of Plant and Machinery (Rate of Depreciation 25%), whose WDV as on 1.4.2002 was Rs. 3,00,000. On 1st April, itself a new Plant of the same Block was
\nPurchased for Rs. 1,20,000. After the conversion, the Company has purchased the same type of Plant on 1.1.2003 for Rs. 1,60,000
\nCompute the depreciation that would be allocated between the sole proprietory concern and the successor Company. 4 (0)
\n(d) Discuss the following issues relating to Income from House property:
\n(i) Income earned by Residents from House Properties situated in foreign countries.
\n(ii) Properties which are used for Agricultural purposes.
\n1.5+1.5 (0)<\/p>\n
EITHER<\/p>\n
2. (First Alternative)
\n(a) Compute the Tax liability of Mr. Madhavan for the Assessment year 2003-04 from the following particulars:
\n(i) Net House Property Income as computed under the
\nhead Income from House property
\nRs.
\n2,70,000
\n(ii) Income from business before adjusting the following Rs. 90,000
\n(a) Carried forward business Loss Rs. 70,000
\n(b) Current Depreciation Rs. 30,000
\n(c) Carried forward unabsorb Depreciation Rs. 1,40,000
\n(iii) Short-term Capital Gains\u2014Jewellery Rs. 1,60,000
\n(iv) Long\u2013term Capital Loss\u2014Shares Rs. 40,000
\n(v) Long-term Capital Gain\u2014Debentures Rs. 2,00,000
\n(vi) Dividend on shares held as stock in trade Rs. 10,000
\n(vii) Dividend from a company carrying on Agricultural operation Rs. 12,000
\n(viii) Income from growing and manufacturing Coffee (Cured and Roasted) Rs. 1,00,000
\nDuring the Previous year 2002\u201303, the assessee has donated Rs. 35,000 to an approved Local Authority for the promotion of Family Planning and purchased NSC VIII issue for Rs. 1,00,000 12 (0)
\n(b) Discuss the treatment of unrealised Rent and its recovery in subsequent years. 3 (0)<\/p>\n
OR<\/p>\n
2. (Second Alternative)
\n(a) Mr. Sivan, a retail trader of Cochin gives the following Trading and Profit and Loss Account for the year ended 31st March 2003:
\nTrading and Profit and Loss Account for the year ended 31.03.2003
\nRs. Rs.
\nTo Opening Stock 90,000 By Sales 12,11,500
\nPurchases 10,04,000 Income from UTI 2,400
\nGross Profits 3,06,000 Other\u00a0Business receipts 6,100
\nClosing Stock 1,80,000
\n14,00,000 14,00,000
\nTo Salary 60,000 Gross Profit B\/d 3,06,000
\nRent and Rates 36,000
\nInterest on loan 15,000
\nDepreciation 1,05,000
\nPrinting and Stationery 23,200
\nPostage and Telegram 1,640
\nLoss on Sale of Shares (short-term) 8,100
\nOther General Expense 7,060
\nNet Profit 50,000
\n3,06,000 3,06,000<\/p>\n
Additional Information:
\n(i) It was found, some stocks were omitted to be included in both the Opening and Closing stock; the values of which were
\nOpening stock Rs. 9,000
\nClosing stock Rs. 18,000
\n(ii) Salary includes Rs. 10,000 paid to his brother, which is unreasonable to the extent of Rs. 2,000.
\n(iii) The whole amount of Printing and Stationery was paid in cash.
\n(iv) The Depreciation provided in the Profit and Loss Account Rs. 1,05,000 was based on the following information:
\nThe written down value of Plant and Machinery is Rs. 4,20,000. A new Plant falling under the same Block of depreciation of 25% was bought on 1.7.2002 for Rs. 70,000. Two old plants were sold on 1.10.2002 for Rs. 50,000.
\n(v) Rent and Rates includes\u00a0Sales Tax\u00a0liability of Rs. 3,400 paid on 7.4.03.
\n(vi) Other\u00a0Business receipts\u00a0include Rs. 2,200 received as refund of\u00a0Sales Tax\u00a0relating to 2001-02.
\n(vii) Other General Expenses include Rs. 2,000 paid as Donation to a Public Charitable Trust.
\nYou are required to advise Mr. Sivam whether he can offer his business income U\/S 44AF i.e. Presumptive taxation.
\n12 (0)
\n(b) Mr. X and Mr. Y are working for M\/s Gama Ltd. As per Salary fixation norms, the following perquisites were offered:
\n(i) For Mr. X, who engaged a domestic servant for Rs. 500 per month, his employer reimbursed the entire salary paid to the domestic servant i.e. Rs. 500 per month
\n(ii) For Mr. Y, he was provided with a domestic servant @ Rs. 500 per month as part of remuneration package.
\nYou are required to comment on the taxability of the above in the hands of Mr. X and Mr. Y, who are not specified employees 3 (0)
\n3. Discuss the following with regard to: 3×6=18
\n(a) Deductions in respect of Donations for Scientific Research and Development U\/S 80GGA of the\u00a0Income Tax Act, 1961. (0)
\n(b) Summary Assessment U\/S 143(1) of the\u00a0Income Tax Act, 1961. (0)
\n(c) Deductions allowable U\/S 57 of the\u00a0Income Tax Act, 1961, in respect of Income from other sources. (0)
\n4. Write short notes on any three of the following: 3×5=15
\n(a) Clubbing of Income of Minor children in the hands of Parent. (0)
\n(b) Deduction based on actual payment under Sec. 43B of the\u00a0Income Tax Act, 1961. (0)
\n(c) Exemption\u00a0in respect of encashment of Leave salary. (0)
\n(d) Computation of Capital Gains in the case of \u2018Slump Sale\u2019 U\/S 50B of the Income Tax 1961. (0)
\n5. (a) Discuss briefly about Central\u00a0Sales Tax\u00a0Appellate Authority U\/S 19 of the CST Act. 7 (0)
\n(b) (i) M\/s Snow White Ltd., Mumbai sells iron rods to M\/s Hyderabad Ltd. in Vijayawada, both of them are Registered Dealers for a value of Rs. 10,00,000 inclusive Central Sales Tax @ 4%. The Local Sales Tax on iron rods in Mumbai is 3%.
\nAscertain the Central Sales Tax payable. 2 (0)
\n(ii) If Hyderabad Ltd. were unable to submit form \u2018C\u2019, being a unregistered dealer, what will be the Central Sales Tax liability, if the Local Sales Tax rate is 12%? 2 (0)
\n(c) Discuss briefly about the liability of a company in liquidation under Central Sales Tax Act. 4 (0)
\n6. State with reasons, whether the following is True or False under the CST Act: 5×2=10
\n(a) Electricity supplied will not come within the meaning of \u2018Goods\u2019 under CST Act. (0)
\n(b) The supply of Aviation Spirit by a petroleum dealer from his depots at an Airport in India to an Aircraft proceeding abroad is an export out of India eligible for exemption under CST. (0)
\n(c) In respect of Declared Goods, Central Sales Tax can exceed 4% for Sales to Government. (0)
\n(d) Weighment charges charged separately from buyers will not form part of Sale price. (0)
\n(e) To avail concession in CST, in respect of Sales to Registered dealers, \u2018Form D\u2019 is to be furnished by the dealer. (0)<\/p>\n","protected":false},"excerpt":{"rendered":"
CA PE II Exam Papers \u00a0Group II Income Tax and Central\u00a0Sales Tax May 2003 This Paper has 24 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 … 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\/24542"}],"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=24542"}],"version-history":[{"count":0,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts\/24542\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/media?parent=24542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/categories?post=24542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/tags?post=24542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}