Download GTU (Gujarat Technological University) MBA 2019 Winter 3rd Sem 3539282 Corporate Tax Planning Previous Question Paper
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA - SEMESTER ? III EXAMINATION ? WINTER 2019
Subject Code: 3539282 Date: 02-12-2019
Subject Name: Corporate Tax Planning
Time: 10:30 AM TO 1.30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1
Define the terms
(a) Assessment Year
(b) Bonus Share
(c) Company
(d) Depreciation
(e) Perquisites
(f) Tax Management
(g) Tax Planning
14
Q.2 (a) Write short-note on Depreciation U/s32. 07
(b) If the individual aged 45 years earns an income of Rs.10,86,920 for the AY
2018-19, then compute his tax liability.
07
OR
(b) X purchases 1,100 equity shares in A Ltd. on June 11, 1989 @ Rs.30 per
share (brokerage: 1%). On May 23, 2004, he gets 550 bonus shares. FMV of
shares in A Ltd., on 01/04/2001 is Rs.46. He sells 1,100 original shares on
10/03/2018 @ Rs.116 (brokerage: 1%). Further on March 29, 2018, he sells
550 bonus shares @ Rs.131 per share (brokerage: 2%). Find out the amount
of capital gains on the assumption that STT is not applicable. (CII for
2001:100, CII for 2018-19: 272).
07
Q.3 (a) Write a short-note on Set-off and Carry Forward of Losses. 07
(b) Write short-note on Hindu Undivided Family. 07
OR
Q.3 (a) Which are the positive and negative adjustments to net profit to convert into
book profit?
07
(b) Write short-note on Tonnage Tax Scheme. 07
Q.4 (a) Write a short-note on Section-80IA- Profits and Gains from industrial
undertakings engaged in infrastructure.
07
(b) X gives the following information for the previous year ending March
31,2018:
Particulars Amount (in Rs.)
Basic Salary 9,00,000
Dearness Allowance (85% is
considered for calculating pension but
only 70% is considered for calculating
Provident Fund)
80,000
Dearness Pay (not considered for
retirement benefits)
50,000
Fixed Commission and Bonus 1,80,000
07
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Page 1 of 2
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA - SEMESTER ? III EXAMINATION ? WINTER 2019
Subject Code: 3539282 Date: 02-12-2019
Subject Name: Corporate Tax Planning
Time: 10:30 AM TO 1.30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1
Define the terms
(a) Assessment Year
(b) Bonus Share
(c) Company
(d) Depreciation
(e) Perquisites
(f) Tax Management
(g) Tax Planning
14
Q.2 (a) Write short-note on Depreciation U/s32. 07
(b) If the individual aged 45 years earns an income of Rs.10,86,920 for the AY
2018-19, then compute his tax liability.
07
OR
(b) X purchases 1,100 equity shares in A Ltd. on June 11, 1989 @ Rs.30 per
share (brokerage: 1%). On May 23, 2004, he gets 550 bonus shares. FMV of
shares in A Ltd., on 01/04/2001 is Rs.46. He sells 1,100 original shares on
10/03/2018 @ Rs.116 (brokerage: 1%). Further on March 29, 2018, he sells
550 bonus shares @ Rs.131 per share (brokerage: 2%). Find out the amount
of capital gains on the assumption that STT is not applicable. (CII for
2001:100, CII for 2018-19: 272).
07
Q.3 (a) Write a short-note on Set-off and Carry Forward of Losses. 07
(b) Write short-note on Hindu Undivided Family. 07
OR
Q.3 (a) Which are the positive and negative adjustments to net profit to convert into
book profit?
07
(b) Write short-note on Tonnage Tax Scheme. 07
Q.4 (a) Write a short-note on Section-80IA- Profits and Gains from industrial
undertakings engaged in infrastructure.
07
(b) X gives the following information for the previous year ending March
31,2018:
Particulars Amount (in Rs.)
Basic Salary 9,00,000
Dearness Allowance (85% is
considered for calculating pension but
only 70% is considered for calculating
Provident Fund)
80,000
Dearness Pay (not considered for
retirement benefits)
50,000
Fixed Commission and Bonus 1,80,000
07
Page 2 of 2
Advance Salary (Pertaining to next
year) and arrears of salary (for 2012-13)
(not taxed earlier)
1,23,000
Income Tax paid by the employer 20,000
Fixed lunch allowance 24,000
Children Education Allowance (for two
children)
9,600
X has been provided with a rent-free unfurnished house. Find out the
taxable value of perquisite in the following situation: X is an employee of a
private sector company. He has been allotted a rent-free accommodation.
House is owned by the employer.
OR
Q.4 (a) Write a short-note on Expenditure on Scientific Research (Sec.35). 07
(b) X Ltd. is a widely held company. It is currently considering a major
expansion of its production facilities and the following alternatives are
available:
Particulars Alternative
I
Alternative
II
Alternative
III
Share Capital 5,00,00,000 2,00,00,000 1,00,00,000
Debentures (14%) - 2,00,00,000 1,50,00,000
Loan from Financial
Institution (12%)
- 1,00,00,000 2,50,00,000
Expected rate of return (before tax) is 25%. The rate of dividend of the
company since 1990 is not less than 20% and the date of dividend
declaration is June 30 every year. Assume the corporate tax rate @ 30%,
Surcharge @ 7% and 4% of tax and surcharge as health and education cess.
07
Q.5 1. Write short-note on Sect.80JJAA: Employment of New Workmen.
2. Write short-note on Specified Business (Sec.35AD)
14
OR
Q.5 XYZ Ltd., is considering the purchase of a new machine costing Rs.60,000
with an expected life of 5 years with salvage value of Rs.3,000 in
replacement of an old machine purchased 3 years ago for Rs.30,000 with
expected life of 8 years. The present market value of this old machine is
Rs.35,000. Because of the purchase of new machinery, the annual profits
before depreciation are expected to increase by Rs.12,000. The relevant
depreciation rate for the machine is 15% on WDV basis and the tax rate is
34.608%. Assume the after tax cost of capital (discounting rate) to be 14%.
Advise the company suitably. Assume that the old machine is sold and the
new machine is purchased at the beginning of 4th year of the purchase of
old machine and there is no other asset in the block.
14
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This post was last modified on 19 February 2020