Download GTU MBA 2018 Winter 3rs Sem 2830009 Corporate Taxation Question Paper

Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2018 Winter 3rs Sem 2830009 Corporate Taxation Previous Question Paper

1

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 3? ? EXAMINATION ? WINTER 2018

Subject Code: 2830009 Date:06/12/2018
Subject Name: CORPORATE TAXATION
Time: 10:30 AM To 01:30 PM Total Marks: 70
Instructions:
1. Attempt all questions with reference to P.Y.2017-18 & A.Y.2018-19
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.


Q.1
(a)
Multiple Choice Questions. (1 Marks Each)
1
Rebate under section 87A is available to _____ if net income does not exceed_____ and
subject to maximum limit of Rs_______
A. Resident Individual, 500000,5000 B. Resident Individual,
350000,2500
C. All assessee, 500000,5000 D. HUF,250000,5000

2
Deduction in respect of specified business ? section 35AD
A. 100% B. 120%
C. 150% D. 105%

3
Estimated income of assessee engaged in any business except plying, hiring of vehicles
under 44AD in case of non banking channel is
A. 8% of Turnover B. 2 % of Turnover
C. 5% of Turnover D. 2.5% of Turnover

4 Identify odd one out for Arms length price methods
A Comparable Uncontrolled price method B Resale price method
C Profit split method D Double Taxation Agreement

5 Loss from activity of owning and maintaining race horses can be carried forward for
A 2 years B 4 years
C 1 years D 10 years

6 GST is
A Direct tax B Indirect tax
C MAT D AMT

Q.1 (b) Answer the following in brief with reference to P.Y.2017-18 &
A.Y.2018-19 (1 Marks Each)
1. Rebate under section 87A
2. Tax rate under section 115-0 (i.e. DDT)
3. List out different Indirect Taxes in India
4. Double Taxation Relief.
04
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1

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 3? ? EXAMINATION ? WINTER 2018

Subject Code: 2830009 Date:06/12/2018
Subject Name: CORPORATE TAXATION
Time: 10:30 AM To 01:30 PM Total Marks: 70
Instructions:
1. Attempt all questions with reference to P.Y.2017-18 & A.Y.2018-19
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.


Q.1
(a)
Multiple Choice Questions. (1 Marks Each)
1
Rebate under section 87A is available to _____ if net income does not exceed_____ and
subject to maximum limit of Rs_______
A. Resident Individual, 500000,5000 B. Resident Individual,
350000,2500
C. All assessee, 500000,5000 D. HUF,250000,5000

2
Deduction in respect of specified business ? section 35AD
A. 100% B. 120%
C. 150% D. 105%

3
Estimated income of assessee engaged in any business except plying, hiring of vehicles
under 44AD in case of non banking channel is
A. 8% of Turnover B. 2 % of Turnover
C. 5% of Turnover D. 2.5% of Turnover

4 Identify odd one out for Arms length price methods
A Comparable Uncontrolled price method B Resale price method
C Profit split method D Double Taxation Agreement

5 Loss from activity of owning and maintaining race horses can be carried forward for
A 2 years B 4 years
C 1 years D 10 years

6 GST is
A Direct tax B Indirect tax
C MAT D AMT

Q.1 (b) Answer the following in brief with reference to P.Y.2017-18 &
A.Y.2018-19 (1 Marks Each)
1. Rebate under section 87A
2. Tax rate under section 115-0 (i.e. DDT)
3. List out different Indirect Taxes in India
4. Double Taxation Relief.
04
2
Q.1 (c) Specify whether the following acts can be considered as (i) Tax planning;
or (ii) Tax management; or (iii) Tax evasion.
I. Mr. P deposits Rs 1,00,000 in PPF account so as to reduce his
total income from Rs 3,40,000 to Rs 2,40,000.
II. SQL Ltd. maintains register of tax deduction at source affected by
it to enable timely compliance.
III. An individual tax payer making tax saver deposit of Rs 1,00,000
in a nationalized bank.
IV. A partnership firm obtaining declaration from lenders/depositors
in Form No. 15G/15H and forwarding the same to income-tax
authorities.
04

Q.2 (a) Explain specified domestic transactions Sec. 92BA of Income Tax Act,
1961 with reference to Transfer Pricing provisions.
07
(b) Write brief note on provisions related to Advance Ruling as per Income
Tax Act, 1961.
07
OR
(b) Mr. provides you the following information. Compute tax liability of
MrX for A.Y.2018-19.
? Income from salary Rs485000
? Income from house property Rs25000
? Other income Rs35000
? Investment in PF for deduction under section 80C Rs10000
? Mediclaim premium Rs3000
? TDS deducted Rs1000.
07

Q.3 (a) Discuss the provisions of tax planning with reference Capital structure
decisions.
07
(b) On 1.4.2017 depreciated value of block of assets (Rate of depreciation-
15%) is Rs.80, 000. It consists Plant A and B. The assessee purchase
plant C (Rate-15%) on December 28, 2017 for Rs.30, 000 and sells plant
A on 3.5.16 for Rs.1, 80,000. Calculate Amount of depreciation for PY
17-18 as it is very significant tax planning provision.
07
OR
Q.3 (a) Discuss different tax practices in India with reference to Tax Planning,
Tax Evasion, Tax Avoidance and Tax Management.
07
(b) Kakaji Co. is a limited liability partnership (date of commencement of
business June 1,2017). It owns and operates retail outlets in different
parts of North India. During the previous year 2017-18, it appoints the
following persons
Date of
appointment
No of
employees
Post of Salary per
person (Rs)
May 1, 2017 8 Storekeeper 18,000
June 1, 2017 12 Salesperson 25,000
July 1, 2017 4 Supervisor 28,000
October 1, 2017 25 Helper 11,000
Total 49
Determine the amount of deduction available under section 80JJAAfor
deduction in respect of employment of new employees for the
assessment year 2018-19 assuming that turnover of X & Co.for the
previous year 2017-18 is Rs. 6 crore and tax audit under section 44AB is
applicable.
07
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1

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 3? ? EXAMINATION ? WINTER 2018

Subject Code: 2830009 Date:06/12/2018
Subject Name: CORPORATE TAXATION
Time: 10:30 AM To 01:30 PM Total Marks: 70
Instructions:
1. Attempt all questions with reference to P.Y.2017-18 & A.Y.2018-19
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.


Q.1
(a)
Multiple Choice Questions. (1 Marks Each)
1
Rebate under section 87A is available to _____ if net income does not exceed_____ and
subject to maximum limit of Rs_______
A. Resident Individual, 500000,5000 B. Resident Individual,
350000,2500
C. All assessee, 500000,5000 D. HUF,250000,5000

2
Deduction in respect of specified business ? section 35AD
A. 100% B. 120%
C. 150% D. 105%

3
Estimated income of assessee engaged in any business except plying, hiring of vehicles
under 44AD in case of non banking channel is
A. 8% of Turnover B. 2 % of Turnover
C. 5% of Turnover D. 2.5% of Turnover

4 Identify odd one out for Arms length price methods
A Comparable Uncontrolled price method B Resale price method
C Profit split method D Double Taxation Agreement

5 Loss from activity of owning and maintaining race horses can be carried forward for
A 2 years B 4 years
C 1 years D 10 years

6 GST is
A Direct tax B Indirect tax
C MAT D AMT

Q.1 (b) Answer the following in brief with reference to P.Y.2017-18 &
A.Y.2018-19 (1 Marks Each)
1. Rebate under section 87A
2. Tax rate under section 115-0 (i.e. DDT)
3. List out different Indirect Taxes in India
4. Double Taxation Relief.
04
2
Q.1 (c) Specify whether the following acts can be considered as (i) Tax planning;
or (ii) Tax management; or (iii) Tax evasion.
I. Mr. P deposits Rs 1,00,000 in PPF account so as to reduce his
total income from Rs 3,40,000 to Rs 2,40,000.
II. SQL Ltd. maintains register of tax deduction at source affected by
it to enable timely compliance.
III. An individual tax payer making tax saver deposit of Rs 1,00,000
in a nationalized bank.
IV. A partnership firm obtaining declaration from lenders/depositors
in Form No. 15G/15H and forwarding the same to income-tax
authorities.
04

Q.2 (a) Explain specified domestic transactions Sec. 92BA of Income Tax Act,
1961 with reference to Transfer Pricing provisions.
07
(b) Write brief note on provisions related to Advance Ruling as per Income
Tax Act, 1961.
07
OR
(b) Mr. provides you the following information. Compute tax liability of
MrX for A.Y.2018-19.
? Income from salary Rs485000
? Income from house property Rs25000
? Other income Rs35000
? Investment in PF for deduction under section 80C Rs10000
? Mediclaim premium Rs3000
? TDS deducted Rs1000.
07

Q.3 (a) Discuss the provisions of tax planning with reference Capital structure
decisions.
07
(b) On 1.4.2017 depreciated value of block of assets (Rate of depreciation-
15%) is Rs.80, 000. It consists Plant A and B. The assessee purchase
plant C (Rate-15%) on December 28, 2017 for Rs.30, 000 and sells plant
A on 3.5.16 for Rs.1, 80,000. Calculate Amount of depreciation for PY
17-18 as it is very significant tax planning provision.
07
OR
Q.3 (a) Discuss different tax practices in India with reference to Tax Planning,
Tax Evasion, Tax Avoidance and Tax Management.
07
(b) Kakaji Co. is a limited liability partnership (date of commencement of
business June 1,2017). It owns and operates retail outlets in different
parts of North India. During the previous year 2017-18, it appoints the
following persons
Date of
appointment
No of
employees
Post of Salary per
person (Rs)
May 1, 2017 8 Storekeeper 18,000
June 1, 2017 12 Salesperson 25,000
July 1, 2017 4 Supervisor 28,000
October 1, 2017 25 Helper 11,000
Total 49
Determine the amount of deduction available under section 80JJAAfor
deduction in respect of employment of new employees for the
assessment year 2018-19 assuming that turnover of X & Co.for the
previous year 2017-18 is Rs. 6 crore and tax audit under section 44AB is
applicable.
07
3


Q.4 (a) State any 7 exempted incomes of non-resident. 7
(b) X ltd, a company providing telecommunication services obtains a
telecom license on 20.4.2017 for the period of 10years which ends on
31.3.2027 (license fees being Rs.18lakh).Find out the deduction amount
u/s35ABB if
? Entire amount is paid on 6.5.2017 or
? Entire amount is paid on 1.4.2018
? Entire amount is paid in three equal installments on 30.4.2017,
30.4.2018, and 30.4.2019
7
OR
Q.4 (a) Elaborate Associated Enterprise with reference to Transfer Pricing. 07
(b) Mr.Jagga Singh is engaged in business of plying goods carriages. On
1.4.2017, he owns 10 trucks (out of 6 are heavy goods). On 6.5.2017, he
sold one of the heavy goods vehicle and purchase light goods vehicle on
10.5.2017. The new vehicle could however be put to use only on
17.6.2017. Compute total income of Mr.Jagga for A.Y2018-19 after
considering followings:
Particulars Amt.Rs
Freight charges collected 445000
Less:
Operational exp
Depreciation sec.32
Other office exp

320000
95000
7500




422500
Net profit 22500
Other business and non business income 335000

07

Q:5 Following is the profit and loss account of Z Ltd. for the year ended on 31-3-2018
Particulars Amount Particulars Amount
To Raw material consumed 23,25,000 By Sale 1,60,00,000
To Rent 3,50,000 By Closing Stock 10,00,000
To Salary & Wages 12,00,000 By Revaluation Reserve 25,000
To Depreciation 5,00,000 By General Reserve 65,000
To Provision for contingencies 75,000 By Dividend (Domestic Co,) 35,000
To Wealth Tax 50,000
To Provision for bad debts 40,000
To Proposed dividend 1,00,000
To Provision for Income tax 1,05,000
To Net Profit 1,23,80,000
1,71,25,000 1,71,25,000
Additional Information
? Company is entitled to get exemption u/s 10(38) Rs1,00,000
? The amount of depreciation includes depreciation on revaluation of assets Rs 50,000.
? Further, for the purpose of Income tax, depreciation is Rs4,00,000.
? Turnover of the company during the previous year was Rs 53 crores
? In past few years, company had suffered losses, following balances are still
unabsorbed: As per Income tax Act As per books of Accounts
Depreciation Rs65,00,000 Nil
Losses Rs35,50,000 Nil
As a tax consultant you are required to compute book profit for AY 20180-19. (14Marks)


OR
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1

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 3? ? EXAMINATION ? WINTER 2018

Subject Code: 2830009 Date:06/12/2018
Subject Name: CORPORATE TAXATION
Time: 10:30 AM To 01:30 PM Total Marks: 70
Instructions:
1. Attempt all questions with reference to P.Y.2017-18 & A.Y.2018-19
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.


Q.1
(a)
Multiple Choice Questions. (1 Marks Each)
1
Rebate under section 87A is available to _____ if net income does not exceed_____ and
subject to maximum limit of Rs_______
A. Resident Individual, 500000,5000 B. Resident Individual,
350000,2500
C. All assessee, 500000,5000 D. HUF,250000,5000

2
Deduction in respect of specified business ? section 35AD
A. 100% B. 120%
C. 150% D. 105%

3
Estimated income of assessee engaged in any business except plying, hiring of vehicles
under 44AD in case of non banking channel is
A. 8% of Turnover B. 2 % of Turnover
C. 5% of Turnover D. 2.5% of Turnover

4 Identify odd one out for Arms length price methods
A Comparable Uncontrolled price method B Resale price method
C Profit split method D Double Taxation Agreement

5 Loss from activity of owning and maintaining race horses can be carried forward for
A 2 years B 4 years
C 1 years D 10 years

6 GST is
A Direct tax B Indirect tax
C MAT D AMT

Q.1 (b) Answer the following in brief with reference to P.Y.2017-18 &
A.Y.2018-19 (1 Marks Each)
1. Rebate under section 87A
2. Tax rate under section 115-0 (i.e. DDT)
3. List out different Indirect Taxes in India
4. Double Taxation Relief.
04
2
Q.1 (c) Specify whether the following acts can be considered as (i) Tax planning;
or (ii) Tax management; or (iii) Tax evasion.
I. Mr. P deposits Rs 1,00,000 in PPF account so as to reduce his
total income from Rs 3,40,000 to Rs 2,40,000.
II. SQL Ltd. maintains register of tax deduction at source affected by
it to enable timely compliance.
III. An individual tax payer making tax saver deposit of Rs 1,00,000
in a nationalized bank.
IV. A partnership firm obtaining declaration from lenders/depositors
in Form No. 15G/15H and forwarding the same to income-tax
authorities.
04

Q.2 (a) Explain specified domestic transactions Sec. 92BA of Income Tax Act,
1961 with reference to Transfer Pricing provisions.
07
(b) Write brief note on provisions related to Advance Ruling as per Income
Tax Act, 1961.
07
OR
(b) Mr. provides you the following information. Compute tax liability of
MrX for A.Y.2018-19.
? Income from salary Rs485000
? Income from house property Rs25000
? Other income Rs35000
? Investment in PF for deduction under section 80C Rs10000
? Mediclaim premium Rs3000
? TDS deducted Rs1000.
07

Q.3 (a) Discuss the provisions of tax planning with reference Capital structure
decisions.
07
(b) On 1.4.2017 depreciated value of block of assets (Rate of depreciation-
15%) is Rs.80, 000. It consists Plant A and B. The assessee purchase
plant C (Rate-15%) on December 28, 2017 for Rs.30, 000 and sells plant
A on 3.5.16 for Rs.1, 80,000. Calculate Amount of depreciation for PY
17-18 as it is very significant tax planning provision.
07
OR
Q.3 (a) Discuss different tax practices in India with reference to Tax Planning,
Tax Evasion, Tax Avoidance and Tax Management.
07
(b) Kakaji Co. is a limited liability partnership (date of commencement of
business June 1,2017). It owns and operates retail outlets in different
parts of North India. During the previous year 2017-18, it appoints the
following persons
Date of
appointment
No of
employees
Post of Salary per
person (Rs)
May 1, 2017 8 Storekeeper 18,000
June 1, 2017 12 Salesperson 25,000
July 1, 2017 4 Supervisor 28,000
October 1, 2017 25 Helper 11,000
Total 49
Determine the amount of deduction available under section 80JJAAfor
deduction in respect of employment of new employees for the
assessment year 2018-19 assuming that turnover of X & Co.for the
previous year 2017-18 is Rs. 6 crore and tax audit under section 44AB is
applicable.
07
3


Q.4 (a) State any 7 exempted incomes of non-resident. 7
(b) X ltd, a company providing telecommunication services obtains a
telecom license on 20.4.2017 for the period of 10years which ends on
31.3.2027 (license fees being Rs.18lakh).Find out the deduction amount
u/s35ABB if
? Entire amount is paid on 6.5.2017 or
? Entire amount is paid on 1.4.2018
? Entire amount is paid in three equal installments on 30.4.2017,
30.4.2018, and 30.4.2019
7
OR
Q.4 (a) Elaborate Associated Enterprise with reference to Transfer Pricing. 07
(b) Mr.Jagga Singh is engaged in business of plying goods carriages. On
1.4.2017, he owns 10 trucks (out of 6 are heavy goods). On 6.5.2017, he
sold one of the heavy goods vehicle and purchase light goods vehicle on
10.5.2017. The new vehicle could however be put to use only on
17.6.2017. Compute total income of Mr.Jagga for A.Y2018-19 after
considering followings:
Particulars Amt.Rs
Freight charges collected 445000
Less:
Operational exp
Depreciation sec.32
Other office exp

320000
95000
7500




422500
Net profit 22500
Other business and non business income 335000

07

Q:5 Following is the profit and loss account of Z Ltd. for the year ended on 31-3-2018
Particulars Amount Particulars Amount
To Raw material consumed 23,25,000 By Sale 1,60,00,000
To Rent 3,50,000 By Closing Stock 10,00,000
To Salary & Wages 12,00,000 By Revaluation Reserve 25,000
To Depreciation 5,00,000 By General Reserve 65,000
To Provision for contingencies 75,000 By Dividend (Domestic Co,) 35,000
To Wealth Tax 50,000
To Provision for bad debts 40,000
To Proposed dividend 1,00,000
To Provision for Income tax 1,05,000
To Net Profit 1,23,80,000
1,71,25,000 1,71,25,000
Additional Information
? Company is entitled to get exemption u/s 10(38) Rs1,00,000
? The amount of depreciation includes depreciation on revaluation of assets Rs 50,000.
? Further, for the purpose of Income tax, depreciation is Rs4,00,000.
? Turnover of the company during the previous year was Rs 53 crores
? In past few years, company had suffered losses, following balances are still
unabsorbed: As per Income tax Act As per books of Accounts
Depreciation Rs65,00,000 Nil
Losses Rs35,50,000 Nil
As a tax consultant you are required to compute book profit for AY 20180-19. (14Marks)


OR
4
Q:5 You are provided following independent situation of X ltd. Explain tax treatment in
following independent cases. (6+6+2 Marks)
a) Business profit of X ltd, a tea growing & manufacturing company is Rs.70lakh for the
A.Y2017-18. It deposits Rs.25lakh in ?special account? for claiming deduction u/s
33AB. It wants to claim set off of brought forward business loss of Rs.1200000.
b) By withdrawing Rs.20lakh on 20
th
Jan?2018 from the special account.
X ltd purchase a non depreciable assets for Rs.18 lakh according to scheme framed by
Tea board. The remaining amount of Rs.2lakh is not utilized up to 31.3.2018
c) The assets which is purchased for Rs.18 lakh is sold to Y for Rs.31 lakh on 3
rd

Dec?2020.
***************
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