Download BU (Bangalore University) MBA (Master of Business Administration) 3rd Semester 2019 Feb Corporate Tax Planning Management Question Paper
III Semester M.B.A. Degree Examination, JanuaryIFebruary 2019
(6868 Scheme)
(2014 ? 15 & Onwards)
Management
Paper ? 3.3.2 : CORPORATE TAX PLANNING AND MANAGEMENT
Time : 3 Hours Max. Marks : 7O
Instruction :Answer all the Sections.
SECTION ? A
Answer any five of the following questions, each question carries five marks.
(5X5=25)
1. ?Tax planning is not possible without Tax management?. Discuss.
2. Explain the procedure of GST Returns and types of Returns.
3. The WDV of a block of assets on 1S?April 2017 comprising twelve machines is
? 13,00,000 at 25% depreciation. A new machine falling within that block is
acquired on 1S?Nov. 2017 for ? 3,00,000 on 20th March 2018 all the twelve old
machines were sold for ? 2,00,000 leaving only the newly acquired machine
within the block. Determine the amount of Depreciation. The Assessee is not
entitled to additional Depreciation on machine.
4. A company requires a component from the following information suggest to the
company whether it should make the component or buy it from the market.
Making the component
A new machine will be purchased for ? 20,00,000 after 5 yeats it will be sold
for ? 5,00,000. If there is any loss on sale of machine, it will be set-off against
any other STCG. Rate of Depreciation 15% manufacturing cost of component .
Iyear ? 15,00,000
|| year ? 18,00,000
|l| year ? 20,00,000
IV year ? 22,00,000
V year ? 24,00,000
Rate of Tax 30%
Buying the'component
Cost l year ? 18,00,000
ll year ? 21,00,000
Ill year? 23,00,000
IV year ? 25,00,000
V year ?? 28,00,000
P.T.O.
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5. Value of supply of goods and services of manufacturer in inter-state is ? 1,000,
value of supply of goods and services within state is ? 1,000. IGST rate on
supply of goods and services is 12%, CGST and SGST rate is 6% each. Value
of. receipt of goods and services within state is ? 1,500, SGST and CGST rate
on receipts is 6% each. Calculate tax liability.
Mrs. and Mr.Ram visited Japan and brought following goods while returning to
India. Their personal effects valued at ?x? 85,000. A personal computer bought
for 7 68,000. A laptop computer bought for ? 79,000. Two litres of liquor bought
for ? 1,800. A new camera bought for f 67,400, 150 cigars cost T 24,000,
100 firearm cartriges cost ? 10,000. Air dryer from duty free shop ? 14,000.
What is the amount of customs Duty payable ?
X company Ltd. an Indian company, furnished the following particulars of its
income for the previous year ended 31S'March 2018, compute its total income
for the Assessment year 2018 ?19.
?
Business Income 4,20,000
Dividends from :
A Domestic company 20,000
A Foreign company 15,000
Capital gains :
Short term 25,000
Long term 70,000
The following amounts have been deducted to arrive at the business income :
a) ? 5,000 revenue expenditure and ? 20,000 capital expenditure for family
planning programme amongst employees.
b) Donation to Ambedkar university, Agra ? 30,000 by cheque ; Ved Mata
Gayatri trust, Shandi Kunj, Haridwar ( an approved trust u/s 80 G) ? 70,000
by cheque and Rajiv Gandhi Foundation ? 5,000 by cheque.
SECTION ? B
Answer any three of the following. Each question carries ten marks (10x3=30)
8.
9.
Explain the set-off and carry forward under company tax and important corporate
Deductions.
P and Q want to start a business. They have two options for selecting a form
of organization, partnership firm or a Pvt. Co. The estimated profits of which,
before the following deduction are ? 11,96,000.
1) Remuneration ? 25,000 pm. each by the firm and ? 35,000 pm. each by
the company.
2) Each will give a loan to the business of ? 4,00,000 @ 12% p.a.
3) Contribution as capital ? 4,00,000 each, on this interest will be paid @12% p.a.
However the company cannot pay the interest on it.
4) The profit after tax will be distributed equally as profits/dividends.
Suggest whether they should form a partnership firm or a private company.
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10. Compute the Assessable value and custom duty payable from the following
information :
FOB value of machine $ 10,000, freight paid $ 2,500, Design and Development
charges paid in America 35 500, commission payable to local agent @ 2% of FOB
in lndian Rupees, date of bill of entry 25-10?201 5 (Rate of BCD 10%, Exchange
rate as notified by CBI and C ? 70.02/$), date of entry inward 20?1 0-2015 (Rate
of BCD 18%, exchange rate as notified by CB! and C ? 70.01/$). IGST @ 12%
plus cess at applicable rate, Insurance charges-details not available.
11. Following transaction took place in Dec. 2017 in the books of M/S Amar
Pvt. Ltd. Mumbai, Maharashtra.
1) Received inputs with invoice evidencing payment of IGST of ? 54,000 on
2/12/2017.
2) 600 pieces of final products were dispatched to a customer located in Punjab
under invoice on 6/12/2017. Transaction value was ? 900 per piece and
IGST rate was 18%.
3) 1,200.pieces of input ?Tran? were procured and directly sent for job work
on 10/12/2017. The invoice was received where the supplier had charged
CGST ? 15,000 and SGST of ? 15,000.
4) An imported consignment of raw materials was received on 10/12/2017.
Bill of entry showed that BCD paid was ? 36,000, IGST paid ? 19,200 and
anti-dumping duty paid was ? 6,400 and education cess of customs ? 1,080.
5) Goods worth ? 3, 00, 000 were dispatched on 24/12/17 within Maharashtra,
rate of duty' Is 18% (CGST and SGST 9% each).
There was no opening balance of electronic cash ledger or electronic credit
ledger on 1/12/17. Calculate the amount of GST payable by cash.
SECTION ? C
12. Compulsory Question: (1 5x1: 15)
The following" IS the statement of Profit and Loss of ABC Co. Ltd. for the year
ended 31st March 2018.
Statement of Profit and Loss for the year ended 31S?March, 2018
Particulars Note no. Figures as at the end of current
reporting period
I Revenue from operations :
Domestic sales 35,00,000
Export sales 15,00,000
II Other Income - ?
||| Total Revenue 50,00,000
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IV Expenses :
Cost of materials consumed ?
Changes in inventories of finished goods, WIP and ?
stock-in-trade
Employee benefits expenses :
Salaries and wages , 4,00,000
Depreciation and Amortization expenses 5,00,000
Other expenses : '
Rent and rates 3,00,000
Repairs ' 1,40,000
Selling expenses 3,80,000
Total expenses 17,20,000
V Profit before tax 32,80,000
VI Tax expenses :
Income Tax 3,80,000
Vll Profit for the period 29,00,000
Surplus Statement
Profit/Ioss as per last B/S(if any) ?
Current year?s profit 29,00,000
Add : Transfer from General
Reserve 4,00,000
33,00,000
Less : Appropriations : ,
Proposed dividend 2,90,000
Profit carried to B/S . 30,10,000
Other Information :
1) The company has Iong-term capital gain of ? 2,00,000 which is not added
in statement of profit and loss.
2) Foreign Exchange remittance ? 9,00,000.
3) Depreciation u/s 32 ? 550,000
4) The company wants to set-off the following :
For Tax purpose For Accounting Purpose
? ?
B/F loss of 2015 ? 16 6,00,000 5,00,000
Unabsorbed Depreciation 3,00,000 3,00,000
You are required to compute :
i) Book profit u/s 115JB.
ii) Total income of the company.
iii) Tax liability of the company.
This post was last modified on 28 January 2020