Get fully solved assignment, plz drop a mail with your sub code
computeroperator4@gmail.com
Charges rs
125/subject and rs 700/semester only.
if urgent then call us
on 08791490301, 08273413412
DRIVE-Fall 2014
PROGRAM/SEMESTER-MBADS
(SEM 3/SEM 5) MBAFLEX/ MBAN2 (SEM PGDFMN (SEM 1)
SUBJECT CODE &
NAME-MF0012 & TAXATION MANAGEMENT
BK ID-B1760
CREDITS-4
MARKS-60
Note: Answer all
questions. Kindly note that answers for 10 marks questions should be
approximately of 400 words. Each question is followed by evaluation scheme.
Q1. Explain the objectives
of tax planning. Discuss the factors to be considered in tax planning.
(Objectives of tax planning, Factors
in tax planning) 5,5
Answer-1
Objectives of Tax Planning
The prime objectives of tax
planning are:
Multi-dimensional investment
decisions: In
a democratic welfare state like India the government requires substantial
investment in infrastructure, education and healthcare. The tax laws give
attractive benefits to investors in these areas;
Q2. Explain the categories
in Capital assets.
Mr. C acquired a plot of land on
15th June, 1993 for 10,00,000 and sold it on 5th
January, 2010 for 41,00,000. The
expenses of transfer were 1,00,000.
Mr. C made the following
investments on 4th February, 2010 from the proceeds of the plot.
a) Bonds of Rural Electrification
Corporation redeemable after a period of three years, 12,00,000
b) Deposits under Capital Gain
Scheme for purchase of a residential house 8,00,000 (he does not own any house)
Compute the capital gain
chargeable to tax for the AY2010-11.
(Explanation of categories of
capital assets, Calculation of indexed cost of acquisition, Calculation of long
term capital gain, Calculation of taxable long term capital gain) 4,2,2,2
Answer-2
Categories of capital assets
For taxation purposes, the
capital assets have been, divided into (a) shortterm capital assets and (b) long-term
capital assets.
(a)
Short-term
capital assets: According
to Section 2(42A), a short-term capital asset means a capital asset held by an
Solution:
Assessment Year 2010-11
|
|
|
|
Q3. Explain major
considerations in capital structure planning. Write about the dividend policy
and factors affecting dividend decisions.
(Explanation of factors of
capital structure planning, Explanation of dividend policy, Factors affecting
dividend decisions) 6, 2, 2
Answer-3
Major considerations in capital
structure planning
Broadly, the following factors
would be worth considering, while planning the capital structure.
1. Risk of two kinds, that
is, financial risk and business risk: In the context of capital
structure planning, financial risk is more relevant. Financial risk is of two
types:
Q4. X Ltd. has Unit C which
is not functioning satisfactorily. The following are the details of its fixed
assets:
The written down value (WDV) is `
25 lakh for the machinery, and 15 lakh for the plant. The liabilities on this
Unit on 31st March, 2011 are 35 lakh.
The following are two options as
on 31st March, 2011:
Option 1: Slump sale to Y Ltd for
a consideration of 85 lakh.
Option 2: Individual sale of
assets as follows: Land ` 48 lakh, goodwill ` 20 lakh, machinery 32 lakh, Plant
17 lakh.
The other units derive taxable
income and there is no carry forward of loss or depreciation for the company as
a whole. Unit C was started on 1st January, 2005. Which option would you
choose, and why?
(Computation of capital gain for
both the options, Computation of tax liability for both the options, Conclusion)
4,4,2
Answer-4
Option 1: Slump sale
|
Computation of net worth of
Unit C
|
(in lakhs)
|
|
Land (book value)
|
30
|
Q5. Explain the Service Tax
Law in India and concept of negative list. Write about the exemptions and
rebates in Service Tax Law.
(Explanation of Service Tax Law
in India, Explanation of concept of negative list, Explanation of exemptions
and rebates in Service Tax Law) 5, 2 , 3
Answer-5
Service Tax Law in India
Service tax was introduced in
India in 1994 by Chapter V of the Finance Act, 1994. It was imposed on an
initial set of three services in 1994 and the scope of the service tax has
since been expanded continuously by subsequent Finance Acts. There is no
separate Service Tax Act, but all pronouncements relating to service tax are in
the annual Finance Acts. Service Tax Rules, 1994 were enacted to begin with,
and with notifications from time to time the law has been a
Q6. What do you understand
by customs duty? Explain the taxable events for imported, warehoused and
exported goods. List down the types of duties in customs
An importer imports goods for
subsequent sale in India at $10,000 on assessable value basis. Relevant
exchange rate and rate of duty are as follows:
|
Particulars
|
Date
|
Exchange
Rate
Declaredby CBE&C
|
Rate of
Basic Customs
Duty
|
|
Date of submission
of
bill of entry
|
25th
February, 2010
|
45/$
|
8%
|
|
Date of entry
inwards granted to
the
vessel
|
5th
March, 2010
|
`
49/$
|
10%
|
Calculate assessable value and
customs duty.
(Meaning and explanation of
customs duty, Explanation of taxable events for imported, warehoused and exported
goods, Listing of duties in customs, Calculation of assessable value and
customs duty) 2, 3, 2, 3
Answer-6
Meaning
and explanation of customs duty
Customs duty is the duty imposed
on goods imported into the country. In the years before globalisation it was
difficult to import goods on account of stiff duty rates and procedures, especially
for less developed and developing nations like India. A joke used to be that
the word ‘customs’ was said to come from Sanskrit ‘kashtam’ meaning difficulty.
But the
Get fully solved assignment, plz drop a mail with your sub code
computeroperator4@gmail.com
Charges rs
125/subject and rs 700/semester only.
if urgent then call us
on 08791490301, 08273413412
No comments:
Post a Comment