MODEL PAPER I DIRECT AND INDIRECT TAXES BMS FOURTH SEMESTER EXAMINATION

(Based on 2013-1 Pa!!e"n# T$%e& 2 Ho'"s Ma( Ma")s& *0 No!e& A!!e%+! a,, -'es!$on. A,, -'es!$ons /a""0 e-'a, %a")s. 1) Write note on the following: a) Income u/s 2(24) b) Person u/s 2(31) Or
The following are the income of 1) 2) 3) 4) ,) 5) 8) 1) r! "aresh for the #re$ious %ear 2&12'13:

Interest of (nglan) *e$elo#ment +on) (1/, -ecei$e) in In)ia) Income from /griculture in /merica. -ecei$e) there. but 0ater on -emitte) to In)ia Income from Pro#ert% in 2ana)a. -ecei$e) Outsi)e In)ia Income (arne) from +usiness in 3gan)a. which is 2ontrolle) from *elhi (`2,.&&& is recei$e) in In)ia) *i$i)en) Pai) b% a *omestic 2om#an% an) -ecei$e) Outsi)e In)ia (4ross) 3nta6e) Profit of 2&&1'&7 brought to In)ia in 2&12'13 Profit from a +usiness in 2hennai. which is 2ontrolle) from 0on)on Profit on 9ale of a +uil)ing in In)ia but -ecei$e) in 9ri 0an:a

` ,&.&&& 11.&&& 4&.&&& 4,.&&& 4&.&&& 1&.&&& 2.&&.&&& 11.&&& r!

;orm the abo$e #articulars ascertain the gross total income of "aresh for the #re$ious %ear 2&12'13. if he is: i) / resi)ent. ii) / not or)inaril% resi)ent. an) iii) / non'resi)ent! 2)

r! 4u#ta is an em#lo%ee of a Te6tile 2om#an% of In)ore since 1771! <e has submitte) the following #articulars of his income for the financial %ear 2&12'13: i) "et basic salar% `1&.&&& after )e)uction of ta6 at source `,.&&&. contribution to recognise) #ro$i)ent fun) `7.,&& an) rent of bungalow = 1&> of salar%!

ii) *!/! `1.&&& #er month (`2&& #!m! enters into retirement benefits)!

iii) i$) $) $i)

()ucation allowance for two chil)ren at `1,& #!m! #er chil)! 2ommission on sales `1&.&&&! (ntertainment allowance `8&& #!m! Tra$elling allowance for his official tours `3&.&&&! /ctual e6#en)iture on tour amounte) to `22.&&&! watchman an) coo: ha$e been #ro$i)e) b% the com#an% at the bungalow who were #ai) `4&& #!m! each!

$ii) <e resi)es in the bungalow of the com#an%! Its fair rent is `3.&&& #!m! / $iii) <e has been #ro$i)e) with a large motor car for his official as well as #ersonal use! The running an) maintenance costs are borne b% the com#an%! i6) (m#lo%er?s contribution to -!P!;! is `7.,&& an) the interest cre)ite) to this fun) at 1&> rate amounte) to `1&.&&&! 2om#ute income from salaries for the /!@! 2&13'14! Or
P sol) a house #ro#ert% on 3&th "o$ember. 2&12 for `5.,&.&&&! <e ha) acAuire) this #ro#ert% from O un)er a will on 1!5!1771 an) e6#en)e) `17.7&& on its im#ro$ement in 1771'72! 2om#ute P?s income un)er the hea) B2a#ital 4ains? for the assessment %ear 2&13'14 assuming that O ha) acAuire) this #ro#ert% at a cost of `4&.&&& in 1711'12 an) further s#ent! `1,.&&& )uring the same %ear on its im#ro$ement! The cost inflation in)ices are as un)er: 1711'12 C 1&&D 1771'72 C 177D 2&12'13C1,2!

3) *escribe the #ro$ision relating to #racticing chartere) accountants an) business

au6iliar%!

Or
(6#lain the furnishing of return u/s 8&! /lso )iscuss the im#ortant #ro$isions regar)ing ser$ice ta6 return!

4) What )o %ou mean b% E/TF *efine the following: i) +usiness ii) *ealer iii) Purchase Price i$) 9ale Or
(6#lain the le$% of sales ta6 on goo)s s#ecifie) in the sche)ule! /lso )iscuss the rate of ta6 on #ac:ing material!

MODEL PAPER II

DIRECT AND INDIRECT TAXES BMS FOURTH SEMESTER EXAMINATION

(Based on 2013-1 Pa!!e"n# T$%e& 2 Ho'"s Ma( Ma")s& *0 No!e& A!!e%+! a,, -'es!$on. A,, -'es!$ons /a""0 e-'a, %a")s. 1) *iscuss the inci)ence of ta6 for )ifferent ta6 #a%er! Or G. a foreign citiHen (not being a #erson of In)ian origin). comes to In)ia. for the first time in the last 3& %ears on arch 2&. 2&12! On 9e#tember 1. 2&12. he lea$es In)ia for "e#al on a business tri#! <e comes bac: on ;ebruar% 25. 2&13! *etermine the resi)ential status of G for the assessment %ear 2&13'14! 2) The #articulars of a resi)ential house are gi$en below for the assessment %ear 2&13'
14:

Pa"!$/',a"s
unici#al Ealue ;air -ent 9tan)ar) -ent /ctual -ent unici#al Ta6es Pai) 4roun) -ent Pa%able Interest on one% +orrowe) for 2onstruction 2ollection 2harges /ctuall% Pai)

` 44.&&& 41.&&& 35.&&& 38.2&& 1.1&& 5& ,.&&& 3&&

The assessee mortgage) the #ro#ert% for `35.&&& which was s#ent on his )aughter?s marriage! The assessee #ai) interest of `3.&&& on the mortgage loan this %ear! 2om#ute his income from house #ro#ert%!

Or *iscuss an% ten e6clusions from total income as u/s 1&! 3) (6#lain the 2("E/T cre)it relate) to ser$ice ta6! /lso e6#lain in#ut an) out#ut
ser$ices!

Or *escribe the #rocess of registration u/s 57!

4) (6#lain the inci)ence of ta6 u/s 3 an) ta6 #a%able u/s 4! Or

(6#lain the refun) of ta6 as #er section ,1!