www.downloadmela.

com

(53) SARDAR PATEL UNIVERSITY

No of Pages: 4+2

"M:. Coni: '(CBCS) (Semester- Ill)

. Monday, 02"d December 2013
2.30PM to 5.30PM

COURSE TITLE: CORPORATE TAX PLANNING CODE NO. : PB03ECOM01

Maximum Marks: 60

Exam No. 1r-- J

L------~····--·-
Candidate's Name :
-----~--~------~-~-- ..................... ····~-----.. ·-··•-......... '.

Candidate's Signature:·-----~·--~------··

Supervisor's Signature
r·----···-..-----------..,---------..,·-·-.. 1
' --~ J

QUESTION NO. 1 OBJECTIVE (MCQ) (12)

QUESTION P APEI{-CUM-ANSWER SHEET MARKS OBTAINED

GENERAL INSTRUCTIONS

I. The question no. I is objective type multiple choice questions.

2. The first half an hour is allotted to the objective questions.
3. Answers of the questions are to be given in the Answer Sheet attached se arately.
4. Eac~estion has four alternative responses, marked as W G) .C 0 ou have to darken
the , . 'the oval with black or blue pen only. For example:
correct answer.
W C n where 'B' is the

5. Fifteen (15) multiple-cboice questions of one mark each is asked, out of which the candidate
would be required to answer any twelve (12).
6. Please darken the ovals completely.
7. More than one response is not permitted.

www.downloadmela.com - World's number one free educational download portal

 www.downloadmela.com

Q. 1 Select the most appropriate answer for each of the following cases:
1 .................. is legal as well as ethical.
(A) Tax Planning
(B) Tax Avoidance
(C) Tax Evasion
(D) Tax Management

2 ................. Means the "art of dodging tax without breaking the law".
(A) Tax Planning '
(B) Tax Avoidance
(C) Tax Evasion
(D) Tax Management

3 If Mr. SP, an individual deposits Rs.l,OO,OOO in Public Provident Fund Account, so as

, to reduce his tax liability, this can be·called as an act of ............... .
(A) Tax Planning
(B) Tax Avoidance
(C) Tax Evasion
(D) Tax Management

4 Which of the following will not be considered 'Dividend' u/s 2(22) of Income Tax
Act, 1961?
(A) Distribution entailing release of company's assets
(B) Issuing Right Shares to shareholders
(C) Distribution on liquidation of company
(D) Distribution on .~;eduction of share capital

5 What is the rate of Dividend Distribution Tax for Domestic Companies'?

(A) 10%
(B) 16.2225%
. (C) 7 Y2%
(D) 5%

6 Issue of bonus shares to Equity shareholders was taxable in the hands of ............ ..
Before June 18 \ 1997.
(A) Company issuing such bonus shares
(B) Equity shareholders
(C) Both Company issuing such bonus shares and Preference shareholders
(D) None of the above

7 While amalgamation there must be a provision in the of both the

Companies to amalgamate with any other company.
· (A) Memorandum of Association of Both the companies
(B) Articles of Association of amalgamating Company
(C) Both Memorandum of Association and Articles of Association of Association
of both the companies
(D)None of Above

www.downloadmela.com - World's number one free educational download portal

 www.downloadmela.com
8 At the end of lease period ________
(A) Lessee becomes the owner of assets
(B) Lessee disposes of assets '
(C) Lessor take back the assets
~·-~(D~)~A=ll~o~f~ab~o~v~e.-~~·-------------------------------------~
9 Optimum Capital structure means ......... .
(A)High Cost of Capital and low firm value
(B)Low Cost of Capital and High firm value
(C) High Cost of Capital and High firm value
(D)Low Cost of Capital and low firm value
10 In case of demerger of the undertaking, being transferred by the
demerged company, immediately before the demerger, becomes the property of the
resulting company by virtue of the demerger. .
(A) More than 3/41h property
(B) More that 60% of the property
(C) all the property
. (D)More that 50% of the property
11 An employee cannot claim benefit of exemption on ...... .
(A) death-cum-retirement gratuity
(B) Uncommitted pension
(C) Retrenchment compassion .
(D) Contribution to provident fund
12 In a scheme of amalgamation u/s 2(1B), all the proportion of company should
be vested in company.
(A) Amalgamated, amalgamating
(B) Amalgamating, amalgamated
(C) Merged, Demerged
(D) Acquired, Acquisition
13 If condition u/s 72A of income tax act are not satisfied, the amalgamating company
can not claim benefit of. ........ .
(A) Unabsorbed depreciation
(B) Accumulated losses
(C) Both
(D)Norie of above
14 Non-disclosure of income from 'Benami Transactions' is an act of ............... .
(A) Tax Planning
(B) Tax Avoidance
(C) Tax Evasion
(D) Tax Management
15 KP Ltd wants to Merge with DP Ltd. What are the legal procedure to be followed for
the said purpose, Kindly arrange it as per law
1. High Court's Approval
2. Intimation to Stock Exchange
3. Obtaining Government Approval
4, Provision in the object clause
(A)1,2,3,4 (B) 2,3,1,4 (C) 4,3,2,1 (D)3,2,4,1

www.downloadmela.com - World's number one free educational download portal

 www.downloadmela.com
ANSWER-SHEET

Options
Que. No.
A B c D
1. w .w (£) (Q)
2. w (i) (£) (Q)
3. w (i) (£) (Q)
4. w G) (£) (Q)
5. w (i) (£) (Q)
6. w G) (£) (Q)
7. w (i) 0 (Q)
8. w (i) (£) (Q)
9. w (i) 0 (Q)
10. w (i) 0 (Q)
' 11. w (i) 0 (Q)
12. w (i) 0 (Q)
13. w G) (f)· (Q)
14. w (i) 0 ·(Q)
15. (i) w 0 CQ)

www.downloadmela.com - World's number one free educational download portal