Form A: Paper-setting Blank Ref No:
3rd Year
(Sem-V) BBA University Examination, 2021
st nd
(1 /2 Semester/Repeat/Supplementary/ Spl Supplementary/Old /Annual/Bi-Annual)
SUBJECT: CORPORATE TAXATION
PAPER: Theory (BBA 506)
TIME: 2hrs FULL MARKS: 50
Attempt all questions; each question carries equal marks.
IMPORTANT INSTRUCTIONS
Total time of exam is 3 hours, and this includes the submission of the answer script. Students
will have to hand write the answers using plain A-4 paper and a blue/black pen. Student's Name,
Class roll number (as mentioned in the list uploaded on the website) and Page numbers has to be
mentioned on each page of the answer script.
Answer script has to be sent as attachment (as a pdf/scanned file) after collating all sheets of
paper used in one single file along with a screenshot of the timestamp as a second attachment.
Students must use their full name and class roll no to name the pdf/scanned file (answer script)
and the timestamp. The pdf/scanned file (answer script) must be sent from the students'
registered mail only to their departmental mail only (the latter is same as the mail from which the
question paper was sent).
1.
a) Goods and Service Tax subsumed all previous Taxes that were levied on the sale of goods
and services by either central or state governments. Explain the taxes that had been
subsumed.
b) XYZ Company Limited submitted the following information related to purchase of inputs
and sale of outputs.
Particulars Amount (Rs.)
Output sold interstate (GST 28%) 8000000
Input purchased intra state (GST 12%) 4000000
Machinery purchased inter state (GST 5%) 7000000
Sundry expenses incurred (IGST Rs.10000) 200000
Calculate amount of GST payable by XYZ Company Ltd
(4+6=10)
2.
Mr. Khosla furnished the following information about his income for the Previous Year 2019-20.
Compute his Total Income and Tax payable for the Assessment Year 2020-21.
[P.T.O]
Page 1 of 3
Particulars Amount (Rs.)
Net Income from Salary 900000
Business Income 200000
Income from Lottery 500000
Long term capital gain from sale of Equity Shares (Tax 20%) 100000
LIC Premium paid 40000
NSC purchased from post office 100000
PPF deposited with SBI 50000
Medical Insurance premium paid for Self 20000
Medical Insurance premium paid for Wife and Daughter 15000
Contribution made to National Defense Fund 100000
(10)
3.
a) From gross total income certain deductions are permissible under sections 80C to 80U.
Explain any 3 investments that are eligible for deduction under section 80C.
b) “Tax Incidence in case of long-term capital gains is lower when compared to short term
capital gains.” Do you agree with the statement and why? Explain the difference between
short term capital assets and long-term capital assets with examples.
(5+5=10)
4.
a) Mr X owns a house property (Municipal Valuation Rs 145000, Fair Rent Rs 136000 and
Standard Rent Rs 124000). It is let out through out the previous year (rent being Rs 8000
per month upto 31st October ,2018 and Rs 10000 thereafter). If municipal taxes of Rs 5000
is paid by Mr X, find out the Income from House Property for the Assessment year 2019-
20.
b) Mr. X, a foreign citizen, came in India for the first time on July24,2015.From July24,2015
to December 25,2016, he was in India. Again, he came to India on August 5,2018 for
employment purpose and left India on November 25,2018 permanently. Determine his
residential status for Assessment year 2019-20. During the year 2018-19, Mr X earned
income from a business in London but the business is controlled from India. Is the income
taxable in India for Assessment year 2019-20 and the reason behind it?
(5+5)
5.
The depreciated value of three blocks of assets consisting of Plant X, Y and Z respectively(rate
of depreciation 15% ,30% and 45% respectively) owned by a trading company on April1,2018 is
as followings:
▪ Plant X: Rs 100000
▪ Plant Y: Rs 70000.
▪ Plant Z: Rs 80000
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The following information are further available:
Asset Rate of Date of When it is put Actual Cost
Depreciation Purchase to use
Plant A 15% 10/7/18 10/7/18 30000
Plant B 15% 5/8/18 5/8/18 40000
Plant C 30% 6/8/18 17/12/18 20000
Plant D 45% 15/6/18 7/1/19 40000
Building Y 15% 5/4/19 5/4/19 30000
Building X 30% 4/5/18 4/5/18 25000
The following assets were sold during the previous year (2018-19):
▪ Plant X was sold for Rs 30000
▪ Plant A was sold for Rs 20000
▪ Plant B was sold for Rs 20000
▪ Plant C was sold for Rs 100000
Calculate the depreciation for each block of assets and the written down value of the block after
depreciation?
(10)
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