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ilililililil!ililrililliltilIil] pJ - 683
lll Semester M.B.A. Degree Examination, January/February 2019
(CBCS Scheme)
(2014-15&Onwards)
Management
Paper - 3.3.2 : coRPoRATE TAx PLANNTNG AND MANAGEMENT
Time : 3 Hours Max. Marks : 70
lnstruction : 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 1'tApril 2017 comprising twelve machines is
T 13,00,000 at 25% depreciation. A new machine falling within that block is
acquired on 1't Nov. 201 7 tor T 3,00,000 on 20th March 2018 all the twelve old
machines were sold for T 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. Acompany requires a component from the fcillowing 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 T 20,00,000 after 5 years it will be sold
for T 5,00,000. lf 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 .

I year T 15,OO,OOO
ll year { 18,00,000
lll year T 20,00,000
lV year T 22,OO,O0O
V year T 24,OO,OO0
Rate of Tax 30%
Buying the component
Cost 1yearT18,00,000
ll year { 21,00,000
lll year t 23,OO,OOO
lV year T 25,00,000
V year T 28,00,000
p.T.o.

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PJ fI 683
s or supprv or
.Y:l'" of soods
varue supprv or-gooos"no i".::",,=^iirr'rurrrrer in inter-state l,|'T:],jllllllllllllll
supprv of soodb anJ."ri* ."riliJ'#ii[i[:,1,r]1r
"noi. r e/., bcsi';;g
gggr
r,000. rcsT rate on
,rt"ri
or receipt of g99ds
.trtlt
t",il.es within oz eacn. varue
"no carcuale iii,iiJfTriiv]" t r,5oo, scsiind cGsT rate
on receipts is 6% each.
6' Mrs' and M.T?r visite-d Japa!,a!{
tndia. Their oersonar erreltJiarued b1o_ught foilowing goods whire returning to
at {Es,rioo psrt"i,"r .orpr,",. bought
for T 68,000.'1 ripiop
il;sht iliiiU)ooo. l
i*o iit?fr-"t rrsuor bousht
""rrjrtll.
for T 1,Boo. n niiwtaii"Ir"ooJg[ii;
+ u)iioo,1so cisars cost
r 24,ooo,
il?f"l'',S?ilT#[iH i:fj,'.l;j|ff .o;ft *f""r,rromdut/r"*;*oori+,ooo
, I^.^oIpa_ny.Ltd. an. lndian company, furnished
'1i#r*',il5'[?%8,%:"Jf,#il,?J'f
lli?,[i3li::,*:,i;:1,,,,,f i:ii?fi
"""]':
Business lncome t
oivioenos i;il ,- 4,2o,ooo
A Domesticcompany 2O,OOO
A Foreion company
Capitat g"ii. , 1S,OOO

Short term
r-ong teim
rne roirtwing ,rornts have
2s,ooo

o"9fiholo%rr,r" at the business income :

:
?.:"n
il.',l : Ji!3
b) Donatioi lt;"#"JA iH&ru fl ;,
to AmbeJkr; ;,
ffi cap i

j'f"i8llLi?*'r!odflX.lirSEStIf
ta, e x p e n d t u ;; l o ; ;;,,iy
i

FGi;irust,snanoird;l[il:,
bv cheque and gJ[tll
n"ii, ci,ibr,ir;;ffitk;;? s,ooo by cheque.
SECTION - B
Answer any three of the
forowing. Each question
t set-off and carryfonuard
carries ten (10x3=3a) marks
S:ts'il?,the under company tax and imporrant corporate
9' P and Q want-to start a business.
Thry have two options for serecting
']n;r;t-",,iiii"rii.oi;hi;ii,
a form
il,i,[Ti:fl fi l#.T!:i'.iXfi:t1ii1i5ffi
izs'oo6';'; each tiv ti," iiim ano r
ss,ooo p.m. each by
]] Each
2) fi:Tlil?:Ii;:
wifl oive a toan to the business of r
4,00,000 @ 120/o p.a.

4) The profit after tax wirl"'jltriouted

suggest whether equary as profits/dividends.
they shouroio, a partnership firm or a private
company.

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Iilililtilfl illl Iilil ilil ilillllt -3- PJ I 683

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 $ 500, commission payable to local agent @ 2% of FOB
in lndian Rupees, date of billof entry 25-10-2015 (Rate of BCD 10"h, Exchange
rate as notified by CBI and C T 70.02/$), date of entry inward 20-10-2015 (Rate
of BCD 1Bo/", exchange rate as notified by CBI and C t 70.01/$). IGST @ 12%
plus cess at applicable rate, lnsurance charges-details not available.

11. Following transaction took place in Dec. 2017 in the books of ltI/S Amar
Pvt. Ltd. Mumbai, N/aharashtra.
1) Received inputs with invoice evidencing payment of IGST of { 54,000 on
2t12t2017.
2) 600 pieces of final products were dispatched to a customer located in Punjab
under invoice on 6/1212017. Transaction value was T 900 per piece and
IGST rate was 18%.
3) 1,200 pieces of input 'Tran' were procured and directly sent for job work
on '10/1212017. The invoice was received where the supplier had charged
CGST t 15,000 and SGST of T 15,000.
4) An imported consignment of raw materials was received on 10/1 212017.
Bill of entry showed that BCD paid was { 36,000, IGST paid t 19,200 and
anti-dumping duty paid was T 6,400 and education cess of customs t 1,080
5) Goods worth T 3,00,000 were dispatched on 24112117 wtlhin 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 1/12117. Calculate the amount of GST payable by cash.

SECTION C

12. Compulsory Question : (15x1=15)

The following is the statement of Profit and Loss of ABC Co.Ltd. for the year
ended 31't March 2018.
Statement of Profit and Loss for the year ended 31.t 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
ll
Other lncome
lll Total Revenue 50,00,000

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PJ - 683 -4- Illlililttffi ilil ililtilil ililllil

lV Expenses :
Cost of materials consumed
Changes in inventories of finished goods, Wlp and
stock.in-trade
Employee benefits expenses :
Salaries and wages 4,00,000
Depreciation and Amortization expenses 5,00,000
Other expenses :
Flent and rates 3,00,000
Repairs 1 ,40,000
Selling expenses 3,90,000
Total expenses 17,20,000
V Profit before tax 32,90,000
Vl Tax expenses :
lncome Tax 3,90,000
Vll Profit for the period 29,00,000
Surplus Statement
ProfiVloss 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 2.9O,OOO
Profit carried to B/S 3O,10,OOO
Other lnformation :
1) The company has Iong-term capital gain of { 2,OO,OO0 which is not added
in statement of profit and loss.
2) Foreign Exchange remittance { g,00,000.
3) Depreciation u/s 32 { 5,50,000
4) The company wants to set-off the following :
For Tax purpose For Accounting Purpose
tt
B/F loss of 2015 - 16 6,00,000 5,OO,OOO
Unabsorbed Depreciation 3,OO,OO0 3,OO,OOO
You are required to compute :
i)Book profit u/s 1 1SJB.
ii) Total income of the company.
iii) Tax liability of the company.

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