TAXATION-II

Time allowed-2 hours Total Marks-100 [N.B.- Figures in the margin indicate full marks. Question must be answered in English. Examiner will take account of the quality of language and of the way in which the answers are presented. Different parts, if any, of the same question must be answered in one place in order of sequence] Marks 1. Write short notes on the following in relation to I.T.O 1984: (a) Assessment on the basis of report of a Chartered Accountant: u/s 83 AAA (b) Carry forward of loss under the head Capital Gains: u/s 40. (c) Revisional power of the commissioner of Taxes: u/s 121A. (d) Interest payable by the government on delayed refund: u/s 151. (e) Rent free accommodation Rule:338 Discuss in details regarding the insertion of new section 82C in place of existing section 82C termed as final discharge of tax liability by the Finance Act 2011. RFL Co. Ltd. owns and maintains 10 tea estates in Chittagong. It sells the tea after processing in its manufacturing plans within the estates. For the financial year ending December 31, 2010 it has produced the following information: Taka Opening stock of tea (Valued at the net sales prices) 80,00,000 Closing stock of tea (Valued at the net sales prices) 90,00,000 Sales (30% domestic,70% export) 12,40,00,000 Sales of bamboos and other bushes 20,00,000 Sales of old shade and other trees 90,00,000 Common expenditure apportioned between agriculture and business on the basis of workers employed are: Agriculture Business Taka Taka Manufacturing expenses 7,50,00,000 1,60,00,000 Administrative expenses 50,00,000 80,00,000 Besides, selling expenses of Tk.18,60,000 have been incurred during the year. Depreciation on plant and machinery, furniture, factory and office buildings including banglows have been included in above manufacturing expenses of Tk.80,00,000 and Tk.20,00,000 relate to agriculture and business respectively. The company spent Tk.30,00,000 during the year to bring new areas under its cultivation while nothing has been spent on replacement of bushes. It is company policy to capitalize those expenditure. There are no other inadmissible expenses. Tax WDV of fixed assets are as follows: Agriculture Business Taka Taka Banglows and other structure 2,30,00,000 1,50,00,000 Plant and machinery 3,50,00,000 6,90,00,000 Furniture, Equipment etc. 30,00,000 60,00,000 Vehicles and Tanks 1,05,00,000 60,00,000 Tubewell 23,00,000 ----Pacca Irrigation works 8,00,000 ---Pucca pumping machine 30,00,000 ----Calculate the taxable income of RFL Co. Ltd. for the relevant assessment year assuming that it has no brought forward agriculture or business losses but has unabsorbed depreciation of Tk.2,44,00,000 under the head agriculture. 10

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-2Mr. X an employee of a limited company, received the following salaries and allowances during the income year ended 30 June, 2009. Taka 1. Basic Salary 4,20,000 2. House Rent allowances 2,00,000 3. Festival Bonus equal to two months basic salary 70,000 4. Leave encashment Salary 35,000 5. Conveyance allowance 24,000 6. Contribution to Recognized Provident fund @ 8% 33,600 7. Servant Wages 24,000 8. Children education allowance 60,000 9. Leave fare assistance 50,000 10. Banglow utilities 25,000 Compute excess perquisite u/s 30 (e) for the assessment year 2009-2010. (a) A refund of tax becomes due to an assessee on reduction of total income in appeal filed by him, but the Deputy Commissioner of Taxes does not take any action to make the refund. What are the remedies open to the assessee? (b) Discuss on modes of recovery by the Tax recovery Officer. (c) A Private Limited Company is wound up but tax assessed on the company remains unpaid. Discuss the personal liabilities of the Directors of the Company in respect of the unpaid tax of the company. State the provision of law for tax clearance certificate required for persons leaving Bangladesh. What penalties can be imposed for: (a) Failure to the file return u/s 75: (b) Failure to pay Taxes u/s 74: (c) For furnishing inaccurate particulars of income (a) Define Input Tax. What are the conditions to be met for claiming input tax? (b) Discuss the Special Treatment of Specified Input tax and the penalty for false declaration for Input Tax. Bata Shoe Co. Ltd. incurred the following transactions in September 2010: Raw materials aggregating to Tk.5,00,000 were purchased on September 5, 2010, VAT on the same paid and the VAT chalan along with the goods were received on September 10, 2010. Shoes delivered to customers in the month at approved price as follows: September 08, 2010 Tk.3,00,000 September 09, 2010 Tk. 2,00,000 September 10, 2010 Tk.5,00,000 September 15, 2010 Tk.6,00,000 The following deposits were made to the Govt. Exchequer through treasury chalan: September 07,2010 Tk. 20,000 September 12,2010 Tk.30,000 September 15,2010 Tk.70,000 Balance of deposit at September 01,2010 in VAT- 18 was Tk.50,000. You are required to: Enter the above transactions in VAT 18 of the company;

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