7/31/2019 Taxation-II Dec 2012[1]_ICAB Question

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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: 10(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

2. Discuss in details regarding the insertion of new section 82C in place of existing section82C termed as final discharge of tax liability by the Finance Act 2011. 10

3. RFL Co. Ltd. owns and maintains 10 tea estates in Chittagong. It sells the tea after processing in itsmanufacturing plans within the estates. For the financial year ending December 31, 2010 it has

produced the following information: 25

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 agricultureand 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.

(Please turn over)

7/31/2019 Taxation-II Dec 2012[1]_ICAB Question

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4. Mr. X an employee of a limited company, received the following salaries and allowancesduring the income year ended 30 June, 2009. 10

Taka

1.Basic Salary 4,20,0002.House Rent allowances 2,00,0003.Festival Bonus equal to two months basic salary 70,0004.

Leave encashment Salary 35,000

5.Conveyance allowance 24,0006.Contribution to Recognized Provident fund @ 8% 33,6007.Servant Wages 24,0008.Children education allowance 60,0009.Leave fare assistance 50,00010.Banglow utilities 25,000

Compute excess perquisite u/s 30 (e) for the assessment year 2009-2010.

5. (a) A refund of tax becomes due to an assessee on reduction of total income in appeal filed byhim, but the Deputy Commissioner of Taxes does not take any action to make the refund.

What are the remedies open to the assessee? 4

(b) Discuss on modes of recovery by the Tax recovery Officer. 6

(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. 5

6. State the provision of law for tax clearance certificate required for persons leaving Bangladesh. 57. What penalties can be imposed for: 6

(a) Failure to the file return u/s 75:(b) Failure to pay Taxes u/s 74:(c) For furnishing inaccurate particulars of income

8. (a) Define Input Tax. What are the conditions to be met for claiming input tax? 6(b) Discuss the Special Treatment of Specified Input tax and the penalty for false declaration

for Input Tax. 5

9. Bata Shoe Co. Ltd. incurred the following transactions in September 2010: 8Raw 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.70,000Balance 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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