7/26/2019 Taxation I June11

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TAXATIONI

Timeallowed3hours

TotalMarks100

[N.B.

The

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,ifany,ofthesamequestionmustbeansweredinoneplaceinorderofsequence.]

Marks

1. DefinethefollowingaspertheIncomeTaxOrdinance: 8

(a) Perquisite

(b) Business

(c) Profession

(d) Capitalasset

2. (a) Whoisrequiredtopayadvancetax? 3

(b) Howadvancetaxiscomputed,estimatedandpaid? 5

3. CananassesseechangeonesannualaccountsclosingdateasperITO1984?Supportyouranswer

withbriefexplanation. 4

4. (a) What do you mean by depreciation allowance? Identify the different categories of

depreciationallowabletoanassessee,carryingonbusinessorprofession. 4

(b) PLtd.BoughtamachineforTk.10,00,000;writtendownvalueofwhich isTk.3,00,000.Itwas

soldforTk.2,00,000.Whatwouldbethetaximpact? 4

5. (a) Whatarethestatutorydatesforfilingofreturnofincomeby: 4

(i) anindividual

(ii) afirm

(iii)anassociationofpersons;and

(iv)acompany.

(b) Whatdocumentsaretoaccompanythereturnof incomeofan individualunderthe Income

TaxOrdinance?

3

6. Ahmed Ahmed Ltd. Filed their income tax showing income of Tk.660,090 for the year ended

December31,2009.OnscrutinyofthedocumentssubmittedbytheCompany,theDCTmadethe

followingobservationswhilecompletedtheassessment:

a) OfficeRentpaidTk.600,000totheLandLordagainstwhichnoincometaxwasdeducted.

b)

StaffsalariespaidduringtheyearwereTk.2,550,000againstwhichrequiredincometaxwere

deductedbutnoVAThasbeendeducted.

c) An amount of Tk.300,000 paid to a Director as Loan has been debited as Directors

remuneration.

d) General expenses include Tk.50,000 being the advertisement expenses as published in the

souvenirofaRotaryClub.

e)

Anamount

of

Tk.600,000

paid

as

employer

contribution

to

recognized

Provident

Fund

has

beendebitedtoProfit&LossAccount.

f)

BankchargesincludesTk.15,000spentfortakingloanforpurchaseoffilecabinettobeusedin

theresidenceoftheManagingDirector.

g) Accounting depreciation to the amount of Tk.560,000 has been debited in the account as

againsttheallowabledepreciationofTk.650,000.

h) EntertainmentExpensesclaimedTk.450,000.

From the above compute the total income and tax liability of the company mentioning the

assessmentyear. 15

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7/26/2019 Taxation I June11

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7. Writeshortnotesonthefollowing: 10

a) UniversalSelfAssessment

b) BestJudgementAssessment

c) Assessmentofdiscontinuedbusiness

d) TaxavoidanceandTaxevasion.

8. Mrs.G.Akhter,GeneralManagerofaPrivateLimitedCompany,had the following for theyear

endedJune

30,

2010:

Basicpay Tk.35,000p.m.

FestivalBonus Tk.70,000p.m.

HouseRentAllowance Tk.15,000p.m.

EntertainmentAllowance Tk. 1,000p.m.

MedicalAllowance Tk. 5,000p.m.

She has been provided with a car for official and private use. Employers contribution to

recognizedP.F. is@10%oftheBasicPay.Sheisentitledto2monthsBasicpayasgratuityatthe

timeofretirement.

a) Income from the trading of share business of a listed company during the year were

Tk.525,000b)

ShehasearnedTk.1,500,000bytransferringhershareofaprivateLtd.companyduringtheyear.

Mrs.Akhterpurchased5yearsBangladeshSanchayPatraforTk.50,000.

ComputetotalincomeandtaxliabilitiesofMrs.G.Akhterfortheassessmentyear20102011. 10

9. a) Whataretheconsequencesoffailuretodeductanddeposittaxtoexchequer? 5

b) MentionthereferencesectionsandapplicableTDSratesforthefollowingitems: 5

i) InterestonSecurities

ii) IndentingCommission

iii) CommissiononLetterofCredit

iv) CigaretteManufacturers

v)Shipping

Agency

Commission.

10.DefinethefollowingtermsinlightwithVAT: 5

i) OutputTax

ii) TaxPeriod

iii) Turnover

iv) Goods

v) TotalReceipts

11.DiscusstheformalitiesinrespectofVATRegistration: 15

a) WhenRegistrationarerequiredforthepurposesofVAT?

b) PersonsrequiredtoregisterforthepurposesofVAT?

c)Documents

to

be

submitted

for

VAT

registration?

d) WhenregistrationmaybecancelledforthepurposeofVAT?

The

End