taxation i june11
TRANSCRIPT
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7/26/2019 Taxation I June11
1/2
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