ASSIGNMENT

DRIVE Fall 2015

PROGRAM MBADS (SEM 3/SEM 5)
MBAFLEX/ MBA (SEM 3)
PGDFMN (SEM 1)
SUBJECT CODE &
NAME
MF0012 &
TAXATION MANAGEMENT
BK ID B1760
CREDITS 4
MARKS 60
Note: Answer all questions. Kindly note that answers for 10 marks questions should be
approximately of 400
words. Each question is followed by evaluation scheme.

Q.No Questions Marks Total

Marks 1 Explain the objectives of tax planning. Discuss the factors to be
considered in tax
planning. Objectives of tax planning Factors in tax planning 5 10 2 Explain the
categories in Capital assets. Mr. C acquired a plot of land on 15th June, 1993
for Rs.10,00,000 and sold it on 5th January, 2010 for Rs.41,00,000. The expenses
of transfer were Rs.1,00,000. Mr. C made the following investments on 4th
February, 2010 from the proceeds of the plot. a) Bonds of Rural Electrification
Corporation redeemable after a period of three years, Rs.12,00,000 b) Deposits
under Capital Gain Scheme for purchase of a residential house Rs.8,00,000 (he
does not own any house) Compute the capital gain chargeable to tax for the
AY2010-11. Explanation of categories of capital assets Calculation of indexed
cost of acquisition Calculation of long term capital gain Calculation of taxable
long term capital gain 42 10 3 Explain major considerations in capital
structure planning. Write about the dividend
policy and factors affecting dividend decisions. Explanation of factors of
capital structure planning Explanation of dividend policy Factors affecting
dividend decisions 62 10 4 X Ltd. has Unit C which is not functioning
satisfactorily. The following are the details
of its fixed assets:
Asset Date of
acquisition
Book value (`
lakh) Land Goodwill (raised in books on 31 st March, 2005) Machinery Plant 10th
February, 2003 5th April, 1999 12th April, 2004 30 10 40 20 The written down
value (WDV) is ` 25 lakh for the machinery, and 15 lakh for the plant. The
liabilities on this Unit on 31 st March, 2011 are 35 lakh. The following are two
options as on 31 st March, 2011: Option 1: Slump sale to Y Ltd for a consideration
of 85 lakh. Option 2: Individual sale of assets as follows: Land ` 48 lakh, goodwill
` 20 lakh, machinery 32 lakh, Plant 17 lakh. The other units derive taxable
income and there is no carry forward of loss or depreciation for the company as a
whole. Unit C was started on 1st January, 2005. Which option would you choose,

and why? Computation of capital gain for both the options Computation of tax
liability for both the options Conclusion 42 10 5 Explain the Service Tax Law
in India and concept of negative list. Write about the
exemptions and rebates in Service Tax Law. Explanation of Service Tax Law
in India Explanation of concept of negative list Explanation of exemptions and
rebates in Service Tax Law 523 10 6 What do you understand by customs
duty? Explain the taxable events for imported,
warehoused and exported goods. List down the types of duties in
customs. An importer imports goods for subsequent sale in India at $10,000 on
assessable value basis. Relevant exchange rate and rate of duty are as follows:
Particulars Date
Exchange
Rate Declared
by CBE&C
Rate of
Basic
Customs
Duty Date of submission of bill of entry 25th February, 2010 ` 45/$ 8% Date of
entry inwards granted to the vessel 5th March, 2010 ` 49/$ 10% Calculate
assessable value and customs duty. Meaning and explanation of customs duty
Explanation of taxable events for imported, warehoused and exported goods
Listing of duties in customs Calculation of assessable value and customs duty.
2323 10