SECTION - COMMERCE STD : TYBCOM SUB: INDIRECT TAX. Date: 04/03/2016 Time: 2.30 Hr. Marks: 75

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1 SECTION - COMMERCE STD : TYBCOM SUB: INDIRECT TAX N.B.: All questions are compulsory carrying 15 marks each. Date: 04/03/2016 Time: 2.30 Hr. Marks: 75 Q. 1. (a) Rewrite following full sentence and state whether it is True or False (any eight): ( 8) 1. Services tax is imposed as a direct tax. 2. Services do not include declared services. 3. Negative list specifies the services which are liable for service tax. 4. Ingredients of service exclude service for consideration. 5. From ST-1 is filed manually to get registration under service tax. 6. Service tax is paid on trading of goods and services. 7. Service Tax Code (STC) is a 15 digit Numeric code. 8. New scheme of service taxation (Negative List) is brought into effect from 1 st July, The effective rate of charge of service tax is 12.36% of Value of taxable service. 10. Deemed sales are not treated as service. Q. 1. (b) Rewrite following full sentence by selecting the correct option under the Provisions of Maharashtra Value Added Tax Act, (any seven): (7) 1. Taxable Purchases for the purpose of Registration includes a) Purchases under Schedule A b) Local Purchases c) Inter-State Property 2. as defined under MVAT Act, 2002 includes a) Immovable Property b) Growing Crops c) Newspapers 3. Dealer as defined under MVAT Act, 2002 excludes a) An agriculturist b) Club c) Auctioneer 4. Under composition scheme, tax rate for construction contract is a) 4 % b) 5 % c) 8% 5. Sales Returns can be claimed as a deduction from Gross Turnover of sales, within a maximum period of from the date of sale a) One month b) Three months c) Six months 6. The product is sold at 190 per unit, the packing charges are 10 per unit and VAT thereon is 25 per unit, the Sale Price liable of MVAT is per unit. a) 190 b) 200 c) 225 HAPPY TO TEACH Page 1

2 7. Set-off or Refund is available to a Registered Dealer on his purchases, on production of a) Deliver challan b) VAT payment challan c) Tax invoice 8. A second hand car dealer buys old vehicle for 2,00,000 and spends 20,000 on refurbishing. He sells the vehicle for 3,00,000. The tax payable under composition scheme is a) 5,625 b) 37,500 c) 10, When Schedule B goods are transferred to a Branch outside the state, the reduction in set off will be of purchase price. a) 1 % b) 2% c) 3% 10. T & Co. of Thane purchased goods of 15,300 (inclusive of CST 300) from A & Co. of Bangalore. They sold these goods to M & Co. of Mumbai for 22,500 (inclusive of 12.50% VAT). The VAT payable is a) 2,500 b) 300 c) 2,200 Q. 2 From the following information for February 2016 supplied by Mr. Amir compute his value of taxable service and the service tax payable for the month of February (Ignore threshold limit and all amounts given are excluding service tax.) (15) 1. Supply of Farm Labour 40, Loading and Unloading of Grapes 60, Cleaning and Packing of Grapes 20, Sale of Grapes 4,00, Consultation Service for Manufacturing Wine from Grapes 3,50, Rent from Agricultural Land situated at Jammu and Kashmir 40, Renting to Agricultural Machinery 80, Rent from Agricultural Land used for Agriculture 60, Rent from Agricultural Land given to Agricultural; College for Research 70, Rent from Agricultural Land given to Mela (Fun-Fair) 4,00, Rent of Agriculture Land from Cinema Production House 6,00, Rent from Agriculture Land given to Food and Agriculture Organization of united Nations 1,00,000 HAPPY TO TEACH Page 2

3 Q. 2 From the following information for March 2016 supplied by Mr. Shriram compute his value of taxable service and the tax payable for the month of March (Ignore threshold limit and all amounts given are excluding service tax.) (15) 1. Security Charges Received from Candidate Contesting for Lok Sabha Election 50, Rent from Lodge (Declared Tariff 800 per day per room) 60, Royalty from Temporary Transfer of Trade Mark 2,50, Sale of Software 1,00, Rent from Mobile Tower erected at Residence 3,00, Rent from Ground given for Local sports 3,50, Consultancy given in Relation to Cultivation of Mango 1,00, Consultancy given in Relation to Production of Mango Jam 2,00, Private Tution Fees from School Students 1,00, Rent from Hiring of Tractor to Farmers 30, Salary Received from Employer 2,00, Health Care Services rendered 60,000 Q. 3 From the following information for February 2016 supplied by Mr. Sachin compute his value of taxable services and the service tax payable for the month of February (Ignore threshold limit and all amounts given are excluding service tax.) (15) 1. Coaching charges received from BCCI for Cricket World Cup ,00, Room rent by Hotel from customers (Declared tariff 800 per day per room) 80, Rent from residential dwelling used for residential purpose 2,50, Magician charges received 1,50, Rent from vacant land used for Agricultural purposes 50, Translation charges received from United Nation 90, Rent from mobile tower erected at residential premises 2,50, Trading in Mobiles 50, Palmistry charges received from Mumbai Police 1,00, Suit designing charges from Chief Minister of Maharashtra 5,00, Salary received from employer 2,00, Cosmetic Surgery Charges received for looking beautiful 3,00,000 HAPPY TO TEACH Page 3

4 Q. 3 From the following information for January 2016 supplied by Mr. Ramdev compute his value of taxable services and the service tax payable for the month of January (Ignore threshold limit and all amounts given are excluding service tax). (15) 1. Services by veterinary clinic for treatment of animals 40, Technical Testing of newly developed drug 80, Coaching in recreational activities relating to sport 50, Coaching in Private coaching class for college students 3,00, Services as player in as sporting event organized by a recognized sports body sports 1,00, Labour Charges for repair of Washing Machine 90, Rent from lodge given on temporary period (Declared tariff 3,000 per day room) 4,50, Warehousing charges of agricultural produce 2,00, Salary received from employer 2,50, Rent from agricultural land let out for cultivation of sugarcane 60, Hiring of Tractor to Farmers Co-operative Society 80, Remuneration received for collecting news as independent journalist. 3,00,000 Q. 4 (a) Tina Fabric commenced their business on 1 st January From the following particulars regarding purchase and sales transactions, you are required to find out the date from which they will be liable for registration as per the provisions of Maharashtra Value Added Tax Act, Give reasons. (7) Date Purchases Sales Out of State With State Within State Taxable Taxable Tax Free Taxable Tax Free ,000 2,000 8,000 8,000 10, ,000 4,000 10,000 12,000 12, ,000 8,000 12,000 5,000 14, ,000 12,000 14,000 7,000 16, ,000 20,000 16,000 15,000 20,000 HAPPY TO TEACH Page 4

5 (b) Sr. No Determine the Point of Taxation in each of the following cases, in accordance with Point of Taxation Rules, (8) Date of Completion of Service Date of Invoice Date of which Payment Received Amount ,00, ,00, ,00, ,00, ,00, ,00, ,50, ,00,000 Q. 4 (a) From the following particulars furnished by Mr. Ashish, you are required to calculate the tax liability under Maharashtra Value Added Tax Act, 2002: (7) 1. Local Sales (Excluding Tax) Schedule A goods 40,000 Schedule E goods 2,00,000 Schedule C goods 1,00,00 2. Local Purchases (Excluding Tax) Schedule E goods 3,00,000 Schedule C goods 60,000 Purchases from Stationery (debited to P & L A/c) Schedule A goods 3. 30% of purchases of Schedule E goods were used to manufacture Schedule A goods 4. Tax Rate for goods under Schedule A = Nil, Schedule C = 5%, Schedule E= 12.50%. Q. 4 (b) Mr. Vijay s taxable services for April, May, June, August and September, 2015 is given below: (7) April ,00,000 May ,00,000 June ,00,000 July ,00,000 August September ,00,000 What is his date of payment of service tax to be paid online and the amount of total service tax payable? What is penalty in above case if return is filed on 30 th October, HAPPY TO TEACH Page 5

6 Q. 5 (a) (b) Explain with reasons, whether the following are as per the provisions of Maharashtra Value Added Tax Act, 2002 (any four): (8) 1. Office Premises 2. Pen drive 3. Trademark 4. Preference Shares of X Ltd. 5. Machinery What are the provisions for filing of Service Tax Return and Penalty for delay in non-filing of return. (7) Q. 5 Write short notes on any three of the following: (15) a) Exempt Sales under Section 8 b) Tax Invoice c) Composition Scheme for Construction Contracts d) Rule 4 of Point of Taxation rules in case of change in rate of service Tax. e) List five services exempted under notification 25/2012. ALL THE BEST C.A. C.P.T. JUNE 2016 & C.S. FOUNDATION DEC-2016 BATCHES STARTS FROM 7 TH MARCH 2016 HAPPY TO TEACH Page 6