B.M. DEGREE EXAMINATION, NOVEMBER/DECEMBER 2017.
Third Semester
Paper IV ELEMENTS OF DIRECT AND INDIRECT TAXES
2 90434
Time 3 Hours Max. Marks 60
PART — A
Answer any TWO of the following. 6 12 Marks)
Note Answer all Questions in not more than one page each.
1. Define agricultural income.
2. How to file return of wealth tax?
3. Briefly explain CEN VAT credit.
4. What do you mean by input services?
PART — B
Answer any FOUR of the following. 12 48 Marks)
Note Answer all Questions by using internal choice in not exceeding 4 pages each.
5. What is residential status? When does a resident individual become a resident but
not ordinarily resident?
6. Following are the details of income of Mr. Ravi for the A.Y.2017-18
Income from agriculture in Netherlands Rs. 1,00,000
Income from business in Singapore Rs. 8,00,000 which is controlled from
India.
Dividend from a co-operative society Rs. 12,000
Dividends from a public company Rs. 17,000
Past untaxed profit brought to India Rs. 1,50,000
Income accrued in India but received in Japan Rs. 70,000.
Salary received Rs. 10,000 in India for services rendered in napal.
Compute his taxable income if he is
Resident not ordinarily resident non resident.

7. Mr. suman is employed in Bangalore. His particulars of income for the P.Y.
2016-17 are basic Salary Rs. 8,000 per month, D.A Rs. 2,000 per month
enter). Bonus Rs. 4.000 p.a. Commission Rs. 4,500 p.a., E.A Rs. 500 per month.
Fair rental value of rent free house provided by the employer Rs. 40,000 p.a. value
of furniture provided Rs. 20.000. Redemption of stock appreciation rights Rs. 4,000.
Compute income from salary of Mr. Suman for the A.Y. 2017-18.
8. Calculate the maximum deductible amount u/s 80 D of Mr. David (resident) from
the following details:
Medical insurance premium paid on own life Rs. 10,000
Medical insurance premium paid on wife's (not dependent upon tax payer)
Rs. 4,000
Medical insurance premium paid on sons life (dependent) Rs. 1,000
Medical insurance premium paid on daughter life Rs. 2,000
Medical insurance premium paid on father life's (age 68 years. Resident in
India) (not dependent upon tax payer) Rs. 1,000
Medical insurance premium paid mother's life 64 years, resident in
India) Rs. 40,000
Medical Insurance premium paid on grandfather life Rs. 2,100
9. What are the steps and rules involved in classifying the products in central excise?
Discuss the general principles of classification.
10. Explain the procedure for registration under service tax.
———————