M.Com (Semester IV) (CBCS) Examination Nov/Dec-2018
TAXATION (Paper III)
Time: 2½ Hours Max. Marks: 70
Instructions: All questions are compulsory.
All questions carry equal marks.
Q.1 Choose the alternatives given below. 14
implies a change which results in a new and different article
having a distinctive name and character or use.
Manufacture Service
Goods None of these
The Central Government has been empowered by Entry of the
union list of the Seventh Schedule of the constitution of India to levy
custom duty.
81 82
83 84
The power to make laws in relation to Central Excise vests with the
government.
State Central
Both A B None of these
The basic custom duty is 7.5% and
10% 2.5%
12.5% 15%
Excise duty on alcoholic liquors is a subject.
Central State
Central State None of these
The Exclusive Economic Zone extends upto nautical miles
inside the sea from the baseline.
.
200 400
1000 No limit
Goods manufactured in are not leviable to excise duty.
BRICS Aasam
Jammu Kashmir SEZ
Excise duty shall be levied not only on manufacture but also on
Deemed Manufacture Service
Rent None of these
The Central Excise law extends to the whole of India Jammu
Kashmir.
Including Excluding
Both A B None of these
10) Rate of exchange means the rate of exchange as determined by
CBDT CBIT
CBEC All of these
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SLR-CS-45
11) Taxable event in customs shall be the importation of the goods into India
or outside India.
exportation of goods manufacture of goods
fire of goods none of these
12) Central Excise act has been implemented in
1985 1944
1972 1992
13) The term refers to loss of goods in small quantities by reasons of
theft or otherwise.
Damage Loss
Pilfer None of these
14) Waste of exempted goods has been exempted from of excise
duty.
receipt imported
payment none of these
Q.2 Write short notes. 14
Price Custom Duty
Collection of Excise Duty
Q.3 Write short notes on the following. 14
Exemption from Custom Duty
Classification of Imported Goods
Q.4 Discuss levy of Custom Duty. 14
OR
Distinguish between Indian territorial waters and Exclusive Economic
Zone of India with regard to applicability of the Customs Act, 1962.
14
Q.5 What is an excise duty? Discuss the relevant Constitutional provisions
governing the imposition of such duty.
14
OR
A manufacturer of machinery sold a special machine. Following details
are provided in relation to amounts charged:
14
Amount

Price of Machinery excluding taxes and duties 6,00,000
Installation charges (machinery is fixed to earth in customer's
premises)
21,000
Packing Charges 9,000
Extra charges for designing the machine 20,000
Outward freight beyond place of removal 12,000
Other information furnished is
Cash discount on price of machinery was allowed as the
customer paid the bill amount before dispatch.
State VAT rate
Central excise duty rate 12% and education cesses as applicable.
Calculate excise duty payable on the special machine.