M.Com. (Semester III) (CBCS) Examination Nov/Dec-2018
TAXATION (Paper III)
Time: 2½ Hours Max. Marks: 70
Instructions: All questions are compulsory.
Figures to the right indicate full marks.
Q.1 Choose the alternatives given below. 14
Registered dealer means a dealer who is registered under section
5 6
7 8
VAT is subject.
State Central
Partly State Partly Central
The Central Sales Tax Act, 1956 extends to the
whole of India whole of India except J K
whole world All of these
In VAT levy is at the point of only.
Purchase Sale
Contact Manufacture
The Central Government is authorized by virtue of Entry in the
Union List to levy tax on the inter-state sale or purchase goods other than
news paper.
92A 94B
99A None of these
VAT in Maharashtra is nothing but Tax.
Assets Wealth
Income Sales
tax is the tax paid or payable in the course of business on
purchases of any goods from a registered dealer of the state.
Output Secrete
Input Income
Sales made within a state are and are liable to sales tax within
the state.
Intra State Sales Inter State Sales
Country Sales None of these
price means the amount payable to a dealer as consideration
for the sales of goods.
Purchase Sales
Discounted None of these
10) The tariff contains rates only in case of VAT.
Four Six
One Ten
11) Central Sales tax is levied by the Government of
USA Delhi
Maharashtra India
Page 2 of 2
SLR-CS-55
12) In case of VAT input tax credit is not allowed under the scheme
Tax Credit Wealth Tax
Composition Small
13) VAT Payable Tax on sale Tax on
Purchases Sale
manufacture Import
14) The three variants of VAT are Gross Product Variant, Income Variant and

Consumption Variant Gross Product Variant
Income Variant All of these
Q.2 Write short notes on the following. (Any two) 14
Levy and Collection of VAT
Additional method of computation of VAT
Q.3 Write short notes on the following. (Any two) 14
Inter State Sales and Intra State Sales
Sales in course of Import export in CST Act
Q.4 The particulars regarding sales, purchase etc. of Shivaji Udyog for the
last quarter are as under:
14
Particulars
Amount

1. Purchase of raw material within the state
Taxable 40,00,000
Taxable (inputs were used in the manufacture
of goods meant for intra state sale, exempted sale and
interstate sale in the ratio 60,00,000
Taxable 12.50% 10,00,000
2. Sale of goods manufactured from raw material purchased
tax rate
Sale within the state (tax rate 20,00,000
Exempted sale within the state 10,00,000
Sale in the course of interstate trade or commerce
(CST rate 10,00,000
3. Sale of raw material purchased tax rate 44,00,000
4. Goods manufactured from the raw material purchased
12.50% tax rate were given on lease. The deemed sale
price of such goods is Rs. 12,00,000 taxable 12.50%
Q.4 From the following details, compute the CST by a dealer carrying on
business in Karnataka.
14
Particulars
Amount

Total Inter state sales (including CST) 18,00,000
Trade Commission for which credit notes have to be issued
separately 50,000
Installation charges charged separately 30,000
Excise duty 56,000
Freight, Insurance, and transport charges recovered
separately in the invoice 36,000
Goods returned by dealers within 6 months of sale, but after
the end of financial year 39,000
Buyers have issued C forms for all purchases; sales tax rate within the state is
4%.