M.Com (Semester III) (CBCS) Examination Mar/Apr-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
VAT is subject.
State
Central
Partly state
Partly central
VAT in Maharashtra is nothing but tax.
Assets
Wealth
Income
Sales
The Central Government is authorized by virtue of Entry in the Union List to levy tax on the inter-state sale or purchase of goods other than news paper.
92A
94B
99A
None of these
The Central Sales Tax Act, 1956 extends to the
whole of India
whole of India except J K
whole World
All of these
Registered dealer means a dealer who is registered under section
5
6
7
8
price means the amount payable to a dealer as consideration for the sale of goods.
Purchase
Sale
Discounted
None of these
In VAT levy is at the point of only.
Purchase
Sale
Contract
Manufacture
The tariff contains rates only in case of VAT.
Four
Six
One
Ten
VAT payable Tax on sale Tax on
Purchase
Sale
Manufacture
Import
10) The three variants of VAT are Gross Product Variant, Income Variant and
Consumption Variant
Gross Product Variant
Income Variant
All of these
11) 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
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SLR-CX-28
12) Central Sales Tax is levied by the government of
USA
Delhi
Maharashtra
India
13) 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
14) In case of VAT input tax credit is not allowed under the scheme.
Tax credit
Wealth tax
Composition
Small
Q.2
Write short answer.
14
Variants of VAT
Invoice method of computation of VAT
Q.3
Write short notes on the following.
14
Inter State Sales and Intra State Sales
Levy and collection of Central Sales Tax
Q.4
Mr. Raju is a registered dealer and gives the following information. You are required to compute the net tax liability and total sales value under Value Added Tax:
Raju sells his products to dealers in his state and in other states. The profit margin is 15% of cost of production and VAT rate is 13% of sales.
Intra State purchases of raw material is Rs. (excluding CST
A purchase of raw material from an unregistered dealer is Rs. (including VAT High seas purchases of raw material are Rs. (excluding custom duty of Rs.18,500/-).
Purchases of raw material from other states (excluding CST Rs. 50,000/-.
Transportation charges, wages and other manufacturing expenses excluding tax Rs.
Interest paid on bank loan Rs. 70,000/-.
Q.5
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%.