M.Com (Semester III) (CBCS) Examination Oct/Nov-2017
TAXATION
Day Date: Thursday, 16-11-2017 Max. Marks: 70
Time: 10.30 AM to 01.00 PM
Instructions: All questions are compulsory.
All questions carry equal marks.
Q.1 Choose the alternatives given below. 14
Under MVAT Act a dealer includes
A body corporate A factor
A broker All of the above
None of the above
From the following on which commodity MVAT is not levied.
Motor car Auto parts
Rubber goods Sugar
As an importer, to qualify for registration, a dealer has to satisfy the following
condition
Value of taxable goods sold or purchased shall be not less than Rs. 5,000.
Value of taxable goods sold or purchased shall be not less than Rs. 25,000.
Value of taxable goods sold or purchased shall be not less than Rs. 50,000.
None of the above
Which one of the following is an incorrect schedule entry of goods under MVAT
Act, 2002?
Schedule A Schedule B
Schedule D Schedule F
Which one of the following cannot be considered as goods as per the definition
of goods given under MVAT Act, 2002
Moveable property Civil construction contract
Standing crops Printing Ink
Time limit for applying for voluntary registrations is
30 days from commencement of business
6 months from commencement of business
1 year from commencement of business
No such time
When a dealer conceals any particulars or has knowingly furnished inaccurate
particulars of any transaction liable to tax or has concealed or knowingly
misclassified transaction liable to tax or has knowingly claimed set off in excess
of what is due to him, then he is liable for a penalty u/s of MVAT Act, 2002
equal to
25% of amount of tax found due as a result of any of the aforesaid acts of
commission or omission.
50% of amount tax found due as a result of any of the aforesaid acts of
commission or omission.
100% of amount tax found due as a result of any of the aforesaid acts of
commission or omission.
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When a dealer has not filed return under MVAT Act, 2002 within one month
after the prescribed time, u/s he will have to pay a late fee of
Rs. 1,000 Rs. 2,000
Rs. 5,000 None of these
Rate of sales tax on sale or purchases of declared goods inside the state does
not exceed


10) From the following which one does not fall under declared goods.
Waste Cotton
Cotton Fabrics Cotton Yarn
11) Which form has to be furnished for transfer of goods other than sale
Form E-I Form H
Form E-II Form D
Form F
12) Conditions supporting a sales as inter-state sale is/are
A sale of goods
Transport of goods from one state to another
Movement of goods must be caused
All of the above
13) Registered dealer selling goods in the course of Inter-state trade or commerce
can collect tax from
Seller Government
Unregistered person None of the above
14) Aggregate of sales prices in respect of sales made during any prescribed
period is known as
Gross turnover Net turnover
Taxed turnover Anyone of them
Q.2 Write short answer. (Any 14
Registration under Central Sales Tax Act, 1956.
Prescribed conditions for liability to register under MVAT Act, 2002.
Interstate Sale and its examples.
Definition of goods under MVAT Act, 2002.
Penalties under MVAT Act, 2002.
Q.3 In the month of December 2014, Arvind from Delhi sold 20 numbers of
Product "Maxy 200" to Balvinder Singh of Mumbai Rs. 20,000 per unit.
He has charged CST on the said product and also charged Rs. 600
as freight per unit.
14
Balvinder Singh of Mumbai sold 10 Numbers of Product "Maxy 200" to Chander
of Pune 25,000 per unit and charged VAT 12.5%. Chander of Mumbai
sold 5 Numbers of Product "Maxy 200" to Devidas, a consumer Rs. 30,000
per unit and charged VAT 12.5%.
Calculate liability to tax each one of the above dealer for the month of
December 2014 and also give details of invoice value.
OR
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Q.3 Following are the details of transactions entered during the Month of
January 2015 by M/s Tipnis and Co. of Solapur
Goods purchased from Delhi Rs. 3,06,000 which includes Central Sales Tax
2%.
Goods purchased from a dealer in Mumbai Rs. 3,60,000. VAT charged
12.5% i.e. Rs. 45,000. Total value of purchase invoice Rs. 4,05,000.
Goods purchased from unregistered dealer Rs. 40,000.
Goods purchased from a dealer under composition scheme Rs. 80,000.
Y has paid as tax under the composition scheme.
Purchased from dealer Z in Pune for Rs. 2,80,000. VAT charged Rs.
14,000. Total value of purchases Rs. 2,94,000.
Purchases from dealer B in Akkalkot Rs. 75,000. VAT is not separately
charged in the invoice.
Purchases of capital goods from Kolhapur Rs. 10,12,500. Rs. 9,00,000 is
price of capital goods and Rs. 1,12,500 is VAT amount separately charged.
Goods purchased Rs.1,05,000 which included VAT which is charged
separately. Such goods have been utilized in the manufacture of exempted
goods.
Value of goods imported from Germany Rs. 9,00,000.
10) Value of works contract Rs. 20,00,000 on which service tax levied Rs.
2,47,200
11) Purchase of Motor car Rs. 5,00,000 tax charged separately Rs. 62,500.
12) Purchase of printing and stationery debited to profit and loss Rs. 50,000
VAT charged separately Rs. 2,500.
Q.4 From the following information regarding the turnover of purchases and sales
transactions submitted by M/s Karachiwala and Co., who was not liable to be
registered till 1st April 2014.
14
MONTH
PURCHASES SALES
Taxable Goods
Rs.
Taxable
Goods Rs.
Goods
Rs.
April 14 1000 2000 100000
May 14 2500 3000 150000
June 14 3500 4000 100000
July 14 4500 5000 110000
It is further given that during the month of May 2014 he had purchased a second
hand car for Rs.1,00,000 and sold the same in July 2014 for Rs.1,50,000. Find out
whether he is liable for registration as per the provision of MVAT Act, 2002.
Whether your answer will differ if there was no transaction of sale of the car? Give
reasons for your answer.
Q.5 Suresh Co. an importer at Mumbai, imported goods with Rs. 150 lakhs from
Germany. Out of such goods, goods worth Rs. 30 lakhs were sold to Kashinath
who took delivery of such goods from the Mumbai port after paying customs duty.
The rate of Sales Tax on such goods under MVAT is 12.5%. The balance goods
were cleared by Suresh Co. from customs and kept in godown at Mumbai. Some
of these goods were sold in Maharashtra for Rs. 45 lakhs (exclusive of tax). The
balance goods were sold to Sakharam and Ghasiram of New Delhi for Rs.
68,54,400 and Rs. 38,18,880 respectively (inclusive of tax) against Form C.
14
Ghasiram did not provide "C" Form to Suresh Co. Compute the tax liability of
Suresh Co. in the above case under the Central Sales Tax Act.