M.Com. (Semester IV) Examination Oct/Nov-2017
TAXATION
Day Date: Friday, 17-11-2017 Max. Marks: 50
Time: 02.30 PM to 04.30 PM
Instructions: All questions are compulsory.
All questions carry equal marks.
Q.1 Choose the alternatives given below. 10
Indian custom waters extend up-to
12 nautical miles from the base line on the coast of India
12 nautical miles from the base line on the coast of India and includes any
bay, gulf, harbor creek or tidal river
24 nautical miles from the base line on the coast of India and includes any
bay, gulf, harbor creek or tidal river.
Any goods produced or manufactured within Continental Shelf and Exclusive
Economic Zone of India and brought to the mainland of India shall
Be regarded as „imported and will not be liable to customs duty
Not be regarded as „imported and will not be liable to customs duty
None of the above
The customs Act 1962 deals with imports and exports by
Air Air and water
Air, water and land route None of the above
Taxable event for imports into India shall
Include territorial waters Not include territorial waters
Include India customs waters Not include India customs waters
Basic customs duty is levied
On the basis of transactional value
On the basis of tariff value
On the basis of either transactional value or the tariff value as the case
may be
Excise duty is levied on excisable goods manufactured or produced by
A manufacturer or producer other than government
A manufacturer or producer whether government or otherwise
The government or on behalf of the Government or those produced by
others
The liability to pay excise duty is on a person who
Produces or manufactures the excisable goods
Stores such goods in warehouse
Produces or manufactures the excisable goods or stores such goods in
warehouse except in the case of molasses
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SLR-CJ-45
Where the goods have become excisable/dutiable after the manufacturing
date but before removal and such goods were exempted for payment of
excise duty by exemption notification then the rate of excise duty shall be
The rate applicable on the date of removal
The rate applicable on the date of removal if exemption from duty is
withdrawn before the removal of the goods but subsequent to the date of
manufacture
Nil
Waste and scrap is not liable to excise duty if
Such waste and scrap arises in the course of manufacture of exempted
goods
Such waste and scrap results from repair or maintenance of machinery
and plant not liable to excise duty
Such waste and scrap arises either in the course of manufacture of
exempted goods or it results from repair or maintenance of machinery and
plant not liable to excise duty.
10) Under Central Excise, a manufacture includes
A person who manufactures himself
A person who manufactures himself or a person who gets the goods
manufactured through hired labour
Person who manufactures himself or a person who gets the goods
manufactured through hired labour or a person who does not employ
hired labour but still gets the manufacturing activity done form other
under his direction control and supervision
Q.2 Write short notes on any two from the following. 10
Definition of Manufacturer under Central Excise
Methods of determination of assessable value
Registration under Central Excise with procedure
Definition of goods under customs
Levy and types of duties under customs
Q.3 Briefly explain the procedure of import into India. 05
Explain the concept of CENVAT and rules there under. 05
Q.4 Determine the tariff value and the amount of duty payable (including the
education cess) in the following cases:
10
Sl.
No
Tariff value
of goods on
the date of
manufacture
Date of
Manufacture
Rate of duty
on the date
of
manufacture
Date of
removal
Tariff
value on
the date
of
removal
Rate of
duty on
the date of
removal
1 1,20,000 26-4-2014 12% 25-6-2014 1,60,000 10%
2 2,40,000 28-5-2014 25-6-2014 2,20,000 12%
3 3,60,000 2-6-2014 12% 28-6-2014 4,00,000 12%
4 3,20,000 3-6-2014 Nil 29-6-2014 3,80,000 10%
5 2,80,000 4-6-2014 30-6-2014 3,10,000 12%
6 3,40,000 5-6-2014 Nil due to
exemption
notification
30-6-2014 4,00,000 12% as
exemption
is
withdrawn
OR
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SLR-CJ-45
Determination the transaction value and excise duty payable from the
following particulars.
10
Price of Machine "A" is Rs. 1,00,000 (excluding taxes duties)
Installation and erection charges (Machine "A" is fixed to the earth) is Rs.
5,00,000
Designing charges for machinery is Rs. 65,000.
Charges for packing the machine are Rs. 56,000.
Outward freight charges beyond place of removal is Rs. 1,00,000.
Cash discount@5% on price of machinery was allowed as the customer
paid the bill amount before dispatch.
Central Excise duty rate is 12%.
Q.5 Keshav imported some goods from Japan. The assessable value of the
imported goods is Rs. 51,00,000. Compute the customs duty payable from
the following additional information.
10
Date of entry inward 16.1.2014 (rate of basic custom duty is
Date of bill of entry 20.1.2014 (rate of basic custom duty is
Countervailing duty 12%
Special duty at maximum rate applicable
OR
Neraj imported 1000 units of goods from Mr. Jackson of New York $60 per
unit. In addition to the above Mr. Neeraj had to incur the following
expenditure.
Container cost per unit
Royalty for use of patent per unit
Royalty on resale (not as an integral condition of import) 3 per unit.
Royalty for technique supplied in total 10,000
Commission paid in India for channelizing sale Rs. 80,000
Buying commission paid in Malaysia for representing buyer in export country
10,000.
Addition information:
The technique supplied was not related to or connected with the goods
imported
Rate of Duty 10%
Exchange Rate Rs. 65
Compute the transaction value and custom duty payable.