M.Com. (Semester III) (CBCS) Examination, 2017
TAXATION(PAPER-III)
Day Date: Tuesday, 18-04-2017 Max. Marks: 70
Time: 10.30 AM to 01.00 PM
N.B. All questions are compulsory.
Figures to the right indicate full marks.
Q.1 Choose the correct alternatives form the following. 14
Which Act empowers the Central Govt. to appoint an authority to settle
disputes in course of inter-state trade and commerce?
CST Act, 1956 CST Act, 2001
Both a and b None
In which section in appropriate state contained?
Sec Sec Sec Sec
From the following which one is not a declared goods?
Waste Cotton Cotton fabrics Cotton Yarn
Which form has to be furnished for transfer of goods other than sale
Form E-I Form F Form H Form E-II
From C is issued by the
Purchasing dealer Selling dealer
Assessing authority Appellate authority
Conditions supporting a sale 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
Form Gross Turnover which of the following is/are deducted for
calculating turnover under Central Sales Tax
Sales price of exempted goods
Sales price of exported goods
Sales price of goods sold inside a state
All of the above
Under MVAT Act a dealer includes
Any society Any club
Other association of person None of the above
All the above
From the following on which commodity MVAT is not levied.
Packing materials Pulses
Petroleum products Chemicals
Page 1 of 4
SLR-Q -50
10) Application for registration under MVAT has to be made in
Form A Form C Form 101 Form 1001
11) Which one of the following is an incorrect rate under MVAT Act, 2002?
12.5%
12) Which one of the following cannot be considered as goods as per the
definition of goods given under MVAT Act, 2002.
Iron scrap Electricity
Lottery Tickets Software
13) Amount to be paid as fees under MVAT Act, 2002 for compulsory
registration is
Rs. 500 Rs. 2,000 Rs. 5,000 None of the above
14) Formula for calculating sales tax if amount of sales tax is not included
in the sales price is
Aggregate of sales price X rate of tax/ 100 Rate
Aggregate of sales price X rate of tax/ 100
Aggregate of sales price X rate of tax/ 105
None
Q.2 Write short notes on any three of the following. 14
1. Disadvantages of an unregistered dealer under MVAT
2. Procedure for Registration under CST
3. Procedure and due dates for filing of returns under MVAT
4. Types of Assessment under MVAT
5. Penalties which are leviable under MVAT
6. Interstate sale
Q.3 The particulars regarding sale, purchase etc of Shubham Udyog for
the last quarter of the year 2014 15 are as under
14
Purchases of raw materials within the State
Taxable at 40,00,000
Taxable at 60,00,000
Taxable at 12.5% 10,00,000
URD Purchases VAT rate 5,05,000
Sale of goods manufactured from raw materials purchased at 4%.
Taxable sale within the state at 20,00,000
Exempted sales within the state 10,00,000
Sales in the course of interstate trade on C forms 10,00,000
Sale of raw material purchased rate 44,00,000
Goods manufactured form the raw material purchased at 12.5% was
given on lease. The deemed sale price of such goods is Rs.
12,00,000 taxable at 12.5%.
Page 2 of 4
SLR-Q -50
You may assume that input tax credit of tax on raw materials used in the
manufacture of leased goods is available immediately. There was no
opening or closing stock. Compute the amount of Value Added Tax
payable by Shubham Udyog for the relevant quarter. How can he utilize
the balance of input tax credit available, if any?
OR
Avantika and Associates is a registered dealer engaged in the
manufacturing of steel in the State of Maharashtra. During the year
2014-15 the firm has procured raw material Rs. 25,50,320 (VAT
and purchased plant and machinery of Rs. 20,00,000 (VAT
12.5%) and Rs. 5,00,000 (CST for use in the manufacturing
of steel. Sales of materials made during the year is Rs. 40,00,000
(VAT and interstate sale Rs.5,29,000 CST). Beside above
branch transfer of Rs. 20,000 were made to Bijapur (Karnataka).
Calculate the following.
Output Tax
ii) Input Tax
iii) Balance Tax payable
iv) Input tax credit if any, to be carried forward or otherwise
Q.4 Mr. Lalit Khurana of Solapur who started business is April 2014 gives you
the following information of his sales and purchases. Determine if he is
liable for registration under MVAT and it yes, from which month?
14
Month Local purchases Purchases from
Gujarat
Sales inside the
State
Taxable Tax free Taxable Tax free Taxable Tax free
May 14 30,000 4,000 1,000 500 15,000 5,000
June 14 1,000 5,000 4,000 500 20,000 4,000
July 14 20,000 1,000 6,000 22,000 10,000 2,000
Aug 14 40,000 2,000 4,000 1,000 5,000 5,000
Sept 14 10,000 10,000 3,000 5,000 22,000 5,000
Oct 14 2,000 8,000 4,000 4,000 40,000 5,000
Whether your answer will differ if there is sales return of Rs. 50,000 in the
month of September 2014 and returned goods are still in stock?
Q.5 Form the following details; calculate the Central Sales Tax payable by
Sriniwas who is carrying on business in Mumbai.
14
Rs.
Gross Turnover 63,83,390
The above gross turnover includes the following
Trade discount for which credit note have been issued
separately
1,10,000
Excise duty 6,00,000
Freight and insurance separately charged in the invoice 90,000
Installation charges separately charged 1,20,000
Central Sales Tax against C Forms. Local Vat rage
12%
Page 3 of 4
SLR-Q 50
The following dealers of Delhi to whom the goods were sold, have
returned the goods. The particulars of the above returned goods are as
under:
Date of
Sale
Name of
the dealer Details of Invoice
Date of
return
11.5.2014 G Co. Value of goods
Excise duty 10%
Freight insurance
Installation charges
C.S.T on
Rs. 66,000
Total Value
60,000
6,000
2,000
5,000
1,320

74,320
12.10.2014
13.9.2014 S Co. Value of goods
Excise duty 10%
+Freight insurance
C.S.T on
Rs. 44,000
Total Value
40,000
4,000
3,000
880

47,880
20.3.2015
The other buyers have issued Forms for the purchase made by them