M.Com. (Semester IV) Examination, 2017
TAXATION (PAPER-III)
Day Date: Wednesday, 19-04-2017 Max. Marks: 50
Time: 02.30 PM to 04.30 PM
N.B. All questions are compulsory.
All questions carry equal marks.
Q.1 Select the correct answer from multiple choices given. 10
Central Excise Tariff Act, 1985 (CETA) contains.
The basic provisions relating to charging and levying of excise
duty
1
The rates of duty of excisable goods
The rules relating the procedure for the assessment and
collection of duty including other procedure
Central excise duty is presently levied on
All excisable goods
All excisable goods (other than goods produced or manufactured
in Special Economic Zone)
All excisable goods (other than goods produced or manufactured
in Special Economic Zone) which are produced and
manufactured in India.
The taxable event in the case of Central Excise for charge of duty is
the
Manufacture or production of the goods
Time of removal goods
Manufacture or production of the goods or time of removal of
goods whichever is convenient to the manufacturer.
Where the goods have become excisable/dutiable after the
manufacturing date but before removal and such goods which are
listed in the schedule to the tariff but against such goods the rate of
duty mentioned is Nil, then the rate of excise duty shall be
The rate applicable on the date of removable
Nil
None of the above
A contract manufacture is
A job worker who does not have ownership over the goods
produced
A manufacturer who manufactures goods in the brand name of
the principal and sells the goods at the agreed price and pay the
excise duty himself.
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A manufacturer who manufactures goods with or without the
brand name of the principal and sells the goods at the agreed
price and pay the excise duty himself.
Custom duty is levied on
Imports of goods into India.
Exports of goods out of India.
Imports of goods in India or exports of goods out of India.
The rate of customs duty is given in
The Customs Act, 1962.
The Customs Tariff Act, 1975.
Customs Manual 2001.
In case of goods cleared for warehousing the imports into India takes
place when
Goods reached the custom barriers
Goods are cleared from the warehouse
Goods are kept in customs bond
For determination of rate of exchange for converting tariff
value/transaction value of export of goods into Indian rupees, the
date relevant shall be
The date of filling the shipping bill
The date of clearance of goods for export
The date when the goods for exports crossed the customs barrier
10) If any imported goods are pilfered after the unloading thereof and
before the proper officer has made an order for clearance for home
consumption or deposit in a warehouse, the importer shall
Be liable to pay the duty leviable on such goods
Not be liable to pay the duty leviable on such goods
Be liable to pay the duty livable on such goods at concessional
rate.
Q.2 Write short notes on any two from the following. 10
a. Transaction Value under customs
b. Duty on Pilfered goods
c. Excise duty on Waste and Scraps
d. CENVAT under Central Excise
e. Definition of goods under Customs.
Q.3 Living Experts Ltd. manufactures steel tables which are sold by it to
wholesalers and by wholesalers to retailers and finally from
retailers to final customers. Form the following particulars provided
to you, compute the excise duty payable by Living Experts Ltd.
05
Tables are not covered by the provision of Section 4A of
Central Excise Act, 1944.
MRP printed on the table is Rs. 5,000 while it has been sold
by Living Experts Ltd. to wholesalers 3,500 per bag.
Wholesalers sell it to retailers 3,800 per table and it has
been sold to final consumer 4500 per table by the
retailers.
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Rs. 500 is given as discount on MRP to the consumer by the
retailers
Rate of Excise duty 12%.
Abhinav exported some goods to Germany in a vessel. You are
required to determine the rate of exchange for the purposes of
computation of export duty from the following additional
information.
05
Particulars Date
Exchange rate
notified by
CBEC
Exchange rate
notified by
RBI
Date of
presentation of
shipping bill
19.5.2014 74 per Euro 76 per Euro
Date of entry 21.5.2014 72 per Euro 75 per Euro
Q.4 Calculate the assessable value and excise duty payable form the
following information.
10
Particular Amount Rs.
Total Invoice price (including all taxes, duties and other
charges
70,000
Insurance charges for dispatch of final product 2,000
Packing charges 1,500
Freight Charges (From factory to the customer's
premises)
1,000
Value Added Tax 12.5%
Rate of Excise Duty is 12%
Q.5 Worldwide Waters Ltd., a manufacturer has agreed to supply a machine
on the following terms and conditions:
10
Price of the machine
(Exclusive of taxes and duties)
9,00,000
Packing for transportation of the machine 40,000
Design and drawing relating to manufacture (ex
duties)
80,000
Central Sales Tax against C form
Central Excise duty 12% applicable cess
Cash discount of Rs. 10,000 will be offered if full payment is
received before dispatch of the goods.
The buyer made full payment before dispatch of the goods. Determine
Assessable value and Excise Duty payable.
OR
Q.5 Vishal imported from Brazil 600 units $100.
Following further payments need to be made.
Royalty for use of patent per unit $10.
Royalty on sale of finished goods produced by importer by using
imported Raw Material as a condition of Sale $30,000.
Fright (vessel) $8,000.
Demurrage (It is a part and parcel of freight but not included in the
above) $1,000.
Landing Charges Rs. 3,00,000.
Additional Information:
Rate of duty 10.30% (including cess
Exchange Rate Rs. 65
Find duty payable.