M.Com. DEGREE EXAMINATION, APRIL 2016
INDIRECT TAX LAW AND TAX PLANNING
(CBCS 2012 onwards)
Time 3 Hours Maximum 75 Marks
Part A 3 15)
Answer all questions.
All questions carry equal marks.
1. Define 'point of taxation'.
2. What is a 'taxable event'?
3. What is the meaning of 'advance ruling' under central
excise?
4. Enumerate any three functions of customs officers.
5. Who is a 'dealer' under the CST Act?
Part B 10 50)
Answer all the questions, choosing either or
All questions carry equal marks.
6. Discuss the merits and demerits of indirect taxes.
Or
Describe the procedure for registration of service
providers under service tax rules.
Sub. Code
611404
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7. Explain the central excise valuation rules to
determine 'assessable value'.
Or
Explain the types of clearances of excisable goods.
8. Describe the procedure for claiming duty drawback
of central excise.
Or
Describe the different remissions and exemptions
under central excise Act of 1944.
9. What are 'notified goods' and what are the duties of
persons possessing 'notified goods'?
Or
exported a consignment under drawback claim
consisting of the following items:
Particulars Serial/Sub-serial FOB value Drawback
rate
200 pieces of pressure stoves mainly of brass
Rs. 80/piece 74.04 Rs. 16,000 of FOB,
200 kg Brass utensils Rs. 200 per kg. 74.13
Rs. 40,000 Rs. 24/kg
200 kg Artware of brass Rs. 300/Kg 74.22
Rs. 60,000 17.50% of FOB subject to a
maximum of Rs. 38/per kg.
On examination in docks, weight of brass
artware was found to be 190 Kgs and was
recorded on shipping bill. Compute the
drawback on each item and total drawback
admissible to the party.
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10. Discuss the principles which determine 'interstate
sale' under the CST Act.
Or
A dealer effected the following sales during the first
quarter of 2011-12 (April to June)
Invoice No. 1171 dt. 2.4.10 for Rs. 26,000 plus
tax
Invoice No. 1172 dt. 19.4.10 for Rs. 70,000 plus
tax
Invoice No. 1173 dt. 2.5.10 for Rs. 52,000
(inclusive of tax)
Invoice No. 1174 dt. 4.6.10 for Rs. 12,200 plus
tax
Invoice No. 1175 dt. 25.6.10 for Rs. 20,000 plus
tax
Goods worth Rs. 6,100 (exclusive of tax)
against invoice No 1174 were returned on
28.6.2010
Goods worth Rs. 5,200 (inclusive of tax) sold
on 25.12. 2009 were returned on 30.6.2010.
All the goods were made in the course of
inter-state trade. Calculate the turnover and
sales tax payable if the rate of tax is 4%.
Part C 10 10)
Compulsory
11. Ms Priya rendered taxable services to a client. A bill
of Rs. 40,000 was raised on 29-4-2011. Rs. 15,000
was received from a client on 1-7-2011 and the
balance on 23/10/2011. No service tax was
separately charged in the bill.
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Is Ms Priya liable to pay service tax, even
though the same has not been charged by her?

What would be the due date for payment of
service tax on 'receipt basis' and 'cash basis'?

M/s XYZ. are in the business of supplying "Turboalternators"
to various customers. They
manufacture steam turbines in the factory, which
are removed to the customer's site on payment of
Central Excise Duty. They purchase duty paid
alternators from the market which are delivered at
the customer's site. M/s XYZ assemble both the
items and fix them permanently on a platform at
the site. Department demands central excise duty
payable on "Turbo alternator', when it comes into
existence after being assembled on the platform
embedded to the earth. Discuss whether the view
taken by the department correct?