BCom In Accounting & Finance (BCAF) SEM II 2018 19 April 2018-19 TAXATION I Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q3 Use of simple calculator is allowed
2. Q4 Working note should form part of your answer
3. Q1 A] Rewrite the sentences with correct option. (any 8) 8 marks
   • (i) VAT does not apply to
   • (11) ‘Dealer’ as defined under MVAT Act,2002, does not include Following is not the benefit of VAT
   • (c) Leads to double taxation (d) Simplification of tax forms and procedures
   • (iv) Taxable purchases for the purpose of registration include
   • (a) Local purchases taxable under (b) Purchases under Schedule A
   • (c) Imports from outside the country (d) Purchases from other states
   • (v) An importer is liable to be registered under MVAT Act, 2002 if
   • (a) The sales turnover exceeds (b) Taxable sales/purchases are at least Rss.10,000
   • (c) Both (a) and (b) (d) Either of (a) or (b)
   • (vi) Tax at NIL rate (vit) Following are sales or purchases not liable to tax under section 8
   • (a) Sale or purchase outside Maharashtra (b) Exports or Imports
   • (c) Inter-state trade (d) All of the above
   • (viii) A person who voluntarily desires to get registered has to deposit an amount of
   • (c) Rs.25, 000 (d) Nil
   • (ix) A dealer who becomes liable to pay tax under section 3 has to apply for registration within
   • (a) 15 days (b) 45 days
   • (c) 30 days (d) 60 days
   • (x) Provisions regarding registration are laid down in the MVAT Act under
   • (a) Section 16 (b) Section 29
   • (c) Section 22 (d) Section 61
   • B] Match the columns (any Seven) Exempted by Central Government under 7
   • A] State whether following are as defined under MVAT Act, 2002 with reasons: 8
   • B] State whether following are “Goods” as defined under MVAT Act, 2002 with reasons: 7
4. Q2 P. M/s. Tara & Co. provides you the following information regarding sales/ purchases for the Calculate MVAT Payable/ Refund for the month November 2016. Given that there is as set off c/f from earlier month of Rs. 100,000. Tax rates for goods, Schedule C: 5%, Schedule E: 12.5%
5. Q3 A] From the following information furnished to you by Mr.Samir, a new dealer regarding his purchase and sale transactions, find out from which month he will be liable to pay tax as per the provisions of MVAT Act, 2002. Give reasons for your answer. (15)
   • B] Mr. Suresh commenced his business on 1* August 2016. Find out from which month he will be liable for registration and to pay tax as per the provisions of MVAT Act, 2002 Give reasons for your answer. The details of sales and purchases are as under : 15
   • A] M/s Sadashiv, a registered dealer under MVAT Act, 2002 requests you to compute liability under MVAT Act, 2002 for the month of March 2016 from the following information. (15) out of Maharashtra There was an opening balance (credit) in VAT credit receivable account of Rs.24000
   • B] Mr. Shaurya is a manufacturer. His purchases and sales for January 2016 are as under Purchases (Inclusive of VAT): Rs Sales (Exclusive of VAT ): On 1* January, 2016 there was an opening balance of Rs.34,000 in VAT Credit Receivable Account out of which he had received refund at Rs.25000 during the month. Calculate tax liability under MVAT Act, 2002 of Mr. Shaurya
6. Q5 A] What is VAT and explain the benefits of VAT 7 marks
   • B] What is the difference between VAT and Income Tax. 8
7. Q5 Short Notes (any 3) 15 marks
   • a) Explain the conditions for registration under section 3
   • b) Explain the sales and purchases not liable to tax under section 8
   • c) Explain composition scheme of restaurants
   • d) Distinguish between mandatory and voluntary registration under MVAT Act
   • e) Explain the provisions for tax audit under MVAT Act, 2002

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