Direct Tax Laws & International Taxation - November 2016 MTP

X Ltd. Company has been declaring dividend at the rate of 25% on equity shares for the last three years. The Company has not made adequate profits during the year ended 31st March, 2016, but it has got adequate reserves which can be utilized for maintaining the rate of dividend at 25%. In the light of the Companies Act, 2013, opine the Company as to how it should go about if it wants to declare dividend at the rate of…

(a) The shareholders and creditors of Ranbaxy Company Limited, in meeting convened for approval of a scheme of reconstruction of the company, passed resolutions. The scheme of reconstruction provided for the following: (i) Sale of vacant land and appropriation of proceeds for payment of outstanding wages, tax dues and repayment of loan. (ii) Unsecured creditors to forego 40% of their claims against the company and receive debentures for the balance amount. A few shareholders and creditors raised objections against the…

(a) The profits of XYZ Limited for the financial year 2015-2016 fell considerably due to recession. The Board of directors of the company, therefore, bonafide did not recommend any dividend for the year. At the Annual General Meeting of the company, a group of members objected to the Board's decision and wanted the Board to make recommendation for dividend. On refusal by the Board, the members, who feel oppressed by the Board's decision to skip the dividend, move to the…

(a) Analyse and Advise with reference to the provisions of the Companies Act, 2013, the following situations. (i) Mr. Peak was appointed as a director at the Annual General Meeting of a limited company held on 30th September, 2015 and he carried on his duties and functions as a director. In the month of August, 2016, it was found that there were certain irregularities in his appointment and on 31st August, 2016, his appointment was declared invalid. But Mr. Peak…

Producer Company Limited was incorporated on 1 st April, 2016. At present it has got 200 members and its board consists of 10 Directors. The Board of directors of the company seeks your advice on the following proposals: (1) Appointment of one expert Director and one Additional Director by the Board for a period of four years. (2) Loan of Rs. 10,000 to Mr. X, a Director of the company repayable within a period of six months. (3) Donation of…

Attempt any Four(a) With reference the provisions of Insurance Act, 1938, what do you mean by “Life Insurance Business”? (4 Marks) (b) What are the powers of the Central Government under the Companies Act, 2013 regarding the Appeal against acquittal. (4 Marks) (c) Explain Asset Reconstruction, Financial Assets under the Securitization and Reconstruction of Financial Assets Enforcement of Security and Interest Act 2002. (4 Marks) (d) Explain the principles of "Grammatical Interpretation" and "Logical Interpretation" of a Statute? (4 Marks)…

Ltd. is engaged in the business of manufacturing plastic bottles. Its Profit & Loss account shows a net profit of Rs.60 lakhs for the year ended 31 st March 2016, after debiting/crediting the following items: (i) Rs.10,000 &Rs.15,000 paid in cash on 19.11.2015 by two separate vouchers to a contractor who carried out certain repair work in the office premises. (ii) One time license fee of Rs.10 lakh paid to a foreign company for obtaining franchise on 1stAugust 2015. (iii)…

(a) Mr. Mahesh, an individual resident in India aged 48 years, furnishes you the following particulars of income earned in India, Foreign Countries " Y" and "Z" for the previous year 2015-16. Compute the total income and tax payable by Mr. Mahesh in India for A.Y. 2016-17 assuming that India has not entered into double taxation avoidance agreement with countries Y&Z. Particulars Indian Income: Income from business carried on in Delhi Interest on savings bank with Dena Bank Income earned…