Direct Tax Laws & International Taxation - Nov 2022 RTP

What is the quantum of donations taxable@30% under section 115BBC? (a) ` 12 lakhs (b) ` 11 lakhs (c) ` 8.40 lakhs (d) ` 7.15 lakhs Can the amount donated to PoorAid be allowed as application of income in the hands of EduAid in the P.Y.2021-22? If so, how much? (a) No, it is not allowed as application (b) Yes, ` 9 lakhs is allowed as application (c) Yes, ` 5 lakhs is allowed as application (d) Yes, ` 3…

ABC Ltd., an Indian company, purchases coal from XYZ Ltd., another Indian company, for ` 60 lakhs during the P.Y.2021-22, to manufacture steel. ABC Ltd. furnishes a declaration that such coal is used to manufacture steel and not for trading. What are the TCS/TDS implications on such transaction, if the purchases were spread evenly throughout the year and ABC Ltd.’s annual turnover was ranging between ` 12 crores and ` 15 crores; and XYZ Ltd.’s annual turnover was ranging between…

12. A survey is conducted u/s 133A in the premises of Mr. Aarav and a search is conducted u/s 132 in the premises of his friend, Mr. Arjun, on 1.5.2021. The Assessing Officer issued notices under section 148 for A.Y. 2019-20, A.Y.2020-21 and A.Y. 2021-22 to Mr. Aarav and Mr. Arjun. However, such notices were not accompanied by the copy of an order passed under section 148A. Is the action of the Assessing Officer in issuing such notices under section…

Depreciation computed as per Income-tax Rules, 1962 is ` 1,50,00,000 other than on the additions in assets made during the year. PAPER – 7: DIRECT TAX LAWS AND INTERNATIONAL TAXATION 2. 39 Additions made to the assets were as follows: (i) Office Building ` 3,00,00,000 - Put to use from 15-12-2021. (ii) Computers ` 25,00,000 - Put to use on 11-05-2021. (iii) Plant and machinery ` 5,00,00,000 - Installed and put to use on 01-01-2022.

The company declared and distributed dividend for the financial year 2021-22 on 31.5.2022 for ` 12,00,000. Compute the total income of the company and tax liability for the assessment year 2022-23, assuming company opts for concessional tax regime under section 115BAA. Total turnover of the company for the P.Y. 2019-20 was ` 402 crores. 18. Mr. Rajesh is a resident unitholder of PQR and Shipra. PQR is incorporated as an Investment Fund and Shipra is a Real Estate Investment Trust.…

Royalties and fees for technical services arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

However, such royalties and fees for technical services may also be taxed in the Contracting State in which they arise and according to the laws of that Contracting State, but if the recipient is the beneficial owner of the royalties or fees for technical services, the tax so charged shall not exceed 10 per cent.

The term "royalties" as used in this Article means payments of any kind received as a consideration for the use of, or the right to use : (a) any copyright of a literary, artistic or scientific work, including cinematograph film or films or tapes used for radio or television broadcasting, any patent, 42 trademark, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience, including gains derived from the alienation of any such…