Taxation - November 2020

From the following particulars furnished by Mr. Ganesh, aged 58 years, a resident Indian for the previous year ended 31.03.2020, you are requested to compute his total income and tax liability under normal as well as special provisions (AMT), if any, applicable to him for the Assessment Year 2020-21. (i) He occupies ground floor of his residential building and has let out first floor for residential use at an annual rent of ` 2,28,000. He has paid municipal taxes of…

(a) Mr. Mukesh born on 1.4.1960 furnished his original return for Assessment Year 2020-21 on 30.07.2020. He has shown salary income of ` 7.30 lakhs (computed) and interest from his savings bank of ` 12,700 and from his fixed deposits of ` 43,000. He also claimed deduction under section 80C of ` 1.50 lakhs. He had claimed deduction u/s 80D of ` 25,000. He also claimed deduction u/s 80TTA of ` 10,000. His employer had deducted TDS of ` 33,950…

(a) Ms. Pooja a resident individual provides the following information of her income/losses for the year ended on 31st March, 2020: S. No. Particulars 1. Income from salary (Computed) 2,20,000 2. Income from House Property (let out) (Net Annual Value) 1,50,000 3. Share of loss from firm in which she is partner 10,000 4. Loss from specified business covered under section 35AD 20,000 5. Income from textile business before adjusting the following items: (a) Current year depreciation 3,00,000 60,000 4…

Mr. Thomas, a non-resident and citizen of Japan entered into following transactions during the previous year ended 31.03.2020. Examine the tax implications in the hands of Mr. Thomas for the Assessment Year 2020-21 as per Income-tax Act, 1961. (Give brief reasoning) (1) Interest received from Mr. Marshal, a non-resident outside India (The borrowed fund is used by Mr. Marshal for investing in Indian company's debt fund for earning interest). (2) Received ` 10 lakhs in Japan from a business enterprise…

KNK Ltd., a registered supplier of Mumbai is a manufacturer of heavy machines. Its outward supplies (exclusive of GST) for the month of January, 2020 are as follows: S. No. Particulars Amount (`) (i) Inter-State 85,00,000 (ii) Intra-State 15,00,000 Applicable rate of CGST, SGST and IGST on outward supply are 9%, 9% and 18% respectively. Details of GST paid on inward supplies during the month of January, 2020 are as follows: S. No. Particulars paid (` ) paid (` )…

(a) Following are the particulars, relating to one of the machine sold by SQM Ltd. to ACD Ltd. in the month of February 2020 at list price of ` 9,50,000. (exclusive of taxes and discount) Further, following additional amounts have been charged from ACD Ltd : S. No. Particulars (i) Municipal taxes chargeable on the machine (ii) Outward freight charges (Contract was to deliver machine at ACD Ltd.’s factory i.e. F.O.R. contract) Amount (`) 45,000 65,000 Additional information : (i)…

Pvt. Ltd. of Gujarat exclusively manufactures and sells product 'Z' which is exempt from GST vide notifications issued under relevant GST legislations. The company sells 'Z' only within Gujarat and is not registered under GST laws. The turnover of the company in the previous year 2018-19 was ` 50 lakh. The company expects the sales to grow by 10% in the current year 2019-20. However, effective 01.01.2020, exemption available on 'Z' was withdrawn by the Central Government and GST@ 5%…

(a) Who can impose restrictions on utilization of input tax credit (ITC) available in the electronic credit ledger and under what circumstances can restrictions be imposed under the CGST Rules 2017? (5 Marks) (b) Explain the order of discharge of tax and other dues as per the provisions of section 49(8) of the CGST Act, 2017. (5 Marks) (c) With reference to provisions of the CGST Act, 2017 discuss in brief, when ''Importation of services" is to be considered as…