Taxation - December 2021

Mr. Shivansh, a resident and ordinarily resident aged 61 years, is engaged in the business of manufacturing of motor parts. He is subject to tax audit under section 44AB of Income-tax Act, 1961. He has provided following information: Profit & Loss account for the year ended 31 st March, 2021 Particulars Particulars To Administrative expenses 4,30,000 By Gross Profit 58,30,000 To Salaries & wages 20,00,000 By Profit on sale of asset of scientific research 2,00,000 To Interest on loans 7,50,000…

(a) Examine the tax implications of the following transactions for the assessment year 2021-22: (Give brief reason) (i) Government of India has appointed Mr. Rahul as an ambassador in Japan. He received salary of ` 7,50,000 and allowances of ` 2,40,000 during the previous year 2020-21 for rendering his services in Japan. He is an Indian citizen having status of non-resident in India for the previous year 2020-21. 6 INTERMEDIATE (NEW) EXAMINATION: DECEMBER, 2021 (ii) Ms. Juhi, a non-resident in…

(a) State in brief the applicability of provisions of tax deduction at source, the rate and amount of tax deduction in the following cases for the financial year 2020 -21 under Income-tax Act, 1961. Assume that all payments are made to residents: 10 INTERMEDIATE (NEW) EXAMINATION: DECEMBER, 2021 (i) Mr. Mahesh has paid ` 6,00,000 on 15.10.2020 to M/s Fresh Cold Storage Pvt. Ltd. for preservation of fruits and vegetables. He is engaged in the wholesale business of fruits &…

(a) Details of Income of Mr. R and his wife Mrs. R for the previous year 2020-21 are as under: (i) Mr. R transferred his self-occupied property without any consideration to the HUF of which he is a member. During the previous year 2020-21 the HUF earned an income of ` 50,000 from such property. (ii) Mr. R transferred ` 4,00,000 to his wife Mrs. R on 01.04.2006 without any consideration which was given as a loan by her to…

ABC Ltd., a registered supplier in Surat, Gujarat has calculated output net GST liability after adjusting ITC in the books for the month of February 2021: CGST : ` 3,00,000 SGST : ` 2,50,000 IGST : ` 3,00,000 During the above month, the following additional information is provided by ABC Ltd.: S. No. Particulars Amount (excluding GST) ` 1 The company had given on hire 5 trucks to one of the transporters of Vadodara (a goods transport agency) for transporting…

(a) AB Ltd., a registered company of Chennai, Tamil Nadu has provided following services for the month of October, 2021 Particulars Amount Services of transportation of students, faculty and staff from home to college and back to Commerce College, (a private college) providing degree courses in BBA, MBA, B.Com., M.Com. 2,50,000 Online monthly magazine containing question bank and latest updates in law to students of PQR Law College offering degree courses in LLB and 1,00,000 Housekeeping services to T Coaching…

An order is placed to T & Co;, Sholapur on 18 th August, 2021 for supply of fabrics to make garments. Company delivered the fabrics on 4 th September, 2021 and after completion of the order issued the invoice on 15 th September, 2021. The payment against the same was received on 30 th September, 2021. Determine the time of supply for the purpose of payment under CGST Act, 2017 with your explanations. (ii) HM Industries Ltd. engaged the services…

(a) Mr. Q, a casual taxable person of Gujarat state is a trader of taxable notified handicraft goods. It makes supplies to the states of Maharashtra, Rajasthan and Andhra Pradesh. Turnover for October, 2021 is ` 18 Lakh. (i) Explain the provisions of registration for casual taxable person under GST. Examine whether Mr. Q is liable for registration or not? (ii) What will be the answer if Mr. Q makes trading in taxable notified products instead of taxable notified handicraft…