Taxation - January 2021

(aged 65 years), a furniture manufacturer, reported a profit of ` 5,64,44,700 for the previous year 2019-20 after debiting/crediting the following items: Debits: 1. ` 20,000 paid to a Gurudwara registered u/s 80G of the Income-tax Act, in cash where no cheques are accepted. 2. ` 48,000 contributed to a university approved and notified u/s 35(1)(ii) to be used for scientific research. 3. Interest paid ` 1,67,000 on loan taken for purchase of E-vehicle on 15-05-2019 from a bank. The…

(a) Examine TDS/TCS implications in case of following transactions, briefly explaining provisions involved assuming that all the payees are residents; state the rate and amount to be deducted, in case TDS/TCS is required to be deducted/collected. (i) On 1.5.2019, Mr. Brijesh made three fixed deposits of nine months each of ` 3 lakh each, carrying interest @ 9% with Mumbai Branch, Delhi Branch and Chandigarh Branch of CBZ Bank, a bank which had adopted CBS. These Fixed Deposits mature on…

(a) Rajesh was employed in Axis Ltd., Mumbai. He received a salary of ` 45,000 p.m. from 1.04.2019 to 20.09.2019. He resigned and left for Dubai for the first time on 28.09.2019 and got monthly salary of rupee equivalent of ` 90,000 from 1.10.2019 to 31.03.2020. His salary for October to December was credited in his Mumbai bank account directly and the salary for January to March 2020 was credited in his Dubai bank account. 6 Assuming the capital expenditure…

(a) During the previous year 2019-20, following transactions took place in respect of Mr. Raghav who is 56 years old. 16 INTERMEDIATE (NEW) EXAMINATION: JANUARY, 2021 (i) Mr. Raghav owns two house properties in Mumbai. The details in respect o f these properties are as under - Rent received per month Municipal taxes paid Interest on loan (taken for purchase of property) Principal repayment of loan (taken from HDFC bank) House 1 Self-occupied Not applicable ` 7,500 ` 3,50,000 House…

Star Ltd., a registered supplier in Karnataka has provided the following details for supply of one machine·: Particulars Amount in (1) List price of machine supplied [exclusive of items given below from (2) to (4)] 80,000 (2) Tax levied by Local Authority on sale of such machine 6,000 (3) Discount of 2% on the list price of machine was provided (recorded in the invoice of machine) (4) Packing expenses for safe transportation charged separately in 4,000 the invoice Star Ltd.…

Green Agro Services, a registered person provides the following information relating to its activities during the month of February, 2020: Gross Receipts from Services relating to rearing of sheeps 6,00,000 Services by way of artificial insemination of horses 4,00,000 Processing of sugarcane into jaggery 8,00,000 Milling of paddy into rice 7,50,000 Services by way of fumigation in a warehouse of agricultural produce All the above receipts are exclusive of GST. 1,80,000 Compute the value of taxable supplies under GST laws…

(a) ABC Cinemas, a registered person engaged in making supply of services by way of admission to exhibition of cinematograph films in multiplex screens was issuing consolidated tax invoice for supplies at the close of each day in terms of section 31(3)(b) of CGST Act, 2017 read with fourth proviso to rule 46 of CGST Rules, 2017. During the month of October, 2019, the Department raised objection for this practice and asked to issue separate tax invoices for each ticket.…

(a) Mr. Anurag, a famous Author is engaged in supply of services by the way of transfer or permitting the use or enjoyment of a copyright covered under clause (a) of sub-section (1) of section 13 of the Copyright Act, 1957 relating to original literary works to a publisher. Explain in brief the conditions under which an Author can choose to pay tax under forward charge. (5 Marks) It has been most logically assumed that Mr. Prithvi has not filed…