Taxation - May 2022

Mrs. Nisha, a resident individual aged 54 years, is carrying on business of manufacturing of textile fabrics, as a proprietor. The turnover in the previous year 2020-21 was ` 250 lakhs and in the current previous year 2021-22, it is ` 600 lakhs. The net profit as per the profit and loss account as on 31-03-2022 is ` 5,61,000. She provides the following additional information those were not considered while making the profit and loss account for the previous year…

(a) Discuss the liability of tax deduction at source under the Income-tax Act, 1961 in respect of the following cases with reference to A.Y. 2022-23. (i) XY a partnership firm is selling its product 'R' through the E-commerce Platform provided by AB Ltd. (E-commerce Operator). AB Ltd., credited in its books of account, the account of XY on 28th February, 2022 by sum of ` 4,90,000 for the sale of product R, made during the month February, 2022. Mr. Rai…

(a) Mr. Lalit, a dealer in shares and securities, has entered into following transactions during the previous year 2021-22: (i) Received a motor car of ` 5,00,000 as gift from his friend Sunil on the occasion of his marriage anniversary. (ii) Cash gift of ` 21,000 each from his four friends. (iii) Land at Jaipur on 1 st July,2021 as a gift from his friend Kabra, the stamp duty value of the land is ` 6 lakhs as on the…

(a) From the following particulars furnished by Mr. Suresh, aged 53 years, a resident Indian for the previous year ended March 31, 2022, you are requested to compute his total income and tax payable for the Assessment Year 2022-23. (Assuming he does not opt for the Section 115BAC): (i) He sold his vacant land on 09.12.2021 for ` 15 lakhs. The Stamp Duty Value (SDV) of land at the time of transfer was ` 19 lakhs. The fair market value…

Zeon Ltd., a GST registered supplier located in Ranchi, Jharkhand, is engaged in the manufacturing of washing machines & mixer grinders. It provides you the details of various activities undertaken during the month of September, 2021 as follows: Sl. No. Particulars Amount (i) Outward supplies made during the month a. Within Jharkhand ` 24,00,000 ` 5,00,000 b. Outside Jharkhand (ii) (iii) 29,00,000 Purchase of raw materials from registered dealers within Jharkhand which includes materials worth ` 2,00,000 purchased from Mr.…

XYZ Pvt. Ltd. provided the following particulars relating to goods sold by it to ABC Pvt. Ltd.: Particulars Amount List price of the goods (exclusive of taxes and discount) 50,000 Tax levied by the Municipal Authority on the sale of such goods 6,000 Packing charges (not included in the list price above) 2, 26 INTERMEDIATE EXAMINATION: MAY, 2022 Subsidy received from a NGO, directly linked to price (included in the list price above) 3,000 Paid to one of the vendors…

Xing Trans of Kolkata is engaged in the trading of transmitters. On 20/05/2021, M/s. Xing Trans has sent 500 units of transmitters for exhibition at Chennai on sale or return basis. Out of the said 500 units, 300 units have been sold on 28/07/2021 at the exhibition. Out of remaining 200 units, 150 units have been brought back to Kolkata on 25/11/2021 and balance 50 units have neither been sold nor brought back. Explain the provisions under GST law relating…

(a) "Under the GST law, taxes on taxable services supplied by the Central Government or the State Government to a business entity in India are payable by recipient of services". State the exceptions of the above statement. (5 Marks) (b) Mr. B, a registered supplier of Uttar Pradesh, is doing the trading of taxable goods. He approaches you to understand the manner of utilisation of available Input Tax Credit (ITC). With reference to provisions of payment of tax, state the…