Taxation - May 2023

Mr. Bhasin, a resident individual, aged 52 years, provides management consultancy services to various corporate and non-corporate clients. His Income & Expenditure A/c for the year ended 31st March, 2023 is as under: Expenditure Amount (`) Income Amount (`) To Employees’ Remuneration 15,00,000 By Gross Receipts from Profession (last year ` 75,00,000) (No TDS was deducted from any of the receipts) 60,60,000 To Office & Administrative Expenses 5,00,000 By Interest on Savings Bank Account 25,000 To Rates and Taxes 15,000…

Indian citizen) left India for employment in country X on 5 thJune, 2014. He regularly visited India and stayed for 60 days in every previous year since then. However, in the financial year 2022-23, he did not come to India at all. He owns a commercial building in Delhi which is let out. He has also set a retail store in India which is controlled by his brother from India. He provides the following information to you regarding his income…

(a) Mr. Bhagat, an individual aged 50 years, set up a unit in Special Economic Zone (SEZ) in F.Y.2017-18 for the production of computers. The unit fulfils all the conditions of section 10AA of the Income-tax Act, 1961. During F.Y. 2021-22, he set up a hospital in a district of Maharashtra with 110 beds for patients. It fulfils all the conditions of section 35AD. Capital expenditure in respect of the said hospital amounted to ` 65 lakhs (comprising of cost…

(a) Mr. Chaman who is 50 years old and his wife Mrs. Chaman who in 48 years old furnish the following information (all the amount of incomes/gains/losses are computed as per the provisions of Income-tax Act): (i) Mr. Chaman's salary income - ` 11,00,000 (i) Mrs. Chaman's income from Kathak performances - ` 2,50,000. She is a professional Kathak dancer and pursue dancing as her profession. (iii) Mrs. Chaman earned long-term capital gains of ` 5,50,000 from sale of shares.…

Jino Enterprises, a partnership firm is a regular taxable person registered in Guwahati, Assam and is engaged in supply of Air conditioners and its accessories as well as air conditioned repairing services. Details of their various activities for the month of October 2022 are as follows: (i) Intra State supply of Air conditioner to customers in Assam. Freight is separately charged in invoices for delivery of goods at customer's doorstep. Value of goods 4,00,000 Value of freight charges charged separately…

(a) Mr. Jayesh, a registered supplier of Mumbai, received the following amounts in respect of the various activities undertaken by him during the month of October, 2022. S. No Particulars Amount (`) (i) Commission received as a recovery agent from a Non-Banking Finance Company (NBFC) (ii) Actionable claim received from normal business debtors 10,50,000 (iii) Amount received from ABC Ltd. for performance of classical dance in one program. Business assets (old computers) given to a friend free of cost, the…

(a) Mr. Manik provides the following information regarding his tax & other liabilities under GST law as per Electronic Liability Register: Sr. No. Particulars Amount (`) 1. Tax due for the month of May 25,000 2. Interest due for the month of May 2,000 3. Penalty due for the month of May 3,000 4 5. Tax due for the month of June Liability arising out of demand notice u/s 73 35,000 48,000 Mr. Manik wants to clear his liability of…

Who are not eligible to opt for composition scheme for goods under GST Laws? (5 Marks) (ii) GTA services provided to an unregistered person (including unregistered casual taxable person) are exempt from GST by virtue of Entry 21 A of GST Laws. Discuss the validity of above statement. List any 5 (Five) activities/transactions specified under Schedule III of the CGST Act, 2017 which shall be neither treated as supply of goods nor as supply of services. Detailed explanations is not…