Taxation - September 2025

Mr. Ram, a resident individual aged 58 years, is engaged in the manufacturing of textile items. Statement of Profit and Loss shows a net profit (after deprecation but before tax) of ` 52,00,000 for the financial year ended 31st March, 2025 after debiting/crediting the following items: (i) Depreciation as per Income-tax Rules: ` 28,00,000 including additional deprecation on new plant & machinery of ` 1,50,000. (ii) Interest amounting to ` 2,10,000 for short payment of advance tax as per section…

(a) Swetha, a citizen of India, is a chartered accountant. She is a working partner in Swetha and Varun Associates, which was set up in Chennai, India. She visits foreign country A quite often and provides accounting services to corporates there in her individual capacity. In country A, she is not subject to any income tax. The details of her income for the financial year 2024-25 is as follows: (i) Remuneration from her CA firm in India (amount received in…

(a) Mr. Mani, a resident individual aged about 45 years, acquired a plot of land in March 2002 for ` 12,25,000 and paid stamp duty of ` 1,00,000 on registry of the land. He sold this land on 10th October 2024 for ` 80,00,000. The stamp duty valuation assessed by sub registrar was ` 83,50,000. Advise Mani about which option of computation of capital gains is most suitable for him as far as his tax liability is concerned on the…

(a) Surbhi, a resident individual aged 35 years, is a working partner in two firms (A and B) engaged in the retail business of garments. She provides the following details of her income/losses for the year ended 31st March 2025: (i) Remuneration received as a partner from partnership firm "A" - ` 9.7 lakhs (Deductible while computing the income of the firm). (ii) Loss from intra-day trading in shares of Indian companies listed on a recognised stock exchange (no delivery…

(a) Mr. Karan, a registered supplier in Kochi (Kerala State) has provided the following information of supply received/made during the month of February, 2025: S. Particulars No. Amount (i) On 5th February 2025 Supplied goods to Jaara Enterprises, an unregistered partnership firm in Bikaner, Rajasthan. Discount of 10% offered to Jaara Enterprises on this invoice price of ` 2,00,000 as per pre agreement but not recorded in the invoice. 2,00,000 (ii) Made a supply of machinery to Cool & Co.…

Private Limited (VTPL) is a registered entity under GST in Jaipur, Rajasthan. It is engaged in wholesale trading of various sports items. VTPL furnishes the following information regarding its inward supplies during the month of February 2025: 38 S. Particulars No. TAXATION Amount (Excluding any tax) (`) (i) As per the policy of the company, the Managing Director (MD) of the company has taken membership of local sports club on behalf of company. The company paid fees monthly. Applicable rate…

(a) In the month of February 2025, Mr. Venkatesh started supply of both goods and services from the states of Rajasthan and Tripura. His statistics for the month of February 2025 are as under: S. Particulars No. Rajasthan Tripura (i) Intra-State taxable supplies 11,00,000 5,00,000 (ii) Intra-State sale by Mr. Venkatesh as an agent of Ganesh enterprises, a nontaxable person of Rajasthan 1,00,000 (iii) Intra-State supply of non-taxable goods 2,00,000 Additional Information: (i) In the State of Rajasthan, Intra-State taxable…

(a) "Rule 86B of the CGST Rules, 2017 impose restrictions on the use of amount available in Electronic Credit Ledger if the value of taxable supply is more than ` 50 lakh in the month." 45 INTERMEDIATE EXAMINATION: SEPTEMBER 2025 Read the above statement with reference to provision of Input Tax Credit (ITC) and discuss in brief the nature of restriction imposed under this Rule 86B and also list out the exceptions of this rule. Note: Detailed discussion of exceptions…