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  • CORPORATE TAX MANAGEMENT Question Paper

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    rahul garhwal
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    1. The document provides 7 questions related to corporate tax management for a final exam. The questions cover topics like tax planning vs management, tax evasion vs avoidance, benefits available under section 80IB, and whether a company should make or buy components based on provided costs. It also includes questions on expansion financing proposals for a company and tax treatment of business losses and depreciation. The last question deals with computing income for a partnership firm under section 44AE.

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    1. The document provides 7 questions related to corporate tax management for a final exam. The questions cover topics like tax planning vs management, tax evasion vs avoidance, benefits available under section 80IB, and whether a company should make or buy components based on provided costs. It also includes questions on expansion financing proposals for a company and tax treatment of business losses and depreciation. The last question deals with computing income for a partnership firm under section 44AE.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    146 views2 pages

    CORPORATE TAX MANAGEMENT Question Paper

    Uploaded by

    rahul garhwal
    1. The document provides 7 questions related to corporate tax management for a final exam. The questions cover topics like tax planning vs management, tax evasion vs avoidance, benefits available under section 80IB, and whether a company should make or buy components based on provided costs. It also includes questions on expansion financing proposals for a company and tax treatment of business losses and depreciation. The last question deals with computing income for a partnership firm under section 44AE.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 2

    SCHOOL OF COMMERCE

    B.COM (ATM) V SEMESTER


    Final Exam
    SUBJECT: CORPORATE TAX MANAGEMENT

    Maximum Marks: 60
    Time: 3 Hours
    Note : Solve Any Five

    1. Distinguish Between
    a) Tax planning And Management
    b) Tax Evasion And Avoidance

    2. Explain the benefit available under section 80IB?

    3. Miss Kashish want to start Coffee Business in Assam and she want to know what are the benefit
    available for such kind of business in income tax?

    4. A company requires 20,000 unit of components every year for next 10 years the component may
    be purchased from outside market or it may be make inside the company from the following
    Information. Suggest Whether it should be buy or make:
    Material cost Per unit Rs.4
    Labour cost Per unit Rs.6
    Variable overhead cost per unit Rs.2
    If company manufactures the part it has Rs. 1,00,000
    to take a loan from bank. The net cash
    outflow for that in five years.
    Further, The component available in the market at
    a. Rs. 12.50 per unit
    b. Rs. 14 per units
    Provide your Views on above situation.

    5. Bharat Limited a company engages in manufacture of electrical appliances’ widely held


    company. Now consider for expansion of its business and imported some technology to improve
    its profitability from present rate of 20% to at least 25 %( before tax). The finance manager has
    made following proposals:
    A B C D
    Share capital(equity) 40 20 30 50
    14% preference share 20 20 - 10
    16% non-convertible debenture - 20 - 40
    Term loan from banks @ 20% - 40 70 -
    Lease finance @22% 40 - - -
    Total 100 100 100 100

    1. The rate of dividend on equity has not been below 24% in the past.
    2. The tax rate payable by the company is 26%.

    Your opinion with detail is sought reason on the above.


    6. A ltd. a domestic company, has two business x and y. from last few years business x has been
    running at a loss wiping out the profit of business y. at the end of the financial year 2019-20
    there are brought forward loss of Rs.8,00,000 and unabsorbed depreciation Rs.5,00,000.
    In the financial year 2020-21 onwards it is expected that the business Y will earn a profit
    of Rs.5,00,000 annually and if business X will continue at a minimum level, it will make a loss of
    Rs.1,00,000 annually and rate of tax will be 26%.

    Please suggest to the management of the company:


    a. Whether business X continues or shut down.
    b. If continue for how many Years.

    7. A partnership firm is engage in the business of plying and hiring goods carriage. The firm wants
    to compute its income u/s 44AE . From the following information compute the business income
    of the firm:
    The firm has 9 light goods vehicle, out of which 2 were purchased on hire Purchase system on
    25.1.2020.
    As per deed the partners A & B are entitled to salary Rs.15,000 per month each and interest
    @12%p.a. on capital of Rs.3,50,000 each.

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