B.B.s.4 Yrs. Prog/1 Year /MGMT
Fundamentals of Taxation And Auditing
Full Marks 100 Time: : 3 hours
Candidates are required to give their answers in their own words as far as practicable .The figures in the margin indicate full marks
Brief Questions Answer
Attempt ALL Questions
1. Differentiate between direct and indirect tax.
2.Discuss in brief any two canons of taxation..
3 Describe the provisions of donation under section 12 of IT Act 2058.
4 Mr Shrestha purchased certain goods from a foreign country paying Rs. 16,950 inclusive VAT. He sold the .same to a customer at a price of Rs. 18,000 inclusive VAT ,
Required: Total amount of VAT payable to government.
5 Mr. Basnet earned Rs. 12,00,000 from professional activities before deducting statutory deduction. He has purchased his own life policy of Rs. 500,000 paying annual premium of Rs. 25,000.
Required:Tax Liability of Mr. Basnet.
Short Questions Answer
Attempt ALL the questions. .4×10-40
6 a Mr Pathak a permanent employee of Nepal Government appolnted as a representative of Nepal to USA. He Left Nepal on 1″ Marga of the previous year. He was drawing salary of Rs. 40,000 p.m. while he Was In Nepal. He recelved US $ 8,000 as foreign allowance. The exchange rate per dollar Is Rs 100..He stayed there till the end of previous year.
a Residential status of Mr. Pathak
b Taxable Income
c Tax liability (1+2+2]
B Mr Gopal purchased a washing machine from a retailer paying Rs, 67,800 inclusive VAT. The Washing machine was imported by Mr. Hari and it was sold to the retailer. The profit margIn 15% on cost price was charged in all cases,
a Cost price of Mr. Hari.
b. Amount of VAT payable by the retailer.
c Total VAT payable by customer.
7 a .A public limited company has declared the net income of Rs. 10,00,000 for the previous fiscal year. The other details relating to the net income of the company are as
a Research and development cost of Rs. 200,000 is not included in total deduction.
b Allowable depreciation expenses of Rs. 30,000 and sundry income of Rs. 25,000 are adjusted in net income of the company.
c .Unrecovered business loss of previous year Rs. 100,000 is not adjusted in net income of the company
Taxable income and tax liability of the co.
7 b Mention the expenses which are not allowed as deduction under section 21 of income tax act 2058.
8 Mr. Subas an investor has submitted the following incomes and expenditures for the previous income year.
.Natural, Resources Payment received Rs. 467,500 net).
Dividend from resident company Rs. 47,500 (after TDS)
Interest received from private money lending activities Rs. 250,000.
Interest on fixed deposit account Rs. 19,000 (after TDs)
Royalty received Rs. 150,000,
Rent from machinery let out Rs. 90,000 (after TDS)
House rent received Rs. 135,000 (after TDS)
Gift received relating to investment Rs. 50,000
Bad debts recovered (70% allowed previously) Rs. 60,000.
He claimed following expenses for deduction.
Expenses of natural resources Rs. 2000.’
Royalty collection charges Rs. 1500.
Dividend collection cost Rs. 1000.
Donation to tax exempt organization Rs. 5000.
Allowable depreciation on machinery Rs. 15,000
Required: Taxable Income of Mr. Subas.
9 Mr shiva an officer of Nepal Government appointed on 1 Jestha 2065 B.S. at a pay scale of Rs. 40,000-45,000 – 2,000- 55,000. The other details of his incomes and expenditures of previous income year are given as:
a Dearness allowance Rs. 2000 p.m.
b Children education expenses paid by office Rs. 50,0000
c Meeting allowance Rs. 25,500.
d Local allowance Rs. 1500 p.m.
e Clothing allowance Rs. 25,000
f Approved medical expenses paid by the office Rs. 15,000.
g Office has provided him a rent free accommodation facility.Office paid rent Rs. 15,000 p.m.
h He received interest from saving account Rs. 9500.
He claimed the following expenses for deduction.Life
a insurance premium Rs. 25,000.
b Purchase of stationery expenses of Rs. 5000.
c Travelling expenses of his son Rs. 10,000.
:a. Net assessable income from employment.
b Statement of total taxable income.
.C. Tax liability of Mr. Shiva
AnswerAttempt any TWO questions.
10. a. What are the duties of an assesses as per Income Tax Act 2058 B.S.
b Describe briefly the collection of tax on instalment basis
11 a .A manufacturing company provided the following particulars of fixed assets under block “D”
Beginning WDV of fixed assets Rs. 50,00,000.
Purchased during the year under same block .
On Marga Rs. 20,00,000
On Baishakh Rs. 30,00,000
Disposal during the year:Book value of sold asset Rs. 10,00,000
Disposal value 1500000
Actual repair and improvement cost was incurred Rs. 5,55,000.
Deductiable amount of depreciation cost was incurred Rs 555000
Beginning WDV for the next year.
b The operating results of a company are provided
On investigation following facts were found:
A Unrecovered losses of year -3 and year – 5 were Rs. 200,000 and Rs. 300,00 respectively
B The dividend received from a resident company of Rs. 40,000 is not included in year 9
C The profit of year-7 was derived after deducting donation of Rs. 50,000 given to a tax exempt organization.
D The company has deducted Rs. 200,000 as research and development cost in year- 8
taxable income of the company showing carry forward of losses with necessary explanation.
12 The Trading and Profit and loss Account of Mr Ganesh for the previous year is given below:
Trading and Profit and loss Account
|To opening stock||150000||By sales||300000|
|To purchase||2000000||By closing stock||300000|
|To carriage inward||30000|
|To custom duty||50000|
|To Gross profit c/d||970000|
|To salaries||125000||By gross profit b/d||970000|
|To Generals expenses||50000||By agriculture income||20000|
|To telephone charge||20000||By sundary income||25000|
|To discount||1000||By bad debts recovered||22000|
|To repairs of plant||15000||By interest on investment||50000|
|To bonus to staff||5000||By commision||24000|
|To legal expenses||12000||By gain on sale of non business assests||40000|
|To life insurance premium||20000||By dividend received (net)|
|To provision for tax||10000|
|To miscellaneous expenses||18000|
|To audit fees||8000|
|To depreciation on plant||30000|
|To net profit||816750|
|TOTAL (RS)||1174750||TOTAL (RS)||1174750|