REVISED SYLLABUSBusiness Taxation – Inter ICWA The paper covers
section I (Direct Taxes) 50 marks and ICWA Inter- Revised Syllabus – December 2007 – Business Taxation - The paper consists of section I (Direct Taxes) 50 marks and section II (Indirect Taxes) 50 marks. Only Section II is given below. Answer Q No. 6 which is compulsory and any two from the rest. Q 6 (a) Fill up blanks. (i) Import manifest is required to be filed by the person in charge of vessel ___________ arrival of vessel. (ii) The relevant date for foreign exchange rate for customs valuation is _________. (iii) Goods covered by Central Excise Act Tariff but fully exempt from duty are __________ (excisable/not excisable) goods. (iv) State Government _______ (can/cannot) waive the condition of submission of C Form by issue of notification. (v) SSI units whose turnover exceeds Rs. ______ per annum have to furnish declaration in prescribed form for central excise purposes. (vi) Under the Customs Act, where refund becomes due in the final assessment, interest will be payable if refund is not granted within _______. (1 x 6 = 6 marks) Q 6(b) State with reasons, whether true or false. (i) The peak rate of basic customs duty on non-agricultural products is 15%. (ii) Cenvat credit on capital goods has to be availed in full in the year of purchase. (iii) As per section 20 of the Central Sales Tax Act, 1956, appeal may be filed within 90 days from the date on which the order is served on the aggrieved person (iv) There is no provision under the Customs Act for remission of customs duty on goods lost, damaged or pilfered (3 x 4 = 12 marks) Q 7 (a) Vasudha Electronics Ltd. having its factory at Delhi, furnishes the following information. (i) 3000 Units sold at factory gate (ii) 6000 Units sold to dealers in Nagpur. Actual transport expenses Rs. 30,000 charged. (iii) 1000 Units sold to dealers in Lucknow, actual transport expenses Rs. 10,000, but charged to dealers at Rs. 12,000. (iv) Invoice price for the above is Rs. 10,000 per unit, excluding transport charges and all items below: (1) Sales tax shown separately Rs. 40,000 (2) Octroi shown separately Rs. 18,000. (3) Dharmada shown separately collected form dealers Rs. 12,000. The basic rate of excise duty is 16%. Determine the total excuse duty payable, assuming that the dealer is not entitled to any exemption (10 marks) Q 7 (b) Discuss whether Cenvat credit can be availed in respect of goods used for manufacture of capital goods within the factory and in respect of inputs for effluent treatment plant (6 marks) Q 8(a) What is the effective rate of customs duty on baggage? (b) Can gold be brought into India? What is the customs duty payable thereon? Can such gold be subsequently sold in India? (c) Briefly discuss about the Deductive value method for customs valuation (4+7+5 = 16marks) Q 9(a) What is meant by ‘place of business’ under the Central Sales tax Act, 1956? What should a dealer do towards registration, if he has more than one place of business? (b) What are the acts of omission or commission which attract the penal provisions of section 10 of the Central Sales tax Act? (c) A dealer makes inter-state sale of goods which are generally exempt within the State, to registered as well as unregistered dealers? Should he obtain any Central Sales-tax Form from the buyers? (7+5+4 = 16 marks) Q 10 Write short notes on the following: (a) Liability of a company in liquidation, under the Central Sales-tax Act. (b) Meaning and relevance of ‘Crossing Customs frontiers of India’ under the Central Sales-tax Act. (c) Relevant date for rate and valuation of customs duty for imports through post and imports as baggage. (d) Exemption from registration under Central Excise Act (4 x 4 = 16 marks). ICWA Inter- Revised Syllabus – June 2007 – Business Taxation The paper consists of section I (Direct Taxes) 50 marks and section II (Indirect Taxes) 50 marks. Only Section II is given below. Q
5. (A) Choose the correct answer: (i) In order to attract excise duty
under the Central Excise Act, 1944, goods must be (a) Movable (b)
Movable or immovable (c) Immovable (d) None of the above (ii) The
following is not liable to sales-tax under CST Act, 1956: (a) Newspapers
(b) Lottery tickets (c) Sim cards (d) Trade Licenses (iii) R of
Coimbatore, Tamil Nadu sold to a Malaysian Ship at Kochi port in Kerala,
some goods for consumption on board the ship; such sale will be (a)
Intra-State sale (b) Inter-State sale (c) Export sale as it is a foreign
ship (d) Sale in he course of import (iv) Imported goods can be kept in
custom bonded warehouse up to ____ days without payment of any interest.
Beyond that period interest payable is
____ per cent (1 x 4 = 4 marks) Q5
(B) State with reasons whether true or false: (a) There is provision for
payment of Central Excise Duty “under protest”. (b) Goods mentioned
in Central Excise tariff but fully exempt from excise duty are not
“excisable goods”. (c) State Government cannot waive condition of
submission of C Form by issue of a notification (d) Central Government
is empowered to make Rules providing for the manner of determination of
the sale price for a works contract, under the CST Act, 1956. (e) On
14.03.2007, Central Excise or customs authorities can make a provisional
attachment of property of a person to whom a show cause notice has been
issued (f) Customs Officer should pass an adjudication order in all
situations where the assessment is done contrary to the claim of
importer/exporter (2 x 6 = 12 marks) Q
6(a) Define the term Large Taxpayer Unit (LTU) under the Central Excise
Law (b) Is it compulsory for a taxpayer to join LTU Scheme? (c) Briefly
discuss about the “other taxes” which are deductible in arriving at
the “transaction value” under the Central Excise Act (d) SV Ltd.
purchase a Boring-Drilling Machine at a cum-duty price of Rs. 32,14,476.
The excise duty rate charged on the said machine was @ 16% plus
education cess @ 2%. The machine was purchased on 01.04.2005 and
disposed off on 01.10.2006 for a price of Rs. 12 lakhs. The company was
claiming depreciation @ 25% following straight line method. In the light
of the said information, answer the following questions: (i) What was
the excise duty paid on the machine? (ii) What is Cenvat credit
allowable? (iii) What is the amount of Cenvat credit reversible or duty
payable at the time of clearance of the said machinery? (2+2+6+6 = 16
marks) Q
7. (a) How is value determined for purposes of special CVD under the
Customs Tariff Act? (b)Write brief note on Anti-dumping Duty (c) Briefly
discuss about EDI system of assessment under the Customs Act (5+8+3 = 16
marks) Q8
(a) Explain the term “Crossing the customs frontiers of India” as
per the Central Sales-tax Act, 1956. (b) Mr. Ashoke Kumar, a first stage
dealer in packing machinery in the city of Mumbai, furnishes the
following data: (i) Total inter-State sales during financial year
2006-07 CST not shown separately – Rs. 92,50,000, (ii) Above Sales
include: Excise duty – 9,00,000, Freight (of this Rs. 50,000 is not
shown separately in invoices) – Rs 1,50,000, Insurance charges
incurred prior to delivery of goods – Rs 32,000, Installation and
commissioning charges shown separately – Rs 15,000. Determine the
turnover and CST payable, assuming that all transactions were covered by
valid “C” Forms (c) What is “interest-free period” in respect of
warehoused goods under the Customs Act, 1962? Is interest payable when
warehoused goods are exempt from duty on the date of clearance? (4+6+6 =
16 marks)
ICWA Inter- Revised Syllabus – December 2006 – Business Taxation The paper consists of section I (Direct Taxes) 50 marks and section II (Indirect Taxes) 50 marks. Only Section II is given below. Q 5. (a) Answer the following giving brief comments where applicable; (i) Fill in the blanks: Captive consumption means ___________. (ii) An SSI unit manufacturing goods with other’s brand name is not entitled to any exemption from duty. However, it can avail SSI exemption, if goods are manufactured in a specified area. Which is that area? (iii) A dealer in Patna sold to a ship, goods for consumption on board the ship at Mumbai port. The sale will be (a) Inter-State sale (b) Sale in Course of export (c) Inter-State sale within Maharashtra (d) None of above. (iv) VAT rate of gold, if sold within State of Gujarat, is 1%. If gold is sold to a unregistered buyer in Delhi, the CST rate will be (a) Nil (b) 1% (c) 4% (d) 10% (v) An assessee was availing SSI exemption from 1-4-2005. He crossed turnover of Rs. 100 lakhs on 15-11-2005 and started payment of excise duty. He had received machinery on 10-11-2005 on which excise duty paid was Rs. 3,20,000. He intends to avail Cenvat credit of this duty. Can he do so? (vi) State true of false: Trade discount is permissible as deduction from assessable value for Central Excise, only if it is given before removal from factory. Discount given later is not allowable as deduction. (vii) State True or False: Dharmada (Charity) charged in invoice is required to be included while calculating Assessable Value for purpose of Central Excise. (viii) Fill up the blanks; A SSI unit is eligible for exemption up to Rs. _____ lakhs. However, if its turnover in the previous financial year was more than Rs. ____lakhs, it is ineligible for exemption from duty in current year (1 x 8 = 8 marks) Q 5 (b) Following transactions took place in a month: (i) The manufacturer received inputs with Invoice evidencing payment of duty of Rs. 42,800 on 2nd. The invoice was marked ‘Original for Buyer’. (ii) 400 pieces of Final products were dispatched under Invoice on 6th. Assessable value was Rs. 80 per piece and excise duty rate was 16%. (iii) 1,000 pieces of input ‘I’ were sent outside for job work on 10th. When the inputs were received, credit of duty of Rs. 15,000 was taken on those inputs. (iv) Some inputs were purchased from a manufacturer in Chennai in March, 2004. These were directly dispatched from factory of the supplier to factory of job worker. Duty paid on the inputs is Rs. 40,000. Out of those inputs, 45% of inputs were received after carrying out the job work, on 18th. (v) An imported consignment of raw materials was received on 19th. The materials were not imported directly, but was purchased from an importer. The invoice of importer showed that customs duty paid was Rs. 26,000, special duty of Rs. 3,000, Additional customs duty paid was Rs. 13,200 and anti dumping duty paid was Rs. 5,400. The importer is registered with Central Excise authorities. (vi) Goods worth Rs. 2,00,000 were dispatched on 24th. Rate of duty was 16%. - - There was no opening balance in PLA or Cenvat credit account at the beginning of the month. Calculate the amount of excise duty payable (1 x 6 = 6 marks) Q 6 (a) Elaborate the concept of transaction values as assessable value under Central Excise Act, 1944. (b) Enumerate the circumstances when raw material supplier will be treated as manufacturer of goods (13+5 = 18 marks) Q 7. (a) (i) 500 pieces of inputs were received. Duty paid on these goods was Rs. 2,500. These were issued to production. While on production line, a fire broke out and 200 pieces of inputs lying on the shop floor were destroyed. (ii) 1000 litres were received on which duty paid was Rs. 18,000. These were issued to production. Out of these, 940 litres of final products were manufactured. 60 litres of inputs were lost in process. Discuss eligibility of Cenvat credit in the above cases (2+2 = 4 marks) Q 7(b) A manufacturing unit undertook the following job work: (i) Machining of raw materials supplied by the customer: The material was sent under Cenvat challan. Job work charges were Rs. 30,000. Cost of the raw material was Rs. 3,50,000. These were returned after job work. (ii) Repairs of a component: Original cost of component was Rs. 25,000, Repair Charges were Rs. 3,000. The component was sent by customer under cover of his letter. - - If excise duty is payable @ 15%, find out total duty payable and procedure to be followed by manufacturer for dispatch in each case after carrying out the work (4 x 2 = 8 marks) Q 7(c) An Indian company imported certain consumer goods from abroad with MRP printed in packing cartons. In respect of similar goods manufactured in India, excise duty is payable on basis of MRP. The importer will be using the goods for further processing. Customs authorities contend that CVD will be calculated based on the MRP printed in the goods. Is this proper? Will your answer be different, if the goods are imported for retail sales? (6 marks). Q 8. (a) Explain how Cenvat provisions are used for providing duty relief to exported goods. (b) Write a note on first appraisement and second appraisement systems under the Customs Act, 1962. (c) The gross turnover of a dealer for the financial year 2005-06 is Rs. 54 lakhs (including CST). The CST on goods transacted by the company are subject to local State Sale-tax @ 7%. The dealer made inter-State Sales of Rs. 24 lakhs to registered dealers, which includes erection charges of Rs. 3 lakhs, excise duty of Rs. 1.50 lakhs and packing charges of Rs. 60,000. Fright and delivery charges shown separately in the invoice is Rs. 60,000. The dealer also made inter-State sales aggregating to Rs. 30 lakhs to unregistered dealers, which included excise duty of Rs. 2.50 lakhs and transport charges of Rs. 1 lakh charged separately in the invoice. There was a sales return of goods worth Rs. 50,000 (invoice value) within 6 months in respect of sales to unregistered dealers. Calculate the CST payable and turnover of the company (5+5+8 = 18 marks)
June 2006 Answer Question No. 5 which is compulsory. Q 5 (a) Answer any eight from the following: (i) If customs duty is evaded by suppression of facts or fraud or wilful misstatement, there is mandatory penalty equal to ________ . (Value of goods, duty and interest payable, twice the duty and interest payable, customs duty payable) (ii) Imported goods can be kept in customs bonded warehouse without payment of interest for a period of ______days. (30,60,90,180) (iii) Value of software loaded on computer at the time of clearance from factory, is required to be ________ (excluded/included) for purpose of valuation of computer, under section 4 of Central Excise Act. (iv) A company has factory in Surat and HO in Mumbai. It pays audit fees from Mumbai, for auditing its annual accounts. The Auditor charged service tax in his Invoice. Can the company avail Cenvat credit of that service tax? (v) State correct or wrong: Countervailing duty (CVD) is payable on assessable value plus basic customs duty plus anti-dumping duty. (vi) A manufacturer purchased certain inputs from ‘X’. The assessable value is Rs. 10,000 and excise duty Rs. 1,632 (including education cess) [Total Invoice Rs. 11,632]. The manufacturer paid only Rs. 10,200 to ‘X’ in full settlement of his Bill. How much Cenvat credit can be availed by the manufacturer? (vii) A assessee cleared some goods on payment of excise duty, considering value as Rs. 20,000. Later, he found that actual value was Rs. 24,000. Which document he should prepare to pay the differential duty so that buyer can avail Cenvat credit? (viii) Excise Departmental appeal against order passed by Commissioner (Appeals) can be filed when it is authorised by ________. [Committee of two Commissioners/Committee of two Chief Commissioners/Chief Commissioner/ Board i.e. CBE & C] (8 marks) Q5 (b) An assessee cleared his manufactured final products during January 2006. The duty payable for the month on his final products was as follows: Basic duty – Rs. 48,000, NCCD – Rs. 2,000, Education cess – As applicable. During the month, he received various inputs on which total duty paid by suppliers of inputs was as follows - Basic duty – Rs. 40,000 plus applicable education cess; Special Excise Duty – Rs. 4,000 plus applicable education cess. Service tax paid on input services was as follows: Service tax – Rs. 8,000. Education cess – Rs. 160. How much duty the assessee will be required to pay through account current for the month of January 2006? [6 marks] Q 6. (a) Turnover of an SSI unit during financial year 2005-06 was as follows: (i) Clearances under his own brand name – Rs. 110 lakhs (ii) Clearances of goods bearing other’s brand name, on full payment of duty – Rs. 180 lakhs (iii) Waste and Scrap – Rs. 10 lakhs (iv) Goods which were exempt from duty – Rs. 225 lakhs (v) Job work done under notification No. 214/86-Central Excise-Job Charges-Rs. 30 lakhs, Cost of material on which job work done – Rs. 120 lakhs (vi) Exports – Rs. 80 lakhs. Can he avail SSI exemption during 2006-07? (b) Explain meaning of ‘benches’ of Customs, Excise and Service Tax Appellate Tribunal (CESTAT). Distinguish between Principal and Zonal Bench and Single Member bench and Full Bench. (c) Mr. and Mrs. Bapat visited Germany as tourist and bought a personal computer for Rs. 52,000 and a laptop computer of Rs. 78,000 while returning to India, besides their personal effects valued at Rs. 1,33,000. What is the customs duty payable, if duty on baggage is 35% plus education cess of 2% [7+5+6 = 18 marks]. Q 7 (a) Customs Valuation Rules provide that if valuation is not possible on the basis of transaction value of identical goods, valuation can be done on basis of transaction value of ‘similar goods’. What are the distinctions and similarities between ‘identical goods’ and ‘similar goods’? (b) State giving brief reasons, whether sales tax can be levied on following transactions: (i) Sale of newspapers (ii) Giving utensils on rental basis (iii) Supply, erection, testing and commissioning of water supply line. (c) A manufacturer sold the goods @ Rs. 300 per piece without charging excise duty, as he was under impression that his product was exempt from duty. Later, it was found that the product was dutiable @ 16%. Excise Department claimed that since goods were removed without duty, assessable value should be Rs. 300 and duty @ 16% plus education cess of 2% is payable on assessable value of Rs. 300. Assessee contended that price of Rs. 300 should be taken as cum-duty price and actual duty payable should be calculated by back calculations. Who is correct? Explain and determine the correct duty payable per piece [6+6+6 = 18 marks]. Q 8 (a) Discuss provisions relating to ‘deemed manufacture’ in respect of goods covered under MRP provisions of valuation (b) Discuss the circumstances when an Advance Ruling will be void under Central Excise Act, 1944. (c) Write a short note on Provisional Assessment under Customs Act, 1962 [6+6+6 = 18 marks] December 2005 The paper covers
section I (Direct Taxes) 50 marks and Answer Question No. 5 which is compulsory. Section II Q 5 (a) Answer the following (i) Fill in the blanks – An EOU Unit is required to execute a _________ bond. (ii) An EOU unit can obtain indigenous material without payment of duty on submission of _________ certificate. (iii) State true or false – Petrol is ‘declared goods’ under CST Act. (iv) State true or false – State Government can waive condition of submission of C Form by issue of a notification under CST Act. (v) A registered dealer has procured some goods from depot of a manufacturer. Is the registered dealer ‘first stage dealer’ or ‘second stage dealer’? (vi) Fill in the blank – A service provider is providing both taxable and exempt services and he is unable to bifurcate the common input services used for providing exempt output services. In such case, his Cenvat credit of input services is restricted to _________ (10%, 20%, 33%, 40%) of service tax payable on his output taxable services. (b) Selling price of a product is Rs. 10,000. It is inclusive of outward freight of Rs. 250, packing charges of Rs.200, CST @ 4%, excise duty @ 16% and education cess @ 2%. Find the Assessable Value. (c) (i) State the basic two requirements that should be satisfied for treating something as “goods” for the purpose of levy of Excise Duty (ii) XYZ situated in Kolkata placed order for a certain product with the manufacturer ABC in Mumbai. The product manufactured to the buyer’s specification by ABC is transferred by ABC to its branch in Kolkata. The Excise authorities refused to treat the transfer from Mumbai to Kolkata branch as “Branch Transfer” and treated it as “Sale”. Are they justified in doing so? (6+8+6 = 20 marks) Q 6 (a) Explain provisions in Cenvat Credit Rules in respect of ‘Input service distributor’ (b) From Central sales tax point of view, distinguish between goods returned by buyer and goods rejected by buyer. (c) State purpose and use of ‘Yellow Bill of Entry” (5 x 3 = 15 marks). Q 7. A large manufacturing unit undertook following job work: (a) Machining of raw materials supplied by the buyer. The material was sent under Cenvat challan. Job work charges were Rs. 30,000. Cost of raw material was Rs. 3,50,000. These were returned after job work. (b) Processing of inputs sent by a buyer under his own (buyer’s) challan. Processing charges were Rs. 10,000 and cost on inputs was Rs. 2,00,000. (c) Repairs of a component. Original cost of component was Rs. 25,000 and repairs charges were Rs. 3,000. The component was sent by customer under cover of his letter. In all these cases, raw material was sent by customer. Excise duty payable is 16% plus education cess of 2%. You are required to (a) Find total duty payable, (b) Procedure to be followed by manufacturer for dispatch in each case after carrying out job work (15 marks). Q 8 Write notes on: (a) Aggregate sale price under CST Act, 1956 (b) Unaccompanied Baggage under Customs Act, 1962 (c) House mark and Brand name under the Central Excise Act, 1944 (5 x 3 = 15 marks) June 2005 The paper covers
section I (Direct Taxes) 50 marks and Answer Question No. 5 which is compulsory. Section II Q 5 Fill up the blanks (with the appropriate expression out of those put in brackets where applicable.) (i) SSI units paying duty under notification No. 9/2003-Central Excise have to pay excise duty on ------- (Monthly/quarterly/half yearly) basis. They have to file return within the prescribed time on ------(monthly/quarterly/half yearly/yearly) basis. (ii) A registered dealer has procured some goods from depot of a manufacturer. The registered dealer is ------ (‘first stage dealer’/’second stage dealer’). Invoice of second stage dealer is ----- (required/not required) to be authenticated by Inspector of Central Excise. (iii) Advance licence is ------ (transferable/not transferable). Advance licence ------(can be/cannot be) issued for deemed exports. (iv) Duty drawback on re-export is allowable if goods are re-exported within ------years from date of import. -------of customs duty which was paid while importing the goods is allowed as duty drawback u/s. 74 of Customs Act. (v) EOU units can sell part of their production in domestic market up to -----% of their FOB value of exports in previous year, with permission from -----.(vi) W.e.f. 1-11-2004, assessees paying duty of rupees ------ or more per annum through PLA, should file Annual Financial Information Statement for the proceeding financial year by ------ of succeeding year in Form ER-4. (vii) Where an assessee has opted for provisional assessment of central excise duty, if differential duty is found to be payable on finalization of assessment, the rate of interest chargeable under section 11AA or 11AB is -----%. The time limit for finalization of provisional assessment is -----. The said time limit for finalization or provisional assessment can be extended for a further period of ---- (viii) In case of transfer of business, the successor in business is ----- (liable/not liable) for the excise dues of the predecessor (ix) CESTAT can grant a maximum of ----- adjournments. (x) Education cess is ----- (payable/not payable) on safeguard duty levied under section 8B of the Customs Act. (xi) W.e.f. 10-09-2004, a manufacturer producing both exempt as well as non-exempt services, not maintaining separate accounts would pay excise duty at ------ & Education cess is -----(payable/not payable) on the same. (20 marks) Q 6 (a) An SSI unit, which is a partnership firm, has achieved turnover of Rs. 90 lakhs in 2003-04. It is receiving good orders and its turnover may cross Rs. 100 lakhs in current year. It is planning to start another unit so that SSI exemption can be availed for both the units. The firm approaches you for advice. Advise them the legal position with reference to clubbing provisions of the Central Excise Act. (b) Briefly explain the term “dealer” as per the Central Sales-tax Act, 1956 (10+5 = 15 marks). Q 7 (a) Briefly explain the provision in respect of ‘burden of proof’ in respect of goods covered under section 123 of Customs Act, 1962. List at least four articles which are covered under these provisions. (b) FOB Cost of an article imported on 10-12-2004 is 3000 UK pounds. Insurance and transport costs are not available. On the date of filing of Bill of entry, RBI rate of USD was Rs. 43.37 and inter-Bank closing rate was Rs. 43.38 per USD and Rs. 69.38 per UK pound. Exchange rate as per Customs notification was Rs. 69.78 per UK pound. Assuming customs duty of 20% and excise duty payable on similar product in India as 16%, find the total duty payable. (c) Briefly discuss about inter-changeability of duties for Cenvat credit (6+5+4 = 15 marks). Q 8 (a) Gross inter-state sales of ZX Co. Ltd., Patna, Bihar, were Rs. 18,00,000 during 2004-05 (April 2004-March 2005). CST was not shown separately in invoices. Other information are as follows: (i) If product P is sold within State of Bihar, sales tax rate is 8%. (ii) Sales of Rs. 8 lakhs are inclusive of erection expenses of Rs. 1,00,000, excise duty of Rs. 76,000 and packing charges of Rs. 25,000. The sale price is also inclusive of trade discount of Rs. 24,000, which has been later given by issuing a Credit Note. Buyers of these goods have issued form ‘C’ for these purchases. (iii) Balance sales of Rs. 10 lakhs are inclusive of excise duty of Rs. 95,000 and outward freight of Rs. 30,000. The freight was charged separately in Invoice. Buyers of these goods have not issued any declaration under Central Sales Tax Act. Out of these sales, goods of Rs. 2 lakhs were returned by customers. The goods were dispatched in February 04 and returned in June 04, i.e. after end of the accounting year. Find the turnover and CST payable. (b) What is meant by “Indian customs water” under the Customs Act, 1962? (10+5 = 15 marks) December 2004 The paper covers
section I (Direct Taxes) 50 marks and Section II Q No. 5 carrying 18
marks which is compulsory. Q 5 An importer has imported a machine from UK at FOB cost of 10,000 UK Pounds. Other details are as follows: (i) Freight from UK to Indian port was 700 pounds. (ii) Insurance was paid to insurer in India: Rs. 6,000. (iii) Design and development charges of 2,000 UK pounds were paid to a consultancy firm in UK. (iv) The importer also spent an amount of Rs. 50,000 in India for development work connected with the machinery (v) Rs. 10,000 were spent in transporting the machinery from Indian port to the factory of importer (vi) Rate of Exchange as announced by RBI was Rs. 68.82 = one UK pound. (vii) Rate of exchange as announced by CBE&C (Board) by notification under section 14(3)(a)(i): Rs. 68.70 = one UK pound. (viii) Rate at which bank recovered the amount from importer Rs. 68.35 = one UK pound. (ix) Foreign exporters have an agent in India. Commission is payable to the agent in Indian Rupees @ 5% of FOB price. Customs duty payable was 25%. If similar goods were produced in India, excise duty payable as per tariff is 24%. There is an excise exemption notification which exempts the duty as is in excess of 16%. Find customs duty payable if (a) Importer is manufacturer using the goods himself, (b) Importer is a trader who has imported goods for subsequent sale in India (18 marks). Q 6. (a) A small scale manufacturer having a SSI Unit has achieved turnover of Rs. 1.52 crores during the year ended 31.03.2004. Normal duty payable on the product is 16%. Find the total excise duty payable by the manufacturer during the year: (i) if the unit has availed CENVAT Credit (ii) if the unit has not availed CENVAT Credit (The turnover mentioned above is without taxes and duties) (b) Describe the Constitutional provisions under which central excise duty is imposed (c) Explain the penal provisions relating to vexatius search, seizures, etc. by Central Excise officers (8+4+4 = 16 marks). Q 7 (a) M/s. Snow White Ltd., Mumbai sells iron rods to M/s Hyderabad Ltd. in Vijaywada, (both of them are registered dealers), for a value of Rs. 10,00,000 inclusive of CST @ 4%. The local sales tax on iron rods in Mumbai is 3%. Ascertain the CST payable. If Hyderabad Ltd. were unable to submit Form ‘C’ being an unregistered dealer, what will be the CST liability, if the local sales tax rate is 12%? Note – Iron rods are not declared goods. (b) Inter-State sales of Deepak brothers, Bhopal, MP of product X was Rs. 6 lakhs during the year ended 31st March, 2004. The same is inclusive of sales tax charged in invoices at appropriate rates. The goods were liable to tax @ 4% if sold within State of MP. Out of the goods sold, goods of Rs. 50,000 were returned. These were sold by Deepak Brothers in February, 2004 and returned by buyer in May 2004 as they were in excess of his requirements. Some goods of Rs. 30,000 dispatched in December, 2003 were rejected by a buyer and sent back in November 2004. Find the taxable turnover and CST if C form was received from all buyers. (c) What is the compounded levy scheme under Central Excise Act, 1944? Explain giving instances where it is applicable (6+5+5 = 16 marks). Q 8 Write short notes on: (a) Surrender of registration certificate/deregistration under the Central Excise Act, 1944 (b) Provisional Assessment under Customs Act 1962 (c) Deemed Sales under CST Act, 1956 (5+6+5 = 16 marks). REVISED SYLLABUSBusiness Taxation – Inter ICWA June 2004 The paper covers
section I (Direct Taxes) 50 marks and Section II Q No. 5 carrying 18
marks which is compulsory. Q. 5 – Answer the following, giving brief reasons/comments not exceeding 3 to 4 sentences [18 marks] (a) Expand the following abbreviations – EPCGS, NCCD, CCCE, DFRC (b) A book often contains a CD. If a software is purchased, a manual is given along with CD. The CD contains the software. Thus, in both cases, there is a book and CD. What test will be applied while classifying these products ? (c) State true or false – (i) Trade discount is permissible as deduction from assessable value only if it is given before removal from factory. Discount given later is not allowable as deduction (ii) In case of CIF contract, the assessee will be entitled to deduction of outward insurance and freight while calculating assessable value (iii) Charges for training the buyer in use of the machinery supplied are includible in assessable value (d) (i) An assessee has discontinued his manufacturing activities. He has applied for cancellation of excise registration. Explain circumstances in which the Excise Superintendent can refuse cancellation of registration (ii) If assessee is required to pay differential duty subsequent to removal from his factory, which document he should prepare ? (e) – Fill in the blanks – If duty is not paid fully on due date, assessee is liable to pay the outstanding amount along with interest on unpaid amount @ . .% per month on outstanding amount, or Rs . . per day, whichever is . . (higher/lower), till payment of duty (f) State purpose of B-2 and B-4 bond (g) State whether following are eligible as inputs for Cenvat – (i) Safety appliances used by workmen (ii) Light Diesel Oil (LDO) used in manufacture (iii) Dies (iv) Parts used to manufacture capital goods within the factory (h) An assessee had procured some inputs in May 2002 for Rs 20 lakhs. Duty paid on the inputs was Rs 3,20,000 ( @ 16%). He was unable to use the inputs in view of change in market conditions. He sold the inputs in March 2004 for Rs 16,00,000. How much ‘duty’ or ‘amount’ is payable while clearing the inputs? Q 6 (a) – An assessee has factory in Kolkata. As a sales policy, he has fixed uniform price of Rs 2,000 per piece (excluding taxes) for sale anywhere in India. Freight is not shown separately in his invoice. During F.Y. 2003-04, he made following sales – (i) Sale at factory gate in Kolkata – 1,200 pieces – no transport charges (ii) Sale to buyers in Gujarat – 600 pieces – actual transport charges incurred – Rs 28,000 (iii) Sale to buyers in Bihar – 400 pieces – actual transport charges incurred – Rs 18,000 (iv) Sale to buyers in Kerala – 1,000 pieces. – Actual transport charges – Rs 54,800. Find assessable value. (b) What is the purpose of ‘safeguard duty’? What are restrictions of WTO in respect of safeguard duty ? Can it be imposed on provisional basis ? [8+8 = 16 marks] Q 7 (a) Mr. A, a person holding Indian passport, brings 1 Kg Gold, out of which Rs. 3,60,000 are in form of biscuits and balance of Rs. 40,000 in form of gold jewellery which he was using abroad (valued at international rates). What is the duty payable if (i) the person is returning after 3 months stay (ii) the person is returning after 9 month’s stay abroad and the Gold belongs to him (iii) the person is returning after 8 months stay abroad and the Gold belongs to his friend, who has given it only for carrying to India. (iv) He is returning after 18 months’ stay abroad (ignore difference due to minor impurities in jewellery) (b) Define ‘Indian Customs Waters’. What is the significance in terms of Customs Act, 1962 ? [8+8 = 16 marks] Q 8 Write short notes on – (a) Document of title of goods (b) Customs value as per section 14(1) of the Customs Act, 1962 (c) Manufacturer under the Central Excise Act, 1944 [5+6+5 = 16 marks] December 2003 The paper covers
section I (Direct Taxes) 50 marks and Section II Q No. 5 carrying 18
marks which is compulsory. Q 5. (a) What is a stock transfer/branch transfer? Is it considered as a sale under Central Sales Tax Act, 1956? (b) What are goods under Customs Act, 1962? (c) What are the inputs eligible and inputs not eligible for Cenvat in Central Excise? [6 x 3 = 18 marks] Q 6. In the context of valuation of goods for determining the price paid or payable in the course of arriving at the assessable value under the Customs Act, discuss about the inclusion of the following items: (a) Cost of durable and reusable containers used for transportation: (b) Technical know-how drawing supplied by importer; (c) Air freight charges incurred for importing items urgently required, which are normally imported by sea (d) Cost of insurance not readily ascertainable. [3+7+3+3 = 16 marks] Q 7. (a) Discuss about the eligibility of Cenvat Credit in each of the following situations - (i) 1000 kgs of raw materials were purchased on which duty paid was Rs. 16,000. Whilst in the production yard, they were destroyed by accidental fire (ii) 1000 kgs of raw materials on which duty paid was Rs. 10,000 was used in manufacture of a final product for which the duty payable is Rs. 8000 (iii) The original invoice for 1,000 units of inputs purchased were missing; however ‘Duplicate for transport’ copy of invoice is available, which shows that duty of Rs. 10,000 had been paid on inputs (b) (i) Discuss the importance of noting of bill of entry vis-à-vis rate of customs duty applicable for import of goods, under the Customs Act; (ii) An Indian resident visiting Germany brought following goods while returning to India (a) his personal effects like cloth etc. valued at Rs. 25,000; (b) one litre of liquor of Rs. 1,600; (c) new camera of Rs. 24,800. What is the customs duty payable? [ (a) 3 x 3 = 9 marks (b) 4+3 = 7 marks] Q 8. Write short notes on: (a) Drawback rates; (b) Valuation in case of job work under Central Excise Act, 1944; (c) Exclusions from sale price under Central Sales Tax Act, 1956 [5+5+6 = 16 marks] June 2003 The paper covers
section I (Direct Taxes) 50 marks and Section II Q No. 5 carrying 18
marks which is compulsory. Q 5. (a) Define transaction value under the Central Excise Act, 1944. What are its main requirements? (b) State whether the following items are includible in T.V. citing reasons, if any: (i) Regional discount (ii) Commission (iii) Surprise incentive scheme (iv) Trader’s margin (c) How would you arrive at the T.V. for the purpose of levying excise duty from the following data?
(d) How is Turnover determined under the Central Sales Tax Act, 1956? [7+4+3+4= 18 marks]. Q 6. (a) An importer in India imported raw materials @ US $ 25,000 FOB. The goods were packed for which US $ 600 were charged extra. The goods were stuffed in Container, the price of which was US $ 2,000. Insurance charges and ocean freight of US $ 250 and 800 respectively were paid. A commission of US $ 500 had to be paid to a broker for arranging the deal; 1 US $ = Rs. 42.38, Customs Duty is 35%, Special Additional Duty (SAD) is 4%, Excise duty on similar goods in India is 16%. Determine the duty payable. (b) Mr. And Mrs. K visited the USA and bought there a personal computer for US dollars equivalent to Rs. 31,000 while returning to India. They carried personal effects also, valued at Rs. 46,000/-. What is the customs duty payable? (c) An Indian resident goes to Nepal on tour. He purchases a Colour TV for Rs. 18,000 and a hair-dryer for Rs. 2,000 (Indian Rs. ) from a duty-free shop in Nepal and brings these into India. What is the duty payable, if he returns on (i) the 3rd day of arrival in Nepal? (ii) the 11th day of arrival in Nepal? [12+2+2 = 16 marks] Q 7 (a) Examine whether the following amounts to manufacture under the Central Excise Act, 1944: (i) Cutting or sizing; (ii) Repairing, reconditioning; (iii) Re-melting; (iv) Mixing of metals (b) Distinguish between CENVAT on capital goods and on inputs for production (c) What are the documents and accounts required to be maintained for availing oneself of CENVAT credit? [4+6+6 = 16 marks] Q 8. Write short notes on: (a) Penultimate sale for export under the Central Sales Tax Act, 1956 (b) Stores under the Customs Act, 1962. (c) Tariff value under Central Excise Act, 1944 [6+5+5 = 16 marks] December 2002 The paper covers
section I (Direct Taxes) 50 marks and Section II Q No. 5 carrying 18
marks is compulsory. Q 5. (a) What is deemed manufacture under the Central Excise Act, 1944? Give four examples of deemed manufacture. (b) Briefly state the salient features of the CENVAT Scheme. (c) Explain the term ‘Related Persons’ under section 4 of the Central Excise Act. (d) What are the essential elements of a valid sale under the Central Sales Tax Act, 1956? [6+4+4+4 = 18 marks] Q 6. Explain the reference to the Customs Act, 1962, the difference between (a) Identical goods and Similar goods. (b) Territorial Water and Indian Customs Water. (c) Public Bonded Warehouse and Private Bonded Warehouse. [5+5+6 = 16 marks] Q 7. (a) Explain how the value is to be determined for the purposes of section 4 of the Central Excise Act and Rules in the following cases: (i) Dutiable goods manufactured and used for Captive Consumption in the manufacture and sale of other final excisable products. (ii) Excisable goods manufactured and cleared as free samples (iii) A manufacturer charges separately for the goods produced and sold and for the packing. How will the cost of packing be treated for determining the value? (iv) The goods manufactured are sold ex-factory and the freight and insurance are charged on actual basis through invoices. (b) Briefly describe the offences that the penal provisions of section 10 of the Central Sales Tax Act, 1956. [(3 x 4) 12 + 4 = 16 marks] Q 8. Write short notes on: (i) Dealer under the Central Sales Tax Act, 1956. (ii) Doctrine of unjust enrichment under the Central Excise Act, 1944. (iii) Searches under the Customs Act, 1962. [5+6+5 = 16 marks] |