Assignment Project
Summer 2013
Master of Business Administration- MBA Semester 3 MF0012 – Taxation Management - 4 Credits (Book ID: B1760)
Note: Assignment (60 marks) must be written within 6-8 pages. Answer all questions. Kindly note that 10 marks questions should not exceed 400 words and 5 marks should not exceed 200 words. Q1. Explain the objectives of tax planning. Discuss the factors to be considered in tax planning. (Objectives of tax planning 5 marks; Factors in tax planning 5 marks) Q2. 10 marks
Explain the categories in Capital assets. Mr. C acquired a plot of land on 15th June, 1993 for 10,00,000 and sold it on 5th January, 2010 for 41,00,000. The expenses of transfer were 1,00,000. Mr. C made the following investments on 4th February, 2010 from the proceeds of the plot. a) Bonds of Rural Electrification Corporation redeemable after a period of three years, 12,00,000. b) Deposits under Capital Gain Scheme for purchase of a residential house 8,00,000 (he does not own any house). Compute the capital gain chargeable to tax for the AY2010-11. (Explanation of categories of capital assets 4 marks ; Calculation of indexed cost of acquisition 2 marks; Calculation of long term capital gain 2 marks; calculation of taxable long term capital gain 2 marks) 10marks
Q3.
X Ltd. has Unit C which is not functioning satisfactorily. The following are the details of its fixed assets:
Asset Land Goodwill (raised in books on 31 March, 2005) Machinery Plant 5 April, 1999 12 April, 2004 th th st
Date of acquisition 10 February, 2003 th Book value (Rs. lakh) 30 10 40 20
The written down value (WDV) is Rs. 25 lakh for the machinery, and Rs.15 lakh for the plant. The liabilities on this Unit on 31st March, 2011 are Rs.35 lakh. The following are two options as on 31st March, 2011: Option 1: Slump sale to Y Ltd for a consideration of 85 lakh. Option 2: Individual sale of assets as follows: Land Rs.48 lakh, goodwill Rs.20 lakh, machinery Rs.32 lakh, Plant Rs.17 lakh. The other
Master of Business Administration- MBA Semester 3 MF0012 – Taxation Management - 4 Credits (Book ID: B1760)
Note: Assignment (60 marks) must be written within 6-8 pages. Answer all questions. Kindly note that 10 marks questions should not exceed 400 words and 5 marks should not exceed 200 words. Q1. Explain the objectives of tax planning. Discuss the factors to be considered in tax planning. (Objectives of tax planning 5 marks; Factors in tax planning 5 marks) Q2. 10 marks
Explain the categories in Capital assets. Mr. C acquired a plot of land on 15th June, 1993 for 10,00,000 and sold it on 5th January, 2010 for 41,00,000. The expenses of transfer were 1,00,000. Mr. C made the following investments on 4th February, 2010 from the proceeds of the plot. a) Bonds of Rural Electrification Corporation redeemable after a period of three years, 12,00,000. b) Deposits under Capital Gain Scheme for purchase of a residential house 8,00,000 (he does not own any house). Compute the capital gain chargeable to tax for the AY2010-11. (Explanation of categories of capital assets 4 marks ; Calculation of indexed cost of acquisition 2 marks; Calculation of long term capital gain 2 marks; calculation of taxable long term capital gain 2 marks) 10marks
Q3.
X Ltd. has Unit C which is not functioning satisfactorily. The following are the details of its fixed assets:
Asset Land Goodwill (raised in books on 31 March, 2005) Machinery Plant 5 April, 1999 12 April, 2004 th th st
Date of acquisition 10 February, 2003 th Book value (Rs. lakh) 30 10 40 20
The written down value (WDV) is Rs. 25 lakh for the machinery, and Rs.15 lakh for the plant. The liabilities on this Unit on 31st March, 2011 are Rs.35 lakh. The following are two options as on 31st March, 2011: Option 1: Slump sale to Y Ltd for a consideration of 85 lakh. Option 2: Individual sale of assets as follows: Land Rs.48 lakh, goodwill Rs.20 lakh, machinery Rs.32 lakh, Plant Rs.17 lakh. The other