Tuesday, May 10, 2011

I PCC Tax Exam Analysis and Solution for Practical questions

Please Find the summary of mark awarded for Income tax , Service tax and VAT segment
Question
sub question
Topic
Mark
nature
1
(a)
capital Gain
5
Practical

(b)
Chapter VI A deduction
5
Practical

( c )
Service Tax
5
Practical

(d)
VAT
5
Practical
2
(a) (i)
Business connection
4
Theory

(a) (ii)
Business & Profession
4
Practical

(b)
Service Tax
4
Practical

( c )
VAT
4
Theory
3
(a)
Business and profession
8
Practical

(b) (i)
Service Tax
2
Theory

(b) (ii)
VAT
2
Theory

(c )
VAT
4
Theory
4
(a)
set off & carry forward
8
Practical

(b)
Service Tax
4
Theory

(c )
VAT
4
Theory
5
(a)
capital Gain
8
Practical

(b)
Service Tax
4
Theory

( c )
VAT
4
Theory
6
(a)
Business & Profession
8
Practical

(b)
Service Tax
4
Practical

( c )
VAT
4
Theory
7
(a) (1)
Assessment procedure
4
Theory

(a) (2)
Income from other source
4
Theory

(a) (3)
TDS with Business& profession
4
Theory

(b)
Service Tax
4
Theory


VAT
4
Theory

Each question was a combination of Income tax, Service tax and VAT. This pattern shows consistently. This indicates, if you have not worked any of these three segment, you cannot able to solve the questions well. Service tax practical questions were comparatively easy. Theory part from VAT dominated well. The paper is not tough, but those who have not given good importance to all these three may feel some difficulties in this paper. If this papers seems to be tough to you, it indicate that you are not done a balanced study.


Please find attached here with the Solutions for income tax problems for your May 11 exam. Effort have been taken to reduce the error, however, it is not an error free. Your suggestion is always welcome.



Corrected Answer from Capital gain 

Computation of Capital Gain
 
Particular
Amount
Full Value of consideration
12,00,000
Less Expense in connection with transfer
                              Nil
Net consideration
12,00,000


Less Indexed cost of Acquisition

45000/140*711 ( Working note 3)
228536


Less Indexed cost of improvement



Improvement expense incurred by Rakesh

50000/140*711
253929


Improvement expense incurred By A



190000/244*711
5,53,648


Long term capital Gain

Less exemption
                     NIL
Taxable capital Gain
163,887


Working notes
Where the property acquired on or before 1981, then following workings are warranted

Working note

             
Computation of cost of acquisition


 
a)
Cost of acquisition
105000
b)
Fair Market value as on 1/4/4981
150000
 
a) or b) whichever is higher Shall be
150000
                                              Cost of acquisition
Working note 2
 Section 51

If any of the capital asset was subject matter of negotiation and advance received in respect thereof , transfer of the asset was not taken place, then, such advance need to be deducted from any of the below component for the purpose of computing capital gain

·       Cost of acquisition
·       FMV
·       WDV
Depends upon the nature of capital asset.

Calculation of Total advance received for sale of property
a)
Advance received by Rakesh
25000
      
b)
Advance received by  Mr A
80000
      
 
Total advance received
105000
      
         
This will be deducted from FMV
       
         
Working note 3
        
 
Calculation of adjusted Cost of acquisition

      
 
Cost of acquisition as per WN (1) above
150000
      
 
Total advance received   WN  (2) Above
105000
      
 
Adjusted Cost of acquisition
45000
      
         
         
Working note 4
        
 

Cost of improvement incurred on or after 1st April 1981 is eligible for deduction .Cost of improvement expense incurred by Mr. Rakesh for the year 1979-80 will not eligible for deduction.
Indexation will be given for the year of  Gift of property to Mr A. year of Gift was 1986-87 and the index point during that year is 140 point.
This is a correction

0 comments:

Is CA I P C C Result will be Favourable

Total Pageviews

@ CA vivek M. Powered by Blogger.

Follow by Email

About Us

My Photo
ULTIMATE HELP JOIN ME IN FACE BOOK https://www.facebook.com/mvivekaca?ref=tn_tnmn

BLOG VIEWS

There was an error in this gadget
There was an error in this gadget