Osmania University · Faculty of Law
Law of Taxation · May/June 2014
May/June 2014 · Law of Taxation · Semester 6
FACULTY OF LAW
LL.B. (3 YDC) III - Year VI - Semester Examination, May / June 2014
Subject : LAW
PAPER - I : LAW OF TAXATION
Time : 3 Hours Max. Marks : 80
PART - A (5 x 6 = 30 Marks)
Write short notes on any FIVE of the following.
1. Voluntary Retirement.
2. Permissible deductions in computing net wealth.
3. Commutation of pension.
4. Revised Return.
5. Due dates of advance tax payments.
6. "Dealer" under VAT.
7. "Sale Price" under VAT.
8. Interstate sale.
PART - B (2 x 15 = 30 Marks)
Answer any TWO of the following.
9. What is PAN, its importance and what are the rules regarding PAN for opening a Bank Account?
10. Explain how the incidence of tax liability of the assessee is determined with reference to
Residential status of a person.
11. What are the debts which are deductible in computation of net wealth under the Wealth Tax Act?
12. Write a note on Registration and issue of certificate as a VAT dealer. When and how is it
cancelled?
PART - C (2 x 10 = 20 Marks)
Answer any TWO of the following.
13. The assessee was employed in a private limited company for the last one year . Basic salary is Rs.
14,300 p.m., D.A. is Rs. 5,200, special allowance is Rs. 1,650, CCA is Rs. 350 and other allowances are
Rs. 1,660. What are the provisions for the unutilized earned leave and the exemption available to
him on the above receipt? Is the unutilized earned leave totally exempt, if not to what extent is it
taxable?
14. Draft a proforma of statement of income showing the computation of income from the heads of
income from Salary, House property, Profession and other sources, and arrive at taxable income by
applying sections 10(13A), 10(14), 16, 24, 80E, 80DDB, and 80C at appropriate places.
15. The assessee is the owner of an old flat built in 1979. There are 12 flats and all flat owners
decided to hand over their flats for redevelopment. The builder agreed to hand over a new flat along
with a compensation of Rs. 10 lakhs to each flat owner and retain the rest of the flats. Is the
compensation taxable or not? What will be the tax liability for the exchange of new flat for the old
one? If the assessee is liable for any tax, advise your client how to avoid the tax liability.
16. 'A' an importer at Hyderabad imported the goods from 'B' of U.S.A. and after getting clearance
from customs he sold the goods to a buyer in India at Mumbai and claimed exemption as a sale in
the course of import. But the assessing officer levied tax under central sales tax, treating it as an
interstate sale and not a sale in the course of import. Whether the assessing officer is correct? Assess
the correctness by giving reasons.