Taxation-I

Time allowed-3 hours

Total marks-100

[N.B.- The figures in the margin indicate full marks. Questions must be answered in English. Examiner
will take account of the quality of language and of the way in which the answers are presented.
Different parts, if any, of the same question must be answered in one place in order of sequence.]

Marks

1. Mention ten heads of Income subject to deduction or collection at source under section 49.
What are the consequences of non-deduction? 10

2. Who are required to file return of Income under section 75. Is there any limit of taxable income
in case of a limited Co. or an individual? 10

3. What happens where any loss, bad debt and trading liability having been allowed as a deduction
in computing profits of an earlier year of an assessee, but subsequently:
(a) during the income year the assessee received an amount or benefit in respect thereof. 2
(b) the trading liability remaining unpaid for more than three years of the year in which it
was allowed. 2
4. (a) Define the terms ‘Capital Asset’ and ‘Cost of acquisition’ of Capital asset. 5
(b) How is capital gain computed on transfer of a capital asset? 5
(c) What do you understand by the term fair market value in relation to a capital asset? 5

5. (a) What do you understand by the word “Set off of losses”? 5

(b) What are the conditions and limitations of carrying forward of losses. 5

6. Mr. Naushad, Managing Director of Ultrasound Computer Technologies Ltd. earned the
following income for income year ended June 30, 2008: 16
A.
(a) Director’s Remuneration Tk. 50,000 per month for 12 months
(b) Rent free accommodation for self and family
(c) Incentive bonus equivalent to two month’s basic remuneration
(d) Free conveyance of a car provided for private use
(e) Free passage for travel abroad with maximum ceiling of Tk. 1,00,000 Once in two years.
Mr. Naushad, however spent Tk. 1,30,000 towards Travel abroad during the year.
(f) Medical expenses spent Tk. 40,000 out of Tk. 30,000 is supported by bills.
B In addition to above Mr. Naushad has income from following sources:
(a) Agricultural income from land situated in Bangladesh Tk. 20,000
(b) Interest on debentures approved by the Securities and Exchange Commission Tk. 25,000
on which 10% tax deducted at source.
(c) Receipt of interest on deposits of Post Office Savings Bank A/C Tk. 50,000
(d) Rental income of a house he owns in London which has been brought in Bangladesh
through official channel.
Based on the above information compute the following for Mr. Naushad for the assessment
year 2008-2009.
a. Total income under section 43
b. Tax payable thereon for the year

Please turn over

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7. Discuss the basis for ascertaining value for determination of Value Added Tax in respect of : 6
a. Imported goods
b. Supply of goods
c. Rendering of service

8. Narrate briefly the cases where supplier or trader of taxable goods or provider of taxable
service may take rebate (credit) input tax against output tax payable on goods supplied or
service render under the VAT Act 1991. 10
9. (a) What is Turn over Tax and to whom it is applicable? 5
(b) How Turn Over Tax related matters can be appealed against? 5
10. (a) Define input in the context of Bangladesh Vat Act 1991. 4
(b) When shall VAT be payable in the case of :
(i) A Manufacturer 2.5
(ii) A Service provider 2.5

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