TAXATIONII

Timeallowed3hours
TotalMarks100

[N.B.Figures inthemarginindicatefullmarks.Questionsmustbeanswered inEnglish.Examinerwilltake

accountofthequalityoflanguageandofthewayinwhichtheanswerarepresented.Differentparts,if
any,ofthesamequestionmustbeansweredinoneplaceinorderofsequence]

Marks
1. WriteshortnotesinrelationtotheITO1984
12
(a) Taxholiday
(b) Bestjudgmentassessment
(c) Agriculturalincome
(d) Fairmarketvalue
(e) Resident&Nonresident
(f) Speculationbusiness

2. (a)Statetheprovisionsoflawinrespectofsection82(c)ofITO1984.
(b)Provideyourcommentsinsupportofandinagainsttheapplicationofsection82(c).
(c)Definecapitalgain.Whatdeductionsfromcapitalgainarepermissibleu/s32ofITO1984.
(d)WhatismeantbyDoubleTaxationReliefu/s144ofITO1984?Writethemainobjectivesof
DoubleTaxation.

4
3
6
5

3. (a)Explaintheprovisionofsection62oftheITO1984inregardtocreditoftaxdeductedor
collectedatsource.
(b)Whataretherequirementstopayadvancetaxu/s64oftheOrdinance
(c)Explainadvancepaymentoftaxbynewassesseeu/s68.
(d)ExplaintheprovisionoflawregardinginterestpayablebyGovt.onexcesspaymentofadvancetax.
(e) AlpineLtdsassessmentfortheassessmentyear20052006wascompletedshowingincomeof
Tk.4,00,000on1692006.ThecompanysassessmentfortheassessmentYear20062007was
completed showing of Tk. 5,00,000 on 15th May 2007. Determine the amount of income on
whichthecompanyisliableforpaymentofadvancetaxfortheassessmentyear20072008.

2
2
2
2

4. WriteshortnotesonthefollowinginrelationtoITO1984.
(a) UniversalSelfassessmentu/s82BB
(b) PenaltyforconcealmentofIncomeu/s128
(c) CarryforwardoflossofUnabsorbedDepreciation
(d) IndustrialUndertakings
(e) TaxesAppellateTribunal

10

5. Fromthefollowingparticulars,computeanassesscestotalincomeforseveralassessmentyears 10
Accountingyear
Incomefrom
Incomefrom
Incomefrom
Endedon
Salary
business
othersources
3062004
7,000
(14,000)
6,000
3062005
10,000
5,000

30602006
12,000
(26,000)

3062007
12,000
(10,000)

3062008
12,000
10,000

3062009
12,000
20,000

Notes:
1. Figuresgiveninbracketsindicateloss
2. Theincomefrombusinesshasbeendeterminedafterdeductingallowableexpenditures.

6. Thefollowingitems,amongothers,aredebitedtoprofitandlossAccountofRoseCement
Ltdfortheyearended30June2009

10
1. Commission(Brokerage)paidforplacingthesharesoftheCompany
Tk.1,00,000
2. PaymentofretiringofficialMr.A.Malekisfoundguiltyofimproperconduct.
HehadfiveyearsAppointment.ThedirectorsagreedtopayhimTk.2,00,000

onretirementsothathewasgotridoff.

Tk.2,00,000
3. Tradepenalties&lawexpenses(forinfringementoftheCustomAct)
Tk.2,00,000
4. Anticipatedlosswrittenoff(assumingthatthelossmightoccur)

Tk.5,00,000
TheDirectorsoftheCompanyinviteyouropinionastowhichitemsaredeductiblein
computingthetotalincomeofthecompanyfortheassessmentyear20092010.

[Pleaseturnover]

7. FollowingistheincomestatementofStarBankLtd,fortheyearendedon3062008
Particulars
Taka

Income:
10,00,00,000
InterestLessBaddebtReserve&Baddebt
2,00,000
Commission
1,00,000
Discount&Brokerage
15,00,000
Dividend
8,00,000
Nonbankingincome
TotalIncome
10,18,80,000
LessExpenditure:

Interest&discount
3,50,00,000
Salary&allowances
4,00,00,000
RentofPremises
80,00,000
TransfertospecialReservefund
61,12,800
Embezzlementbycashier
1,50,000
Lossonsecurity
10,00,000
ForeigntravelexpensesofManagingDirector
15,00,000
ContributiontoRecognizedProvidentFund
25,00,000
3,00,000
ContributiontoEmployeeswelfarefund
1,00,000
GifttoemployeeonBengaliNewyearday
1,50,000
Legalexpenses
1,00,000
SubscriptiontoBankersAssociation&Chamber
2,00,000
Generalexpenses&entertainment
1,00,000
Finesforviolationofcustomrules
50,000
Misc.Expenses
9,52,62,800
TotalExpenses
66,17,200
NetIncome

10

(1) Reserve for Bad & Doubtful debt and Bad debt amount to Tk. 28,50,000 of which Tk.
10,00,000isdoubtful,Tk.7,50,000isbadrelevanttonormalcommercialbankLoan.RestTk.
11,00,000representsbaddebtprovisionforagriculturalloanwhichwasTk.2cores.
(2) LegalexpensesincludesTk.50,000fortaxappeal,Tk.60,000forauditfees.
(3) Interestreceived&receivableincludesTk.1,50,000asinterestonoverdueloan.
Computetaxtobepaidbythecompany.
8. (a)DefineInputtaxandsupplementaryduty
3
(b)DifferentiatebetweenVATandTurnovertax
3
(c)Definetruncatedvalue.Mention6itemswithrateofVATundertruncatedvaluesystem. 3
9. At30thJune,2003theinformationregardingproductionandsalesofShovaEnterprise
10
Ltdareasfollows
Purchaseofrawmaterials
Tk.2,00,000
Netwages
Tk.50,000
ExcessIndustrialexpenditure
Tk.50,000
ExcessAdministrativeexpenditure
Tk.60,000
Expenditureforsale
Tk.40,000

TheCompanysellsallofitsgoodsadding25%profitwithtotalexpenditure.Itsstartingstock
ofrawmaterialsandendinggoodsareTk.60,000andTk.40,000respectively.Thequantityof
endingstockgoodsandrawmaterialsareTk.80,000andTk.20,000respectively.
IfVATisimposedat15%,calculatethetotalamountthereof.

TheEnd