Professional Questions Bank (PQB) - 2016 for Taxation About PQB: It contains previous years CMA exam questions. It is prepared mainly for the students of ICMAB. It is also helpful for other professional students. Why PQB? A CMA student should collect the PQB because — * it provides an idea about exam questions pattern * it provides chapter and year wise questions * It increases possibility to get common in exam * its questions are solved based on latest ordinance SRT APPL CT AIT CATE CAG TR fet FZ sabolilacademy First Edition: September 2016 Prepared By - © Sabolil Academy FOP LOTTO TOW [PF OPES SEOTLATS Mobile: (+88) 01711137039, (+88) 01611137039, (+88) 01511137039 Website: www sabolilacademy.org, E-mail: info@sabolilacademy.org Ei sabolilacademy [FJ sabolilacademy [7 +sabolilacademy Sabolil Academy Professional Questions Bank Page 0Table of Contents Topic Page No. Theory 02 ‘Assessment of companies 37 Assessment of individuals 57 Value Added Tax 63 Perquisite 68 Income from house property 70 Capital gain 2 Advance income tax. 74 Set-off and carry forward of losses 76 Gift tax. B RNS FTA TH AT PHA osWs$wiows, ostssswiowa Sabolil Academy Professional Questions Bank Page 1Theory Sabolil Academy Professional Questions Bank Page 2Q. Explain the procedures of determi ing the value for charging VAT? ICMA- DEC’15 Ans. The procedures of determining the value for charging VAT: 1. In case of imported goods, the value would be the transaction value as determined under section 25 or 25A of the Customs Act plus the amount of import duty, supplementary duty and all other duties and taxes, (if any), except advance income tax payable 2. In case of supply of goods, the value would be the price receivable by the producer or manufacturer or by the business person from buyer which includes the cost of raw material, all cost of manufacture or production and where applicable, any commission, charge, fee, all other duties and taxes including SD (except VAT) and profit. 3. In case of rendering service, VAT shall be imposed on the total receipts. 4. Goods on which trade discount is allowed, VAT will be charged on the value of the goods after deduction of trade discount. Q. What are the exemptions from tax under section 4 of the Gift Tax Act, 1990? ICMA- DEC’15 Ans. The gifts that are exempted from tax under section 4 of the Gift Tax Act, 1990: 1. Gift of property situated outside Bangladesh, 2. Where the beneficiary is the government or any local authority, 3. Gifts to any educational institution recognized by any educational board established under any law in force in Bangladesh or run by the government. 4. Gift to any hospital recognized or run by government or any local authority, 5. Gifis to dependent relative up to Tk. 20,000 on the occasion of his/her marriage, 6. Gifts under a will, 7. Gifts to a sons, daughter, father, mother, spouse, brothers and sisters. Sabolil Academy Professional Questions Bank Page 3Q. What are the areas where registration is VAT, required for the purpose of ICMA- APR’15 Ans. The areas where registration is required for the purpose of VAT: 1, Suppliers of a taxable goods and services, 2. Importers of any goods, 3. Exporters of goods and services Q. State the books of accounts and statements that need to be maintained and submitted to the VAT authorities of Bangladesh. ICMA- DEC’14 Ans. The books of accounts that need to be maintained are as follows: 1. Purchase accounts register: In this register, information relating to purchase of taxable and tax-exempted goods or purchase of service will be recorded, 2. Sales accounts register: In this register, information relating to supply of taxable and tax-exempted goods or rendering of service or export of such goods or service shall be recorded, 3. Invoice register: Invoices printed according to Form ‘Musak-11” and where applicable, in form *Musak-11A’ shall be maintained 4, Current account register: In this register, the description of transactions the amount of payable output tax, ete are recorded ACO PEPUT ER? VERTU FAMICA- oS SS$HI08D Sabolil Academy Professional Questions Bank Page 4Q. Explain the procedures determining of goods the value for charging VAT. ICMA- DEC’ 14 Ans, The provisions of law for determination of value U/S 5 of the VAT Act 1991 1. In case of imported goods, the value would be the transaction value as determined under section 25 or 25A of the Customs Act plus the amount of import duty, supplementary duty and all other duties and taxes, (if any), except advance income tax payable. 2. In case of supply of goods, the value would be the price receivable by the producer or manufacturer or by the business person from buyer which includes the cost of raw material, all cost of manufacture or production and where applicable, any commission, charge, fee, all other duties and taxes including SD (except VAT) and profit. 3. In case of rendering service, VAT shall be imposed on the total receipts. 4. Goods on which trade discount is allowed, VAT will be charged on the value of the goods after deduction of trade discount. Q. Distinguish between “Zero-rate” and “exemption” under the VAT Act 1991. Or, Distinguish between zero rate of VAT and exemption of VAT. Where the zero rates of VAT are used? ICMA- DEC’ 13 Ans, Distinction between zero rate of VAT and exemption of VAT: Zero rate of VAT Exemption of VAT 1. Zero rate means that the particular 1. Exemption means that the supplies of goods and services are treated as taxable, but the rate of tax zero. particular goods and services are exempted from payment of VAT under this Act. 2. Business dealing with zero related transactions have to fulfill all the VAT formalities. 2. Business supplying only exempt goods or services are not required to fulfill any VAT formalities. 3. VAT registration is required 3. No VAT registration is required 4, Input tax eredit is allowed 4, Input tax credit is not allowed. Sabolil Academy Professional Questions Bank Page 5Zero rates of VAT are used in following areas: a) Any goods and services exported or deemed to be exported from Bangladesh b) Research institutions whose activities are not carried out for profit ¢) Certain charitable institutions d) Certain health bodies, for example, National Health Service Trust Q. What are the losses that cannot be carried forward? ICMA- APR*13 Ans. As per the provisions of the ITO 1984, carry forward is not possible for any loss computed under the head ‘Income from securities’ and ‘Income from house property” Q. State the provision of section 17 of the VAT Act, 1991 regarding self- registration. What are the procedures of registration under Rule 9 of the VAT rules, 1991, ICMA- DEC’ 12 Ans. The provision of section 17 of the VAT Act, 1991 regarding self registration: 1. Any person exempted from registration may apply in the form and manner specified by rules, to the proper officer for voluntary registration. The proper officer shall register the applicant and give him a registration certificate mentioning therein his business identification number. 2. The person intended to be registered voluntarily, shall submit an application to the local VAT office 30 days before the commencement of the tax period in which he intends to be registered. The voluntarily registered person shall be required to pay VAT or where applicable, SD from the 1° day of the period subsequent to the date of registration Sabolil Academy Professional Questions Bank Page 6The procedures of registration under rule 9 of the VAT Rules, 1991: 1. If the annual turnover of the supplier of taxable goods or services is not more than 70 lac, he shall have to submit an application directly or through online for registration in the Form ‘Musak-6° to a divisional officer or to an officer not being below the rank of Assistant Commissioner. 2. If the turnover of any person exempted from registration exceeds 70 lacs during the continuous period of 12 months, in that case concerned person shall apply for registration to the above authority within 30 days of the expiry of such period 3. Where more than one taxable goods or services are supplied or import or exports are made from the same place of manufacture or rendering of service, only one registration shall be required. Q. Discuss offences and penalties as enacted under section 37 of the VAT Act, 1991 and under rules 4 and 35 of the VAT Rules, 1991. ICMA- DEC’ 12 Ans. Offences Penalties 1. As per section 37 (1), if any | Fine of Tk. 10,000 to Tk. 20,000 person: a) fails to apply for registration under this Act even when it is necessary for | Fine of Tk. 10,000 to Tk. 20,000 him to apply. b) fails to submit a return within | Fine of Tk. 5,000 to Tk. 10,000 specified date c) fails to inform the VAT officer about any change of information related to registration 2. As per section 37 (2), if any|A fine of an amount not less than person: equivalent amount not more than a) fails to submit return or submit |0.50 times of the amount of tax false return (VAT and SD) payable upon or b) fails to submit return within the | service. specified time though notice has been served twice on him 3._As_per_section 37 (3). if any | Shall have to pay the unpaid tax Sabolil Academy Professional Questions Bank Page 7registered service provider or VAT deducting authority fails to deposit tax or fine or other dues to the Govt. treasury within prescribed time liability together with 2% per month as additional interest. 4. As per section 37 (4), if a registered person fails to pay VAT within 3 months afier notice has been served His business premises may be locked up and his registration may also be cancelled 5. As per rule 4(13a), if'a registered person fails to pay the turnover tax determined by the superintendent as per the rules. He may be fined in maximum rate of Tk.5000 including excess 2 % tax per month on unpaid amount. 6. As per rule 35, if a registered person fails to comply with any provisions of the VAT Rules, 1991 shall be liable to A penalty of an amount, being not less than 20% and not more than 75% of the amount of VAT (including SD). Q. What are the elements of a valid gift for gift tax purpose? ICMA- DEC’ 12 Ans. Following are the elements of a valid gift for gift tax purpose: 1. Transfer of existing property, either movable or immovable 2. Transfer must be made by one person (donor) to another (donee) 3. It must be transferred voluntarily 4. Transfer must be made without or with inadequate consideration of money or money’s worth Q. What are the consequences if payment of advance tax is more or less than the required amount? ICMA- AUG’ 12 Ans. Performance Operations *yTw RET sfrt- 01711137039, 01511137039 Sabolil Academy Professional Questions Bank Page 8If payment of advance tax is more or less than the required amount, the following consequences are required i) If the amount of tax payable is determined on regular assessment and payment of advance tax is more than the required amount, the government shall pay simple interest at 10% per annum on such excess payment. ii) If the amount on regular assessment and payment of advance tax is less than 75% of the required amount, the assessee shall pay, in addition to the balance of tax payable by him, simple interest at 10% per annum on the amount by which the tax so paid. Q. State the provisions of law for determination of value U/S 5 of VAT Act, 1991. Or, How a commercial importer will declare value of goods for payment of VAT? ICMA- AUG’12 Ans, The provisions of law for determination of value U/S 5 of the VAT Act 1991: 1. In case of imported goods, the value would be the transaction value as determined under section 25 or 25A of the Customs Act plus the amount of import duty, supplementary duty and all other duties and taxes, (if any), except advance income tax payable 2. In case of supply of goods, the value would be the price receivable by the producer or manufacturer or by the business person from buyer which includes the cost of raw material, all cost of manufacture or production and where applicable, any commission, charge, fee, all other duties and taxes including SD (except VAT) and profit 3. In case of rendering service, VAT shall be imposed on the total receipts. 4, Goods on which trade discount is allowed, VAT will be charged on the value of the goods after deduction of trade discount. Sabolil Academy Professional Questions Bank Page 9Q. Explain the procedure of payments of VAT as provided under rule 23 and submission of returns under rule 24 VAT Act, 1991. ICMA- AUG’12 Ans, The procedure of payments of VAT as provided under rule 23: 1. The board, in accordance to the rule can make provisions for advance payment including fixation of time and procedures of payment of the VAT. 2. The board may direct through official gazette to use stamp or special sign or mark on the body of the package or container of the goods, for the purpose of realizing value added tax 3. The government may direct the service providers or receivers to collect or deduct VAT at source and deposit the same to the treasury through defined procedure. Where service provider being under foreign aided project have already paid all above mentioned VAT properly to the Government treasury VAT can not be deducted at source again from such parties. Procedures of submission of returns under rule 24 VAT act 1991: A manufacturer or producer or trader of taxable goods or renderer of taxable service shall submit a return to the concerned officer in the form and in the manner prescribed by rules for every tax period, showing there in all of his tax liabilities under this act within the specified date. Following procedures are to be followed while submitting the VAT return: 1. Every manufacturer or producer or businessman of taxable goods or renderer of taxable service shall have to deposit in the local value added tax office two copies of a return in Form ‘Musak-19° for each tax period within 10 working days of the month next after the tax period. But in case of an insurance company this time limit will be 20 working days: 2. A person, who supplies or exports goods after manufacturing, shall have to attach, along with the return, the following documents, namely a) Original copy of the current account, b) Any other documents claimed by the commissioner Sabolil Academy Professional Questions Bank Page 10Q. What are the provisions with regard to refund of VAT on exports? ICMA- AUG’12 Ans. The tax payer can claim a refund of excess VAT or SD paid due to mistake or wrong explanation and the above tax will be refund in accordance with the procedure prescribed by rules The provisions with regard to refund of VAT on exports: 1. In the case of claim for refund of VAT, the applicant shall have to submit to the concerned divisional officer or Commissioner of the Custom House or any officer, not below the rank of Assistant Commissioner, authorized by him in this behalf, the refund claim in Form ‘TR-31", within six months of the payment of the tax, 2. The divisional officer or the officer-in-charge of the customs house can approve the refund claim upon verification. The officer approving the refund then shall send the refund bill to the commissioner or the officer-in-charge of the custom house for pre-audit. If, on pre-audit, the bill is considered to be correct, the concerned officer shall, afer counting signing it, preserve one copy of the bill for office record and send one copy to the concerned divisional officer. It shall have to be disposed of within 90 days of the receipt of the application for refund claim. Q. According to the ITO 1984, differentiate between the following: (i) Income year and Accounting year Universal Self Assessment and Assessment after hearing ICMA- APR’ 12 Ans. i) Differentiation between income year and accounting year: Income year Income year means the financial year immediately preceding the assessment year. Thus, if the assessment year is 2010-11, financial year 2009-2010 is the income year. Accounting year: Sabolil Academy Professional Questions Bank Page 11Accounting year is a twelve months period over which a company’s financial accounts are calculated. Generally accounting year starts from 1° January and ends on 31" December every year ii) Differentiation between universal self-assessment (USA) and assessment after hearin; Universal self-assessment: Universal self-assessment is the assessment where an assessee, either manually or electronically furnishes a correct and complete return of income and the Deputy Commissioner of Taxes shall receive such return himself or by any other official authorized by him and issue a receipt of such return either manually or electronically Assessment after hearing Assessment afler hearing is the assessment where a return or revised return has been filed and the Deputy Commissioner of Taxes is not satisfied without requiring the presence of the person who filed the return or the presence of evidence that the return is correct and complete. Q. In accordance with the provisions of ITO 1984, distinguish the following between: (i) Revision U/S 120 and Revision U/S 121A; (ii) Appeal U/S 153 or 157 and Appeal U/S 158; (iii) Reference U/S 160 and Reference U/S 162. ICMA- APR’12 Answer: i) Distinction between revision U/S 120 and Revision U/S 121 A: Revision U/S 120: a) The inspecting Joint Commissioner may call for the record of any proceeding under this ordinance from the Deputy Commissioner of Taxes (DCT) and examine the record, if he considers that any order passed there in by the DCT is erroneous, he may after giving heard and after making such inquiry as he thinks necessary includes an order of enhancing or modifying the assessment or canceling the assessment or directing a fresh assessment. Sabolil Academy Professional Questions Bank Page 12b) No order shall be made after the expiry of four years from the date of order sought to be revised. Revision U/S 121 A: a) The commissioner may on an application made by the assessee, call for the record of any proceeding under this ordinance in which an order has been passed by any authority subordinate to him and may make such enquiry or cause such enquiry to be made b) The application for revision of an order under this ordinance passed by any authority subordinate to the commissioner shall be made within 60 days of the date on which such order is communicated to the assessee or within such further period as the commissioner may consider fit. ii) Distinction between Appeal U/S 153 or 157 and Appeal U/S 158: Appeal U/S 153: An assessee being a company or not being a company may prefer an appeal to the Appellate Joint Commissioner of Taxes when he is not satisfied with the order of the Deputy Commissioner of Taxes I. Assessee not being a company: An assessee not being a company, may prefer an appeal against such order: a) The amount of loss computed U/S 37, b) Assessment of income, c) Determination of liability to pay, d) Computation of tax including advance tax 2. In case of a company: In case of a company, an assessee may prefer an appeal against such order a) The amount of loss U/S 37, b) Assessment of income, c) Determination of liability to pay, d) Computation of tax including advance tax. Appeal U/S 157: Any person dissatisfied by an order of Tax Recovery Officer (TRO), may within 30 days from the date of such order, appeal to the Inspecting Joint Commissioner (1JC) to whom the TRO is subordinate and decision of the JC on such appeal shall be final. Sabolil Academy Professional Questions Bank Page 13Appeal U/S 158: a) Appeal made by the assessee: An assessee may appeal to the Appellate Tribunal if he is not satisfied by an order of an Appellate Joint Commissioner. b) Appeal made by the Deputy Commissioner of Taxes: The Deputy Commissioner of Taxes may with the prior approval of the Commissioner of Taxes, prefer an appeal to the Appellate Tribunal against the order of an Appellate Joint Commissioner Reference U/S 160 and Reference U/S 162: Reference U/S 160: a) The assessee or the Commissioner may, within 90 days from the date of receipt of the order of the Appellate Tribunal communicated to him by application in prescribed form, accompanied in case of an application by the assessee by a fee of Tk. 2000 refer to the High Court Division any question of law arising out of such order. b) Before filling the appeal the assessee has to pay 25% of the differential amount specified by the ITO, 1984 when tax demand does not exceed Tk. 10 Lac. The requirement is 50% if tax demand exceeds Tk. 10 lac. Reference U/S 162: An appeal can be filed against the judgment of the High Court Division, in case of the following provisions: a) An appeal shall be lie to the appellate division from any judgment of the High Court Division which the High Court certifies to be a fit one for one appeal to the Appellate Division. b) The provisions relating to costs and payment of tax shall apply in case of an appeal to the Appellate Division as they apply to a reference to the High Court Division U/S 160. Q. Discuss the limitations of the carry forward of losses. ICMA- APR?12 RCS PTT BRP PT FAN Ans. 01711137039 Sabolil Academy Professional Questions Bank Page 14The limitations of the carry forward of losses: i) Where the assessee is a firm, the loss incurred by the firm under any head of income shall be set off only against the income of the firm under any other head and not against the income of any of the partners of the firm ii) No person shall be entitled to set off the loss from business or profession against his income under any other head except he is the person who was incurring the loss. Q. What are the penalties those can be imposed for: (i) Non-submission of return in time, (ii) Concealment of income, (iii) Non-compliance of certain obligations, (iv) Improper use of TIN. ICMA- APR*12 Ans. i) Penalties for non-submission of return in time: Where any person failed to submission of return in time without reasonable cause, the Deputy Commissioner of Taxes may impose upon such person a penalty amounting to 10% of tax impose on last assessed income. ii) Penalties for concealment of income: Where any person concealed his income or furnished inaccurate particulars of his income, the Deputy Commissioner of Taxes may impose upon such person a penalty of 10% of tax ) Penalties for non-compliance of certain obligations: Where any person failed to comply certain obligations without reasonable cause, the Deputy Commissioner of Taxes may impose upon such a person a penalty not exceeding the amount of tax chargeable on the total income of such person. iv) Penalties for improper use of TIN: Where any person used Tax-payer’s Identification Number (TIN) of another person or used fake TIN without reasonable cause, the Deputy Commissioner of Taxes may impose upon such a person a penalty not exceeding Tk. 20,000 on that person. Sabolil Academy Professional Questions Bank Page 15Q. Under what situations, Input Tax Credit is not allowed under the VAT Act, 1991? Or, Mention 5 points where input tax rebate is not entitled (as per related section of VAT Act, 1991). ICMA- APR*12 Ans. Input tax credit is not allowed under the following situations under the VAT Act, 1991 1. VAT paid on inputs used in the production of exempted goods, 2. Supplementary duty paid on input used in the production of goods or rendering of service, 3. VAT paid on package re-usable at any other time except for the first time, 4. VAT paid against expenditure on travel, entertainment, etc., 5. VAT paid on the goods not recorded as per the prescribed method, 6. VAT paid on such goods and services related to the construction, replacement, repair of any establishment, ete Q. Write short notes on the followings: (i) Capital assets; Double taxation relief; and (iii) Truncated value addition. ICMA- DEC’11 Ans. i) Capital assets Capital assets means property of any kind held by an assessee, whether or not connected with his business or profession, but does not include: a) Any stock-in-trade (not being stocks and share) or raw materials held for the purpose of his business or professions, b) Personal effects, that is to say, movable property including equipment, furniture and fixtures, which are held for personal use. Sabolil Academy Professional Questions Bank Page 16ii) Double taxation relief: a) The government may enter into an agreement with the government of any other country for avoidance of double taxation with respect to taxation on income livable under ITO, 1984 and under the corresponding law in force in that country b) Where any such agreement made with the government of any other country, they provided for: i) Relief from the tax payable under this ordinance, ii) Determining the income arising or deemed to be arising to non-residents from sources within Bangladesh, iii) Recovery of tax leviable under this ordinance and under the corresponding Jaw in force in that country, iv) Exchange of information for avoidance of tax Truncated Value addition: Truncated value addition is one where VAT is charged at the standard of 15% on the deemed or estimated value addition. Since it is based on a shortened value, input tax rebate can not be obtained excepting on exports or deemed exports Several services where this type of VAT is levied are as follows: 1. Audit & Accounting 2. Survey Firms 3. Architect, Designer 4, Procurement providers 5. Motor Garage, Workshop Sabolil Academy Professional Questions Bank Page 17Q. What do you mean by prohibited goods under the Customs Act, 1969? Mention the new items included in the list of prohibited items under section 15 of the Customs Act 1969 effective from July 01, 2011. ICMA- AUG’11 Ans. According to Customs Act, 1969, prohibited goods are the goods that can not be imported into Bangladesh ‘The items included in the list on prohibited items: a) Counterfeit coin, b) Counterfeit currency notes, c) Any obscene book, paper, painting, photograph, film, video or audio recording d) Goods involving infringement of copyright, industrial design, patents within the meaning of the Copyright Act, 2000 and the Patent Act, 1911 Q. Where are the Baggage Rules applicable? Mention any 5 consumable items which are tax free under the Baggage Rules. ICMA- APR’I1 Ans. According to Baggage (Import) Rules, 2006, baggage rules are applicable to the all passengers except the passengers of Tourists Baggage (Import) Rules, 1981 and has privileged person (Customs Procedures) Rules, 2003 ‘The 5 consumable items which are tax free under the Baggage rules: 1. Desktop and laptop computer with printer and UPS, 2. Audio CD player, 3, Video Camera, 4. Normal or Electrical Type writer, 5. Fax machine and computer scanner. Sabolil Academy Professional Questions Bank Page 18Q. Write short note on: (a) Gain Tax (b) Premium Tax (c) Value Added Tax (d) Fees for Technical Services _(e) Perquisite ICMA- DEC"10 Ans. a) Gain Tax Gain tax is the tax paid on capital gains. It is not a separate tax, just part of income tax. b) Premium tax Premium tax is a tax paid on general insurance premiums. ¢) Value Added Tax: Value Added Tax is a type of indirect tax in Bangladesh. It refers to the tax applied on value added as per prescribed rate. 4d) Fees for technical services Fees for technical services means any consideration (including any lump sum consideration) for the rendering any managerial, technical or consultancy services, but does not include consideration for any constitution, mining or like project undertaken by the recipient e) Perquisite Perquisite means any payment made to an employee by an employee by the employer in the form of cash or in any other form excluding basic salary, festival bonus, incentive bonus, arrear salary, advance salary, overtime etc Sabolil Academy Professional Questions Bank Page 19Q. What are the deadlines of VAT returns submission? ICMA- DEC’10 Ans, A manufacturer or producer or trader of taxable goods or renderer of taxable service shall submit a VAT return to the concerned officer in the form and in the manner prescribed by rules for every tax period, showing therein all of his tax liabilities under this Act, within the specified date. Every manufacturer or producer or businessman of taxable goods or renderer of taxable service shall have to deposit in the local VAT office two copies of a return in Form ‘Musak-19" for each tax period within 10 working days of the month next after the tax period. In case of insurance company the time limit will be 20 working days Q. Do you support imposition of Supplementary Duty? Why? ICMA- DEC’ 10 Ans. Yes, I support imposition of Supplementary Duty because it is applied to luxurious, non-essential and socially undesirable goods Q. Define Drawback, under what situations drawback is not allowed? ICMA- DEC’10 ‘Ans. When any duties, such as supplementary duty (SD), excise duty, VAT, ete paid on imported goods or locally manufactured goods can be drawn back other than AIT and SD on natural gas on fulfillment of certain conditions, this is known as duty drawback Financial Operations *g0o BRT swrPrt- 01711137039, 01611137039 Sabolil Academy Professional Questions Bank Page 20Under the following situations drawback is not allowed: a) When proper document about export or deemed export is not available b) When drawback claim in each challan is below Tk. 100 c) Excess tax paid but not allowed for drawback as per rules d) Unless foreign currency is remitted to Bangladesh Bank Q. State the gifts that are exempted from Gift Tax under the Gift Tax Act, 1990. ICMA- DEC"10 Ans. ‘The gifts that are exempted from gift tax under the Gift Tax Act, 1990: 1. Gift of property situated outside Bangladesh, 2. Where the beneficiary is the government or any local authority, 3. Gifts to any educational institution recognized by any educational board established under any law in force in Bangladesh or run by the government. 4. Gift to any hospital recognized or run by government or any local authority, 5. Gifis to dependent relative up to Tk. 20,000 on the occasion of his/her marriage, 6. Gifts under a will, 7. Gifis to a sons, daughter, father, mother, spouse, brothers and sisters. Sabolil Academy Professional Questions Bank Page 21Q. Discuss the relevant sections of search and seizure by the customs officer. ICMA- DEC’10 Ans, According to section 158 of the Customs Act, 1969, an appropriate officer of Customs Authority may search any person if he has reason to believe that the person is carrying goods liable to confiscation. The person, who has landed within Bangladesh Customs Area, may be searched in this regard. According to section 168 of the Customs Act, 1969, the appropriate officer may seize any goods liable to confiscation under this act and where it is not practicable the seize any goods, he may serve on the owner of the goods or charge an order that he shall not remove such goods without permission of such officer. Q. Discuss the procedure and time of paying VAT w/s 6 of VAT Act, 1991. ICMA- AUG’10 Ans. The procedure of paying VAT w/s 6 of VAT Act, 1991: 1. The board, in accordance to the rule can make provisions for advance payment including fixation of time and procedures of payment of the VAT 2. The board may direct through official gazette to use stamp or special sign or mark on the body of the package on container of the goods, for the purpose of realizing value added tax. 3. The government may direct the service providers or receivers to collect or deduct VAT at source and deposit the same to the treasury through defined procedure. Where service provider being under foreign aided project have already paid all above mentioned VAT properly to the Government treasury VAT can’t be deducted at source again from such parties. Sabolil Academy Professional Questions Bank Page 22The time of paying VAT U/S 6 of VAT Act, 1991: 1. VAT on imported goods shall be paid at the same time and the same manner as import duty is paid in accordance with the provisions of the customs act 2. VAT will be payable upon goods manufactured for carrying out of business or on good imported, purchased or acquired by a registered or registerable person at the time of one of the following events whichever occurs first: a) When the goods are delivered or supplied b) When an invoice relating to supply of the goods is issued c) When part or full of payment is receive 3. VAT will be payable when a taxable service is rendered by a registered or registerable person during the operation of his business, at the time of any of the following activities, whichever occurs first a) When the service is rendered b) When an invoice relating to the service is issued c) When part or full payment is received Q. What is Truncated Base VAT? Mention 5 services where this type of VAT is levied. Or, What is truncated value? Mention at least 6 items when the value is applied? ICMA- AUG’ 10 Ans. Truncated base VAT: ‘Truncated base VAT is one where VAT is charged at the standard of 15% on. the deemed or estimated value addition. Since it is based on a shortened value, input tax rebate can not be obtained excepting on exports or deemed exports 5 services where this type of VAT is levied are as follows: Audit & Accountancy Survey firms Architect, designer Procurement provider Motor garage, workshop wRwNe Sabolil Academy Professional Questions Bank Page 23Q. Distinguish between Value Added Tax and Turnover Tax as per Value Added Tax Act, 1991, ICMA- AUG’ 10 Ans, Distinction between VAT and Turnover Tax as per VAT Act, 1991: VAT Turnover Tax 1. Importers, manufacturers and service providers, having minimum annual turnover of Tk. 60 lac, have to pay 15% tax on their value addition. 1. If the annual turnover of any taxable goods supplier or service provider is not more than an amount of Tk. 70 lac and who is not required to be registered under section 15, he shall pay turnover tax @ 3% on the annual turnover. 2. Rebate is applicable for input at output stage 2. Rebate is not applicable 3. Registration can be done for any amount of turnover. 3. If the turnover does not exceed of Tk. 70 lac, any person can register under turnover tax. Q. Why is Baggage rule necessary? Mention at least 5 consumable items which are tax free under baggage rule. ICMA- AUG’10 Ans. Baggage rules are necessary for the following purposes: 1. To make a discipline of baggage, 2. To control huger product import, 3. To protect domestic market against foreign market, 4. To control passengers unethical, illegal product manner, 5. It is a source of government revenue The 5 consumable items which are tax free under the Baggage rules: 1. Desktop and laptop computer with printer and UPS, 2. Audio CD player, 3, Video Camera, 4, Normal or Electrical Type writer, 5. Fax machine and computer scanner. Sabolil Academy Professional Questions Bank Page 24Q. Discuss Bill of Entry as per section 79 of the Customs Act, 1969 ICMA- AUG’10 Ans, “Bill of entry” means a bill of entry delivered under section 79 and includes an electronically transmitted bill of entry in such case and in such manner containing such particulars as the Board may specify Q. What does PSI stand for? Do you think PSI system is necessary for the Government, Why? ICMA- AUG’10 Ans. PSI stands for Pre Shipment Inspection. PST companies carry out the inspection ‘The government may appoint pre shipment inspection and Audit agencies as per Customs Act, 1969 to verify and certify the quality, quantity, price and description of any imported goods before bordered by the exporters on vessel or air craft. Yes, I think PSI system is necessary for the government because by PSI system the government can inform the quality, quantity, price and description of any imported goods Q. Differentiate the following terms (as per ITO, 1984): (a) Assessment year, Income year, Accounting year and Fiscal Year; (b) Salary and Profits in lieu of salary; (c) Resident and Non Resident; (d) Partner and Person; and (e) Normal assessment and Universal self ment. ICMA- AUG’10 SLT LTT? Friday teas a1 Ans. sreteet- 01711137039 Sabolil Academy Professional Questions Bank Page 25a) Differentiation between assessment year, income year, accounting year and fiscal year: Assessment year Assessment year means the period of 12 months starting on the 1“ day of July every year. Thus assessment year is July 01, 2009-June 30, 2010. Income year: Income year means the financial year immediately preceding the assessment year. Thus, if the assessment year is 2010-11, financial year 2009-2010 is the income year. Accounting year: Accounting year is a twelve months period over which a company’s financial accounts are calculated. Generally accounting year starts from 1° January and ends on 31" December every year. Fiscal Year: Fiscal year is a 12 months period that a company or government uses for accounting purposes and preparing financial statements b) Differentiation between salary and profits in lieu of salary: Salary Salary includes any wages, annuity, pension or gratuity, commissions, fees, allowances, perquisites or profits in lieu of salary ete Profits in lieu of Salary Profits in lieu of salary includes the amount of compensation due to or received by an assessee from his employer for the termination or modification of any terms and conditions relating to his employment. ‘SROED FRICAR So ARCAA OR] ART CATER? HA FAA- 01711137039 Sabolil Academy Professional Questions Bank Page 26¢) Differentiation between resident and non resident: Resident: Resident in respect of any income year, means an individual who has been in Bangladesh ~ for a period of 182 days or more in that year, or - for a period of 90 days or more in that year having previously been in Bangladesh for a period of 365 days or more during 4 years preceding that year. Non-resident: Non-resident means a person who is not a resident d) Differentiation between partner and person: Partner: Partner has the same meaning as assigned to it in the Partnership Act, 1932 and includes a person who has been joined to the benefits of partnership. Person: Person includes as individual, a firm, a company, an association of person and local authority. Q. Assume you are a Manager, VAT affairs of a manufacturing company. Which books of accounts you must maintain to comply law? How long will you preserve the books and records? ICMA- APR’10 Ans. As a VAT affairs manager of a manufacturing company, I must maintain the following books of accounts to comply law: 1. Purchase accounts register: In this register, information relating to purchase of taxable and tax-exempted goods or purchase of service will be recorded, Sabolil Academy Professional Questions Bank Page 272, Sales accounts register: In this register, information relating to supply of taxable and tax-exempted goods or rendering of service or export of such goods or service shall be recorded, 3. Invoice register: Invoices printed according to Form “Musak-11” and where applicable, in form ‘Musak-1 1A” shall be maintained 4. Current account register: In this register, the description of transactions the amount of payable output tax, etc. are recorded. The time limit for preservation of books and records: According to the rules, a registered person who has obligation to preserve the above books and records, shall have to preserve the records in BD for at least 4 years following completion of the tax period to which it relates. So, I will preserve the books and records for the mentioned time period. Q. Define ‘Export’ and ‘Deemed Export’ as per changes made by Finance Act, 2009 for VAT Act, 1991? ICMA- APR’10 Ans. Export: Export is defined as to more products to another country for the purpose of trade or sale. Export is defined as to send goods or services across national boundaries for the purpose of sale. Deemed export: It means any of the following activities: - Supplies to organization in EPZs or local 100% export oriented organizations; - Supplies of fuels and other goods to international flights. - Supplies against international tender in foreign currency made by registered person in Bangladesh. = Export of goods, imported on temporary basis in accordance with prescribed rule Sabolil Academy Professional Questions Bank Page 28Q. Distinguish between appellate commissioner of customs and VAT and Appellate Tribunal of Customs and VAT? ICMA- APR’10 Ans. Distinction between Appellate Commissioner of Customs and VAT and Appellate Tribunal of Customs and VAT ‘Appellate Commissioner of Customs and VAT Appellate Tribunal of Customs and VAT 1. The appellate commissioner of Customs and VAT is appointed by NBR and work under the direct control of the board. 1. The appellate Tribunal of Customs and VAT is the highest judicial authority and the members of this are appointed by the government. 2. The aggrieved assessee may appeal to them against the decision of the Additional Commissioner or any VAT officer below that rank 2. The aggrieved assessee may appeal to them against the decision of the commissioner, Appellate Commissioner or any VAT officer of equivalent rank. 3, Ithas administrative authority 3. It has judicial authority. Q. jinguish between ‘Rebate’, ‘Drawback’ and ‘Refund’ as per VAT Act, 1991. ICMA- APR’10 Ans, Distinction between ‘Rebate’, “Drawback’ and ‘Refund’ as per VAT Act, 1991 Rebate: Input tax paid by a registered person on the inputs imported or purchased by him can be adjusted under certain sections of the VAT Act or Rules, ete, against output tax liability in the current account for a certain tax period which is called input tax rebate. Fundamentals of Financial Accounting ABTS BIRT HAPPT- 01711137039 Sabolil Academy Professional Questions Bank Page 29Drawback: When any duties, such as SD, excise duty, VAT ete paid on imported goods or locally manufactured goods can be drawn back other than AIT and $.D. on natural gas on fulfillment of certain conditions. This is known as duty drawback Refund: Refund of VAT means received of any excess payment of VAT or TOT where applicable as per section 67. Q. What are the salient features of valid gift? Who can make a valid gift? ICMA- APR*10 Ans. The salient features of a valid gift: 1. Transfer of existing property, either movable or immovable 2. Transfer must be made by one person (donor) to another (donee) 3. It must be transferred voluntarily 4, Transfer must be made without or with inadequate consideration of money or money’s worth The person can make a valid gift: Every Bangladeshi person can make a valid gift who has the ability to provide or donate any existing movable or immovable domestic property made voluntary and without any consideration or money or money’s worth Q. What consequences an importer shall fall if he fails to submit mandatory PSI certificate? ICMA- DEC’09 Ans. If an importer fails to submit mandatory PSI (Pre Shipment Inspection) certificate, he shall be liable to pay PSI service charge at the rate determined by the government by the notification published in the official gazette and a penalty not exceeding the value of the goods but not less than 10% of the value of the goods Sabolil Academy Professional Questions Bank Page 30Q. Discuss the importance of VAT as a source of revenue in the national economy? ICMA- AUG’09 Ans. The importance of VAT 1, VAT has more revenue potential than other alternative indirect taxes. 2. Since VAT is carried through the retail level, it offers all the economic advantages of a tax 3. VAT gives the Government the opportunity to bring back into the tax system all those persons who were give tax exemptions. Q. What are the legal obligations to get a VAT registration? What are the procedures for getting such registration? ICMA- AUG’09 Ans. ‘The legal obligations to get a VAT registratior 1. Suppliers of a taxable goods and services, 2. Importers of any goods, 3. Exporters of goods and services ‘The procedures for getting VAT registration: 1. If the annual turnover of the supplier of taxable goods or services is not more than Tk. 70 Lakhs, he shall have to submit an application directly or through online for registration in the form ‘Musak-6° to a divisional officer or to an officer not being below the rank of Assistant Commissioner, 2. If the turnover of any person exempted from registration exceeds Tk 70 Lakhs during the continuous period of twelve months, in that case concerned person shall apply for registration to above authority within 30 days of the expiry of such period Sabolil Academy Professional Questions Bank Page 313. Where more than one taxable goods or services are supplied or import or exports are made from the same place of manufacture or rendering of service only one registration shall be required Q. Write short notes on: (a) Baggage Rule, (b) Special Bonded Warehouse, and (©) Bill of Entry. ICMA- AUG’09 Ans. a) Baggage Rule: Every passenger entering or leaving a country’s border has to pass through customs check. On his arrival the passenger is first cleared by immigration officer. Thereafter the passenger takes the delivery of his baggage from customs through passes. According to Baggage (Import) Rules, 2006, Baggage Rules are applicable to the all passengers except the passengers of Tourists Baggage (Import) Rules, 1981 and his privileged person (customs procedures) Rules, 2003. The 5 consumable items which are tax free under the Baggage rules 1. Desktop and laptop computer with printer and UPS, 2. Audio CD player, 3, Video Camera, 4, Normal or Electrical Type writer, 5, Fax machine and computer scanner. b) Special Bonded Warehouse: Special bonded warehouse means a private warehouse licensed under section 13 and which is 100% export oriented industry to be determined as such by the Board for the purpose of exemption from the provision of sub section 12 of Section 91. Fundamentals of Management Accounting arece BIRT FUAT- 01711137039 Sabolil Academy Professional Questions Bank Page 32©) Bill of entry: Bill of entry means a bill of entry delivered under section 79 and includes an electronically transmitted bill of entry in such case and in such manner containing such particulars as the Board may specify Q. What is Truncated System of VAT? Who are entitled to pay VAT under this system? ICMA- APR’09 Ans. Truncated system of VAT: Truncated system VAT is one where VAT is charged at the standard of 15% on the deemed or estimated value addition. Since it is based on a shortened value, input tax rebate can not be obtained excepting on exports or deemed exports. Under this system, VAT shall be payable by: - the importers in case of import - the suppliers in case of goods manufactured in Bangladesh - service providers in case of service providing. Q. What do you understand by PSI? Who are authorized to issue CRF? ICMA- APR’09 Ans. PSI stands for Pre Shipment Inspection. PSI companies carry out the inspection The government may appoint pre shipment inspection and Audit agencies as per Customs Act, 1969 to verify and certify the quality, quantity, price and description of any imported goods before bordered by the exporters on vessel or air craft. The pre shipment inspector and audit agencies are authorized to issue CRF (Clean Report of Findings). If no discrepancies and other anomalies are detected or detected anomalies are corrected and NNRF can be cancelled. Then the agency will issue a CRF. Sabolil Academy Professional Questions Bank Page 33Q. Who are entitled to apply and get a Bond License? What requirements are to be fulfilled to apply and to get a bond license? ICMA- APR’09 Ans. The importers who imports dutiable goods for himself or being imported on his behalf are entitled to apply and get a bond license. Custom authority issues bond license to the importer for selected types of imported goods and for the goods in respect of which facilities for deposit in a public warehouse are not available. For getting a bond license, one should apply to the commissioner of customs (Bond) in a prescribed form along with the following documents: Guarantee by a respective bank of the importer in non-resident stamp, Registration certificate of Board of Investment Declaration of total production capacity, Updated valid trade license, Import and export registration certificate, Tax and VAT registration certificate List of machineries used in the factory, Copy of insurance policy of the factory. SN AWRYNS Q. What type of information are generally required to be provided in IT-IL ie, in return by an individual tax payer? ICMA- APR’09 Ans. As per ITO, 1984 an individual tax payer is generally required to provide the following basic information in IT-II a) Information about residence, whether: i) Resides is the house owned by the assessee ii) Resides in the rented house iii) Resides in a house provided by the employer iv) House furnished by the employer or self furnished Sabolil Academy Professional Questions Bank Page 34b) Information regarding vehicle, whether: i) Vehicle is owned by the assessee or owned by the employer ii) Expense for maintenance or the vehicle borne by the assessee or by the employer iii) Type of vehicle c) Annual expense on electricity d) Information regarding children (if any) studying in a school, college or university stating the same of the institute, number of children, and expenditure during the year. e) Information regarding foreign visit(s) during the year. Legal Environment of Business — 30 FRAN Sl AN A A SAT L Sabolil Academy Professional Questions Bank Page 35wT Tee Ia sniffer Baca HTN (AQT TENT TAMA) WTA Gay TIGA RIT CRT PHA2 OSFS$OI0Wd, OSCS$$VI0Vd Mathematical Part Sabolil Academy Professional Questions Bank Page 36Assessment of companies Code: PQB 029 Sabolil Academy Professional Questions Bank Page 37Ql. HSB Lid., a bank incorporated in Bangladesh, has submitted the following audited income statement showing profit before tax of Tk.558,000 for the income year 2014-2015 when tax rate was 40%. You have been provided with the notes supporting the figures to compute the tax liability of the bank for the respective assessment year Particulars: Taka] Takal Trierest income Interest paid on deposits and borrowings etc. Net interest income Income from investments Commission, exchange and brokerage Other operating income Total Operating Income (A) Less: Operating expenses Payment to employees (Including entertainment) 215,000 Postage and telegrams: 5.000 Rent fates and insurance etc. 11:00 Lege charges 2'000| Directors fees 2.000] Autor fees 4000 Repairs to premises (including depreciation) 0,000} Stationery, printing and advertisements 2000 Stamps 3}009| Charges on loan losses 5.009| vot Set exbenses of business 15,000] otal Operating Expenses Prof oss) Before Provan (6) = (AB) Provisions: ‘Specific provsion 42,000 GRheral provsion 361000 Total provision (D) Total Profiti(Loss) Before Taxes (C-D) 350,000, 100.000 81000 ‘307,000 Supporting Information: a. Accounting depreciation charged was Tk. 50,000 whereas tax depreciation is Tk 80,000 b. Inadmissible expenses have been found as follows: Perquisites Tk. 50,000 Printing and Advertisement (capital nature) 40,000 Other expenses (tax is not deducted at sources) 10,000 c. Balance Sheet (extract): Paid-up Capital 2,000,000 Statutory Reserve 750,000 Retained Earnings 250,000 Dividend Equalization Fund 200,000 d. Classification of Loans and Advances tk Unclassified 2,100,000 Sub-standard 850,000 Doubiful 1,145,000 Bad/Loss 10,250,000 Income tax authority accepted bad debts as loan losses to the extent of Tk.5,000, e. Entertainment Expenses amounted to Tk.65,000 for the period. CMA Exam- Dee’15 Sabolil Academy Professional Questions Bank Page 38Q-2. From the following Profit and Loss Account for the year ended on 30th June 2014 of Ziska Pharmaceuticals Limited determine total income and tax liability Ziska Pharmaceuticals Limited Profit and Loss Account For the year ended on June 30, 2014 Dr. Cr Particulars ‘Taka Particulars ‘Taka Director's Remuneration 2,30,000 Gross profit 18,75,000| Salaries & Wages 5,00.260 Dividend Income 150,000} Contribution to Provident Fund 44,000 Share Premium 150,000] Rent & Taxes 1,22,500 Sundry Income 65,000] Repairs and Operating Expenses 136,500 Loss on Sale of Supplies 87,500 Insurance 40,000 Legal Expenses 72.500 Audit Fees 29,000 Printing, Stationery and Postage 73,000 ‘Compensation for Termination of a Stat 50,000 ‘Typewriter 29,740 Advertisement 71,000 Scientific Research Expense 37,500 Provision for Bad Debt 22,000 Depreciation 2,33,000 Net Profit 4,61.500 22,40,000 0] Other Tnformation: 1, During the year the company sold some of its supplies that remained unused for a long time in the storeroom. The company sold the supplies for a loss of Tk.87,500 as the expiry period is very close and charged such loss against current years profit. 2. The company has a trading liability with one overseas company to the tune of Tk.20,000 which has been totally waived by the overseas company under special agreement during the year. 3. Rent and Taxes included VAT of Tk. 21,000 which was paid for importing a machine and it was not used during the relevant year. 4, Legal expenses included a sum of Tk. 50,000 spent for income tax appeal 5. Provident fund is recognized by the income tax authority. 6. The company recovered Tk.10,000 from bad debt that was written off earlier and was allowed. The amount so recovered was credited to sundry debtors account. 7, Allowable depreciation Tk.2,92,000. 8. Repairs and operating expenses included Tk. 30,000 spent for installation of a second hand air conditioner in the flat of MD. 9, Sum of Tk.37,500 paid to an institution for the scientific research which is not approved NBR CMA Exam- Aug’15 Sabolil Academy Professional Questions Bank Page 39Q-3. M/S. Maple Leaf International is a multinational company doing business in Bangladesh. The company filed return of income for the assessment year 2014-2015 showing net income of Tk. 30,00,000. Examination of the audited statement of accounts filed with the return of income revealed the following: (i) Salary includes Tk.3,30,000 paid to a Director working at the head office at California. He has never visited Bangladesh and no tax, as such, has been deducted at the time of making the payment (ii) Head office expenses charged Tk.11,00,000. No evidence could be produced for this other than HO auditor's certificate (iii) Fine Tk. 11,000 paid for violation of customs law charged to P& L Account. (iv) Two Nissan Petrol Jeeps purchased for Tk. 45,00,000 during the year. Depreciation @20% charged on the full cost of the vehicles. (v) To procure business Tk. 10,00,000 has been paid as commission to a local agent. In making the payment, the provision of section 53E of. LT. Ordinance, 1984 has not been complied with (vi) The company sold a motor vehicle for Tk. 4,65,000. Original cost of the vehicle was Tk. 5,25,000 and the written down value was Tk.3,25,000. This has not been reflected in the accounts. (vii) Tk. 15,000 donated to a non-recognized school. (viii) Miscellaneous expenses include Tk. 72,000 paid as salaries to three servants who are working at the residence of the Managing Director. (ix) Conveyance expenses include Tk, 2,20,000 paid for the plane fare of the wife and son of the Managing Director for the visit of the neighboring countries. (x) Interest expense claimed at Tk. 33,50,000. The company has outstanding bank loan of Tk. 2.10 crores. The company advanced Tk. 75,00,000 interest-free Joan to a sister-concern in Bangladesh. From the above information compute total income of the company for tax purpose. CMA Exam- Dee’ 14 Sabolil Academy Professional Questions Bank Page 40Q-4. Given below is the Profit & Loss A/c of Ananya Textiles Ltd., Savar, for the year ended June 30, 2014 Particulars Cotton’ Stores Mills salaries & wages General expenses Replacement of plant machinery Stamp duty registration legal fees, ete Motor car overhauling expenses Purchase of two paintings for M_D's office X-Mass gifts given to the foreign Contractor Refreshment, food, drinks, etc. at once of its business meetings Expenditure incurred on catering and refreshments for shareholders and guests at general body meeting Donation Rates & insurance Office expenses Directors’ Fees Auditor's Fees Interest Repairs to building & machinery Trade penalties, legal expenses & professional charges Entertainment Workmen's welfare expenditure Contribution to staff provident fund Provision for gratuity Reserve for meeting contingent Liability Loss for discarding ageing Machinery Selling agent's commission Net profit Taka 1,14,17,950 18,35,648 38,31,984 29,010 20,39,000 2,50,000 15,000 30,000 10,000 25,400 50,600 10,000 40,376 2,40,694 9,000 30,000 2,11,850 124,556 1,20,000 249,700 53,184 75,500 150,000 30,000 2,05,397 2,01,690 10,69,339 2.23,57,.878 Particulars ‘Taka Sale of yarn 1,08,11,956 Sale of textile products 1,09,26,425 Export subsidy incentive 4,07.687 Sale of waste 1,21,508 Rent of bungalows 57,902 Dividend 17,400 Interest on Savings Certificate 15,000 2.23,57.878 Sabolil Academy Professional Questions Bank Page 41Compute the company’s total income and tax liability for the a 2014-2015 taking into account: i) Sale of textile products includes Tk. 89,249 from export, ii) Payment of Mills salaries includes Tk. 75,000 for payment of tax for a foreign technician engaged by the company: iii) Expenses for stump duty, registration, legal fees, etc. amounting to Tk 2,50,000 have incurred in raising loans, iv) Rates Tk. 1,800, Insurance Tk. 2,500 and Repairs to building Tk. 7,544 are in respect of bungalows: v) The break-up of trade penalties, legal expenses and professional charges for Tk. 1,20,000 is as follows: a) Trade penalties and law expenses constitute Tk. 20,000 b) Assessee company has spent Tk. 50,000 for successfully defending all allegations of black-marketing ¢) Professional charges include Tk. 20,000 paid to an income tax practitioner to represent the case to the Deputy Commissioner of Taxes and Tk. 30,000 to represent an Income Tax Appeal before Appellate Tribunal vi) Donation includes Tk. 5,000 contribution to Zakat Fund; vii) The staff provident fund is a recognized one; viii) It is found that the amount of gratuity actually paid during the year was Tk. 1,00,000; ix) Dividend income is after TDS; x) The amount of depreciation allowable for assets used for the company's business is worked out at Tk. 5,51,710; xi) It is revealed that outstanding trading liabilities amount to Tk. 11,00,000. The date of origin of the trading liabilities are as follows: Taka a) Assessment year 2005-2006 3,50,000 b) Assessment year 2006-2007 3,00,000 c) Assessment year 2007-2008 1,50,000 d) Assessment year 2008-2009 3.00.000 11,00.000 CMA Exam- Aug’ 14 Sabolil Academy Professional Questions Bank Page 42Q-5. The following adjusted accounts appeared in the records of ABC Ltd. for the year ended December 31, 2012. Numbers in brackets refer to the items in Additional Information. Revenues and gains Tk.000 Net sales 126,000 Interest 1,000 (1) Gain on sale of shares 2.500 (2) 1,30.000 Cost and Expenses Cost of goods sold 65,300, Salaries and wages 26,000 (3) Security services 300 (4) Audit and taxation services 500 Office rent 600 Donations 1,800 (5) Board meeting attendance 300 (6) fee Other expenses 3,000 (7) Depreciation 8,000 (8) Corporate income tax 4500 (9) Total 110,300 Net profit 19.700 Dividends paid 9,000 (10) Additional Information: (1) Interest revenue comprises interest on government bonds issued in 2009 and purchased by ABC Ltd. in 2012. (2) Gain on sale of shares arose from the following purchase and sale of shares of a company listed with DSE and CSE Bought in 2010 cost Tk.12,00,000 Sold in 2012 proceeds of sale Tk.37,00,000 (3) Salaries and wages include inter alia salary of Finance Manager Tk.6,00,000 (consolidated) paid in cash (not by cheque or bank transfer), gratuity (unapproved) provision of Tk.15,00,000 and gratuity payment of Tk.10,00,000 (4) Security service include payments to a private security company. No VAT was deducted at source from such payments. (5) Donations were all paid in 2012 to ICMAB, specially designated for the purchase of library books, computers and training materials (6) No income tax and VAT was deducted at source from Board meeting attendance fee paid to 10(ten) directors. Sabolil Academy Professional Questions Bank Page 43(7) Other expenses include inter alia: (a) Entertainment expenses of Tk.5,00,00 spent on MD’s birthday party; and (b) Four foreign travels of MD, each costing Tk.2,00,000. All foreign trips were for business purposes. (8) ABC ltd. has always used written down value depreciation and same depreciation rates for both accounts and tax purposes. (9) Corporate income tax is the amount estimated before preparation of the tax return, 60% of the estimated amount of tax has been paid as advance tax during the year 2012 (10) Dividends has been paid at the rate of 25%. The company has a capital loss of Tk.10,00,000 carried forward from the assessment year 2010-2011 ABC Ltd. is a publicly traded company. Required: Compute the total income and the total income tax liability of ABC Ltd. while making the above computations, any no-compliances of the relevant provisions of the tax laws (income tax as well as VAT) by the company are to be considered strictly in accordance with the legal provisions for such non- compliances. If considered necessary, you may make assumptions in the light of the relevant tax provisions. CMA Exam- Apr’ 14 Sabolil Academy Professional Questions Bank Page 44Q-6. The profit and loss account of Care Pharmaceuticals for the year ended on June 30, 2013 reports net income of Tk. 20,00,000. A careful scrutiny of accounts and supporting documents revealed the following facts: (a) During the year the company sold some of its pharmaceutical supplies that remained unused for a long time in the storeroom. The company sold the supplies for a loss of Tk. 150,000 as the expiry period is very close and charged such loss against current year’s profit The company recovered Tk. 20,000 from bad debt that was written off earlier and was allowed. The amount so recovered was credited to sundry debtors account. (c) The company had Tk. 80,000 interests due to Bangladesh Development Bank Ltd. in the income year 2008-09 and such interest was shown as allowable deduction in that year. Still, such interest remains unpaid. (d) The company has a trading liability with one overseas company to the tune of Tk. 1,50,000 which has been totally waived by the overseas company under special agreement during this year During the year, the company sold one equipment for Tk. 1,80,000 which was purchased at a total cost of Tk. 1,30,000 and had a written down value of Tk. 90,000 on the date of sale. The company reports Tk. 90,000 as gain ‘on sale of equipment in the credit side of profit and loss account. (f) Due to a sudden fire on the factory building, the extended portion of the building is totally destroyed and compensation received from the insurance company totaled Tk. 2,50,000. In addition, the company realized an additional sum of taka 30,000 by selling the scrap. The extension was constructed at a total cost of Tk. 4,00,000 and depreciation charged to date amounts to Tk. 50,000 The company sold a scientific apparatus used for scientific research for Tk 80,000 which was originally purchased at Tk. 1,50,000 and fully depreciated. The sale proceed is not recorded at all (h) The company have had export quota for exporting garments to EU countries. As the company has recently changed the line of operation (switched from garments manufacturing to pharmaceuticals), it transferred the export quota to another garments manufacturer for an annual sum of Tk. 70,000. Such income is not reported at all. (i) The company claimed investment allowance for new machinery installed during the year costing Tk. 10,00,000 which is entitled to accelerated depreciation. (b) fe (g) Sabolil Academy Professional Questions Bank Page 45Gj) Bonus and commission to the field representatives at the rate of 4 months pay Tk. 3,00,000 including 1 month’s pay as festival bonus. But the general practice of bonus and commission for the similar business is two months pay. (k) Sum of Tk. 1,20,000 paid to an institution for scientific research which is not approved by NBR. (1) Sum of Tk. 5,00,000 expended for establishing a hospital for the benefit of employees without any charge. The company has not claimed any other deduction or allowance. (m) Salary of Tk. 5,00,000 and rent of Tk. 80,000 were paid without deducting tax at source. (0 Payment of brokerage and commission of Tk. 60,000 made to a non- resident without deducting tax at source. (0) Annual perquisites enjoyed by MD, Chairman and 5 members of Board of Director amounts to Tk. 22,00,000. (p) Accounting depreciation charged to the account is Tk. 2,50,000 but tax depreciation amounts to taka 3,00,000 excluding the amount of accelerated depreciation on machinery Value of the free sample distributed was Tk. 2,00,000. Annual turnover during the year was Tk. 80,00,000 (0) Expenditure on foreign travels for holidaying and recreation of the employees and their dependents to the extent of the amount equivalent to three months basic salary of Tk. 3,60,000; actual expenditure being Tk 4,00,000 and that the travel was not oftener than once in two years. (s) Sum of Tk. 50,000 expended to train employees (Bangladeshi citizen) in connection with a scheme approved by the Board. (t) The company expensed a sum of Tk. 2,00,000 for visits abroad as a member of trade delegation sponsored by the government. {u) Annual membership fee of Tk. 1,50,000 is paid to Bangladesh Pharmaceutical Society which is a professional institution recognized by the Board. (v)_ Expenditure on publicity and advertisement, Tk. 3,00,000 (w) Entertainment expenditure, Tk. 1,50,000. q Required: Compute the total income of the company. CMA Exam- Dee’13 Sabolil Academy Professional Questions Bank Page 46Q-7. From the following Profit and Loss Account of PQ Ltd. for the year ended on 30 June 2013, determine total income and tax liability: Profit and Loss Account Taka Taka Director’s Remuneration 46,000 Gross profit 4,75,000] Salaries & Wages 1,00,052 Dividend Income 30,00 Contribution to Provident Fund 8,800 Share Premium 30,000) Rent & Taxes 24,500 Sundry Income 13,000) Repairs and Operating Expenses 27,300 Capital gain on sale of machine 40,000) Electricity 17,500 Insurance 8,000 Legal Expenses 14,500 Audit Fee 5,800 Printing, Stationery and Postage 14,600 Compensation for Termination ofa StafP 10,000 Typewriter 5,948 Advertisement 12,200 Entertainment 9,500 Provision for Bad Debt 4,400 Depreciation 46,600 Net Profit 232,300 5,88,000 5.88.00 a) Rent and Taxes included Value Added Tax (VAT) of Tk. 4,200/- which was paid for importing a machine and it was not used during the relevant year. b) Legal expenses included a sum of Tk. 10,000/- spent for income tax appeal g} Provident Fund is recognized by the Income Tax Authority. d) Bad debt written off previously was recovered during the year Tk. 2,000/- e) Allowable tax depreciation Tk. 58,400/- £) Repairs and operating expenses included Tk. 6,000/- spent for installation of a second hand air conditioner in the residence of Managing Director. g) Entertainment expenses included Tk. 2,000/- for which no clear explanation was available and miscellaneous expenses of Tk. 5,276/- which proved to be personal expenses of a Manager. h) Company declared dividend @ 22% on paid up capital for the shareholders. i) The Company is a trading company and not listed in any stock Exchange CMA Exam- Aug’13 Sabolil Academy Professional Questions Bank Page 47Q-8. M/S. ABC Ltd. is a Public Limited Industrial Company and its shares are regularly traded in Stock Exchanges in Bangladesh. Its total income has been assessed to Tk. 25,50,000 for the assessment year 2012-2013. The above total income includes Dividend Income of Tk. 1,00,000 and Capital Gain of Tk. 1,50,000. The company declared and paid 25% cash dividend to its shareholders. Required: Calculate the tax liability of the company, CMA Exam- Apr’13 Q-9. MPH Company’s following information is available with you. i Donation for CSR activities Tk.10,000,600 (charged in income statement) ii, Profit as per audited statement of accounts _Tk. 100,000,000 Compute the tax to be paid by the Company, which is an unlisted industrial ‘company. CMA Exam- Dee’12 10. The following items, among others, are debited to profit and loss aecount of Rose Cement Ltd. for the year ended 30 June 2012 1, Commission (Brokerage) paid for placing the shares of the Company Tk. 1,00,000 2. Compensation to forcedly retired official Mr. A. Malek ‘Tk. 2,00,000 (He is found puity of improper conduct, He ad five. years appointment. rectors agreed to pay him on retirement so that he was got rid of) 3. Capital expenditure on Hospital for employees of the Company Tk. 20,00.000 4 Trade penalties and law expenses (for infringement of the Cusioms Law) Tk. 300,000 5. Anticipated loss written off (assuming that the loss might occur) ‘Tk. $,00,000 ‘The Directors of the Company invite your opinion as to which items are deductible in computing the total income of the company for the assessment year 2012-2013 CMA Exam- Dec’ 12 Sabolil Academy Professional Questions Bank Page 48QI], ABC Bank Ltd. a bank incorporated in Bangladesh, has submitted the following audited income statement showing profit before tax of Tk.258,000 for the income year 2011- 2012 You have been provided with the notes supporting the figures to compute the tax liability of the bank for the respective assessment year: Particulars: ‘Amount (Tk) Thlerest income Interest paid on deposits and borrowings etc. Net interest income Income from investments Commission, exchange and brokerage Other operating income (20+61) ‘Total Operating Income (A) Less: Operating expenses Payment to employees 245,000) Postage and telegrams 3.000] Rent, rates and insurance etc. 11,000] Legai charges 2,000) Directors’ fees 2,009] ‘Auditors’ fees 7,000] Repairs to premises 60,009] ‘Stationery, printing and advertisement 72,000} Stamps 3,009] Charges on loan losses 5,009] Other expenses of business 15,000} ‘Total Operating Expenses (B) Profiv(Loss) Before Provision (C=A-B) Provisions: ‘Specific provision 42,000] General provision 30,000} Total provision (D) Total Profitl(Loss) Before Taxes (C-D) Supporting Information: ‘a. Accounting depreciation charged was Tk, 50,000 whereas tax depreciation is Tk.80,000 b, Inadmissible expenses have been found as follows’ Perquisites ‘Tk. $0,000 Printing and Advertisement (capital nature) 40,000 Other expenses (tax is not deducted at sources) 10,000 c. Balance Sheet (extract): Paid-up Capital Tk. 2,000,000 Statutory Reserve 750,000 Retained Earnings 250,000 Dividend Equalization Fund 200,000 d. Classification of Loans and Advances Unclassified Tk. 2,100,000 Sub-standard 850,000 Doubiful 1,145,000 Bad/Loss 10,250,000 Income tax authority accepted bad debts as loan losses to the extent of Tk 5,000. e. Entertainment Expenses amounted to Tk.65,000 for the period. CMA Exam- Dec’12 Sabolil Academy Professional Questions Bank Page 49Q-12. From the following Profit & Loss Account of Oman Bank, a non-resident bank, for the year ended on 31/12/2011, compute total income and tax liability: Particulars Debit (Tk Particulars Credit TK} Thterest and Salaries and allowances 20,00,000] Commission 1,20,00,000 Gain from sale of old Interest on deposit 40,00,000] car 10,00,000 Car maintenance 5,00,000] Head office expenses as per allocation by head office) | 3,00,000 Bad debt 6,00,000] Provision for bad debt 4,00,000] Audit fee 2,00.00 Depreciation 15,00,001 Technical fee 1,00,001 Scholarship to poor students 8,00,00 Special reserve 2,00,00 Advertisement 7,00,00 Entertainment 8,00,00 Traveling (a)_ within the country 50,00 outside the county (including head office tour) 4,50,000 Net profit 4,00,000 1,30,00.000, 1,30,00,001 nal Infor (1) Salaries and allowances include incentive bonus to employees Tk 3,00,000. (2) VAT at source was not deducted from car workshop bill of Tk. 2,00,000. (3) Provision for bad debt is within 1% of classified loan. (4) Tax depreciation as per tax law is Tk. 10.00,000. (5) Advertisement bill paid to advertisement agency for periodic advertisement to private TV channel. No tax at source was deducted from the bill because agent submitted their bill without any break-up of commission (6) The car sold was purchased 5 years ago at Tk.50,00,000 and its book value (assumed to be written down value as per tax law) was Tk.25,00,000 at the time of sale at Tk.35,00,000 CMA Exam- Aug’12 Sabolil Academy Professional Questions Bank Page 50Q-13. The profit and loss account of Beacon Pharmaceuticals for the year ended on June 30, 2011 reports net income of Tk. 20,00,000. A careful scrutiny of accounts and supporting documents revealed the following facts: (a) During the year the company sold some of its pharmaceutical supplies that remained unused for a long time in the storeroom. The company sold the supplies for a loss of Tk. 1,50,000 as the expiry period is very close and charged such loss against current year’s profit. (b) The company recovered Tk. 20,000 from bad debt that was written off earlier and was allowed as deduction. The amount so recovered was credited to sundry debtors account (c)The company had Tk. 80,000 interests due to Bangladesh Development Bank in the year 2006-2007 and such interest was shown as allowable deduction in that year. Still such interest remains unpaid. (d) The company has a trading liability with one overseas company to the tune of Tk. 1,50,000 which has been totally waived by the overseas company under special agreement during the year. But the company is yet to show it in its accounts. (e) During the year, the company sold an equipment for Tk. 1,80,000 which was purchased at a total cost of Tk. 1,30,000 and had a written down value of Tk. 90,000 on the date of sale. The company reported Tk. 90,000 as gain on sale of equipment in the credit side of profit and loss account. (f) Due to a sudden fire on the factory building, the extended portion of the building is totally destroyed and compensation received from the insurance company totaled Tk. 2,50,000. In addition, the company realized an additional sum of Tk. 30,000 by selling the scrap. The extension was constructed at a total cost of Tk. 4,00,000 and depreciation charge to date amounts to Tk. 80,000. The loss has been charged in the profit & loss account (g) The company sold a scientific apparatus used for scientific research for Tk 80,000 which was originally purchased at Tk. 1,50,000 and fully depreciated. The sale proceed is not recorded at all. (h) The company have had export quota for exporting garments to EU countries. ‘As the company has recently changed the line of operation (switched from garments manufacturing to pharmaceuticals), it transferred the export quota to another garments manufacturer for an annual sum of Tk. 70,000. The export value of such quota is Tk. 25,00,000. Such income is not reported at all. (i) Bonus and commission to the field representatives amounted to Tk. 3,00,000 at the rate of 5 months’ pay including 1 month’s pay as festival bonus. But the general practice of bonus and commission for the similar business is two months’ pay as commission plus | month’s pay as festival bonus. () Sum of Tk. 1,20,000 paid to an institution for scientific research, which is not approved by NBR. (k) Sum of Tk. 5,00,000 expended for establishing a hospital for the benefit of employees without any charge. The company has charged it in the profit & loss account as hospital expenditure and not claimed any other deduction or allowance. Sabolil Academy Professional Questions Bank Page 51(I) Salary of Tk. 5,00,000 and rent of Tk. 80,000 were paid without deduction at source. (m) Payment of brokerage and commission of Tk. 60,000 made to a non- resident without deducting tax at source. (n) Annual perquisites enjoyed equally by the MD, the Chairman and 5 Members of Board of Directors amount to Tk. 25,50,000. (0) Accounting depreciation charged to the amount is Tk. 2,50,000 but tax depreciation amounts to Tk. 3,00,000. (p) Value of the free sample distributed was Tk. 3,00,000. Annual turnover during the year was Tk. 1,30,00,000. (q) Expenditure on foreign travels for holidaying and recreation of the employees and their dependents to the extent of the amount equivalent to three months’ basic salary of Tk. 3,60,000; actual expenditure being Tk. 4,00,000 and that the travel was not oftener than once in two years. (1) Sum of Tk. 50,000 expended to train employees (Bangladeshi citizen) in connection with a scheme approved by the NBR and shown in profit & loss account, (s) The company charged a sum of Tk. 2,00,000 for visits abroad as a member of trade delegation sponsored by the government in the profit & loss account. (t) Annual membership fee of Tk. 1.50,000 is paid to Bangladesh Pharmaceutical Society, which is a professional institution, recognized by the NBR and charged in profit & loss account. (u) Expenditure on publicity and advertisement amounting to Tk. 3,00,000 charged in profit & loss account was accepted by the NBR (v) Entertainment expenditure, Tk. 1,50,000 Required: Compute the taxable income of the company. CMA Exam- Apr’12 Sabolil Academy Professional Questions Bank Page 52Q-14. You are given the following Profit and Loss Account of ABC Company for the year ended 31st December, 2010: Dr. Cr. [Particulars Takal Particulars Taka| To Cost of Goods Sold By Sales, 89, 80,000) [35,00,000] 80, Salaries and Allowances [4250000] Dividend 16,000 ‘ent and Electricity 1/90,000] * Interest on Bank Deposit }| 14,400 ” Telephone and Postage 30,000) ” Profit on Sale on ” Interest on Loan 35,000] Machineries 30,000} » Traveling Allowance 25,000} Interest on Government ” Legal Expenses 14,000) Securities 10,000} » Advertisement 31,000] Sundry Incomes 5,000 > Charit 10.000| * Refund of Income Tax 30.000 ” Audit Fees 25,000] Bad Debt Recovered 71,600 ” Income Tax paid in Advance | 2,00,000} ines 20,000} ” Contribution to Provident Fund 20,000] ” Entertainment 54,000} ” Depreciation 1,80,000 ” Net Profit 5,73,000} 91.57.000] 91.57.00 (1) Depreciation allowed by income tax authority was Tk. 1,15,000. (2) Salaries and Allowances included Tk. 10,50,000 from which taxes were not deducted at source. Moreover excess perquisites were given Tk. 3,70,000. All salaries were paid in cash. Salaries included incentive bonus Tk.6,00,000. An employee’s minimum monthly salary was Tk.15,000 (3) Interest on loan was given to a sister concern. The loan amount was Tk. 3,50,000 though it was not received through bank transfer or crossed cheque but it was properly reflected in both the audited accounts. (4) Legal expenses included Tk. 10,000 paid for Income Tax Appeal (5) Travelling allowance included Tk. 20,000 paid to the General Manager for Overseas traveling in connection with business. (6) The machine sold was purchased six years ago and its book value was Tk 42,000 but its written down value as per Income Tax law was Tk.12,000. The cost price and the sales price of the machine were Tk. 62,000 and Tk. 72,000 respectively. Required: Determine the Tax Liability of the Company (applying tax rate first and then minimum tax on gross receipt) assuming it to be a listed company CMA Exam- Aug’I1 Sabolil Academy Professional Questions Bank Page 53Q-15. M/S John Morris Inc. is a multinational company doing business in Bangladesh Branch. The company filed return of income for the assessment year 2009-2010 showing income at Tk. 30,00,000. Examination of the audited statement of accounts filed with the return of income revealed the following:- (a) Salary includes Tk.3,30,000 paid to a Director working at the head office at California. He has never visited Bangladesh and no tax, as such, has been deducted at the time of making the payment. (b) Head office expenses charged Tk.11,00,000. No evidence could be produced for this other than HO auditor’s certificate. (c) Fine Tk. 11,000 paid for violation of customs law charged to P& L Account. (d) Two Nissan Petrol Jeeps purchased for Tk. 45,00,000 during the year Depreciation @20% charged on the full cost of the vehicles (e) To procure business Tk. 10,00,000 has been paid as commission to a local agent. In making the payment, the provision of section 53E of. LT. Ordinance, 1984 has not been complied with. (f) The company sold a motor vehicle for Tk. 4,65,000. Original cost of the vehicle was Tk. 5,25,000 and the written down value was Tk,. 325,000 This has not been reflected in the accounts. (g) Tk. 15,000 donated to a non-recognized school (h) Miscellaneous expenses include Tk. 72,000 paid as salaries to three servants who are working at the residence of the Managing Director (i) Conveyance expenses include Tk, 2,20,000 paid for the plane fare of the wife and son of the Managing Director for the visit of the neighboring countries. (j) Interest expense claimed at Tk. 33,50,000. The company has outstanding bank loan of Tk. 2.10 crores. The company advanced Tk. 75,00.000 interest-free loan to a sister concern in Bangladesh. From the above information compute the total income and tax liability of the company for tax purpose. CMA Exam- Dec’09 Sabolil Academy Professional Questions Bank Page 54Q-16. Given below is the Profit & Loss A/e of M/s APS Textile Mills Ltd., Savar, for the year ended 30th June 2009. Particulars Cotton Stores Mills salaries & wages General expenses Replacement of plant Machinery Stamp duty registration legal fees, ete Motor car overhauling expenses Purchase of two paintings for MD's office X-Mass gifts given to the foreign Contractor Refreshment, food, drinks, etc. at once of its business meetings Expenditure incurred on catering and refreshments for shareholders and guests at general body meeting Donation Rates & insurance Office expenses Directors’ fees Auditor's Interest Repairs to building & machinery Trade penalties, legal expenses & professional charges Workmen's welfare expenditure Contribution to staff provident fund Provision for gratuity Reserve for meeting contingent liability Loss for discarding ageing Machinery Selling agent's commission Net profit (subject to depreciation) Taka 1,14,17,950 18,35,648 38,31,984 29,010 20,39,000 2,50,000 15,000 30,000 10,000 25,400 50,600 10,000 40,376 2,40,694 30,000 9,000 2,11,850 1,24,556 1,20,000 55,184 75,500 1,50,000 30,000 2,05,397 2,01,690 13,19,039 2.23.57878 Particulars Sale of yarn Sale of textile produets Export subsidy/ incentive received in cash Sale of waste Rent of bungalow Dividend Interest on PSP Taka 1,08,11,956 1,09,26.425 4,07,687 121,508 57,902 17,400 15,000 Sabolil Academy Professional Questions Bank Page 55From the foregoing, compute the company's taxable income from business, the total income (computation should include necessary reasons) and tax liability for the assessment year 2009-2010 taking into account: (a) Sale of textile products includes Tk. 89,13,249 from export; (b) Payment of Mills salaries includes Tk. 75.000 for payment of tax for a foreign technician engaged by the company; (c ) Expenses for stump duty, registration, legal fees, etc. amounting to Tk. 2,50,000 have incurred in raising loans; (d) Rates Tk. 1,800, Insurance Tk. 2,500 and Repairs to building Tk. 7.544 are in respect of bungalows; (c) The break-up of trade penalties, legal expenses and professional charges for Tk. 1,20,000 is as follows: i. Trade penalties and law expenses constitute Tk. 20,000 ii, Assessee company has spent Tk. 50,000 for successfully defending all allegations of black-marketing iii, Professional charges include Tk. 20,000 paid to an income tax practitioner to represent the case to the Deputy Commissioner of Taxes and Tk. 30,000 to represent an Income Tax Appeal before Appellate Tribunal (£) Donation includes Tk. 5,000 contribution to Zakat Fund: (g) The staff provident fund is a recognized one: (h) It is found that the amount of gratuity actually paid during the year was Tk 1,00,000; (i) Dividend income has been subject to dividend distribution tax; Gj) The amount of depreciation allowable for assets used for the company's business is worked out at Tk. 5,51,710: (k) It is revealed that outstanding trading liabilities amount to Tk. 11,00,000. The date of origin of the trading liabilities are as follows: Taka i. Assessment year 2005-2006 3,50,000 ii, Assessment year 2006-2007 3,00,000 iii, Assessment year 2007-2008 1,50,000 iv. Assessment year 2008-2009 3,00,000 11,00.,000 CMA Exam- Aug’09 Sabolil Academy Professional Questions Bank Page 56Assessment of individuals Code: PQB 028 Sabolil Academy Professional Questions Bank Page 57Q-1. Mr. Joynal Abedin works in Bangladesh as an officer in a Multinational Company, headquartered in the USA. His sources of income for the year ended on 30" June, 2013 were as follows: a. Income from Salary: 1. Basic Salary Tk. 15,000 per month. 2. _Dearness allowance 10% of the basic salary 3. Two bonuses equivalent to two months’ basic salary. 4. Medical allowance Tk. 1,000 per month (actual expense for the year Tk. 10,000) 5. Entertainment allowance Tk. 200 per month 6. He has been provided with a free car both for official and personal uses. 7. He has also been provided with a rent free quarter municipal value of which is Tk. 80,000, 8. Travel allowance as a part of his contract Tk. 1,00,000; from where he saved ‘Tk. 10,000. 9. He contributes 10% of his basic salary to a Recognized Provident Fund (RPF). His employer also contributed the same 10. During the year, he received interest of Tk. 1,800 @ 12% on RPF. 11. He has taken one month's basic salary as advance in the month of June to meet up ‘some of his financial difficulties. b. Interest on Securities: 4. Interest on tax-free government securities Tk. 3,000 2. Interest on less-tax government securities Tk. 2,700. 3. Interest on approved debentures Tk. 27,300. He has borrowed Tk. 20,000 @ 10% interest to purchase it. Bank also charged Tk. 400 to collect the interest. c. Income from House Properties: He owns a two-storied house in Dhanmondi. He stays in one floor with his family and another floor is let out for residential purpose at a rate of Tk. 9,000 per month. The municipal value of the house is Tk. 2,00,000 per annum. During the year he spent the following expenses for the whole house: Repair expense Tk. 2,000 Insurance expense Tk. 4,000 Land development tax Tk. 1,500 ‘Sewerage and utilities expense Tk. 1,000 Payment of DBH Loan installment (including interest of Tk.500) ‘Tk. 5,000 During the year, the house has remained vacant for two months 4. Agricultural income: Sale of crops Tk. 5,000 Income from barga Tk. 2,000 e. Share of profit from a partnership firm Tk. 10,000(firm paid no tax thereon) f. Income of spouse and minor child Tk. 40,000 g. He won Prize Bond lottery of Tk. 3,00,000 [tax deducted at source (TDS) @ 20% - from it} h. During the year Mr. Abedin visited South Korea as a consultant and generated income of Tk. 5,00,000 and he paid income tax @ 25% in South Korea. He brought 2,50,000 to Bangladesh through bank. From another visit to Russia he generated income of Tk. 3,00,000 and paid income tax there @ 20% Bangladesh has DTAA (Double Taxation Avoidance Agreement) with South Korea, but not with Russia Sabolil Academy Professional Questions Bank Page 58i, Income from business and profession Profit from sole-proprietorship business Tk. 4,000; last year’s loss carried forwarded Tk. 1,000. j. Income from other sources: 1. Interest income from fixed deposit account Tk. 4,500(net of TDS @ 10%) 2. Profit from Islami bank Tk. 900 (net of TDS @ 10%) 3. Dividend from ICB Mutual Fund Tk. 31,500(net of TDS @ 10%) 4. Dividend from a listed company share Tk. 1,800(net of TDS @ 10%) 5. Sale of forest timber Tk. 2,000 Investment claimed by Mr. Abedin: 1. Payment of life insurance premium Tk. 8,000 (Policy value Tk. 100,000) 2. Purchase ofa listed company's primary share Tk. 5,000 3. Purchase of books and magazines Tk. 1,000 4. Purchase of a share of co-operative society Tk. 2,000 5. Contribution to Government Zakat Fund Tk. 2,500 6. Purchase of Fumiture Tk. 15,000 Based on the above information, calculate Mr. Abedin’s total income and tax liability for the assessment year 2013 -14. CMA Exam- Dee’13 Sabolil Academy Professional Questions Bank Page 59Q-2. From the following particulars compute the total income and tax liability of Mr. X for the income year ending 30 June, 2013:- (a) Salary Income : Basic salary: Tk. 20,000 p.m. Entertainment allowance: 20% of basic salary Bonus: equivalent to 2 months’ basic salary Free accommodation (out of which 1 room was sub-let by Mr. X for Tk.3, 000 p.m), rental value being Tk. 72,000 p.a Medical allowance: Tk. 500 p.m. (actual expense Tk. 8,000) Conveyance allowance: Tk. 3,000 p.m. Subscription to RPF: 10% of basic salary (Employer also contributed the same). (b) Interest on Securities : Interest on SEC approved debenture Tk. 10,000/- Interest on Goverment securities. 70,000/- (TDS @ 10% Tk. 7000/- under upfront system 3 years ago) (©) Income from House Property Mr. X has one residential house — one half of which is let out at a monthly rent of Tk. 50,000/- and the other halt is self-occupied. Following actual expenditures were incurred by Mr. X for the full house:~ Taka Municipal tax 20,000 Repairs and maintenance 60,000 Insurance premium 12,000 Salary of caretaker 30,000 Interest on house building loan ( actually paid Tk. 50,000/-) 147,000 (d)_ Income from Partnership Business 50% share income from a partnership firm is Tk. 1,46,000 (after tax) Firm’s total income was Tk. 3,00,000/- (tax came at Tk. 8,000/-), but the firm did not pay any tax rather it preferred appeal and now it is pending at appeal stage. (©) Capital Gain : Gain from sale of shares of listed companies Tk. 5,27,335/-. () Income from Other Sources Cash dividend (net of tax) from a listed company Tk. 45,000/- Stock dividend of 100 shares (Face value TK. 10 but market price on that day Tk. 1500/-per share), Interest (net of tax) on savings bank account Tk. 5,400 (9) During the year Mr. X made the following investments:- (1) Life insurance premium at the name of his dependent old father Tk 60,000 (Policy Value TK. 500,000); (2) Investment in secondary shares of listed companies Tk. 1,00,000; (3) Donation to Prime Minister's relief fund Tk. 10,000/-. CMA Exam- Aug’13 Sabolil Academy Professional Questions Bank Page 60Q-3. Mr. Rahman, General Manager of ABC Co. Ltd,, a public Limited company, has earned the following income for the year ended June 30, 2012. A. Salary Income () Basie salary p.m Tk. 35,000 (i) Festival bonus Tk. 70,000 (iii) Incentive bonus equal to two months” basic salary (iv) Free furnished accommodation (v)__Employer’s contribution to recognized P.F @ 10% on basie salary. (vi) Provision ofa car which is exclusively for his personal use (vil) Payment of Tk. 15,000 p.a. against his life insurance premium. B. Property Income: Mr. Rahman and his wife owned two house properties of which he resides in one, the annual value of which is Tk. 3,00,000 p.a. and another he rented to Mr. A on which he receives Tk. 3,50,000 p.a. Expenses incurred are as follows: (Tk. 20,000 for seloccupied house (i) City Corporation tax Tk. 50,000 pa and ‘Tk. 30,000 for other) (Tk. 5,000 for self-occupied house Gi) Insurance premium 15,000 pa and Tk. 10,000 for other) (iii) Collection charges 24,000 pa (iv) Water bill (his own portion) 20,000 pa C. Income from other source: (Mr. Rahman has received Tk, 35,000 as director’s fee fiom a company where he is 4 part-time director on which the company paid Tk. 550 VAT. ii) He has received Tk. 40,000 as dividend from a listed company on which tax has been dedueted @ 10% (iii) He has received Tk. 50,000 as interest on Savings Bank A/C on which tax has been dedueted @ 10% Mr. Rahman has invested Tk, 50,000 in purchasing Bangladesh Sanchayapatra during the year. Compute the total income and tax payable of Mr. Rahman mentioning the assessment year. CMA Exam- Aug’12 Sabolil Academy Professional Questions Bank Page 61Q-4. Mr. Kaiser, Managing Director of a multi national company gets the following remuneration, benefits and allowances during the year ended on 30.06.2009: (i) Salary at the rate of Tk.25,000/- per mensem, (ii) Rent free accommodation (unfurnished), company pays the rent @ Tk.30,000/- per mensem; (ii) T.A. & D.A. Tk.1,50,000, residence utility bills Tk.75,000, hospital bills ‘Tk.45,000, club bills Tk.60,000 are all reimbursed by the company; (iv) Performance bonus equivalent to 3 months salary and festival bonus equivalent to 2 months salary are paid; (v) Mr. Kaiser contributes 10% of the basic salary to CPF (recognized) and the company also contributes the same amount. ‘Compute total income of M. Kaiser from the above information, CMA Exam- Apr’10 Q-5. Mr. Ujjal has been working as General Manager in Mazumder & Co. Ltd. During the income year ended June 30, 2008 he has the following income: (a) Basic salary Tk.50,000 p.m; (b) Festival bonus equal to 2 months basic salary; (c) He has been provided with a car for his official and private use with Driver Driver's salary was Tk.7,000 p.m. All expenses of the car were borne by the company (d) He has been provided with a rent-free accomodation which his employer rental for ‘Tk.10,000 p.m. (e) As per terms of the service contract Mr. Ujjal is allowed yearly trip with family at the cost of the company. As per contract all return tickets were provided by the employer. Besides Tk.250,000 was also given to him to meet the expenditure abroad which is also a part of service contract. The value of air tickets were Tk.100,000. He spent Tk.2220,000 out of Tk.250,000 given to him: (f) His entertainment allowance was Tk.3,000 p.m.; (g) Tk.150,000 was paid by the company being his hospitalization and medical expenses during the income year, (h) He has been provided with a Provident Fund facilities @10% on the basic pay: (i) He has also income from agriculture as a bargadar to the tune of Tk.280,000 during this year, (j) He has earned income during the year of Tk.150,000 by giving lecture in different organizations; (k) He has purchased savings certificate during the year of Tk.250,000. Compute his total income and tax liability for the assessment year 2008-2009. CMA Exam- Apr’09 Sabolil Academy Professional Questions Bank Page 62Value Added Tax Code: PQB 028 Sabolil Academy Professional Questions Bank Page 63Q-1. Sumon purchases 100 wall clocks (WC) @ Tk.70 per unit and he sold all these WC to Nikhil at Tk.9,300 where he earns profit of Tk.2,000. After adding value of Tk.30 per unit Nikhil sells these WC in the market. If VAT is same on all these clocks, calculate how much VAT Sumon to pay and what price Nikhil sells these WC in the market. CMA Exam- Dee’ 15 Q-2. Imperial Food Products imported Dry food in December, 2013 of Tk 15,00,000 (C&F value determined by the Bangladesh Customs). The insurance charge is 1.5% of the C&F value, borne by the importer. Thereafter, 2% lending charge is applicable on these goods. Customs duty and supplementary duty rates are 15% and 20% respectively. Calculate the amount of VAT of Imperial Food Products, if VAT rate is 15%, CMA Exam- Aug’14 Q-3. Aramex Ltd imported raw materials of Toys for Tk. 5,00,000 and sold it to Matrix Enterprise Limited for Tk. 580,000. Using these materials Matrix Enterprise manufactured 500 pieces of Toys and sold it to Farhan and Sons Ltd, a wholesaler, for Tk. 620,000. Farhan and Sons sold the toys to a retail seller Tina holdings for Tk. 660,000. Tina Holdings sold all the toys to various customers for Tk. 700,000. In each case and each stage 15% VAT is to be considered. Compute VAT in each case CMA Exam- Aug’14 Q-4, Regent Company produces different consumer products. To produce their products they import some ingredients from China and use some local ingredients. To produce 10000 pieces (pes) of AAA Makeup Box for November 2013 they procured and used following ingredient as per standard practice Ingredient A 1200 kgs by Tk. 517,440 where VAT was Tk. 65,340, AIT (advance income tax) Tk. 16,500, Customs Duties (CD) Tk. 33,000 and Supplementary Duty (SD) Tk. 72,600; Ingredient B 600 kgs by Tk, 356,345 where VAT was Tk. 45,045, AIT Tk 11,000, CD Tk. 66,000 and SD Tk. 14,300; Ingredient C 800 kgs by Tk. 1,50,000 (VAT- exempted); and Ingredient D 10,050 pes by Tk. 138,000 where VAT was Tk. 18,000. Ingredient A and B were imported items and Ingredient C and D were locally procured from wholesale market, Sabolil Academy Professional Questions Bank Page 64Standard Gas bill for such quantity of products was Tk. 1,20,000 and Electricity bill was Tk. 55,000 excluding VAT. Per Unit costs were: Labor cost Tk. 80, factory overhead Tk. 90. Standard marketing overhead cost in total was Tk. 50,000 and bank interest Tk. 45,000 for November 2013 Company profit markup policy is 30% after charging all costs. Company produced and sold 1000 pes AAA Makeup Box in November 2013 As a Manager (Costing & VAT) of the company you are required to submit Form VAT-1 for Product AAA and Form VAT-19 for the month of November 2013 Required: (i) Find out per unit AAA Makeup Box cost for Form VAT-I and selling price (ii) Determine the amount of input VAT will be allowed as rebate in Form VAT-19 and net VAT payable for November 2013. CMA Exam- Dee’ 13 Q-5. M/S. Asa Electronics has imported electronic parts which will be assembled and packed in Bangladesh. Due to increase in the last consignment price, the company needs to increase its product price, for which it has to submit VAT FORM-1 to the VAT authority. The imported consignment consisted of 10,000 units at a C&F (cost & freight) value of USD 60 per unit. The exchange rate was Tk. 78 for | US dollar. Applicable duties and tax were: Custom duty @ 12%, Supplementary duty @ 10%, Advance income tax @ 5%, VAT @ 15% and ATV @ 4%. Customs authority added 1% of C&F value as insurance cost and 1% of CIF value as landing charge to determine the assessable value After importation, the company’s carrying and other cost was Tk. 40 per unit, labour cost Tk. 200 per unit and overhead 50% of labour cost. For assembling and packing, the company used 2 articles locally, article A at a cost of Tk. 80 per unit without any VAT for exemption and article B at a cost of Tk. 200 per unit plus 15% VAT therefor. As per management policy, the company’s mark up profit is 20% of cost. Required: Determine — (a) Assessable Value for Customs clearance. (b) Total duties and taxes, including VAT, AIT and ATV, (c) Per unit sales price for submission of VAT Form-1 (a) Output VAT per unit, Input VAT per unit and VAT liability per unit after input VAT credit. Sabolil Academy Professional Questions Bank Page 65CMA Exam- Aug’13 Q-6. Mr. Anwar imported some processed mushrooms from Thailand. C&F value of the goods were US$ 5,000 with an exchange rate of US$1 = Tk.82.50. Insurance cost was 1% of C&F value. Border taxes on this import were as follows: Customs duty @ 25%, Supplementary duty @ 20%, Value Added Tax (VAT) @ 15%, Advance income tax (AIT) @ 5%, Regulatory duty @ 5% and Advance trade VAT (ATV) @ 3%. Compute the amount of Custom duty, Supplementary duty, VAT, AIT, Regulatory duty and ATV. Also compute the total tax incidence as a percent of assessable value. CMA Exam- Apr’12 Q-7. A manufacturing company has imported 1 million pieces of a product at C&F cost of US$75,000. Applicable exchange rate US$ 1 = BDT 70. Insurance cost is 1% of C&F. Taxes applicable at import stage are: Custom Duty (CD) @ 15%, Supplementary Duty (SD) @ 35%, Value Added Tax (VAT) and Advance Income Tax (AIT). Determine the amount of each tax and the total import cost including all taxes and non-tax costs. Mention the application of further tax liability, if the importer was a commercial importer. CMA Exam- Apr’ll Q-8. Mr. Karim import consumable item worth $ 5000, exchange rate @ 70 Tk Calculate Customs Duty (CD), Supplementary Duty (SD),Value Added Tax (VAT), Advance Income Tax (AIT). Please consider CD=25%, SD=20%, VAT=15%, AIT=3%, 1% landing charge, 1% handling charge. CMA Exam- Dec’10 Q9. Givenchy Ltd imports A4 size paper from Singapore. Invoice value is $5000 (C&F), Assessable Value is $6000, Exchange rate is 1$=70Tk, Customs Duty is 25%, Supplementary Duty is 35%, Regulatory Duty is 5%, VAT is 15%, AIT is 3%, 1% handling charge and 1% landing Charge. You have to calculate total tax and other charges liabilities at the import stage CMA Exam- Aug’10 Sabolil Academy Professional Questions Bank Page 66Q-10. XYZ Ltd imports Ad size paper from Singapore. Invoice value is $3000 (C&E), Exchange rate is 1$=70Tk, Customs Duty is 25%, Supplementary Duty is 35%, AIT is 3%, (Consider 1% Handling charge and 1% Insurance fees) Calculate Customs Duty, VAT, Supplementary Duty and Total Tax Liability of XYX Ltd at import stage CMA Exam- Apr’10 Sabolil Academy Professional Questions Bank Page 67Perquisite Sabolil Academy Professional Questions Bank Page 68Q-1, Mr. X an employee of a limited company, received the following salaries and allowances during the income year ended 30 June, 2012. Particulars Taka 1. Basie salary 4.20,000/- 2. House rent allowance 2.00.000/- 3. Festival bonus equal to two months basic salary 70,000/- 4. Leave encashment salary 35,000/- 5. Conveyance allowance 24,000/- 6. Contribution to recognized provident fund @ 8% 33,600/- 7. Servant wages 24,000/- 8. Children education allowance 60,000/- 9. Leave fare assistance 50,000/- 10 Bungalow utilities 25,000/- Compute excess perquisite as per section 30 (e) for the assessment year 2012- 2013. CMA Exam- Apr’13 Q-2. Mr. X, an employee of a limited company, received the following salaries and allowances during the income year ended 30 June 2012 (1) Basie salary Tk. 4,44,000 (2) House rent allowance 2,00,000 (3) Festival bonus equal to two months’ basic salary (4) Leave encashment 37,000 (5) Conveyance allowance 24,000 (6) Contribution to recognized provident fund @ 8% 33,600 (7) Servants’ wages 24,000 (8) Children education allowance 60,000 (9) Leave fare assistance 50,000 (10) Bungalow utilities 25,000 Compute the excess perquisite ws 30(e) for the assessment year 2012-2013. CMA Exam- Aug'l2 Sabolil Academy Professional Questions Bank Page 69Income from House Property Sabolil Academy Professional Questions Bank Page 70Q-L. Mr. Azim owns a house the municipal value of which is Tk.2,20,000. Half of the house has been let out at Tk. 25.000 per month. The rest of the house is used by his son-in-law who pays nothing for the use. Following were the expenses of the house (i) White wash and repair Tk. 6,000 it) Municipal tax Tk 5,000 ii) Insurance premium Tk. 4.000 iv) Service charge Tk 6.000 v) Interest on mortgage Tk 4,000 vi) Water and sewerage charge Tk. 7,000 vi) Land revenue Tk. 2/000 vili) Cost of alteration Tk.15,000 He has another residential house situated at Uttara, Dhaka. The City Corporation, for municipal tax purpose, valued its annual value at Tk.200,000. He spent Tk. 6,000 for its repair and paid City Corporation tax at Tk. 5,000. He also paid interest on a loan taken from Agrani Bank for alteration and expansion of the house for which interest payable was Tk. 20,000 per year. Compute “Income from house property” for the assessment year 2012-13. CMA Exam- Aug’12 Sabolil Academy Professional Questions Bank Page 71Capital Gain Sabolil Academy Professional Questions Bank Page 72Q-1. Mr Azam (age 66 years) purchased a machine for his workshop (a proprietorship entity) on 1 August 2009 at Tk. 1,80,000. On 31" March 2012 it was sold. Till that date Tk. 1,20,000 was charged as accounting depreciation but as per Third Schedule tax depreciation was Tk. 50,000. The Company has not purchased or has not any plan to purchase a similar machine during two years ending 31“ March, 2013, Find out the capital gain if the sales proceed is: (i) Tk. 1,50,000 (ii) Tk. 2,10,000 (iii) Tk. 2,60,000 Mr. Azam had income of Tk. 1,50,000 from other heads of income except “Capital Gains”. Find out tax liability of Mr. Azam in each of the three cases. CMA Exam- Dec?12 Q-2. Saint Zavier Lid. sold on 15 July, 2010 a piece of old equipment used in the business for Tk.20 million. In relation to the sale, it incurred advertisement cost of Tk. 80,000 and paid Tk.300,000 brokerage commission. It bought the equipment 6 years back at a cost of Tk.3,490,000. On 30 November, 2010 it has bought another new equipment at a cost of Tk.25 million inclusive of incidental costs. The Company has duly informed the DCT about its intention to roll over the capital gain to new equipment purchased. Required. Compute the amount of capital gain and comment on the implication of income tax thereon. CMA Exam- Dee’I1 Sabolil Academy Professional Questions Bank Page 73Advance Income Tax Sabolil Academy Professional Questions Bank Page 74Q-1. Mr. Jalil computed his advance tax for the income year 2009-2010 based on latest regular assessment of Tk. 12,00,000 total income including Tk. 50,000 capital gain and Tk. 1,50,000 agricultural income. He has paid advance tax accordingly @ 25%. Regular assessment for assessment year 2010-11 was completed on August 31, 2012 and total income assessed was Tk. 10,00,000 where the amount of capital gain and agricultural income were Tk. 75,000 and Tk. 1,25,000 respectively. Tax rate applicable is 25%. Show the relevant calculations related to advance tax. CMA Exam- Aug’12 Sabolil Academy Professional Questions Bank Page 75Set-off and Carry Forward of Losses Sabolil Academy Professional Questions Bank Page 76Q-1. Mr. Jamshed Sowdagor reports the following income for the income year ended on June 30, 2013 Income from Business and Profession _‘Tk. 500,000 Income from House Property 100,000 Capital Gain 50,000 Income from Speculative Business 80,000 However, he has some losses to be carried forward from earlier years (income years) with the following details: Heads Amount of Losses|_Year of Origination ‘oss trom Business and Profession Tk. 80,000, - 10. ‘apital Loss 3004-05 oss from Speculative Business 40,000. 2006-07 nabsorbed depreciation 10,000 2003-04 CMA Exam- Dec’13 Q-2. The following particulars of Mr. Ali Ahmed are available for the assessment year 2012-2013 - (Income from house property Tk. 10,00,000/- (ii) Business income (after allowing current year’s Depreciation of the Tk.. 2,00.000/-) Tk. 7,00,000/- ‘The following losses have been brought forward from the preceding vear: (i) Unabsorbed depreciation Tk. 8,00,000/- (ii) Business loss Tk. 5,00,000/- The DCT is proposing to assess him on a total income of Tk. 10,00,000/- by setting off only of the business loss of Tk. 5,00,000/- and part of the unabsorbed depreciation of Tk. 2,00,000/- against the business income of Tk. 7,00,000/-. Is he right in his action? CMA Exam- Apr’13 Sabolil Academy Professional Questions Bank Page 77Gift Tax Sabolil Academy Professional Questions Bank Page 78Q-1. Compute taxable gifts and the amount of gift tax payable for the assessment year 2010-2011 from the following information of Mr. Ali Ahmed:- (i) Gift made to his son-in-law a house in Dhaka valued at Tk.15,00,000 with the condition that he will get return of Tk.50,000 every year up to five years from his son-in-law. (ii) Mr. Ali Ahmed opened a bank account on |-7-2009 jointly with his son for Tk.2,00,000 out of his own money. An amount of Tk.1,25,000 was withdrawn on 1-1-2010 from the above bank account for the marriage ceremony of his son. (iii) Cash gift to niece on the occasion of her marriage Tk.60,000. (iv) He transferred an amount of Tk.50,000 from his bank account in U.K. to his daughter's account (v) Gift to widowed daughter in the expectation of death Tk.1,00,000. (vi) Cash donation to brother-in-law on the occasion of his marriage Tk.35,000. (vii) Charity to a local mosque Tk.25,000. (viii) Gift of Tk. 1,00,000 was made for the business of his eldest son. CMA Exam- Dec’10 Sabolil Academy Professional Questions Bank Page 79List of our publications For CMA new syllabus students: Knowledge Lev 1EO1- Principles of Accounting 1E02- Principles of Business & Economics 1E03- Business Communication Business Level: GEO1- Fundamentals of Financial Accounting GE02- Fundamentals of Management Accounting GE03- Fundamentals of Business Mathematics GE04- Fundamentals of Business Economics GE05- Fundamentals of Ethics, Corporate Governance and Business Law Operational Level: RO1- Legal Environment of Business E01- Enterprise Operations POI- Performance Operations FO1- Financial Operations For CMA old syllabus students: Foundation Level: 001- Principles of Accounting (002- Business Communication and Office Management (003- Quantitative Techniques (004- Business Economies and International Business Professional Level-[: 101- Intermediate Financial Accounting 102- Cost Accounting 103+ Management and marketing Management 104- Information Technology Professional Level- II: 201- Advanced Financial Accounting I 202- Management Accounting 203- Commercial & Industrial laws 204- Taxation (according to latest ordinance) Sabolil Academy Professional Questions Bank Page 80