SUMMER-2015
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Master of
Business Administration- MBA Semester 3
MF0012–Taxation
Management-4 Credits
(Book ID:
1760)
Assignment
(60 Marks)
Note: Answers
for 10 marks questions should be approximately of 400 words. Each question is
followed by evaluation scheme. Each Question carries 10 marks 6 X 10=60.
Q1. Explain the concept of tax
planning and the factors to be considered in tax planning. Give the difference
between tax planning and tax evasion.
Answer. Objectives of tax planning
Ø Reduction of tax liability by
utilizing the benefits available in the tax laws.
Ø Informed and pragmatic financial
decision: A person adds the dimension of tax incidence in his decision making
on financial matters and it helps him to optimize his decisions.
Ø Discharging a citizen's duty: when it
comes to pay tax it is breathtaking situation for every person, they tries to
hide earned income and skip paying income tax but these are very illegal
methods of reducing tax liability and increasing the black money. Tax planning
provides the perfect avenue
Q2. Explain the process of tax
payment.
Answer. Payment of tax liability by a person
before the end of financial year is called Advance
tax. This is applicable only in case of Income tax of an individual or a
business entity. A simple question arises as why somebody would like to pay
taxes in advance.
Tax payment through Individuals:
Tax
constitutes a major form of revenue for most of the Governments across the
world. Taxes are levied and spent by the government for the development of the
country like infrastructure, healthcare, defence etc. Taxes can be categorized
into two broad categories namely direct tax and indirect tax. A tax paid
directly
Q3. Write short notes on:
1. Capital gain
2. Cost of acquisition
3. Cost of improvement
4. Expenditure on transfer
5. Transfer
Answer. 1. Capital gain
A capital gain is a profit that results from a
disposition of a capital asset, such as stock, bond or real estate, where the
amount realized on the disposition exceeds the purchase price. The gain is the
difference between a higher selling price and a lower purchase price.[1]
Conversely, a capital loss arises if the proceeds from the sale of a capital
asset are less than the purchase price.
Capital
gains may refer to "
Q4. Explain the computations of Tax
in two aspects given below:
1. Tax provision for Computation of
Total income of firms.
2. Computation of partnership firms’
book profit.
Answer. 1. Tax provision for
Computation of Total income of firms
Steps for
Computation of taxable income of a firm:-
1. Find out
the firms income under the different heads of income, ignoring the prescribed exemptions.
The heads of income are:-
Ø Income from House Property
Ø Profits and Gains of Business or
Profession
Ø Capital Gains
Q5. Explain the service tax law in
India. Give the concept of negative list.
Answer. Service Tax is a tax levied on the transaction of
certain specified services by the Central Government under the Finance Act,
1994. It is an indirect tax, which means that normally the service provider
pays the tax and recovers the amount from the recipient of taxable service. In
certain cases Government may shift the liability of payment of service tax to
the receiver of service
Q6. Identify and explain the major
considerations in capital structure planning. Explain two approaches in
dividend policy and factors affecting dividend decisions.
Answer. There are three major considerations
in capital structure planning, i.e. risk, cost of capital and control, which
help the finance manager in determining the proportion in which he can raise
funds from various sources.
Risk- Risk is of two kinds, i.e. financial
risk and business risk. Here we are concerned primarily with the financial
risk. Financial risk is also of two types:
1.
Risk of
SUMMER-2015
Get solved
assignments at nominal price of Rs.120 each.
Mail us at: subjects4u@gmail.com or contact at
09882243490
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