N.D.R.

K First Grade College

Department of Commerce and Management
Internal Test 1, 5th SEM, B.com
Subject: Corporate tax and Planning

1) M/s sky lab Ad. Agency furnished the following for the quarter ending 30-11-2014.
Compute service tax. Given figures are ex tax figures. Value of taxable service of the
preceding year has exceeded Rs.10lakh.
a Charge for a short film shooting for ABC limited Rs.12, 00,000.
b Charge for an ad.film of 120 seconds Rs.800000. Commission from media at 10%.
c Charge for ad. for polio oral vaccine for government of India Rs.10,00,000.
d Blank bill board to other Ad.Agency Rs.300000
e Charge for preparation of a Tv serial of 50 episodes Rs.15, 00,000. Work is yet to
begin.
f Charge for preparing telephone directory Rs.2, 00,000.
g Hoarding at border line of football game Rs.20, 00,000. Allowed discount at 10%.
h Rendered service free of tax Rs.5, 00,000.
2) HDR Courier service has furnished the following details for the month of july 2015.
Ascertain service tax payable for the month. Amounts shown below are exclusive of
service tax. Its taxable service of the preceding year has exceeded Rs.10lakh.
a Courier charges for national activities Rs.75000.
b Received courier from London to be delivered in delhi free of charges. Amounts
collected at London 1000 pounds. Exchange rate Rs.85 per pound.
c Received articles to be delivered at New York, USA, charges Rs.25000.
d Received a air consignment from Tokyo, Japan to be delivered at Haryana and
charges are to be collected from the addressee Rs.50000
e German embassy entrusted certain documents and articles to be delivered to the
Government of Germany, charges received Rs.50000.
f It has acted as a co loader to a Italian Courier Company to shift a air consignment
from one flight to another at Mumbai Airport, charges received Rs.10,000.
g Agreed to dispatch 500 gifts packets to the addresses in India for Rs.750 each. Each
Packet contains a Wrist watch of Rs.680, packing charges Rs.25, handling and
delivery charges Rs.45. CENVAT credit not claimed on watches.
h Courier service provided to units of SEZ Rs.15000.
i Agreed to distribute 5 lakh magazines of a publisher for Rs.5 each to different parts of
the country. Charges consist of packing Rs.1.50, warehousing Rs.1, transport Rs.2,
handling and delivery Rs.0.50.
J) Courier activities within the state of J and k for the residents of the state Rs.20, 000.

3) Hotel sandesh International has furnished the following details of a guest, compute
Luxury Tax payable.
a Date of arrival 15 03 14
b Date of departure 24-03-14
c Room Rent Rs.5000 per day.
d Food and drinks Rs.50,000.
e Telephone Bill Rs.5000
f Use of swimming pool Rs.2000
g Laundry expenses Rs.1000
h Use of health club Rs.2500
i Use of conference hall for 4 days fees Rs.15, 000 for all the days.
j Room is for two persons, but it was occupied by three persons. The hotel charged
Rs.1000 extra amount per day.
4) Write any ten general exemptions of service tax.
5) HDR Bank has charged to Vasavi enterprises for the following services:
a) Internet banking services
b) Foreign exchange Services
c) Bilss discounting charges
d) Issued demand draft and charged
e) Letter of credit and charged
f) Custodial depository charges
g) Asset portfolio management charges
h) Debt restructuring service charges
i) Interest on loan granted
j) Fee for Merchant Banking service

Fundamentals of Cost Accounting

Rs.
5000.
70000
3000
4000
1500
20000
10000
15000
100000
10000

1) In respect of material H56, the following data are available.

Lead time for supplies is estimated as
Maximum 4 months, Minimum 2 months
Budget consumption:
Maximum
300 units per month
Minimum
50 units per month
Average
150 units per month
Yearly
1800 units
Storage costs are 25% p.a. of stock value. Ordering costs are Rs.2 per order. Price per
unit of material is Rs.0.32.
Calculate : a) Re order quantity b) Re-order level c) Minimum Stock level d) Maximum
Stock level d) Average Stock level.