TAXATION-I Time allowed 3 hours Total Marks 100 [N.B. The figures in the margin indicate full marks.

ks. Question must be answered in English. Examiner will take account of the quality of language and of the way in which the answers are presented. Different parts, if any, of the same question must be answered in one place in order of sequence.] Marks 1. (a) Discuss the role of Income Tax as source of revenue of the Government of Bangladesh. 5 (b) Discuss the responsibilities of a Chartered Accountant rendering professional tax services in Bangladesh. 5 2. Determine Minimum Tax of a Private Limited Company under section 16CCC of the Income Tax Ordinance, 1984, on the basis of following information: 6 Business Loss Bank Interest Sales Tk. 4,50,000/= Tk. 2,50,000/= Tk.2,00,00,000/=

3. Find out the income year and assessment year of the assesses whose account year ends on the following dates: 5 a. 30.06.2011 b. 15.09.2010 c. 31.12.2010 d. 15.03.2009 e. 31.07.2009 4. Mr. Khan aged 66 years has the following house property income for the year ended June 30,2011. How much tax does he have to pay for his following income? 10 (i) Rent received for the year Tk.6,00,000; (ii) Annual value of his house Tk.6,50,000; (Determined by the tax authority) (iii) He spent for repairing his house Tk.25,000; (iv) Ground rent paid Tk.5,000; (v) Collection of charges or rent 2% of the total rent; (vi) Paid guards salary maintained for his house Tk.24,000; (vii) Liftman was paid salary Tk.30,000; (viii) Insurance premium paid Tk.25,000; (ix) He paid bank interest due to mortgage of the house Tk.10,000; (x) Land development Tax paid to Government Tk.12,000. 5. Name with rates of 10 income / receipt which are treated as Income under final discharge liabilities scheme u/s 82(c) of ITO 1984. 5 6. XYZ Ltd. is a private limited company engaged in the business of supply of goods and execution of contract. The following information has been extracted from the books of account of XYZ Ltd. for the year ended 30 June 2011: 15 Profit as per Income Statement Tax deducted at source from the payments made on account of supply of goods and execution of contract (iii) Income from Dividend (iv) Payment made by way of commission from which tax has not been deducted at source (v) Payment of salary made in cash to the employees having gross monthly salary of Tk.15,000/= or more (vi) Disclosed turnover (vii) Overseas travelling expenditure (viii) Excess perquisites (ix) Capital gain from sale of fixed assets (x) Tax deducted at source from the dividend income (i) (ii) Tk.50,00,000/= Tk.9,37,500/= Tk.5,00,000/= Tk.1,00,000/= Tk.2,00,000/= Tk.10,00,00,000/= Tk.Tk.10,50,000/= Tk.1,50,000/= Tk.5,00,000/= Tk.1,00,000/=

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2 Compute the tax liability of the company based on the aforementioned information for the assessment year 2011-2012. 7. Explain, the scope of total income of a person depends on the residential status of that person. 5

8. Mr. S. Alam is a Chartered Accountant in practice. He has the following income for the year ended June 30, 2011. 17 Taka 01. Share income from CA firm (Taxed) 4,99,454 02. Interest income (Gross): a. Interest income from leasing company 12,27,085 b. Bank interest on fixed deposit 5,39,380 c. Bank interest on saving account 49,056 03. Dividend income (Gross) 6,500 04. Income from ICAB as examiner fees etc. 3,07,300 05. Income from Business 58,212 06. Capital gain on sale of shares of a publicly listed company 69,032 07. Income from Govt. Prize bond lottery (Gross) 10,000 He has the following investment during the year 2010-2011: Bangladesh Sanchya Patra Life insurance premium Primary shares of Ananda Shipyard & Shipways Ltd. During the year he has paid Tk.99,800 as advance tax. His total wealth during the year is Tk.3,20,55,500. Compute the total income and tax payable by Mr. S. Alam. 09. Income year of ABC Ltd. ends on 31 March. It purchased a machine for Tk.20 lacs on March 30, 2006 and sold the same on 1 April 2009 for Tk.25 lacs. Find out the capital gain and depreciation charge of the related assessment years. 10. Define the following terms of VAT: (a) Tax; (b) Invoice; (c) Person: (d) Commercial importer. (e) Input (f) Input Tax (g) Taxable Goods (h) Taxable Service. 11. Who are obligated to pay VAT in accordance with the provision of Section 3 of the VAT Act, 1991? 12. Discuss the formalities relating to Turnover Tax: a. when and how Registration for Turnover Tax is done? b. When Turnover tax is paid? c. How Turnover Tax is paid? d. What are the books and documents are required to be maintained for Turnover Tax purpose? e. What are the penalties for false declaration of Turnover Tax? 5 8 2,00,000 28,200 8,00,000

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