Question Analysis

TAXATION I
Knowledge Level

Introduction to taxation
1. a. How does Government encourage and discourage different types of activity to manage the economy of
the country through taxation? 5 June-10
b. Who are liable to pay tax and what are the types of income on which taxes are paid? 5 June-10
2. Discuss the role of Income Tax as source of revenue of the Government of Bangladesh. 5 Dec-11
3. Elaborate the role of the taxation system in the economic development of a country. 10 Dec-12
4. a) Explain the characteristics of a good tax system. 4X3=12
b) Explain the differences between direct and indirect taxes.
c) Write short notes on-
i) Tax impact ii) Tax incidence iii) Tax shifting iv) Progressive tax
v) Digressive tax
` d) What do you know about Multiple tax system?

Introduction to income
1. a. Discuss the concept of resident with that of the nationality of a particular individual. 3 June-10
b. Why it is significant to determine the residential status of an assessee? 3 June-10
c. Is it necessary to differentiate between capital and Revenue? If so why? 2 June-10
2. Can an assessee change ones annual accounts closing date as per ITO 1984? Support your answer
with brief explanation. 4 June-11
3. What do you mean by depreciation allowance? Identify the different categories of depreciation
allowable to an assessee, carrying on business or profession. 4 June -11
4. Find out the income year and assessment year of the assesses whose account year ends on the following
dates: 5 Dec-11
a. 30.06.2011
b. 15.09.2010
c. 31.12.2010
d. 15.03.2009
e. 31.07.2009

5. Explain, the scope of total income of a person depends on the residential status of that person. 5 Dec-11
6. a) Classify an assesses on the basis of person. 3
b) Explain the importance/effect of residential status in determining tax liabilities. 3
Administration and Tribunal
1. Who are the Income Tax Authorities for the purpose of Income Tax Ordinance, 1984 4 June-10
2. What are the power and functions of Income Tax Authorities u/s 6 of ITO 1984? 10 Dec-10

Computation of income Tax

1. a. Define perquisite u/s 2 (45). 3 June-10

b. What are the income of an assessee to be classified and computed under the head
Salaries
2. Define the following: 10 Dec-10
a. Taxes
b. Amalgamation
c. Principal Officer
d. Profits in lien of Salary
e. Year
3. State whether the following are capital or revenue expenditures: 5 Dec-10
1. Sums paid as compensation in the ordinary course of business.
2. Cost incurred in transferring plant from one set of premises to another.
3. Price paid for purchase of patents.
4. Payment for acquiring the right to use secret manufacturing process.
5. Advertisement charges ordinarily incurred.
6. Expenses incurred in connection with the issue of debentures.
7. Sums spent for construction of a factory.
8. Legal expenses for drafting partnership agreement / memorandum of association.

4. Define the following as per the Income Tax Ordinance: 8 June-11

(a) Perquisite
(b) Business
(c) Profession
(d) Capital asset

5. Write short notes on the following: 3x3=9 June-12

(a) Set off of losses as per Section 37;
(b) Scope of the total income under Section 17:
(c) Income Tax Authorities as set forth in Section 3.

6. Define the following in accordance of Income Tax Ordinance 1984: 3X4=12 Dec-12
 (a) Assessee
(b) Company
(c) Fair market value
(d) Perquisite

Tax Holiday

1. `Define the following: 6 June-10

a. Industrial Undertaking.
b. Physical Infrastructure Facility.
c. Tourism Industry.
2. What are the procedures to apply for Tax Holiday u/s 46A (2) (f) ? 2 June-10

3. When tax holiday facility can be withdrawn or cancelled? 5 June-10

4. Under what circumstance tax Holiday shall not be eligible? 2 June-10

Payment of tax before assessment
1. a. What are the consequences of failure to deduct or to deposit tax to exchequer u/s 57? 5 June-10
b. Mention the Reference Section and Rate of the following heads of TDS: 3 June-10
1) Interest of Securities
2) Indenting Commission
3) Shipping Agency Commission
4) Cigarette Manufacturers
5) Commission on letter of Credit
Advance Income Tax
1. (a) Who is required to pay advance tax? 3 June-11
(b) How advance tax is computed, estimated and paid? 5 June-11
2. a) What are the consequences of failure to deduct and deposit tax to exchequer? 5 June-11
b) Mention the reference sections and applicable TDS rates for the following items: 5 June-11
i) Interest on Securities
ii) Indenting Commission
iii) Commission on Letter of Credit
iv) Cigarette Manufacturers
v) Shipping Agency Commission.
Return and Statement
1. (a) What are the statutory dates for filing of return of income by: 4 June-11
(i) an individual
 (ii) a firm
(iii) an association of persons; and
(iv) a company.
(b) What documents are to accompany the return of income of an individual under the Income Tax
Ordinance? 3 June-11
2. What documents are to be accompanied with the return of an individual under the income tax ordinance?
4 Dec-12
Assessment
1. What is meant by assessment year? 3 June-10
2. Write short notes on: 10 June-10
a) Best judgement assessment
b) Universal Self assessment
c) Tax GDP ratio
d) Tax audit
e) Tax avoidance and Tax evasion
3. Write short notes on the following: 10 June-11
a) Universal SelfAssessment
b) Best Judgment Assessment
c) Assessment of discontinued business
d) Tax avoidance and Tax evasion.
Imposition of Penalty
1. Identify the penalty in the following cases:
i) For not maintaining the accounts in the prescribed manner. 2 June-12
ii) For failure to file return, certificate, statements, accounts or information. 2 June-12
iii) For failure to pay advance tax. 2
iv) For non-compliance of notices and concealment of income. 2 June-12
v) For failure or for default in payment of tax. 2 June-12
Double Taxation Relief
1. Does it tantamount to double taxation? 2 June-10
Appeal and Reference
1. Specify the requisite tax to be paid at every stage of First Appeal, Appeal to the Tribunal, Reference to
the High Court Division and Reference to the Appellate Division under the ITO. 4 Dec-12
Value Added Tax
1. Define the following terms relating to VAT: 5 June-10
 i) Input
ii) Input Tax
iii) Current Account
iv) Commercial Documents
v) Zero rated taxable goods or services.
2. When Registration is required for the purposes of VAT? 2 June-10
3. When Registration of VAT may be Cancelled? 3 June-10
4. Define professional behavior of an accountant. What are the threats that a professional accountant is
obliged to evaluate. 10 Dec-10
5.. Define VAT and Turnover Tax. 4
6.. What do you mean by Truncated Value? Give five examples of this system. 5 Dec-10
7.. Define the following terms in light with VAT: 5 June-11
i) Output Tax
ii) Tax Period
iii) Turnover
iv) Goods
v) Total Receipts
8. Discuss the formalities in respect of VAT Registration: 15 June-11
a) When Registration are required for the purposes of VAT?
b) Persons required to register for the purposes of VAT?
c) Documents to be submitted for VAT registration?
d) When registration may be cancelled for the purpose of VAT?
9. Define the following terms of VAT: 8 Dec-11
(a) Tax;
(b) Invoice;
(c) Person:
(d) Commercial importer.
(e) Input
(f) Input Tax
(g) Taxable Goods
(h) Taxable Service.
10.. Who are obligated to pay VAT in accordance with the provision of Section 3 of the VAT Act, 1991? 4
Dec-11
11.. Discuss the formalities relating to Turnover Tax: 10 Dec-11
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?
12. a) Why VAT is an indirect tax? Give an example showing the VAT payable at different stages. 3
b) What do you mean by taxable goods and services? 3 June-12
c) Who are required to register for the purposes of VAT? Who are required to pay VAT? 3 June-12
13. a) Define truncated value. Mention six items with rate of VAT under truncated value system. 5
b. Define input tax and supplementary duty. 3 June-12
c) Differentiate between VAT and turnover tax. 3 June-12
14. Define the following terms as per Section 2 of the VAT Act, 1991: (4X2) 5 Dec-12
(a) Tax;
(b) Invoice;
(c) Person;
(d) Commercial Importer.
15. (a) What is the time of payment of value added tax on goods in accordance of sec 6 of VAT Act 1991?
(b) Who is required to pay VAT as per sec 3 of VAT Act 1991. 5 Dec-12
(c ) What are the provisions to get input tax credit under section 9 of the Value Added Tax Act 1991?
Ethics
1. `Discuss the responsibilities of a Chartered Accountant rendering professional tax services in
Bangladesh. 5 Dec-11
OTHERS
1. What are the amendments made by the Finance Act 2010 in respect of provision of IT Law in the
following section: 5 June-10
a. Section 29 (I) (viii)
b. Section 30 (e)
c. Section 52AA
d. Section 52AAA
e. Section 52M
2. 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 June-11
3. Discuss the following issues from the perspective of the amendments made by the Finance Act, 2011:
3x3=9 June-12
(a) Return of withholding tax (Section 75A);
(b) Amount received by a company as loan from any other company (Section 19);
 (c) Audit of return of income filed under Universal Self-Assessment (Section 82BB).
4. Discuss the following issues with reference to amendments made by the Finance Act, 2012:
(a) Voluntary disclosure of income (Section 19E);
(b) Amount received by an individual assessee as loan from any other person (Section 19);
(c) Paid up capital received by a company from any shareholder (Section 19).