ASSIGNMENT

DRIVE FALL 2018

PROGRAM MBA
SEMESTER 3
SUBJECT CODE & FIN303
NAME TAXATION MANAGEMENT
BK ID B2113
NUMBER OF 2, 4 CREDIT, 30 MARKS EACH
ASSIGNMENTS,
CREDIT & MARKS

Note: The Assignment is divided into 2 sets. You have to answer all questions in both sets. Average score of
both assignments scored by you will be considered as your IA score. Kindly note that answers for 10 marks
questions should be approximately of 400 words.

Q.No Assignment Set -1 Marks Total

Questions Marks

1 Explain the objectives of tax planning. Discuss the factors to be considered in tax
planning.
10
A) Objectives of tax planning 5
B) Factors in tax planning 5
2 Mr. R owns two buildings with the depreciated value on 1st April, 2013 of ` 22.50 lakh.
The buildings were bought on 30th April, 2002 for ` 18 lakh. The block is compulsorily
acquired by the government on 15th May, 2013 for which a sum of ` 50 lakh was paid as
compensation on 20th
March, 2014.The building was being used by Mr. R as a tenant for about four years
prior to the acquisition. Mr. R purchased a new building on 10th April, 2015 for ` 14 lakh
to set up another industrial undertaking.
Compute the amount of capital gains for the assessment year 2016-17.
What would be the capital gains if the new building was purchased on 8th May, 2014?
10
A) Compute the amount of capital gains for the assessment year 5
2016-17
5
 B) What would be the capital gains if the new building was
purchased on 8th May, 2014?
3 Explain major considerations in capital structure planning. Write about the dividend
policy and factors affecting dividend decisions.
10
A) Explanation of factors of capital structure planning 6
B) Explanation of dividend policy 2
C) Factors affecting dividend decisions 2

Q.No Assignment Set -2 Marks Total

Questions Marks

1 X Ltd. has Unit C which is not functioning satisfactorily. The following are the details
of its fixed assets:
Date of Book value (`
Asset
acquisition lakh)
Land 10th February, 30
Goodwill (raised in books on 31st March, 2003 10
2005) 5th April, 1999
Machinery 12th April, 2004 40
Plant 20

The written down value (WDV) is ` 25 lakh for the machinery, and
15 lakh for the plant. The liabilities on this Unit on 31st March, 2016 are
35 lakh.
The following are two options as on 31st March, 2016:
Option 1: Slump sale to Y Ltd for a consideration of 85 lakh.
Option 2: Individual sale of assets as follows: Land ` 48 lakh, goodwill ` 20 lakh,
machinery 32 lakh, Plant 17 lakh.
 The other units derive taxable income and there is no carry forward of loss or
depreciation for the company as a whole. Unit C was started on 1st January, 2010.
Which option would you choose, and why?
10
A) Computation of capital gain for both the options 4
B) Computation of tax liability for both the options 4
C) Conclusion 2
2 Explain the Service Tax Law in India and concept of negative list. Write about the
exemptions and rebates in Service Tax Law.
10
A) Explanation of Service Tax Law in India 5
B) Explanation of concept of negative list 2
C) Explanation of exemptions and rebates in Service Tax Law 3
3 What do you understand by customs duty? Explain the taxable events for imported,
warehoused and exported goods. List down the types of duties in customs.

An importer imports goods for subsequent sale in India at $10,000 on assessable value
basis. Relevant exchange rate and rate of duty are as follows:

Rate of
Exchange
Basic
Particulars Date Rate Declared
Customs
by CBE&C
Duty
Date of submission 18th March, 2016 ₹ 67.45/$ 7.5%
of bill of entry
Date of entry 8th April, 2016 ₹ 67.50/$ 7.5%
inwards granted to
the vessel

Calculate assessable value and customs duty.

10
A) Meaning and explanation of customs duty 2
B) Explanation of taxable events for imported, warehoused and 3
exported goods
C) Listing of duties in customs 2
D) Calculation of assessable value and customs duty. 3