# SMU MBA ASSIGNMENTS

## MF0012 & TAXATION MANAGEMENT

ASSIGNMENT DRIVE FALL 2014

PROGRAM MBADS (SEM 3/SEM 5) MBAFLEX/ MBA (SEM 3) PGDFMN (SEM 1)

SUBJECT CODE & NAME

MF0012 & TAXATION MANAGEMENT

1 Explain the objectives of tax planning. Discuss the factors to be considered in tax planning.

Objectives of tax planning

Factors in tax planning

2 Explain the categories in Capital assets.

Mr. C acquired a plot of land on 15th June, 1993 for 10,00,000 and sold it on 5th January, 2010 for 41,00,000. The expenses of transfer were 1,00,000.

Mr. C made the following investments on 4th February, 2010 from the proceeds of the plot.

1. a) Bonds of Rural Electrification Corporation redeemable after a period of three years, 12,00,000
2. b) Deposits under Capital Gain Scheme for purchase of a residential house 8,00,000 (he does not own any house)

Compute the capital gain chargeable to tax for the AY2010-11.

Explanation of categories of capital assets

Calculation of indexed cost of acquisition

Calculation of long term capital gain

Calculation of taxable long term capital gain

3 Explain major considerations in capital structure planning. Write about the dividend policy and factors affecting dividend decisions.

Explanation of factors of capital structure planning

Explanation of dividend policy

Factors affecting dividend decisions

4 X Ltd. has Unit C which is not functioning satisfactorily. The following are the details of its fixed assets:

 Asset Date of acquisition Book value (` lakh) Land Goodwill (raised in books on 31st March, 2005)   Machinery Plant 10th February, 2003       5th April, 1999 12th April, 2004 30   10   40 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, 2011 are 35 lakh.

The following are two options as on 31st March, 2011:

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, 2005. Which option would you choose, and why?

Computation of capital gain for both the options

Computation of tax liability for both the options

Conclusion

5 Explain the Service Tax Law in India and concept of negative list. Write about the exemptions and rebates in Service Tax Law.

Explanation of Service Tax Law in India

Explanation of concept of negative list

Explanation of exemptions and rebates in Service Tax Law

6 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:

 Particulars Date Exchange Rate Declared by CBE&C Rate of Basic Customs Duty Date of submission of bill of entry 25th February, 2010 ` 45/\$ 8% Date of entry inwards granted to the vessel 5th March, 2010 ` 49/\$ 10%

Calculate assessable value and customs duty.

Meaning and explanation of customs duty

Explanation of taxable events for imported, warehoused and exported goods

Listing of duties in customs

Calculation of assessable value and customs duty.

Dear Students,

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