Appendix-I : Solved Paper CS Final (New Syllabus) - Advanced Tax Laws & Practice - Dec. 2014 Ap.I-1 Question 1 : APPENDIX-I SOLVED PAPER CS Final (New Syllabus) - Advanced Tax Laws & Practice - December, 2014 [ PART A ] Virat Ltd. is a widely held company. It is currently considering a major expansion of its production facilities and the following alternatives are available : Particulars Alt-1 Alt-2 Alt-3 () () () Share capital 50,00,000 20,00,000 10,00,000 14% Debentures - 20,00,000 15,00,000 18% Loan from Bank - 10,00,000 25,00,000 Expected rate of return before tax is 30%. Rate of dividend of the company since 1995 has not been less than 22% and date of dividend declaration is 30 th June every year. Which alternative should the company opt with reference to tax planning? (5 Marks, Dec. 2014-NS) Ans: Selection of the option Capital Employed = 50,00,000 EBIT Expected rate of return = 100 Capital Employed EBIT 30% = 50,00,000 EBIT = 15,00,000. 100 Particulars Alternative 1 : Issue of equity shares only. Alternative 2 : Issue of equity shares, debentures and borrowings form bank Alternative 3 : Issue of equity shares, debentures and borrowings from bank. EBIT 15,00,000 15,00,000 15,00,000 Less: Interest 0 4,60,000 6,60,000 EBT 15,00,000 10,40,000 8,40,000 Less: Tax @ 30.9% 4,63,500 3,21,360 2,59,560 EAT available for equity shareholders 10,36,500 7,18,640 5,80,440 Share capital 50,00,000 20,00,000 10,00,000 Return on equity share capital (EAT/ Share Capital 100) 20.73 35.93 58.04 Analysis : Company should opt for Alternative 3 since it offers the maximum rate of return to the shareholders. XYZ LLP has income of 72,00,000 under the head 'profits and gains of business or profession'. One of its business is eligible for deduction @ 100% of profits under section 80-IB for the assessment year 2015-16. The profit from such business included in the business income is 58,00,000. Compute the tax payable by the LLP, assuming that it has no other income during the previous year 2014-15. (5 Marks, Dec. 2014-NS) Ans: The relevant computations are as under : (i) Computation of tax liability of XYZ LLP A.Y. 2015-16 (amount in ) - Profits and Gains of Business or Profession : Profit from unit eligible for deduction under Section 80 - IB 58,00,000 Other Business Income 14,00,000 72,00,000 Gross Total Income 72,00,000 Less: Deduction u/s 80 IB (100 % of 58,00,000) 58,00,000 Total Income 14,00,000 Tax liability as per normal provisions of Act 4,20,000 Alternate minimum tax (18.5% of ATI) i.e. 18.5% of 72,00,000 [WN] 13,32,000
Ap.I-2 Appendix-I : Solved Paper CS Final (New Syllabus) - Advanced Tax Laws & Practice - Dec. 2014 Since alternate minimum tax is higher than tax as per normal provisions of the Act, 13,32,000 XYZ LLP shall be liable to be pay alternate minimum tax as per Section 115JC Add : EC & SHEC @ 3% 39,960 Total tax payable (rounded off) 13,71,960 Working Note : Computation of Adjusted Total Income(ATI) (amount in ) : Profits and Gains of Business or Profession : Total Income 14,00,000 Add : Deduction u/s 80- IB 58,00,000 Adjusted Total Income 72,00,000 The book profits of a company in the previous year 2014-15 computed in accordance with section 115JB are 60,00,000. If the total income for the same period computed as per the provisions of the Income-tax Act, 1961 is 12,00,000, calculate the tax payable by the company in the assessment year 2015-16 and also indicate whether the company is eligible for any tax credit. (5 Mark, Dec. 2014-NS) Ans: Computation of tax payable by the company (amounts in ) : Book Profits under Explanation 1 to Section 115-JB 60,00,000 Total Income as computed under the Act 12,00,000 Tax on total income @ 30.9% 3,70,800 Tax on Book Profits @ 19.055% 11,43,300 Actual tax = MAT (being the higher of the aforesaid two) 11,43,300 MAT credit to be carried forward (MAT paid Tax on total income) 7,72,500 Question 2 : Explain how the arm's length price in relation to an international transaction is computed under 'resale price method' as per rule 10B(1) of the Income-tax Rules, 1962. (4 Marks, Dec. 2014-NS) Ans: Refer Q. No. 9 in Chapter 7 of this book. What are the different form under advance ruling? (4 Marks, Dec. 2014-NS) Ans: An applicant desirous of obtaining an advance ruling should apply to the Authority in the prescribed form stating the question on which the ruling is sought. The application has to be made in quadruplicate in Form Nos : (i) 34C : Applicable to a non-resident applicant. (ii) 34D : Applicable to a resident having transactions with a non-resident. (iii) 34E : Applicable to Public Sector Company as notified by government. (iv) 34EA : For determining whether an arrangement is an impermissible avoidance arrangement as referred to in Chapter X-A or not. (Yet to be made applicable) Discuss the mode of determination of fair market value of Employees Stock Option, if shares are : (d) (i) Listed in a recognised stock exchange in India. (ii) Not listed in any recognised stock exchange in India. (4 Marks, Dec. 2014-NS) Ans: Refer Q. No. 30 in Chapter 1 of this book. What are the objectives of tax planning? (4 Marks, Dec. 2014-NS) Ans: Refer Q. No. 5 in Chapter 9 of this book. Question 2A : You are the Financial Controller in a manufacturing company having turnover exceeding 800 crore. Write a report for your Managing Director highlighting the legal position pertaining to the following : (15 Marks, Dec. 2014-NS) (i) Tax on distributed income by a company for buy-back of unlisted shares. (ii) Time-limit for completion of assessment/reassessment when a reference is made to the Transfer Pricing Officer (TPO). (iii) Allowance for acquisition and installation of new plant and machinery under section 32AC. (iv) Tax consequences of assignment of keyman insurance policy before maturity by employer-company to its employee.
Appendix-I : Solved Paper CS Final (New Syllabus) - Advanced Tax Laws & Practice - Dec. 2014 Ap.I-3 Ans: The legal position has been discussed as under : (i) (ii) Refer Q. No. 20 in Chapter 4 of this book. Refer Q. No. 32 in Chapter 6 of this book. (iii) Refer Q. No. 80 in Chapter 1 of this book. (iv) The tax treatment of Keyman Insurance Policy is as under Question 3 : Keyman Insurance Policy : As per Explanation to Section 10(10D), Keyman insurance policy means a life insurance policy taken by a person on the life of another person who is or was the employee of the first mentioned person or is or was connected in any manner whatsoever with the business of the first mentioned person and includes such policy which has been assigned to a person, at any time during the term of the policy, with or without any consideration. Sum received including bonus - is income : According to Section 2(24) of the Act - Sum received under Keyman insurance policy including the sum allocated by way of bonus on such policy, is considered as an income. Taxability of sums received : If it is taken in name of an employee, then the sum received on its maturity (including the bonus on such policy) is taxable as profits in lieu of salary under Section 17(3). In case the policy matures in the hands of the person carrying on business or profession, then the sum received (including bonus) shall be treated as Profits and Gains of Business or Profession. In case the policy is taken in name of any other person (other than employer or employee), then the sum received on its maturity by such person is chargeable to tax as Income from other sources. In case the policy is assigned to any other person before its maturity, the sum received from such policy shall not be exempt from tax. [In consequence of amendment made in the definition of Key man insurance policy with effect from 01-04-2014.] [ Part - B] Following information is provided in respect of manufacture of a product 'X' for the purpose of captive consumption in the same factory : Cost of direct material (includes central excise duty 1,854) 16,854 Cost of direct employees 12,300 Consumable stores and repairs 8,400 Quality control cost 4,300 Research and development cost 2,700 Administrative cost : Production related 3,000 Others 1,500 Selling and distribution cost 3,600 Scrap value realised 1,500 Note : CENVAT credit of the excise duty so paid is available. (5 Marks, Dec. 2014-NS) Determine the assessable value for the purpose of levy of central excise duty giving working notes wherever required. Ans: Calculation of value of goods in terms of Rule 8 of Valuation Rules, 2000 (amounts in ) Direct Material consumed [WN-1] 15,000 Direct Labour 12,300 Consumable stores and repairs 8,400 Quality Control costs 4,300 Research & Development Costs 2,700 Administrative Overheads [WN-2] 3,000 Selling and Distribution Costs [WN-3] - Realisable value of Scrap/Wastage -1,500 Cost of production (as per CAS 4) 44,200 Add: 10% Profit Margin 4,420 Assessable Value 48,620
Ap.I-4 Appendix-I : Solved Paper CS Final (New Syllabus) - Advanced Tax Laws & Practice - Dec. 2014 Working Notes : (1) It has been assumed that CENVAT credit is available on central excise duty paid on direct materials and hence, it has been deducted from the cost of direct materials in accordance with Cost Accounting Standard-4. Hence, direct material cost 16,545 1,545 = 15,000. (2) Administrative overheads in relation to activities other than manufacturing activities have not been included in cost of production [CAS-4]. (3) Selling and distribution costs have been excluded from the cost of production as they are not in relation to production activity [CAS-4]. Florus Advertising Agency received the following charges during the quarter ended 31 st March, 2015, for the services rendered by it : Services rendered Sale of space for advertisement in newspaper 45,000 Services related to preparation of advertisement 85,000 Sale of time for advertisement to be broadcast on radio 65,000 Advertisement via banner at public places 50,000 Sale of time for advertisements to be broadcast on TV channel 1,00,000 Aerial billboards 90,000 Canvassing advertisement for publishing on a commission basis 35,000 Additional information : (i) Point of taxation for all the aforesaid cases falls during the quarter ended 31 st March, 2015. (ii) All the charges stated above are exclusive of service tax. (iii) Small service providers' exemption under Notification No. 33/2012-ST dated 26 th June, 2012 need not be taken into account. Compute the service tax liability of Florus Advertising Agency for the quarter ended 31 st March, 2015. Give appropriate working notes also. (5 Marks, Dec. 2014-NS) Ans: Computation of service tax payable : Particulars Sale of space for advertisement in newspaper (since covered in negative list) Services related to preparation of advertisement 85,000 Sale of time for advertisement to be broadcast on FM Radio 65,000 Advertisement via banner at public places 50,000 Sale of time for advertisement to be broadcast on TV Channel 1,00,000 Aerial bill-boards 90,000 Canvassing advertisement for publishing on a commission basis 35,000 Value of taxable services 4,25,000 Service tax @ 12% [ 4,25,000 12%] 51,000 EC & SHEC @ 3% [ 51,000 3%] 1,530 Service tax liability 52,530 Nil The particulars regarding sale, purchase, etc., of Shubham Udyog for the last quarter of the year 2014-15 are as under : S.No. Particulars (1) Purchases of raw material within the State : (i) Taxable @ 1% 40,00,000 (ii) Taxable @ 4% 60,00,000 (iii) Taxable @ 12.5% 10,00,000 (2) Sale of goods manufactured from raw material purchased @ 4% tax rate : (i) Taxable sale within the State (tax rate 4%) 20,00,000 (ii) Exempted sale within the State 10,00,000 (iii) Sale in the course of inter-state trade or commerce (CST rate 2%) 10,00,000 (3) Sale of raw material purchased @ 1% tax rate 44,00,000 (4) Goods manufactured from the raw material purchased @ 12.5% tax rate were given on lease. The deemed sale price of such goods taxable @ 12.5% 12,00,000
Appendix-I : Solved Paper CS Final (New Syllabus) - Advanced Tax Laws & Practice - Dec. 2014 Ap.I-5 You may assume that input tax credit of tax paid on raw material used in manufacture of leased goods is available immediately. Compute the amount of value added tax (VAT) payable by Shubham Udyog for the relevant quarter. There was no opening or closing inventory. How can Shubham Udyog utilise the balance of input tax credit, if any? (5 Marks, Dec. 2014-NS) Ans: Computation of VAT payable : Output tax payable : Particulars (i) On sale of taxable finished goods within the state ( 20,00,000 4%) 80,000 (ii) On raw material ( 44,00,000 1 %) 44,000 (iii) On leased goods ( 12,00,000 12.5%) (Deemed sales) 1,50,000 Input tax credit available : Total VAT payable 2,74,000 (i) On raw material purchased @ 1% ( 40,00,000 1%) 40,000 (ii) On raw material purchased @ 4% ( 60,00,000 4%) 75% [WN-1] 1,80,000 (iii) On raw material purchased @ 12.5% ( 10,00,000 12.5%) [WN-2] 1,25,000 Total credit available 3,45,000 Balance of VAT credit 71,000 Less: CST payable on inter state sale adjusted ( 10,00,000 2%) 20,000 Balance of input tax credit carried forward to next quarter ( 71,000 40,000) 51,000 Working Notes : (1) If the goods manufactured from raw material are exempt from tax, no input tax credit is available on such raw material. Out of total sales of 40,00,000 of goods manufactured from raw material purchased @ 4%, 10 lakhs is exempted sale, thus, a credit will not be allowed in respect of the inputs used in the manufacture of exempted goods sold. It has been assumed that the amount of raw material used in the manufacture of exempted goods is proportionate to amount of the exempted sale in the total sales of goods manufactured from raw material purchased @ 4% assuming the input output ratio to be constant. Hence, input tax credit has been allowed to the extent of 75%. (2) Tax credit can be set-off against CST paid on finished goods sold in the course of inter-state trade and commerce. (d) Uncool Ltd. is liable to pay the following amounts under the Central Excise Act, 1944 : (i) Central Excise duty 24,00,000 (ii) Interest 1,50,000 Further, Uncool Ltd. is also liable to pay the amounts under the following statutes : The Recovery of Debts Due to Banks and Financial Institutions Act, 1993 4,50,000 The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 3,00,000 The Factories Act, 1948 4,50,000 (d) The Customs Act, 1962 9,00,000 Uncool Ltd. has a property with a realisable value of 30 lakh. State the legal remedy under section 11E of the Central Excise Act, 1944 available to Central Excise Department for recovery of the dues of 25,50,000. (5 Marks, Dec. 2014-NS) Ans: According to provisions of Section 11E of Central Excise Act, 1944, notwithstanding anything to the contrary contained in any Central Act or State Act, any amount of duty, penalty, interest, or any other sum payable by an assessee or any other person under this Act or the rules made thereunder shall be the First charge on the property of the assessee or the concerned. However, aforementioned first charge shall be subject to the amounts payable under the following Acts: (i) Companies Act, 1956 [Section 529A]. (ii) The Recovery of Debts Due to Banks and the Financial Institutions Act, 1993. (iii) The Securitization and Reconstruction of Financial Assets and the Enforcement of Security Interest Act, 2002. In view of above-mentioned provisions of Section 11E of Central Excise Act, 1944, the Department can create first charge on the property of defaulting assessee Uncool Ltd. However, aforementioned first charge shall be subject to amounts payable under the following Acts :
Ap.I-6 Appendix-I : Solved Paper CS Final (New Syllabus) - Advanced Tax Laws & Practice - Dec. 2014 (e) The Recovery of Debts Due to Banks and Financial Institutions Act, 1993 4,50,000 The Securitization and Reconstruction of Financial Assets and the Enforcement of Security Interest Act, 3,00,000 2002 Thus, the Department will be able to create first charge of 22.5 lakhs [ 30 lakhs less 7.5 lakhs payable under above Acts] only by virtue of Section 11E of Central Excise Act, 1944. A consignment of 800 metric tonnes of edible oil of Malaysian origin was imported in January, 2015 by a charitable organisation in India for free distribution to below poverty line citizens in a backward area under the scheme designed by the Food and Agriculture Organisation. Only a nominal price of US $ 10 per metric tonne was charged for the consignment to cover the freight and insurance charges. The customs house found out that at or about the time of importation of this gift consignment, the following imports of edible oil of Malaysian origin were also made : S.No. Quantity imported (in metric tonnes) Unit price (in US $) (CIF) (1) 20 260 (2) 100 220 (3) 500 200 (4) 900 175 (5) 400 180 (6) 780 160 The rate of exchange on the relevant date was US $ 1 = 60 and the rate of basic customs duty was 10% ad valorem plus education cess. There is no countervailing duty or special additional duty. Calculate the amount of duty leviable on the consignment under the Customs Act, 1962 with appropriate assumptions and explanations, where required. (5 Marks, Dec. 2014-NS) Ans: Determination of transaction value of the subject goods : In the instant case, while determining the transaction value of the goods, following factors need consideration, (i) (ii) In the given case, US $10 per metric tonne has been paid only towards freight and insurance charges and no amount has been paid or payable towards the cost of goods. Thus, there is no transaction value for the subject goods. In such case the value of imported goods shall be the transaction value of identical goods sold for export to India and imported at or about the same time as the goods being valued. (iii) The transaction value of comparable import should be at the same commercial level and in substantially same quantity as the goods being valued. (iv) (v) Therefore consignments of 20 and 100 metric tonnes cannot be considered to be of substantially the same quantity. Hence, remaining 4 consignments are left for our consideration. Remaining 4 consignments are in comparable quantities which can be considered for valuation purposes. However, the unit prices in 4 consignments are different. Rules 4(3) of Customs Valuation (DVIG) Rules, 2007 stipulates that in applying rule 4 of the said rules, if more than one transaction value of identical goods is found, the lowest of such value shall be used to determine the value of imported goods. Accordingly, the unit price of the consignment under valuation shall be US $ 160 per metric tonne. Particulars Value CIF value of 800 metric tones @ US $160 per m.t. (in US $) 1,28,000 Rate of exchange (for 1 US $) 60 CIF value in Indian 76,80,000 Add: landing charges @ 1% of CIF value 76,800 Assessable value 77,56,800 Customs Duty @ 10% 7,75,680 Add: EC and SHEC @ 3% of BCD 23,270 Total duty payable 7,98,950 Question 4 : Keshav Cement Ltd. manufactures grey and white cement at Rajasthan. It repaired the worn-out parts of cement manufacturing plant at its workshop. During the process of repair, scrap of M.S. Channels, M.S. beams, M.S. angles and cutting was generated. It removed the said scrap without paying excise duty from the factory. Department has issued a show cause notice demanding the duty on the said scrap contending that the process of generation of scrap and waste amounted to 'manufacture' in terms of section 2(f) of the Central Excise Act, 1944.
Appendix-I : Solved Paper CS Final (New Syllabus) - Advanced Tax Laws & Practice - Dec. 2014 Ap.I-7 Examine with the help of decided case law, whether the contention of the Department is correct. (5 Marks, Dec. 2014-NS) Ans: The facts of the given case are similar to case of Grasim Industries Ltd. v. UOI [2011] 273 ELT 10 (SC). The Apex Court observed that manufacture in terms of section 2(f) includes any process incidental or ancillary to the completion of the manufactured product. Thus, 'any process' can be a process in manufacture or process in relation to manufacture of the end product, which involves bringing some kind of change to the raw material at various stages by different operations. The process in relation to manufacture means a process which is so integrally connected to the manufacturing of the end product without which, the manufacture of the end product would be impossible or commercially inexpedient. However, in the present case, it is clear that the process of repair and maintenance of the machinery of the cement manufacturing plant, in which M.S. scrap and Iron scrap arise, has no contribution or effect on the process of manufacturing of the cement, (the end product). The repairing activity in any possible manner cannot be called as a part of manufacturing activity in relation to production of end product. Therefore, the M.S. scrap and Iron scrap cannot be said to be a by-product of the final product. At the best, it is the by-product of the repairing process. Hence, it is held that the generation of metal scrap or waste during the repair of the worn out machineries/parts of cement manufacturing plant does not amount to manufacture. Thus, the Show cause notice is not sustainable in law. Swayam was the director of Om Steel Pvt. Ltd. till 16 th May, 2014. On 18 th July, 2014, Customs Authority issued notice to the former director, i.e., Swayam seeking to attach his properties for recovery of the dues of the company. Revenue contended that as per the provisions of section 179 of the Income-tax Act, 1961 and section 18 of the Central Sales Tax Act, 1956, in case of a private company, where any tax dues of the company under relevant statutes cannot be recovered, every person who was director of the said company at any time during the period for which tax is due shall be jointly and severally liable for the payment of tax. On this base, the Customs Authority has invoked provisions of section 142 of the Customs Act, 1962. Examine, with a decided case law, whether the Customs Authority is justified in its action. (5 Marks, Dec. 2014-NS) Ans: No, the Revenue s contention is not valid in law. The facts of the given case are similar to the case of Anita Goel v. CCEx. [2013] 288 ELT 63 (Del.). In the instant case,considering the provisions of section 142 of the Customs Act, 1962 and the relevant rules, the High Court observed that steps for recovering the dues can be taken only against the defaulter who is the person from whom dues are recoverable under the Act. The High Court observed that in this case the company is the defaulter and there is also no averment that the company has been or is being wound up. The High Court held that since the juristic personality of an existing company and its former director are separate, the dues recoverable from the former could not, in the absence of a statutory provision, be recovered from the latter. The High Court pointed out that there is no provision in the Customs Act, 1962 corresponding to section 179 of the Income Tax Act, 1961 or section 18 of the Central Sales Tax, 1956 which might enable the Revenue authorities to proceed against directors of companies who are not defaulters. The Service Tax Department issued a show cause notice in November, 2013 to Anmol Logistics Service Ltd. for demanding service tax amounting to 5 crore. A reply to show cause notice was filed by the company in January, 2014. The Department has issued an order under section 87 of the Finance Act, 1994 freezing all the bank accounts of the company. The company filed a writ petition contending that the Department has no power to freeze bank accounts for the amount which is pending final adjudication. On the other hand, the Department has submitted that the service tax had been recovered by the company on behalf of the Revenue and the company is merely a trustee to hold the amount and this amount is due and payable by the company. Therefore, the adjudication is a mere formality and even provisional adjudication is good enough to invoke the provisions of section 87 of the Finance Act, 1994. The Department has further contended that if the order is set aside, the company would withdraw the entire amount from the bank account and Department would have no remedy to recover the same. Examine whether the contention of the company is legal with the help of a decided case law. (5 Marks, Dec. 2014-NS) Ans: The facts of the case are similar to R.V. Man Power Solution v. CCEx. [2014] 33 STR 23 (Uttarakhand). The High Court held that amount mentioned in Show Cause notice is merely a demand and not even the tentative adjudication. Under section 87 of Finance Act, 1994 any amount payable means that amount adjudged after hearing the show cause notice and section 87 is one of the methods of recovery of amount due and payable after adjudication is done. Thus, order freezing the Bank accounts of assessee is not sustainable in the eye of law having been passed without any jurisdiction. Such claim can be made only when the final adjudication is done, after quantifying the amount due and payable by the assessee. Thus, the contention of the company is legal. Question 4A : (i) Mention with reasons where the appeal/revision application will lie against the following orders : Order passed by the Commissioner of Customs (Appeals) rejecting the application for duty drawback.
Ap.I-8 Appendix-I : Solved Paper CS Final (New Syllabus) - Advanced Tax Laws & Practice - Dec. 2014 (ii) Ans: Order passed by the CESTAT disallowing the benefit of SSI Notification to a proprietary concern providing services. Order passed by the Commissioner of Central Excise (Appeals) rejecting the application for remission of Central Excise duty on goods lost during transit from factory to warehouse. (2 Marksh Each, Dec. 2014-NS) As per Section 129A of Customs Act, 1962, no appeal shall lie to the Appellate Tribunal and the Appellate Tribunal shall not have jurisdiction to decide any appeal in respect of any order passed by the Commissioner (Appeals) under section 128A, if such order relates to payment of drawback as provided in Chapter X, and the rules made thereunder. The application shall be filed to revisionary authority of Central Government against order passed by the Commissioner of Customs (Appeals) rejecting the application for duty drawback. The appeal against order passed by the CESTAT disallowing the benefit of SSI Notification to a proprietary concern providing services shall lie to Supreme Court. The issue relating to applicability of exemption notification relates to rate of duty and direct appeal against such order lies to Supreme Court. As per Section 35B of the Central Excise Act, 1944, no appeal shall lie to the Appellate Tribunal and the Appellate Tribunal shall not have jurisdiction to decide any appeal in respect of any order passed by the Commissioner (Appeals) under section 35B, if such order relates to a case of loss of goods during transit or during their processing in a warehouse or in storage in a factory or a warehouse. The application shall be filed to revisionary authority of Central Government against order passed by the Commissioner of Central Excise (Appeals) rejecting the application for remission of Central Excise duty on goods lost during transit from factory to warehouse. Mention the situation when the imported goods are warehoused but are not deemed to be warehoused.(3 Marks, Dec. 2014-NS) [Ans: Refer Q. No. 13 in Chapter 20 of this book] Mention the maximum period for which goods are allowed to be warehoused but not deemed to be warehoused. (2 Marks, Dec. 2014-NS)[Ans: Refer Q. No. 13 in Chapter 20 of this book] What is the maximum period allowed to a importer under section 47 of the Customs Act, 1962 to pay the duty after the return of bill of entry to him? (1 Marks, Dec. 2014-NS) [Ans: Refer Q. No. 11 in Chapter 20 of this book] (iii) Mention the relevant date for determination of rate of service tax, value of taxable service and rate of exchange, if any, under the provisions of the Finance Act, 1994. (2 Marks, Dec. 2014-NS) [Ans: Refer Q. No. 1 in Chapter 27 of this book] Question 5 : Mention the maximum amount of penalty imposable under section tax law for failure to take registration as per section 69 of the Finance Act, 1994. (1 Marks, Dec. 2014-NS) [Ans: Refer Q. No. 3 in Chapter 34 of this book] Distinguish between 'exempted goods' and 'nil rate goods' under excise law. (4 Marks, Dec. 2014-NS) [Ans: Refer Q. No. 14 in Chapter 10 of this book] Specify the circumstances in which benefit of small scale exemption Notification No. 8/2003-CE, dated 01-03-2003 will be available though the goods are bearing the brand name of other person. (4 Marks, Dec. 2014-NS) [Ans: Refer Q. No. 25 in Chapter 15 of this book] Mention the expenses which are to be included in the assessable value of imported goods as per Rule 10(2) of the Customs Valuation (Determination of Price of Imported Goods) Rules, 2007. (3 Marks, Dec. 2014-NS) [Ans: Refer Q. No. 10 in Chapter 19 of this book] (d) Explain the expression 'zero rating' with reference to VAT. (2 Marks, Dec. 2014-NS) [Ans: Refer Q. No. 32 in Chapter 39 of this book] (e) Mention the provisions of Rule 5 of the Point of Taxation Rules, 2011 relating to levy of service tax for the first time. (2 Marks, Dec. 2014-NS) [Ans: Refer Q. No. 7 in Chapter 27 of this book] Question 6 : Write a brief note on the need for amending the Constitution of India for introducing goods and services tax (GST) in India. (5 Marks, Dec. 2014-NS) [Ans: Refer Q. No. 7 in Chapter 41 of this book] Mention the purchases in respect of which input tax credit is not available to the purchasers under the VAT law. (5 Marks, Dec. 2014-NS) [Ans: Refer Q. No. 20 in Chapter 39 of this book] Mention the due date for payment of service tax under the Finance Act, 1994 by a partnership firm. (5 Marks, Dec. 2014- NS) [Ans: Refer Q. No. 4 in Chapter 34 of this book]