Answers to Ca PCC May 2010 Taxation Paper

Page no : 2

Nitesh Bhandari (Ca Finalist Articled Trainee) (93 Points)
Replied 17 May 2010

Originally posted by : sangeetha
	Hi If you've really written all that in your paper, you can be ready for a rank ! They all perfectly right. Except for the part where you've not given credit to the b/f loss from discontinued biz. I don't think there's anything in the Act that stops one from taking advantage of such a loss. The HUF problem was specifically a tester. I made a good deal of mistakes in that sum, and also on the clubbing problem. Anyways, all the best. Sangeetha

For rank u need to excel in all papers.. n i ve nt done all the papers that welll....

and about the discountinued business i am very sure that it cannot be set off against any other income...

All the best to u too.. :-)

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Nitesh Bhandari (Ca Finalist Articled Trainee) (93 Points)
Replied 17 May 2010

Originally posted by : Riswa
	Pls solve my doubt : In the question of GTI(20 Marks) as per the computation of income from house property the rent was 800012=96000 but arrears of rent was 120000 of 12 month so by that we can say that per month is 10000 and can be deemed as fair value.So here the rent taken for computation would be 800012 or 1000*12.

no not at all since fair rent is sum thing which can normally be expected to be earned of a property based on the market values...

So i think wat i ve mentioned in the answers must be right...

Kunal (Article) (84 Points)
Replied 18 May 2010

well....i 2 think so dat bus loss can b c/f by d same assessee...n agnst ne business....!!! bt vl chk it ou

MIRAJ M MEHTA (Chartered Accountant) (596 Points)
Replied 18 May 2010

thanks 4 sharing

Raghuram (Articled assistant) (44 Points)
Replied 18 May 2010

Originally posted by : Nitesh Bhandari
	1. I) Scope of total income for Non residents - Only income accrued or deemed to accrue or arise in india as per sec 9 and income received or deemed to receive in india u/s. 9 are included for computing taxable income for a non resident u/s. 5 (2) note : receipt here refers to first receipt only... II) Generally salary is deemed to accrue in the place of service however an important exception is a person employed by government of india working elsewhere. He will be chargeable to tax in india w.r.t to his salary. However his perquisites will be exempted u/s. 10 (7) III) Since The coffee is only cured and not grounded and roasted it will be apportioned as agricultural income and business income in the ratio of 75 : 25 as per rule 7. IV) One year is the time limit and the AO has to respond in writing either by refusing or granting exemption within 6 months from the end of the month in which such application was made. V) LLP will be taxable in the same manner as LLPs also no CG will be attracted for conversion from firm to LLP. the definition of Firm and partners were also amended to include LLP and its members respectively by the finance act 2009 (2).

wat abt the unit 1 and 2??only one can be taken as self occupied.other one will be deemed to be let out..

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Ravish (Student) (29 Points)
Replied 19 May 2010

i wants to know about Q.7 1st part as it is regarding taxable service provided not to present liability for servivce tax.

Nitesh Bhandari (Ca Finalist Articled Trainee) (93 Points)
Replied 24 May 2010

Originally posted by : Raghuram

Originally posted by : Nitesh Bhandari

its a part of a house and not two different houses and therefore no demmed to be let out..

check PCC Rtp on ICAI website for a similar problem...

1.

I) Scope of total income for Non residents

- Only income accrued or deemed to accrue or arise in india as per sec 9 and income received or deemed to receive in india u/s. 9 are included for computing taxable income for a non resident u/s. 5 (2)

note : receipt here refers to first receipt only...

II) Generally salary is deemed to accrue in the place of service however an important exception is a person employed by government of india working elsewhere. He will be chargeable to tax in india w.r.t to his salary. However his perquisites will be exempted u/s. 10 (7)

III) Since The coffee is only cured and not grounded and roasted it will be apportioned as agricultural income and business income in the ratio of 75 : 25 as per rule 7.

IV) One year is the time limit and the AO has to respond in writing either by refusing or granting exemption within 6 months from the end of the month in which such application was made.

V) LLP will be taxable in the same manner as LLPs also no CG will be attracted for conversion from firm to LLP.

the definition of Firm and partners were also amended to include LLP and its members respectively by the finance act 2009 (2).

wat abt the unit 1 and 2??only one can be taken as self occupied.other one will be deemed to be let out..

CA Bhanwar Borana (Partner ) (402 Points)
Replied 08 June 2010

dear sir, Can u give me reson why u take GAV- NIL for deemed to be let out property in Q. 2

Nitesh Bhandari (Ca Finalist Articled Trainee) (93 Points)
Replied 10 June 2010

Originally posted by : Bhaw Borana
	dear sir, Can u give me reson why u take GAV- NIL for deemed to be let out property in Q. 2

Hello buddy - i am a student as of now so please dont call me sir

And reply to ur question - The question did not say that the assessee own 3 houses. it reads as a hose which is nothing but a part of house is let out so only that part is taxable. Moreover for the narrowest doubt in case it wer a problem involving deemed let out concept, then the question will also have other muncipal valuations etc.