I have few Practical Tax problem and I want the help from my CCI frds and experts!!!
1) Determine the cost of production on manufacture of the undermentioned product
for the purpose of captive consumption in terms of Rule 8 of the Central Excise
Valuation Rules,2000 :
Direct Materials 11,600; Direct Wages and Salaries 8,400; Works overheads
Rs.6,200; Quality Control Costs 3,200; Research and Development Cost
Rs.2,400; Administrative overheads 4,100; Selling and Distribution Costs
Rs.1,600; Realizable value of scrap 1,200.
Administrative overheads are in relation to production activities. Material cost
includes excise duty 1,600.
2) Mr. B, an Indian Resident, aged 60 years, returned to India after visiting Germany
on 15/8/08. He had been to Germany on 5/8/08. On his way back to India he
brought the following goods with him :
i) His personal effects like clothes, etc. valued at60,000
ii) 1 litre of wine worth2,000
iii) A video cassette recorder worth11,000
iv) A microwave oven worth22,000
If the basic customs duty is 30%, what is the duty payable?
3) A beauty parlour charges 1,00,000 from a client for providing beauty treatment
service, the breakup of the bill is as follows :
i) Labour and facility charges 60,000
ii) Value of cosmetics and toilet preparations consumed in providing the service
Rs.30,000
iii) Value of cosmetics and toilet preparations sold to the client 10,000
Compute the amount of service tax to be charged to the client.
4) A dealer purchased 11,000 kgs of inputs on which VAT paid @ 3% was 3,000.
He manufactured 10,000 kgs of finished products from the inputs. 1,000 kgs.was
the process loss. The final product was sold at uniform price of 10 per kg., as
follows: Goods sold within the State:4,000 kgs. Finished prodeuct sold in the
course of inter-state sale against C form-2,500 kgs. Goods sent on stock transfer
to consignment agents outside the State-2,000 kgs. Goods sold the Government
department outside the State-1,500 kgs. There was no opening or closing stock
of inputs. WIP or finished product. The State VAT rate on the finished product
of dealer is 12.5%. Calculate the liability of VAT and CST. Find VAT credit
available to dealer and tax required to be paid in cash.
5) Answer the following with reference to the Finance Act, 1994 as amended relating
to applicability of service tax :
(i) Sale of lottery tickets.
(ii) Depository services and Electronic Access to Securities Information Services
(EASI) provided by the Central Depository Services India Ltd.
(iii) Services provided by educational institutions like IIMs by charging a fee from
prospective employers like corporate houses regarding recruiting candidates
through campus interviews.
6) A cable operator charges 40,000 for his services, which includes entertainment
tax of 6,000 paid on behalf of his client. Compute the value of taxable service
and service tax liability
7) Mr.Z is providing taxable as well as exempted services. The value of taxable
services is 10 lakhs while that of exempted services is 20 lakhs. All the
inputs/input services used by him are commonly used in providing taxable as
well as exempted services. The total input credit is 2 lakhs. Find the amount
payable by Mr.Z.
It will be helpfull for me, if the CCI members help me in solving these problems
CAclubindia
