0% found this document useful (0 votes)
212 views23 pages

Ca Inter M24 Batch B Ak

1. Mrs. Harshita converted land held as a capital asset into stock-in-trade of her real estate business. She constructed and sold flats, realizing a capital gain. She also invested in bonds. 2. Mr. A received gifts and shares without consideration. He sold shares realizing a capital gain and profit. He also took possession of an office building. 3. Mr. Lalit received gifts and shares without consideration. He sold shares realizing a capital gain and land realizing a capital gain. He received assets from a company liquidation.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
212 views23 pages

Ca Inter M24 Batch B Ak

1. Mrs. Harshita converted land held as a capital asset into stock-in-trade of her real estate business. She constructed and sold flats, realizing a capital gain. She also invested in bonds. 2. Mr. A received gifts and shares without consideration. He sold shares realizing a capital gain and profit. He also took possession of an office building. 3. Mr. Lalit received gifts and shares without consideration. He sold shares realizing a capital gain and land realizing a capital gain. He received assets from a company liquidation.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 23

(KS ACADEMY) SAP-2 (28.01.

2024)

KS ACADEMY
CA – INTER M24 SAP EXAM BATCH B
DT, IDT &SM
ANSWER KEY
Roll Number ……….. Code…CAINT
Time Allowed:180 Minutes Total number of Printed Page :23
Total Number of Questions: 14 Maximum Marks : 100
DIRECT TAX
Candidates are required to answer all the questions

1. Mrs. Harshita purchased a land at a cost of ₹35 lakhs in the F.Y. 2004-05 and
held the same as her capital asset till 20th March, 2023. She started her real estate
business on 21st March, 2023 and converted the said land into stock-in-trade of
her business on the said date, when the fair market value of the land was
₹210 lakhs. She constructed 15 flats of equal size, quality and dimension. Cost of
construction of each flat is ₹10 lakhs. Construction was completed in February,
2024. She sold 10 flats at ₹30 lakhs per flat in March, 2024. The remaining 5
flats were held in stock as on 31st March, 2024. She invested ₹50 lakhs in bonds
issued by National Highways Authority of India on 31 st March, 2024 and
another ₹50 lakhs in bonds of Rural Electrification Corporation Ltd. in April,
2024.Compute the amount of chargeable capital gain and business income in the
hands of Mrs. Harshita arising from the above transactions forA.Y. 2024-25
indicating clearly the reasons for treatment for each item.
[Cost Inflation Index: F.Y. 2004-05: 113; F.Y. 2022-23: 331; F.Y. 2023-24: 348].
(Notes should form part of your answer)
( 5 Marks)
Answer:

1
(KS ACADEMY) SAP-2 (28.01.2024)

2. (A) Mr. A, a dealer in shares, received the following without consideration


during the P.Y. 2023-24 from his friend Mr. B, -
(1) Cash gift of ₹75,000 on his anniversary, 15th April, 2023.
(2) Bullion, the fair market value of which was ₹60,000, on his birthday,

2
(KS ACADEMY) SAP-2 (28.01.2024)

19th June, 2023.


(3) A plot of land at Faridabad on 1st July, 2023, the stamp value of which is
₹5 lakh on that date. Mr. B had purchased the land in April, 2009.
Mr. A purchased from his friend Mr. C, who is also a dealer in shares, 1000
shares of X Ltd. @ ₹400 each on 19th June, 2023, the fair market value of which
was ₹600 each on that date. Mr. A sold these shares in the course of his business
on 23rd June, 2023.
Further, on 1st November, 2023, Mr. A took possession of property (office
building) booked by him two years back at ₹20 lakh. The stamp duty value of the
property as on 1 st November, 2023 was ₹ 32 lakh and on date of booking was
₹ 23 lakh. He had paid ₹1 lakh by account payee cheque as down payment on the
date of booking. On 1 st March, 2024, he sold the plot of land at Faridabad for
₹ 7 lakh.
Compute the income of Mr. A chargeable under the head “Income from other
sources” and “Capital Gains” for A.Y. 2024-25sion of property (office building)
booked by him two years back at ₹20 lakh. The stamp duty value of the property
as on 1st November, 2023 was ` 32 lakh and on the date of booking was
₹23 lakh. He had paid ₹1 lakh by account payee cheque as down payment on the
date of booking.
On 1st March, 2024, he sold the plot of land at Faridabad for ₹ 7 lakh.
Compute the income of Mr. A chargeable under the head “Income from other
sources” and “Capital Gains” for A.Y. 2024-25.
(Notes should form part of your answer)
( 4 Marks)

Answer:

3
(KS ACADEMY) SAP-2 (28.01.2024)

(B) Mr. Rudra has one unit at Special Economic Zone (SEZ) and other unit at
Domestic Tariff Area (DTA). He provides the following details for the previous
year 2023-24.
Particulars Mr. Rudra ( ₹) Unit in DTA (₹)

Total Sales 6,00,00,000 2,00,00,000

Export Sales 5,60,00,000 1,60,00,000

Net Profit 80,00,000 20,00,000

Proceeds from export sales in SEZ received in convertible foreign exchange by


30.9.2024 is ₹3,00,00,000. He has exercised the option of shifting out of the default
tax regime provided under section 115BAC(1A). Calculate the eligible deduction
under section 10AA of the Income-tax Act, 1961, for the Assessment Year 2024-25,
in the following situations:

(i) If both the units were set up and start manufacturing from 22-05-2015.

(ii) If both the units were set up and start manufacturing from 14-05-2019.

(Notes should form part of your Answer)

( 5 Marks)

4
(KS ACADEMY) SAP-2 (28.01.2024)

Answer:

5
(KS ACADEMY) SAP-2 (28.01.2024)

3. Mr. Lalit, a dealer in shares and securities, has entered into following
transactions during the previous year 2021-22:
(i) Received a motor car of ₹ 5,00,000 as gift from his friend Sunil on the occasion
of his marriage anniversary.
(ii) Cash gift of ₹21,000 each from his four friends.
(iii) Land at Jaipur on 1st July,2021 as a gift from his friend Kabra, the stamp
duty value of the land is ₹6 lakhs as on the date. The land was acquired by Mr.
Kabra in the previous year 2001-02 for ₹2 lakhs.
Mr. Lalit purchased from his friend Mr. Abhishek, who is also a dealer in shares,
1000 shares of ABC Ltd. @400 each on 19th June,2021 the fair market value of

6
(KS ACADEMY) SAP-2 (28.01.2024)

which was ₹ 600 each on that date. Mr. Lalit sold these shares in the course of his
business on 23rd June,2021.
Further, on 1st November, 2021, Mr. Lalit took possession of his residential house
booked by him two years back at ₹ 20 lakh. The stamp duty value of the property
as on 1st November, 2021 was ₹32 lakh and on the date of booking was
₹24 lakh. He had paid ₹1 lakh by account payee cheque as down payment on the
date of booking.
He received a shop (building) of the fair market value ₹1,50,000 and cash
₹ 50,000 in distribution from the ABC (P) Ltd at the time of liquidation process of
the company in proportion of his share capital. The balance in general reserve of
the company attributable to his share capital is ₹ 1,25,000. On 1st March,2022, he
sold the plot of land at Jaipur for ₹8 lakh. The value of the cost inflation index is
100 and 317 for the previous year 2001-02 and 2021-22 respectively.
Compute the income of Mr. Lalit chargeable under the head "Income from other
sources" and "Capital Gains" for A.Y. 2022-23.
(8 Marks)

Answer:

7
(KS ACADEMY) SAP-2 (28.01.2024)

8
(KS ACADEMY) SAP-2 (28.01.2024)

4. (A) Aashish earns the following income during the P.Y. 2022-23:
• Interest on U.K. Development Bonds (1/4th being received in India): ₹ 4,00,000
• Capital gain on sale of a building located in India but received in Holland:
₹ 6,00,000
If Aashish is a resident but not ordinarily resident in India, then what will be
amount of income chargeable to tax in India for A.Y. 2023-24?
(a) ₹7,00,000
(b) ₹10,00,000
(c) ₹ 6,00,000
(d) ₹ 1,00,000

(B) Mr. Vikas transferred 600 unlisted shares of XYZ (P) Ltd. to ABC (P)
Ltd. on 15.12.2021 for ₹ 3,50,000 when the market price was ₹ 5,15,000. The
indexed cost of acquisition of shares for Mr. Vikas was computed at ₹4,25,000.
Determine the income chargeable to tax in the hands of Mr. Vikas and
ABC (P) Ltd. in respect of the above transaction.
(a) ₹90,000 chargeable to tax in the hands of Mr. Vikas as long-term capital gains
and nothing is taxable in the hands of ABC (P) Ltd.
(b) ₹75,000 chargeable to tax in the hands of Mr. Vikas as long-term capital gains
and nothing is taxable in the hands of ABC (P) Ltd.
(c) ₹ 90,000 chargeable to tax in the hands of Mr. Vikas as long-term capital
gains and ₹1,65,000 is taxable under the head “Income from other sources” in
the hands of ABC (P) Ltd.
(d) ₹75,000 chargeable to tax in the hands of Mr. Vikas as long- term capital gains
and ₹1,65,000 is taxable under the head “Income from other sources” in the
hands of ABC (P) Ltd.

(C) In respect of loan of ₹40 lakhs sanctioned by SBI in April, 2021 for
purchase of residential house intended for self-occupation, compute
the interest deduction allowable under the provisions of the Act for
A.Y.2022-23, assuming that the disbursement was made on 1 st June,
2021, the rate of interest is 8% p.a. and the loan sanctioned was 80%
of the stamp duty value of the property.
(a) ₹2,00,000 u/s 24 and ₹1,20,000 u/s 80EEA
(b) ₹1,50,000 u/s 80EEA and ₹1,70,000 u/s 24

9
(KS ACADEMY) SAP-2 (28.01.2024)

c) ₹ 2,00,000 u/s 24 and ₹ 50,000 u/s 80EEA


(d) ₹2,00,000 u/s 24

(D) Unexhausted basic exemption limit of a non-resident individual can be


adjusted against –
(a) only LTCG taxable @20% u/s 112
(b) only STCG taxable @15% u/s 111A
(c) both (a) and (b)
(d) neither (a) nor (b)

(E) Mr. Shiva made a donation of ₹50,000 to PM Cares Fund and ₹ 20,000 to
Rajiv Gandhi Foundation by cheque. He made a cash donation of ` 10,000 to a
public charitable trust registered under section 80G. The deduction allowable to
him under section 80G
for A.Y.2023-24 is –
(a) ₹ 80,000
(b)₹ 70,000
(c) ₹ 60,000
(d) ₹ 35,000

(F) A building was acquired on 1.4.1995 for ₹20,00,000 and sold for ₹80,00,000 on
01.06.2022. The fair market value of the building on 1.4.2001 was ₹ 25,00,000. Its
stamp duty value on the same date was ₹ 22,00,000. Determine the capital gains
on sale of such building for the A.Y. 2023-24?
CII for F.Y. 2001-02: 100; F.Y. 2022-23: 331
(a) ₹7,18,000
(b) ₹13,80,000
(c) ₹60,00,000
(d) (₹2,75,000)

(G) XYZ Ltd. has two units, one unit at Special Economic Zone (SEZ) and other
unit at Domestic Tariff Area (DTA). The unit in SEZ was set up and started
manufacturing from 12.3.2014 and unit in DTA from 15.6.2017. Total turnover of
XYZ Ltd. and Unit in DTA is ₹8,50,00,000 and ₹3,25,00,000, respectively. Export
sales of unit in SEZ and DTA is ₹ 2,50,00,000 and ₹1,25,00,000, respectively and
net profit of Unit in SEZ and DTA is ₹80,00,000 and ₹45,00,000, respectively. XYZ
Ltd. would be eligible for deduction under section 10AA for P.Y. 2022-23 for-
(a) ₹ 38,09,524
(b) ₹19,04,762
(c) ₹ 23,52,941
(d) ₹11,76,471
( 7 *2=14 Marks)
5. Mr. Ray, a resident individual, aged 37 years gives the following information
with respect to various loans taken by him from scheduled banks for various
purposes-
(i) A housing loan of ₹ 36,00,000/- taken on 15th March, 2022 for the purchase of
a house to be used for self-residence at a cost of ₹47,00,000/-. The stamp duty

10
(KS ACADEMY) SAP-2 (28.01.2024)

value of the house was ₹42,00,000/- at the time of purchase. Amount of re-
payment of loan during P.Y.2022-23 was:
(A) towards principal - ₹1,25,000/-
(B) towards interest -₹ 3,65,000/-
This is the first and only residential house owned by Mr. Ray.
(ii) A vehicle loan of ₹16,00,000/- taken on 31st October, 2021 for the purchase
of electric vehicle for personal use. Amount of re-payment of loan during
P.Y.2022-23 was:
(A) towards principal - ₹75,000/-
(B) towards interest -₹ 1,90,000/-
Besides these loans, he has also paid a sum of ₹15,000 to a political party as
contribution. The entire amount was paid in cash. You are required to compute
the amount of deduction(s) available to Mr. Ray under various provisions of
Income-tax Act for A.Y.2023-24 so that he gets the maximum benefits
assuming that he does not opt to pay tax under section 115BAC.
( 4 Marks)

Answer:

11
(KS ACADEMY) SAP-2 (28.01.2024)

INDIRECT TAX

1.Examine whether the activity of import of service in the following independent


cases would amount to supply under section 7:

(i) Miss Shriniti Kaushik received interior decoration services for her residence
located at Bandra, Mumbai from Mr. Racheal of Sydney (Australia). The
amount paid for the said service is 5,000 Australian dollar.
(ii) Miss Shriniti Kaushik received interior decoration services for her
residence located at Bandra, Mumbai from her brother, Mr. Varun
residing in Sydney (Australia) [wholly dependent on Miss Shriniti].

12
(KS ACADEMY) SAP-2 (28.01.2024)

Further, Miss Shriniti did not pay any consideration for the said service.
(iii) Will your answer change if in the above case, if Miss Shriniti has taken
interior decoration services with regard to her business premises and not
her residence?
( 6 Marks)

Answer:

13
(KS ACADEMY) SAP-2 (28.01.2024)

2. (A) The place of supply in relation to immovable property (situated in India) is


the location of immovable property. Suppose a road is constructed from Delhi to

Mumbai covering multiple states. What will be the place of supply of


construction services ?
( 3 Marks)

Answer:

(B) State the person liable to pay GST in the following independent cases provided
recipient is located in the taxable territory:
(a) Services supplied by an insurance agent to an insurance company.
(b) Services supplied by a recovery agent to a car dealer.
(c) Security services (services provided by way of supply of security personnel)
provided by a partnership firm to a registered person paying tax under regular
scheme.
( 5 Marks)
Answer:

14
(KS ACADEMY) SAP-2 (28.01.2024)

3. (A) The person making inter-State supplies from Madhya Pradesh which is not
notified handicraft goods or predominantly hand-made notified products, is
compulsorily required to get registered under GST,

(a) if his aggregate turnover exceeds ₹20 lakh in a financial year


(b) if his aggregate turnover exceeds ₹10 lakh in a financial year
(c) irrespective of the amount of aggregate turnover in a financial year
(d) in case of making inter-State supply of taxable goods, irrespective of the
amount of aggregate turnover in a financial year

(B) Mr. X, a casual taxable person, is not involved in making taxable


supplies of notified handicraft goods or predominantly hand-made
notified products. Which of the following statements is true for Mr. X -
a casual taxable person?
(a) Mr. X is not required to take registration under GST under any
circumstances.
(b) Mr. X is required to get registration under GST if the aggregate
turnover in a financial year exceeds ₹20 lakh.
(c) Mr. X is required to get registration under GST if the aggregate
turnover in a financial year exceeds ₹40 lakh.
(d) Mr. X has to compulsorily get registered under GST irrespective
of the threshold limit.

(C) Which of the following activities shall be treated neither as supply of


goods nor as supply of services?
(i) Permanent transfer of business assets where input tax credit has
been availed on such assets
(ii) Temporary transfer of intellectual property right
(iii) Transportation of the deceased
(iv) Services provided by an employee to the employer in the course

15
(KS ACADEMY) SAP-2 (28.01.2024)

of employment
(a) (i) & (iii)
(b) (ii) & (iv)
(c) (i) & (ii)
(d) (iii) & (iv)
(D) Mr. X, a casual taxable person, is not involved in making taxable supplies of
notified handicraft goods or predominantly hand-made notified products. Which
of the following statements is true for Mr. X - a casual taxable person?
a)Mr. X is not required to take registration under GST under any circumstances.
b)Mr. X is required to get registration under GST if the aggregate turnover in
financial year exceeds ₹ 20lakh.
c)Mr. X is required to get registration under GST if the aggregate turnover in a
financial year exceeds ₹ 40 lakh.
d)Mr. X has to compulsorily get registered under GST irrespective of the
threshold limit.
(E) The registration certificate granted to non-resident taxable person is valid for
_____days from the effective date of registration or period specified in
registration application, whichever is earlier.
a) 30
b) 60
c) 90
d) 120
( 5 * 2 = 10 Marks)

4. List any 5 (Five) activities/transactions specified under Schedule III of the CGST Act,
2017 which shall be neither treated as supply of goods nor as supply of services. Detailed
explanations is not required.
( 5 Marks)
Answer:

16
(KS ACADEMY) SAP-2 (28.01.2024)

5. Nesamani started his business activities in the month of February 2022 in the State of Orissa.
He provided the following details:

Particulars Amount in(₹)

i) Outward supply of petrol (Intra 4,00,000


State)
ii) Transfer of exempt goods to his 2,00,000
branch in Rajasthan (Inter-
State)
iii) Outward supply of taxable goods 5,00,000
by his branch in Uttar
Pradesh (Intra State
iv) Outward supply of services on 6,00,000
which tax is payable under
RCM by the recipient of services
(Intra-State)

17
(KS ACADEMY) SAP-2 (28.01.2024)

v) Inward supply of services on which 2,00,000


tax is payable under RCM(Intra- State)
From the information given above, compute the aggregate turnover of Nesamani and also
decide whether he is required to get registration under GST. Assume that the amounts
given above are exclusive of taxes.
( 5 Marks)
Answer:

6.What is the place of supply for mobile connection? Can it be the location of supplier?

( 6 Marks)

Answer:

18
(KS ACADEMY) SAP-2 (28.01.2024)

STATERGIC MANAGEMENT

1. ( A) Strategic group mapping’ helps in-


(a) Identifying the strongest rival companies
(b) Identifying weakest rival companies
(c) Identifying weakest and strongest rival companies
(d) None of the above

( B) Diversification primarily helps to:


(a) Reduce competition
(b) Reduce risk
(c) Reduce taxes
(d) Reduce costs

19
(KS ACADEMY) SAP-2 (28.01.2024)

( C) Differentiation Strategy can be achieved by following measures:


1. Match products with tastes and preferences of customers.
2. Elevate the performance of the product.
3. Rapid product innovation
Which of the above is true:
(a) (1) and (2)
(b) (1) and (3)
(c) (2) and (3)
(d) (1), (2) and (3)
( 3*2 = 6 Marks)

2.Mohan has joined as the new CEO of XYZ Corporation and aims to make it a
dominant technology company in the next five years. He aims to develop
competencies for managers for achieving better performance and a competitive
advantage for XYZ Corporation. Mohan is well aware of the importance of resources
and capabilities in generating competitive advantage. Discuss the four major
characteristics of resources and capabilities required by XYZ Corporation to sustain
the competitive advantage and its ability to earn profits from it.

( 4 Marks)

Answer:

20
(KS ACADEMY) SAP-2 (28.01.2024)

3.(A) In the context of Ansoff’s Product-Market Growth Matrix, identify with


reasons, the type of growth strategies followed in the following cases:

(i) A leading producer of tooth paste, advises its customers to brush teeth
twice a day to keep breath fresh.
(ii) A business giant in hotel industry decides to enter into dairy business.

21
(KS ACADEMY) SAP-2 (28.01.2024)

(iii) One of India’s premier utility vehicles manufacturing company ventures


to foray into foreign markets.
(iv) A renowned auto manufacturing company launches ungeared scooters in
the market.
( 5 Marks)

Answer:

( B) Rohit Patel is having a small chemist shop in the central part of Ahmedabad.
What kind of competencies Rohit can build to gain competitive advantage over
online medicine sellers?
( 5 Marks)
Answer:

22
(KS ACADEMY) SAP-2 (28.01.2024)

23

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy