Table of Contents
Corporate Taxation in Nepal Old Question Paper Year 2016 | Tribhuvan University | BBA
Group “A”
Brief answer questions: [5×2=10]
1) List out any two demerits of direct Tax.
2) Differentiate between income year and assessment year.
3) Mr. Jone an Italian Citizen came to Nepal on 21st Falgun of previous year and involved in investment activities.
Required: His residential status
4) State any four examples of revenue expenditure.
5) Mr. Karki an industrialist involved in export business has taxable income of Rs. 2,000,000 before basic exemption.
Required: Tax liability
Group “B”
Short Answer Questions: [4*5=20]
6) Following are the particulars of the income of Mr. Bikash working in private firm:
- Salary Rs. 35,000 p.m.
- Entertainment allowance Rs. 5,000 p.m.
- Clothing allowance Rs. 5,000 p.a.
- Dasai Bonus Rs. 30,000
- House rent allowance Rs. 5,000 p.m.
- He has spent Rs. 60,000 on education expenses of his son.
- He received Rs. 9,500 interest from bank.
Required: Assessable income
7) Mr. Ganesh, a retailer purchased a T.V. from a dealer for Rs. 66,000(inclusive VAT) and incurred expenses of Rs 6,000 before selling it to customer at a profit of 15% on cost.
Required: Compute purchasing price and VAT payable by the customer
8) A manufacturing company located in Biratnagar furnishes the following operating results as
Year | 1 | 2 | 3 | 4 | 5 | 6 |
P/L (Rs) | (500000) | (300000) | 150000 | 200000 | 150000 | 500000 |
On investigation, it is observed that the company paid donation Rs 60000 and Rs. 40,000 in the year 1 and 4 respectively. It is also observed that the company paid Rs. 300,000 for PCC in year 6. The above figures of the profit and loss were arrived after deduction donation and PCC by the company
Required: Taxable income with explanation wherever necessary.
9) Following is the summarized statement of cash concerning in auditor for the previous year.
Receipt | Rs | Payment | Rs |
To balance b/d | 500000 | By office expenses | 300000 |
To consultation fee | 700000 | By office rent | 250000 |
To audit fee | 400000 | By salary to assistant | 300000 |
To interest on loan | 50000 | By domestic expenses | 300000 |
To sales of old journal | 20000 | By life insurance premium (self) | 30000 |
To dividend income | 95000 | By balance c/d | 680000 |
To interest from bank | 95000 | ||
186000 | 1860000 |
- Consultation fees include Rs. 50,000 relating to two years ago.
- Advance audit fees received Rs. 60,000 is not included in above
- Donation gives to a poor student Rs. 10,000 is not included in above
- Assistant devoted 1/3 of his time to the domestic activities of the
- Depreciation of office equipments Rs. 15,000 and medical expenses of the auditor Rs. 20,000 are not charged in above statement.
Required:
- Net Assessable Income from profession
- Statement of Total Taxable income.
Group “C”
Comprehensive Answer Questions: [2×15-30]
10) Following is the Trading and P/L A/c of Himalayan Trading Co. for the relevant income year.
Dr. Cr.
Particulars | Rs | Particulars | Rs |
To opening stock | 500000 | By sales | 6000000 |
To Purchase | 3000000 | By bad debt recovered | 50000 |
To wages | 800000 | By refund of income tax | 10000 |
To transportation | 80000 | By interest subsidy | 20000 |
To depreciation on car | 50000 | By amount released in lieu of accepting business restriction | 500000 |
To salaries | 720000 | By discount received | 60000 |
To rent | 350000 | By closing stock | 200000 |
To interest on overdraft | 60000 | ||
To investment reserve | 20000 | ||
To penalty | 10000 | ||
To pollution control cost | 800000 | ||
To dividend | 200000 | ||
To director fee | 100000 | ||
To net profit | 150000 | ||
6840000 | 6840000 |
Additional Information:
- Opening stock was overvalued by 15% however closing stock was under valued by 10%.
- Refund of income tax include Rs. 4,000 as refund of custom duty,
- Investment reserve includes Rs. 5,000 reserve for bad debts.
- Rent includes Rs. 40,000 depreciation on furniture. Opening WDV ofthe furniture pool was Rs. 250,000.
Required:
- Statement of Taxable Income
- Tax Liability
11) Given below is the income statement of Miss. Sujata a chief administrative officer of a NGO, for the previous years:
- Net salary received (after deducting tax at source and provident fund)
- 628,000.
- Income tax deducted at source Rs. 20,000.
- Her own contribution to the provident fund Rs. 72,000 and employer has also contributed an equal amount.
- Project allowance 20% of salary.
- Meeting allowance Rs. 51,000 (after TDS) X
- She received Dasai Bonus as per the government’s rule of Nepal.
- She received travelling and daily allowance Rs. 65,00O
- Meal and Tiffin facility equal to Rs. 2,000 p.m. in the premise as provided to all the employees.
- Pension received from previous employer Rs. 180,000.
- House rent allowance Rs. 100,000 per year but she has actually paid house rent Rs. 8,000 p.m.
- Her office is situated in remote are ‘B, and has received rent allowance Rs. 15,000p.m.
Required:
- Net assessable income from employment
- Tax liability