Corporate Taxation in Nepal Old Question Paper Year 2016 – Tribhuvan University | BBA

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: 

1. Net Assessable Income from profession
2. 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: 

1. Statement of Taxable Income
2. 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: 

1. Net assessable income from employment
2. Tax liability