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

Leave a Reply

error: Content is protected !!