Corporate Taxation in Nepal Old Question Paper Year 2017

Corporate Taxation in Nepal Old Question Paper Year 2017 – Tribhuvan University | BBA

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Corporate Taxation in Nepal Old Question Paper Year 2017 | Tribhuvan University | BBA

Group “A”

Brief answer questions:       [5×2=10]

1) Enumerate any four duties of Tax office under Income Tax Act 2058.

2) Clarify the meaning of Excise under Excise Duty Act 2058.

3) List out any four expenses which are expressly disallowed for deduction under IT Act 2058.

4) Following information are provided.

Opening value of Depreciation base of asset ‘Pool B              Rs.500,000 

Purchase of asset ‘Pool B on Chaitra                                       Rs.600,000 

Disposal value of asset ‘B’                                                      Rs.300,000 

Book value                                                                               Rs.250,00 

Cash value                                                                                 Rs. 250000

  • Required: Amount of depreciation to be charged for the period.

5) Following information are given

Net Salary received (after deducting tax at source and provident fund contribution) Rs.628,000. 

Income Tax deducted at source Rs.20,000.

His contribution to provident fund Rs.72,000 and employee has also contribution an equal amount. 

Required: Monthly salary 

 

Group “B”

Short Answer Questions:    [4×5=20] 

6) Mr. Kumar, an under-secretary in the Ministry of Foreign Affairs, Government of Nepal, appointed as an ambassador to Japan. He left Nepal on Magh1st, previous year. His salaries and emoluments are paid by Nepal Government. He furnished the following information about his incomes. 

  • Salary Rs.42,000 p.m. 
  • Dashain Allowance equal to one month salary.
  • Tiffin facility has provided by the government equally to all employee on a average Rs.700 per month while he was in Nepal. 
  • Vehicle facility was also provided by the government for official and personal purpose. 
  • He received Rs.200,000 per month as his foreign allowance while he was in Japan 

Required: Assessable income from employment, statement of total income and residential status

7) A television passes through two middle men importer and retailer- before reaching to the final customer. The import price of the wholesaler wasRs.30,000. Both middle men charged 10% profit on their cost price. 

Required: 

  1. Cost price of the final customer.
  2. Total VAT collected by the government.

 

8) The following are the operating results of a company for the last 6 years

Year 1 2 3 4 5 6
Profit (Loss) (Rs.) (10000) (50000) (80000) 50000 20000 (20000)

The company had donated Rs. 100,000 on year 3 before determining above Profit Loss. 

Required: Taxable income of the company giving explanation where ever necessary 

 

9) Mr. Sohan, a practicing lawyer, submitted his statement of incomes and expenditures for the previous year as under.

Expenditure Rs Income Rs
To salaries to staff 160000 By legal fee 192000
To office rent 120000 By consultation fee 140000
To stationary and printing 3000 By Interest on saving account (net) 9500
To interest on loan 3000 By wind fall gain (net) 15000
To life insurance premium 12000 By dividend from domestic company (net) 9000
To telephone exp. 4000 By gifts from clients 2500
 To Electricity exp 4000
To donation 8000
To excess to income over expenditure 54000
368000 368000

Additional Information: 

  • Consultancy fees due Rs.20,000 and salary outstanding Rs.10,000 are to be adjusted.
  • 1/3 of the loan was used for this personal purpose expenses.

Required: 

  1. Assessable (net) income from profession
  2. Statement of total income

 

Group “C

Comprehensive Answer Questions:     [2*15=30]

10) Miss Gauri joined a private bank as an Assistant Manager on 1st Shrawan2068 with a salary scale of Rs.30,000-2000-Rs.38,000. She furnished the following details of other incomes for the previous year. 

Dearness allowance                                         Rs.2500 per month 

Savings from TAD allowance                         Rs.20,000

Besides above she also disclosed the other facilities provided by the office as under. 

  • Children education expenses Rs.5,000 per month.
  • House facility
  • Vehicle facility for official as well as private use.
  • Dashain allowance equal to one month salary.
  • She is member of retirement fund and contributes 10% of her salary; office also contributes an equal amount.
  • Life insurance premium of Rs.30,000 on her own life, out of which 50%is paid by office. 
  • Office reimbursed the approval medical expenses of Rs.30,000 on her 
  • Office has provided a domestic servant at her residence, whose salary is Rs.8000 per month which is paid by the office. Where her contribution is Rs.2000 per month. 

Her other incomes are: 

  1.  Income from writing articles Rs.12,750 (net) 
  2. Royalty from Books Rs.80,000
  3. She has claimed deduction of Rs.20,000 paid as donation to Nepal Sport Council.

Required: 

  1. Net (assessable) income from employment.
  2. Net (assessable) income from profession
  3. Statement of total income.
  4. Tax liability

12) Given below Trading and P/L account of a Company Ltd. for the previous year.

Trading and Profit and Loss Account

Particular Rs Particular Rs
To opening stock 180000 By sales 2850000
To purchase 1200000 By closing stock 330000
To carriage on purchase 120000
To wages 200000
To gross profit c/d 1480000
3180000 3180000
To office and administrative exp. By gross profit b/d 1480000
To staffs salary By sundry income 120000
To provision of depreciation By bad debt recovered 150000
To rent and rates By commission 30000
To fine and penalties By discount 20000
To sundry expenses By dividend from domestic company (net) 85000
To depreciation on machinery ‘D’ By compensation on loss of stock 200000
To repair on machinery ‘D’ By gain on disposal of depreciable asset ‘Pool C’ 100000
To pollution control cost By income from natural resources( non business) 170000
To compensation paid to employees By rent from staff quarter 85000
To income tax paid in advance
To donation
To net profit
2440000 2440000
  • Opening stock was undervalued by 10% whereas closing stock was overvalued by 10%. 
  • Depreciation on machinery was charged as per the regulation of the 
  • 1/3 of the Bad Debt recovered was not allowed previously by IT officer for deduction due to lack of evidence. 
  • Sundry income includes Rs.20,000 rent from go down let down.

Required: 

  1. Net (assessable) income from business
  2. Net (assessable) income from investment
  3. Statement of total income
  4. Tax liability
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