Table of Contents
Corporate Taxation in Nepal Old Question Paper Year 2017 | Tribhuvan University | BBA
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
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.
- Cost price of the final customer.
- Total VAT collected by the government.
8) The following are the operating results of a company for the last 6 years
|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.
|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 excess to income over expenditure||54000|
- 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.
- Assessable (net) income from profession
- Statement of total income
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:
- Income from writing articles Rs.12,750 (net)
- Royalty from Books Rs.80,000
- She has claimed deduction of Rs.20,000 paid as donation to Nepal Sport Council.
- Net (assessable) income from employment.
- Net (assessable) income from profession
- Statement of total income.
- Tax liability
12) Given below Trading and P/L account of a Company Ltd. for the previous year.
Trading and Profit and Loss Account
|To opening stock||180000||By sales||2850000|
|To purchase||1200000||By closing stock||330000|
|To carriage on purchase||120000|
|To gross profit c/d||1480000|
|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 net profit|
- 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.
- Net (assessable) income from business
- Net (assessable) income from investment
- Statement of total income
- Tax liability