ICSI Executive Programme

ICSI Executive June 2011

Q 7 Attempt any four of the following - (i) Discuss ‘Advance Ruling’ in service tax (5 marks) (ii) Discuss briefly the procedure for registration of service tax provider (5 marks) (iii) What is the due date for payment of service tax? What is the rate of interest for delayed payment and penalty for default in payment of service tax? (5 marks) (iv) What do you mean by ‘taxable services’ in the context of service tax? How is the value of taxable services determined? (5 marks) (v) Re-write the following sentences after filling-in the blank spaces with appropriate word(s)/figure(s) - (a) Service tax in India made a humble beginning from _________ with only three services (b) Currently, the rate of service tax is _________ (Including education cess and secondary and higher education cess) (c) Every provider of taxable services whose aggregate value of taxable services in a financial year exceeds _________ must mandatorily obtain registration (d) The provision of service tax extends to whole of India except _________ (e) Every assessee shall submit the half yearly return by the _________ of the month following the particular half-year (1 mark each).

Q 8 Attempt any four of the following (i) Who is liable to pay value added tax (VAT)? Discuss, in brief, the advantages of introduction of VAT in India (ii) What are the methods of computation of VAT? (iii) What is input VAT credit? Will the input VAT credit be available in case of purchase of capital goods? (iv) Compute the VT liability of Anand for the month of October, 2010 using the invoice method of computation of VAT - Purchases from the local market (including VAT @ 4%) - ` 65,000, Storage cost incurred - ` 750, Transport Cost - ` 1,750. Goods sold at a margin of 5% on the cost of such goods sold. VAT rate of sales is 4% (v) State with reasons in brief, whether the following statements are true or false - (a) Under zero-rates sales, prior tax is set-off against the zero percent paid tax, and effectively the entire tax paid on purchases is eligible for refund (b) A special VAT rate of 2% is prescribed for previous and semi-precious metals (c) Tax cannot be evaded under VAT system (d) There are certain cases of purchases in respect of which generally no input tax credit is available (e) Input VAT credit is available on inter-state purchases [5 marks each]. 

 ICSI Executive December 2010

Q7. Attempt any four of the following : (i) How is the value of taxable services determined as per provisions contained in section 67 of the Finance Act, 1994 ? (5 marks) (ii) Briefly state the provisions relating to the procedure of registration under the service tax. (5 marks) (iii) What are the general exemptions which are available to service providers from payment of the whole amount of service tax ? (5 marks) (iv) Re-write the following sentences after filling-in the blank spaces with appropriate word(s)/figure(s) : (a) The application for registration shall be made within a period of _________ of commencement of business by an input service provider. (b) The registration certificate is issued to a service provider within 7 days by the __________. (c) Return of service tax is required to be filed by every assessee in Form No._________. (d) Due date for payment of service tax in the case of individual assessee is ____________ immediately following the quarter of the financial year except in case of last quarter. (e) Service tax is rounded off to the nearest multiple of _______.  (v) State, with reasons in brief, whether the following statements are true or false : (a) Service tax has been imposed by amending Chapter-VI of the Finance Act, 1994. (b) There are provisions of TDS in respect of service tax. (c) Service tax is applicable on whole India excluding Jammu and Kashmir. (d) Registration is mandatory under the service tax. (e) No service tax is payable on free services. (1 mark each)

Q8. Attempt any four of the following : (i) How is the value added tax (VAT) structure an improvement over the sales tax system ? (5 marks) (ii) “Input tax credit is generally given for the entire VAT paid within the State on purchases of taxable goods meant for re-sale or manufacture of taxable goods.” Explain. (5 marks) (iii) Discuss the provisions of registration under VAT. (5 marks) (iv) How would you take input tax credit when goods purchased are transferred by the dealer to his branch in any other State ? (5 marks) (v) State, with reasons in brief, whether the following statements are true or false : (a) Value added tax (VAT) is levied by the Central Government. (b) VAT is a multi-point tax. (c) VAT system has six broad tax rates. (d) VAT system is followed by all States in India. (e) Registration of dealer is mandatory under VAT. (1 mark each)

ICSI Executive June 2010

Q7. Attempt any four of the following : (a) As per rule 2(1)(d) of the Service Tax Rules, 1994, who is the person specified to be liable for paying service tax in respect of the following services — (i) Telecommunication services. (ii) Services in relation to general insurance business. (iii) Services in relation to any taxable service or service to be provided by any person from a foreign country to any person in India. (iv) Business auxiliary service of distribution of mutual fund by a mutual fund distributor or an agent, as the case may be. (v) Sponsorship services provided to any body corporate or firm located in India. (1 mark each)

Q7(b) (i) Which category of persons must mandatorily obtain registration under Chapter V of the Finance Act, 1994 ? (3 marks) (ii) What are the time limits for making application for registration and granting registration for service tax under Chapter V of the Finance Act, 1994 ? (2 marks)  

Q7(c) (i) When is an assessee registered under service tax required to surrender the registration certificate ? (ii) On which amount — amount of bill raised on the client or amount actually received from the client, service tax is payable ? (iii) If an assessee pays service tax on the billed amount but he gets less amount from his customers, can he get refund from the government ? (iv) If the service provider fails to recover service tax on a bill of Rs.12,000 where service tax is not shown separately in the invoice, what will be the amount of service tax ? (v) When will the small service provider claiming exemption from paying service tax apply for registration under service tax ? (1 mark each)

Q7(d) Comment on the following statements — (i) “Service tax is payable as soon as advance is received even if the service is provided later.” (2 marks) (ii) “Excess service tax collected is to be paid to the Central Government.” (3 marks) (e) Discuss the exemption available to small service providers from paying service tax. (5 marks)

Q8. Attempt any four of the following : (i) “As a result of introduction of value added tax (VAT), the central sales tax will be phased out.” Explain the statement. (ii) Discuss in what respects VAT system as adopted in India is deficient in the direction of getting maximum benefits of VAT. (iii) “VAT liability of a dealer is calculated by deducting input tax credit from tax collected on sales during the payment period.” Discuss with the help of a suitable illustration. (iv) Discuss the cases of purchases in respect of which generally no input tax credit is available. (v) Explain the various methods of computation of VAT liability. (5 marks each)

ICSI Executive December 2009

 “Service tax is generally payable by the service provider, but there are certain situations in which service receiver is liable to pay service tax.” Explain (CS Executive December 2009)

What are the due dates for payment of service tax by different assessees ? (CS Executive December 2009)

Indicate the amount of interest payable for late payment of service tax and the amount of penalty payable for late filing of return of service tax (CS Executive December 2009)

Explain the provisions regarding submission of return under service tax (CS Executive December 2009)

What is the basis of calculation of service tax payable ? Explain the provisions governing valuation of taxable services (CS Executive December 2009)

Choose the most appropriate answer – What would be the value of taxable service, if gross amount charged by a service provider on 5th March, 2009 is Rs.9,000 –- (a) Rs.8,010 (b) Rs.8,160 (c) Rs.9,000 (d) Rs.8,100 (CS Executive December 2009)

Choose the most appropriate answer – If Raj has collected any amount of service tax from Brij which is not required to be collected, Raj shall pay the amount so collected to ––(a) Brij (b) The Central Government (c) Keep it with himself (d) None of the above (CS Executive December 2009)

Choose the most appropriate answer – E-payment of service tax is compulsory in the case of an assessee who had paid service tax in the preceding financial year equal to at least –– (a) Rs.10 lakh (b) Rs.40 lakh (c) Rs.50 lakh (d) Rs.1 crore (CS Executive December 2009)

Choose the most appropriate answer – Upto what amount, the value of all taxable services provided by a service provider during a financial year is exempt from payment of service tax — (a) Rs.4 lakh (b) Rs.8 lakh (c) Rs.10 lakh (d) Rs.12 lakh (CS Executive December 2009)

Choose the most appropriate answer – If a corporate assessee has paid Rs.15,000 as excess service tax during the previous half-year ending period, this excess amount can be adjusted against its subsequent tax liability –– (a) Equally every month (b) Equally per quarter (c) In one lump-sum (d) Equally on half-yearly basis (CS Executive December 2009)

How would you take input tax credit when goods purchased are transferred by the dealer to his branch in any other State ? (CS Executive December 2009)

 “A registered dealer can set-off the amount of input tax against the amount of his output tax.” Explain (CS Executive December 2009)

Explain the procedure of registration under ‘value added tax’ (VAT) (CS Executive December 2009)

In what purchases input tax credit is not allowed under VAT ? (CS Executive December 2009)

What are the deficiencies in the design of VAT that has been adopted by the States in India ? Give your opinion (CS Executive December 2009)

 “Tax credit or invoice method has been adopted universally because of the inherent advantages in the credit method of calculating tax liability.” Explain (CS Executive December 2009)

June 2009

Briefly state the provisions of service tax regarding Liability to registration, Procedure for registration, Issue of registration certificate, Time limit for registration and Surrender of certificate of registration (CS Executive June 2009)

What is general rule regarding valuation of taxable service ? Indicate the position where the gross amount charged by a service provider includes service tax payable (CS Executive June 2009)

What is the due date for payment of service tax ? What is the rate of interest for delayed payment and penalty for default in payment of service tax ? (CS Executive June 2009)

Discuss ‘advance ruling in service tax’ (CS Executive June 2009)

Explain the provisions regarding service tax on Company Secretaries (CS Executive June 2009)

Who is liable to pay VAT ? Discuss the advantages of introduction of VAT in India (CS Executive June 2009)

Discuss —  Rates of VAT (CS Executive June 2009)

Discuss - Filing of return under VAT (CS Executive June 2009)

Discuss, with suitable example, various methods for computation of VAT liability (CS Executive June 2009)

Write note on — Registration under VAT (CS Executive June 2009)

Write note on — Zero rating (CS Executive June 2009)