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Provides support in tax preparation and accounting tasks, assisting accurate filing of tax returns and ensuring compliance with tax regulations and guidelines.
X Ltd. carries out market research for various organizations. Services provided to which of the following organizations would be exempt from the levy of Service tax?
The credit of which of the following Customs duty component is not available to a manufacturer under the Cenvat Credit Rules, 2004?
What is the maximum amount that Mr. and Mrs. Jones, both over 65, may take as a credit for the elderly before the income tax limitation, assuming that they have gross income of $23,000 and adjusted gross income of $21,500?
A Ltd. has taken office premises on lease from Mr X. The monthly rental amounts to Rs. 15,000/- on which service tax is levied @ 10.30% thereby resulting in a total monthly expense of Rs. 16,545/-. TDS u/s 194I on this transaction is applicable on:
A, located in Maharashtra sells goods to B who is located in Delhi (wherein goods are supplied from Maharashtra to Delhi). To which State would SGST revenue accrue?
Last year, a corporation purchased an office building for $220,000, of which $30,000 was allocated to the land on which the building was located. The building's salvage value was estimated to be $50,000. The corporation's current year depreciation deduction for the building is:
A company, incorporated in Uttar Pradesh, is a manufacturer of chocolates. During the festive season of Diwali, the Company in order to augment its sales, offers a discount scheme to customer's based on the packets of chocolates purchased wherein, on purchase of 4 packets amounting to a minimum of INR 500, an additional packet of chocolate amounting to INR 100 would be given free. Basis the above, specify the amount on which VAT should be calculated?
Fred's at-risk amount in a passive activity is $50,000 at the beginning of the current year. His current loss from the activity is $60,000. He had no passive activity income during the year. At the end of the year, which of the following statements is incorrect?
Billy Ray owns several parcels of rental real estate, and he actively participates in managing the properties. His total loss from these activities in 2011 is $30,000 and his AGI for 2011 is $110,000. For how many years may the disallowed loss be carried forward?
MAT credit under section 115JAA is allowed to be carry forward and set-off for _________ years :
Long term capital gain on sale of land Rs.5,00,000 , Short term capital loss on sale of units of HDFC Equity fund (purchased on 3.4.2010 & sold on 31.3.2011) Rs.3,00,000 , Dividend received on units of HDFC Equity fund on 1.7.2010 Rs.1,00,000 , Long term capital gain on sale of equity shares through NSE Rs.3,00,000 , Long term capital loss on sale of equity shares through NSE Rs.1,00,000. Income of Mr. X under the head "Capital gains" for the assessment year 2011-12 will be :
A calendar-year corporation incurs $63,000 of start-up costs. If the corporation began business on August 1 of the current year, what is the maximum amount of the start-up costs that it can deduct against business income in the current year?
Carlton Corporation's 2011 general business credit exceeded its 2011 income tax liability. The resultant general business credit:
A bad debt shall be allowed as deduction while computing business income:
The Assessing Officer can appeal against the directions of the Dispute Resolution Panel to:
Bob Mapp gave his daughter a limited partnership interest in a real estate activity. Suspended losses amounted to $30,000. Bob's adjusted basis at the time of the gift was $40,000 ( fair market value was greater than $40,000). What is the daughter's basis in the property?
If a taxpayer is married on the last day of the tax year, a joint return must be filed in order to claim a dependent care credit.
If Ram manufactures and sells machinery to Shyam for INR 20,000 and charges 2% freight thereon, what would be the amount of Excise Duty if the transfer of title would happen at Ram's factory (assuming Excise duty rate @ 10%)?
An individual who pledged $500 to the church to be paid next year is allowed a charitable contribution deduction in the year pledged.
Circulars issued by the Central Board of Direct Taxes is binding on:
The differences between MACRS depreciation and depreciation allowed for computing AMT results in a permanent difference between taxable income and AMTI.
Which of the following is allowed when computing AMTI for individuals?
Prepaid interest payments can be deducted in the year of payment regardless of whether the taxpayer uses the cash method or accrual method of accounting.
Ad valorem personal property taxes are allowed as an itemized deduction.
Which of the following statements is not true?
During the current year a corporation pays $8,000 to install ramps to the entrance of the corporation's office building that will allow disabled individuals better access to the building. The corporation's disabled access credit equals:
Travel expenses must be incurred by a taxpayer while away from home. To the IRS, the term "away from home" means:
X Ltd and Y Ltd are associated enterprises. X Ltd shares its office space with Y Ltd for which Y ltd pays a rent of Rs 5000 per month. For the month of January, X Ltd made the entry in its books on 31 January 2011 but the consideration was received from Y Ltd on 12 February 2010. When is X Ltd liable to deposit Service tax on the rent received from Y Ltd?
The gain from the sale of property that produces portfolio income (e.g., stocks and bonds) is classified as passive income.
What is the standard rate of VAT across States?
Job-seeking expenses are not deductible if an individual is looking for work in a new trade or business.
Billy Ray owns several parcels of rental real estate, and he actively participates in managing the properties. His total loss from these activities in 2011 is $30,000. Assuming that his AGI for 2011 is $110,000, what is the allowable deduction from these properties in 2011?
Business depreciable property placed in service prior to what year is not eligible for ACRS depreciation?
Which of the following items are generally to be excluded for the purpose of computation of VAT liability?
Which one of the following is not deductible when itemizing?
Which of the following is the most appropriate method for determining arm's length price:
The basic exemption limit for a Non-resident women who is 70 years old for the Assessment year 2011-12 is:
For a company engaged in the manufacture of automotive parts, the rate of depreciation on acquiring machinery from UK on 1 January 2011 to be used in India for the first time for AY 2011-12 will be:
During 2011, Hugh Hughes reported the following income and loss: Activity X($50,000)Activity Y$20,000Both Activity X and Activity Y are passive to Mr. Hughes. Hugh purchased Activity X in 1987 and Activity Y in 1993. How much is the loss that Mr. Hughes may deduct in 2011?
Malcolm Moore, single, had medical expenses of $5,000 last year and took a $3,000 deduction. He was reimbursed $4,500 this year by his insurance company. His total itemized deductions last year were $12,000. What amount must he include in this year's tax return as gross income?
Transportation costs for a child between the taxpayer's household and the child care location are allowable child care expenses.
The employer's wage deduction is reduced by the amount of work opportunity credit claimed.
All of the outstanding stock of a closely held C corporation is owned equally by Evelyn Humo and Steve Bufusno. In 2011, the corporation generates taxable income of $20,000 from its active business activities. In addition, it earns $20,000 of interest from investments and incurs a $40,000 loss from a passive activity. How much income does the C corporation report for 2011?
A business incurring a net operating loss in a taxable year can carry the loss back two years and forward 15 years.
XYZ Cements Ltd. filed its ROI for AY 2010-11 on 30th March 2011. The notice for making scrutiny assessment under section 143(3) can be served on the assessee upto:
Mr. S is a trader and deals in purchase and sales of medicines. He is required to get his accounts audited under section 44AB if his total sales/turnover exceeds :
Personal expenses are only deductible if the tax laws specifically state that they are.
The excess of percentage depletion over cost depletion is a tax preference item for purposes of computing AMT.
PQR Ltd. is liable to pay MAT under section 115JB for the assessment year 2011-12. Book Profits of PQR Ltd. for AY 11-12 is Rs 1,00,00,000. The applicable rate for calculation of MAT (inclusive of surcharge and cess, if any) for AY 11-12 will be :
Nonbusiness bad debts are deductible:
Suspended passive losses are carried forward for a maximum time period of 20 years.
Employment-related expenses of employees are:
If any employee makes adequate accounting to the employer and the employer reimbursement equals employee expenses, both the reimbursement and the expenses should be shown on the employee's tax return.
PQR Ltd has to make a payment of Rs 10,00,000 to Mr. Rohit for certain services. PQR Ltd. is required to deduct tax at source at the rate of 10%. However, Mr. Rohit does not provide Permanent Account Number (PAN) to PQR Ltd for deduction of tax from Rs 10,00,000. The rate at which tax will be deducted by PQR Ltd will be :
Which of the following statements are true?At what point of time Customs duty becomes payable i. They enter territorial waters of Indiaii. Bill of entry is filed with the Customs authorities for home consumptioniii. They are warehoused in Custom bonded warehouseiv. They are unloaded at the port
What is the current rate of Service tax?
The portion of an employee's salary deemed "unreasonable" may be considered a dividend distribution to an employee that is also a shareholder of the corporation.
During 2011, a corporation purchased machinery costing $450,000 and a warehouse costing $600,000. These are the only two acquisitions of depreciable property purchased by the corporation in 2011. The maximum deduction the corporation can claim under Code Sec. 179 in 2011 is:
A 50 percent deduction is allowed for amounts paid or incurred for dues and fees paid to social, athletic, sporting, or country clubs.
A married taxpayer is required to file a joint return in all circumstances in order to be eligible for the earned income credit.
Company A imports tools and dies from France amounting to INR 5 crores and sells such goods on High Seas basis to Company B for INR 6 crores. Determine the amount on which VAT/ CST is required to be paid by Company A?
Xing Ltd is incorporated in USA. It declared a dividend of Rs. 1,00,000 to its Indian shareholders on 30th September 2010. The rate at which Xing Ltd. is liable to pay Dividend distribution tax (DDT) under section 115-0 is equal to:
Unreimbursed expenses of employees are considered to be deductions
Losses on account of fluctuations in foreign exchange (not being fluctuations of capital nature) are deductible as revenue expenditure while computing business income:
Education expenses which qualify an individual for a new trade or business are always deductible for tax purposes.
Company X hires a firm based out of England to provide management consultancy services. The firm comes to India to provide such consultancy whenever required by the Company X. Which of the following statement is true?
From the list of documents mentioned below, identify the documents which are required for clearance of goods through Customs on import of goods?
Johny provides Goods transport agency services alpha for INR 10000. What would be the value on which Service tax would be charged?
Miscellaneous itemized deductions are deductible only
Which of the following statements is correct?
Farmers may carryback an NOL for three years.
X Ltd. filed his return of income for AY 2010-11. While making a scrutiny assessment, the Assessing officer made a reference to Transfer Pricing officer (TPO) to determine the Arm's length price in relation to certain transactions undertaken by XLtd. The maximum time limit for making assessment under section 143(3) of X Ltd. for AY 2010-11 is:
Itemized deductions only reduce taxable income if the taxpayer's itemized deductions exceed the standard deduction amount.
A taxpayer can claim a transportation deduction equal to 50 cents per mile traveled in a passenger automobile for business purposes.
ABC Ltd. located in State B procured goods from XYZ Ltd. in State A. In order to pay CST at a concessional rate of 2%, which of the following Form is required to be provided by ABC Ltd. to XYZ Ltd.?
The charging section of the Income Tax Act is:
Foreign income taxes paid to a foreign country may be claimed as a credit against United States income tax or deducted as an itemized deduction.
All casualty and theft losses are deductible if incurred in a trade or business or in connection with an investment.
Which of the following type of lease is generally leviable to VAT?
A self-employed attorney uses a country club to entertain clients and spends the following amounts at the club: Annual dues$1,000 Personal meals 1,500 Business meals 2,500
An interest deduction is allowable on mortgage payments made by the taxpayer for a sick friend.
Mike, who is single and the best fricken classmate you have ever had, has $100,000 of salary, $15,000 of income from a limited partnership, and a $30,000 passive loss from a real estate rental activity in which he actively participates. His modified adjusted gross income is $100,000. Of the $30,000 loss, how much is deductible?
In computing MACRS depreciation, salvage value is ignored.
Exclusive use of a portion of a home for business purposes is required to qualify for a business use of home deduction.
Hobby expenses are generally deductible only to the extent of the income generated by the activity.
For tax purposes, the term "research and experimentation expenditures" includes which of the following:
When business property is completely destroyed, the loss is equal to the difference between the fair market value of the property before the event and the fair market value immediately after the event.
Bill Goggans died and left passive activity property to his nephew, Travis. Bill's basis in the activity was $30,000, while Travis' basis was stepped up to $50,000. Suspended losses amounted to $22,000. How much is the passive loss deduction that can offset nonpassive income?
The percentage of passive losses that may offset nonpassive income for 2011 is: (select two answers)
All state and local taxes are deductible for federal income tax purposes.
ABC Ltd. is in the business of setting up and operating cold chain facilities. It commenced its operations on 1.4.2010 and claimed deduction of all expenditures under Section 35AD. The net loss for the year ending 2010-11 is Rs 50,00,000. The number of years for which this loss can be carried forward is:
Embezzlement losses are deductible in the year of discovery.
Interest under section 234B is payable by an assessee due to the following reason:
Where the Assessing Officer is aggrieved by an order of the Commissioner of Income-tax (Appeals), further appeal in respect of the same lies to:
Although a work opportunity credit usually is available only for qualified first-year wages, qualified second-year wages paid to a long-term family recipient can qualify for the credit.
Taxpayers may elect to carry forward unused general business credit for 10 years rather than back one year and forward 20 years.
X manufactures goods on job work basis for Company Y. Company Y provides raw material worth INR 1000. X puts in raw material of its own worth INR 100, labour of INR 200 and a margin of INR 100. Such goods are further sold by Company Y at INR 2000. On what value would X be liable to charge Excise duty?
In determining whether a taxpayer materially participates, the participation of a taxpayer's spouse will be taken into account.
Certain individuals can get a refundable tax credit of 40 percent of earned income.
If Company A (situated in Gujarat) raises an invoice on Company B (situated in Delhi) for supply of goods from its warehouse (situated in Maharashtra) to Company B's warehouse (situated in Tamil Nadu), in which State will CST be levied?
Medical expenses recovered after being claimed as a deduction in the previous year must be included in income in the year of recovery to the extent that the deduction decreased taxable income in the year they were deducted.
Sam and Betty Taylor maintain a home and they have two children. Their earned income was $10,000 and adjusted gross income was $11,000. They file a joint return. What is the amount, if any, of their earned income tax credit for the year?
What would be the total VAT/ CST cash outlflow (assuming that the company takes all the available input credit) from the particulars provided below:• Input VAT - INR 750 • Input CST - INR 500 • Output VAT–INR 500• Output CST – INR 500
What is the earned income credit allowed Don Andersen assuming he has adjusted gross income of $8,500 and earned income of $5,000? He maintains a household for his daughter.
ABC Ltd, an existing company incurred an expenditure of Rs 1,00,000 in FY 10-11 in connection with issue of shares to increase its share capital for a period of 10 years. The amount allowed as deduction under section 37(1) for AY 2011-12 will be:
The minimum tax credit:
The general business credit is subject to recapture only if disposition of the property results in an ordinary income.
Which of the following services would not be liable to Service tax?
ABC Ltd, an Indian company, entered into an agreement with Y Ltd. (US Company) for rendering technical services in India on 1st April 2010. The services were provided by Y Ltd. through its branch office in India i.e. it had a Permanent establishment ('PE') in India. Y Ltd received $ 600,000 as a consideration for such services. The taxability of $ 600,000 will be at the rate of (excluding surcharge and cess):
Percentage depletion is computed without regard to the adjusted basis of the property being depleted.
A Ltd. is an Indian Company which is 100% subsidiary of B Ltd., a foreign company. B Ltd. sells its products to A Ltd. at $15 per unit. At the same time, it sells its products to an unrelated party at $20 per unit. The arm's length price as per section 92C in this transaction will be:
If a taxpayer has two places of business in different areas, the IRS usually considers the following factors in determining the taxpayer's principal place of business: (Choose the wrong answer.)
In case of conflict between the provisions of Income Tax Act and the provisions of Double Taxation Avoidance Agreement (DTAA), the following shall prevail :
Company A, located in a Special Economic Zone, manufactures goods and correspondingly export/sells them. Identify the amount of sales on which Excise duty has to be discharged by the Company from the details provided below:• Sales to Domestic Tariff Area- INR 10 crores • Export Sales- INR 10 crores• Exempt sales- INR 10 crores
Ram buys a car for use of the same in providing Rent-a-cab services. Which of the following statement is true?
Under which of the following schemes proposed by Director General of Foreign Trade, the Company can claim benefit for rendering services to foreigners traveling to India?
On 17th Jan 2011, M/s Naina sold a house property and earned a long term capital gain of Rs. 1,00,50,000. She invested a sum of Rs. 50,00,000 in bonds specified in section 54EC on 8th March, 2011. She further invested a sum of Rs. 50,00,000 in same bonds on 8th May, 2011. Taxable Income of M/s Naina for the assessment year 2011-12 will be:
Fees paid to chiropractors may be a deductible medical expense.
Unused general business credits can be:
Medical expenses may be claimed only for persons who qualify as a spouse or dependent on your return.
Wages paid to workers who either live or work in an empowerment zone or in a renewal community qualify for the empowerment zone and renewal community employment credit.
Individual taxpayers are allowed to deduct unreimbursed medical and dental expenses paid during the year for themselves, their spouse, and dependents.
Deductions for business gifts are limited to what amount per individual each year?
Vitamin pills taken daily for general health are a qualified medical expense
How many services is a part of the Negative list?
All theft losses must be deducted in the year in which the theft actually occurred.
A deduction resulting from the partial destruction of business property is limited to the lesser of (1) the adjusted basis of the casualty property, or (2) the decline in fair market value of the casualty property.
Federal income taxes paid are deductible as an itemized deduction on an individual's federal income tax return.
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