Tribhuvan University
Bachelor of Business Administration
Semester 5 · TU Board 2025
Course Title: Taxation And Auditing (ACC204)
Full Marks: 100Pass Marks: 50Time: 3 Hrs
Candidates are required to give their answers in their own words as for as practicable.
Group A
Brief Answer Questions(10 × 2 = 20)
- 1.2
Define direct tax with example.
Answer comingAlso asked in 2024
- 2.2
What do you understand by Permanent Account Number (PAN)?
Answer comingAlso asked in 2024
- 3.2
Define output VAT with suitable example.
- 4.2
What are the difference sources of income as per the Income Tax Act, 2058?
Answer comingAlso asked in 2024
- 5.2
Define tax audit with suitable example.
- 6.2
Ramesh a citizen of Pakistan came to Nepal on 1st Magh 2080 and stayed here till Baisakh last 2081. He earned Rs 200,000 as consultancy fees.
Required: Taxable income, tax liability and residential status of Mr. Ramesh.
- 7.2
Mr. Anish has been operating a proprietorship business located at Lalitpur Metropolitan City, his sales and taxable income was Rs 2,600,000 and Rs 300,000 respectively. He had adopted to be presumptive tax payer.
Required: Determine the tax liability with explanation as he is a presumptive taxpayer.
Answer comingAlso asked in 2024
- 8.2
Mr. Dahal is working in a reputed bank as a senior officer. The bank provided him car loan facility amount to Rs 3,000,000 on 1st Marga of previous year at interest rate of 8% p.a. The prevailing rate of interest was 10% p.a.
Required: Quantified amount of interest subsidy to be included in employment income of Mr. Dahal.
- 9.2
Ms. Thapa is a government officer and received net salary after deducting approved retirement fund Rs 60,000 and tax deduction at sources Rs 20,000, including one-month equal Dashain allowance Rs 570,000 in the previous income year.
Required: Monthly salary, taxable income and tax liability of Ms. Thapa, she elected family status.
- 10.2
Mr. Pandey, purchased shares two years ago at cost Rs 500,000 and entire shares sold at Rs 1,200,000.
Required: Capital gain and tax liability.
Group B
Short Answer Questions: (Attempt any SIX Questions)(6 × 5 = 30)
- 11.5
What are the tax exempt incomes under the Income Tax Act, 2058 under section 10.
- 12.5
Describe the provision of installment method of tax collection as per the Income Tax Act, 2015 with example.
- 13.5
What do you mean by final withholding payments? List out any five final withholding incomes.
- 14.5
Following are the financial results of a company of last 6 years:
Year123456Profit (Loss) (Rs)(2,00,000)(4,00,000)1,75,0004,00,0002,00,0003,00,000On scrutiny, it was found that a donation of Rs 300,000 was given to Public Hospital charged in year 1. Similarly, the profit of 4th year was calculated after deducting pollution control cost Rs 400,000 and before deducting interest on bank loan Rs 50,000 at 5th year.
Required: Taxable income with giving explanation wherever necessary.
- 15.5
A customer bought a television from a retail store paying Rs 339,000. The TV was imported by Mr. Sundar and it was sold to the retailer. The importer and retailer both incurred Rs 1,000 each as an additional cost and profit margin of 10% on selling price as included in all cases.
Required: (a) Import price of TV (b) Amount of VAT payable to the government at each stage
- 16.5
Following are the details of the fixed assets of ABC Trading Organization.
ParticularsBlock 'D'Opening WDVRs 600,000New addition during the year:on 1st MargRs 100,000on 15th FalgunRs 120,000on 20th JesthaRs 180,000Disposal value during the year book value Rs 10,000Rs 20,000Repairs and maintenance during the yearRs 60,000Required: a. Allowable depreciation and repairs and maintenance b. Value of fixed assets at the end of the fiscal year.
- 17.5
Mrs. Barsha is an advocate, maintains her account on a cash basis furnished the following statement for the year end 31st Ashadh.
Receipts and Payments AccountRs.PaymentsRs.To Balance b/d25,000By Office expenses40,000To Legal fees256,000By Office rent60,000To Consultation fees52,400By Telephone expenses6,000To Lottery income(net)7,000By Interest on bank loan25,000To Dividend (net)5,700By Membership subscription2,000To Interest from Bank (net)21,500By Electricity charges8,000To Sundry incomes37,400By Newspaper expenses6,500To Gift from clients20,000By Donation40,000To Birthday Gifts received5,000By Car expenses10,000By Premium of life insurance (own)30,000By Balance c/d202,000430,000430,000Additional information:
- Legal fees include Rs 56,000 relating to two years ago.
- Allowable depreciation Rs 30,000.
- Office expenses included Rs. 10,000 paid for household servant.
- Outstanding salary Rs 20,000 is yet to be paid.
- Electricity and telephone expenses is used equally for profession and domestic purpose.
Required: a. Net assessable income profession b. Statement of taxable income
Group C
Long Answer Questions: (Attempt any THREE Questions)(3 × 10 = 30)
- 18.10
Describe the provision regarding depreciation as laid down under the Income Tax Act, 2058 under Sec-19.
Answer comingAlso asked in 2024
- 19.10
"Self-assessment of tax system is effective in developed country". Explain.
- 20.10
Mr. Kamal furnish the following income details of previous income year.
- Rent from natural resources of Rs 425,000 (Net).
- Royalty income Rs 85,000 (Net).
- Dividend from the foreign country Rs 100,000.
- Compensation received Rs 63,000.
- Bad debts recovered (20% not allowed previously) Rs 10,000.
- Interest received from private money lending transaction Rs 170,000 (Net).
- Gain from the investing insurance Rs 190,000 (Net).
- Rent received for letting machinery Rs 360,000 after TDS Rs 40,000.
- Income from joint investment Rs 100,000. Mr. Jhalak is the investment partner with 20% share.
- Interest from the fixed deposit Rs 20,000 (Net).
- Gift from the client with market value Rs 9,000.
- Wind fall gain Rs 15,000 (Net).
- Payment received from the natural resources after TDS Rs 8,500.
Following expenses are claimed for deduction:
- Cost of lottery ticket Rs 500.
- Joint investment expenses Rs 10,000.
- Royalty collection charge Rs 4,000.
- Allowable depreciation of machinery Rs 20,000.
- Rent paid for office Rs 42,000.
- Personal expenses Rs 20,000.
Required: (a) Net assessable income from investment (b) Statement of total taxable income (c) Tax liabilities
Answer comingAlso asked in 2024
- 21.10
Mr. Rohit is an employee of Nepal Government. He was appointed 1st Baishakh 2075 at the pay scale Rs 54,000 – 2000 – 60,000 EB – 3,000- 75,000. He has submitted the following particulars of his incomes and expenses of previous year.
- Saving from TADA Rs 50,000
- Dearness allowance Rs 2,000 p.m.
- Local allowance Rs 2,500 p.m.
- Medical allowance Rs 60,000.
- He received salary in lieu of leave Rs 18,000.
- Meeting allowances Rs 20,000 (net).
- Life insurance premium paid by employer on behalf of Mr. Rohit was Rs 50,000 on the insured sum of Rs 300,000.
- Office has provided him accommodation and vehicle facility.
- Office has provided him a household servant whose salary was Rs 5,000 p.m. but office has deducted Rs 3,000 p.m. from his salary income.
- He received dividend Rs 19,000 (net) from a bank.
- Salary from part time teaching Rs 170,000 (Net).
He claimed the following expenses as deduction:
- Donation to social welfare organization Rs 20,000.
- Health Insurance premium paid Rs 31,000.
- Personal and household expenses Rs 25,000.
- Approve medical expenses Rs 30,000 paid by office.
- Tuition fees of his son paid Rs 50,000.
- He is working at remote area 'B' zone.
- House insurance premium Rs 15,000.
Required: (a) Assessable income from employment (b) Statement of taxable income (c) Tax liability.
Group D
- 22.
Mr. Bhandari, a trader furnished the following trading and profit and loss account for previous year:
ParticularsAmountParticularsAmountTo Opening stock90,000By Sales2,950,000To Purchases500,000By Closing stock55,000To Carriage150,000To Wages250,000To Gross profit c/d2,015,0003,005,0003,005,000To Salaries180,000By Gross profit b/d2,015,000To Legal expenses19,000By Commission30,000To Bad debts expenses20,000By Interest on investment50,000To General reserve100,000By Refund of income tax20,000To Pollution control cost50,000By Sundry income25,000To Depreciation150,000By Dividend (Net)37,500To Repairs expenses100,000By Bad debts recovered15,000To Donation paid to public school80,000By Amount received for accepting restriction regarding business25,000To Office expenses165,000By speculation income5,000To Audit fees15,000By Rent from staff quarter17,500To Hospitality expenses20,000By gain on sales of (non business chargeable assets)60,000To Advance income tax paid7,500To Fine and penalty25,000To Bonus to staffs35,000To Advertising9,000To Net profit1,324,5002,300,0002,300,000Additional information:
- Opening stock undervalued by 10% and closing stock overvalued by 20%
- Refund of income tax includes Rs 15,000 as refund of custom duty.
- Legal expenses included Rs 5,000 for fine and penalty paid to local government.
- Depreciation on car has not been charged in the above statement. The depreciation base of the car was Rs 500,000.
- Office expenses include Rs 55,000 as a printing expenses paid at a time by cash while banking facilities available within 10 kilometers.
- Previous year business loss stood Rs 50,000.
Required: a. Net assessable income from Business. b. Net assessable income from investment. c. Statement of total taxable income. d. Tax liability. e. Giving explanation wherever necessary.
Answer comingAlso asked in 2024
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