CA Final Direct Tax Laws and International Taxation MTP May 2024: Question Paper and Solutions

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1. Falcon Ltd of Country X is an associated enterprise of Max Inc. of USA. Falcon Ltd. has a branch in India since 2010. It was selling goods to Indian…
2. Mr. Abhay, a resident Indian, is in retail business in Delhi and his turnover for F.Y.2022-23 was - 9.8 crores. He regularly purchases goods from…
3. Flax (P) Ltd. availed online digital advertisement service provided by Marshall Inc. of USA in March 2024. It paid 10 lakhs and the amount…
4. Swastik is a charitable trust registered under section 12AB, with its main object falling under the residuary clause “any other object of general…
5. Which of the following deduction/exemption/set-off of losses are allowable while computing income under respective head of income and total income…
6. Mr. Rahul, a resident Indian, purchased units in ABC REIT on 1.4.2023. ABC REIT received dividend income from TL Ltd., being a SPV. TL Ltd. opted…
7. Sheetal Ltd. is a listed company located in Mumbai. It is engaged in multiple activities at different locations. Books of account are maintained by…
8. ABC Pvt. Ltd was converted into limited liability partnership (LLP) as ABC LLP on 1-10-2023. You are provided with the following particulars of ABC…
9. Mr. Mani Prasad, aged 71 years furnished the following information in respect of income earned by him for the previous year ended 31-03-2024:…
10. Examine the following based on the relevant provisions of the Income-tax Act, 1961 and judicial pronouncements: (i) Satvik public charitable trust…
11. (i) Trax & Co. is engaged in providing scientific research services to several non-resident clients. Such services are also provided to Olive Inc.,…
12. Marigold Ltd., an Indian Company engaged in trading of electronic appliances through retail stores all across India, reported a total turnover of 70…
13. The tax assessment of Mr. Raghav was completed on 25-12-2023 and the tax due was determined as 28 lakhs. The assessee has the following: (i) Bank…
14. XYZ Co., an Indian company, is engaged in the business of manufacture of packaging material having its manufacturing facility in India. XYZ Co. is a…
15. Answer any two of the following three sub-parts (i), (ii), (iii) on the basis of decided case laws, bringing out the following – (1) Issue involved…
16. Describe the three-tier structure for transfer pricing documentation mandated by BEPS Action Plan 13. Which provisions under the Income-tax Act,…
17. Critically examine the following cases and discuss whether the provisions of General Anti-avoidance Rules (GAAR) can be invoked in these cases? (i)…
18. Right & Co, a firm engaged in retail business, employed 30 new employees on 1.4.2022 on a monthly salary of 24,500 to be paid by account payee…
19. The Indian branch of D Co Ltd, Country K has carried out some transactions with LT Co Ltd, Bengaluru in the financial year 2023-24. The value of the…
20. The following information pertains to Mr. Apoorv, an Indian citizen and non-resident in India, for the previous year 2023-24: (i) Dividend from TPO…
21. Omega Inc., a Country F company, maintains an online web-platform through which it provides end user computer software through an End-user Licence…
22. Sharma Pvt. Ltd. (“S”) files its return of income for the P.Y. 2023-24 on 30th September 2024 declaring loss of 18,00,000. The rate of income-tax…
23. During the P.Y.2023-24, YourCare Charitable Trust registered under section 12AB received donations of 90 lakhs, out of which 10 lakhs were corpus…
24. Mr. Sugam, a resident Indian aged 61 years, has income of 48 lakhs under the head "Profits and gains of business or profession”. One of his…
25. Mr. Sahil set-up a three-star hotel “Cloud View” in Bhopal on 16.5.2009 and another three-star hotel "Green View" in Mumbai on 1.4.2012. His brother…
26. Fun Limited, a domestic company, set-up and commenced business of manufacturing of mixer grinder on 01-4-2023 in the State of Madhya Pradesh. The…
27. The profit and loss account of the Heros and Sons, a partnership firm, showed a net profit of 80 lakhs after debiting/crediting of the following…
28. Mr. Albert, a non-resident and American citizen, is employed in an American company. The American company has a PE in India. Albert visited India…
29. The Head of Accounts of Heathy Wealthy Foundation, a trust, established for the purpose of promotion of Yoga has approached you to guide about the…
30. Mr. Shyam is the founder of UVX Trust, a public charitable trust registered u/s 12A of the Income-tax Act, 1961. The trust runs a hospital for the…
31. Mr. Sarthak, an Indian citizen aged 51 years, left India for the first time on 1st April 2020 to settle in Country Y. But owing to some personal…
32. In respect of the following independent case scenarios you are required to discuss the provisions related to tax deducted/collected at source and…
33. Cloud Ltd., a real estate development company, entered into a Joint Development Agreement with Mr. Ashok, a resident individual, whereby Mr. Ashok…
34. State Government of Madhya Pradesh grants a lease of coal mine to M/s Maple Co. Ltd. on 01.09.2023 and charged 12 crores for the lease. M/s Maple…
35. Aster Ltd., Australia, holds 30% equity shares in Bhuvan Ltd., India. Bhuvan Ltd. develops software and also provides related support services.…
36. Answer any two of the following three sub-parts (i), (ii), (iii) on the basis of decided case laws, bringing out the following (1) Issue involved…
37. Krishna Cooperative Society, the assessee is engaged in marketing of fertilizers and purchase and processing of seeds. The assessee had claimed…
38. On 1st May 2023, M Sudarshan, a resident individual, received 1,500 bonus shares from Sugam Pvt. Ltd. in which he held 3,000 equity shares. The…
39. What is meant by Digital economy? What are the taxation issues in E-Commerce? List out the OECD recommendations under Action Plan 1 which deals with…
40. In the following independent circumstances, discuss whether the provisions of GAAR would be applicable: (i) Right Inc., a company incorporated in…
41. D Ltd., an Indian company, incorporates a wholly owned subsidiary Company C, in Country X which is a Low Tax Jurisdiction with equity share capital…
42. The Income-tax department collected documents from MNO Bank which revealed that M/s. Aster Travels and Consultancy Services (Aster Travels) had…
43. XYZ & Co., a partnership firm engaged in trading of electronic goods, furnished the following information: Particulars ₹ (i) Total turnover of…
44. Explain the correctness or otherwise of the following statements giving proper reasons thereof: (i) Mr. Rakul, a resident individual, is aggrieved…
45. M/s Sun Ltd., an Indian public sector company, wants to seek advance ruling from the Board for Advance Rulings (BOAR) in respect of a matter…