Business Tax Planning — DU B.A. (Hons.) Business Economics (BBE) Previous Year Question Papers

: Business,Tax planning : B.A. (H) Business Economics (NEP) 1. 2. 3. A company is evartyating different ways to reduce its tax burden legally. The finance manager suggests restructuring transactions rather than hiding income. (a) Based on the above, explain Tax planning and its objectives. (9) a) Distinguish between Tax Planning, Tax Avoidance and Tax Evasion with suitable examples from the scenario. (9) ABC Ltd. is deciding between debt fmancing and equity financing for. expansion. The management is also planning dividend distribution for the year. (a) Explain how capital structure decisions impact tax liability. (b) Analyse the tax implications of dividend policy decisions. (9) (9) Explain the Rationale of GST in India. I|ow has the transition from the old hdirect Tax regime helped in removing the "Tax on Tax" (Cascading) effect? Support your answer with a simple example. (18) Determine the time/place of supply (whichever is applicable), in the following cases. Justify your answer with a short explanation. (6x3=18) (a) A buyer in Jaipur orders goods from a supplier in Delhi but asks them to deliver it directly to his client in Ahmedabad. a) A. Delhi-based exporter supplies goods to a customer in the USA, but delivery is made to a warehouse in Chennai. (c) A catering contractor provides meals on a train running from Chermai to Hyderabad. The food is stocked onto the train at Chemai before departure. (d) Goods are received on 5th April. Payment is made on 30th May. No invoice is issued. (e) Invoice is issued on 5th August, but goods are delivered on 20th August. Payment is \ received on 25th August. (I) A supplier receives €50,000 advance on lst Jar for goods and balance on delivery (20th Jar). hvoice issued on l8th Jar. 4. M/S Zenith Electronics, a registered distributor in Kamataka, provides the following transaction details for March 2026 (GST Rate 18%): 1. Inward supplies (Purchases): o Office furniture purchased from a local vendor in Bangalore: {2,00,000. o Electrical fittings for the showloo.in purchased locally: €1,00,000. 2. Outward supplies (Sales): o Supplied goods to a retail chain in Kerala: {18,00,000. a Sold inventory to a local customer in Mysore: €5,00,000. o Supplied spare parts to a SEZ (Special Economic zone) developer (Zero-rated): €3,00,000. (a) The total Input Tax Credit (ITC) available under IGST, CGST, and SGST. a) The Output Tax Liability for the month. (c) Net GST payable in cash after the maximum utilization of available lTC. (18) 5. (a) A small trader with an annual turnover of €75 1alchs is considering opting for the Coraposition Scheme under GST to simplify compliance. Explain the features and eligibility conditions of the Composition Scheme. Advise whether the trader should opt for the scheme, stating advantages and limitations. (9)