Taxation Interview Questions And Answers

monthly salary = 21855
annual salary = 21855*12 = 262260/-
as per India TDS rule on TDS will be deducted on annual salary
=>180000
so total annual salary 262260-180000 = 82260/-
TDS 82260*10.3% = 8472.78/-
and per month = 706/-

Yes it is Possible. As per excise rules 2002 the same goods
sold to vat bill in his own firm.

Brought forward loss is shown as adjustments under Capital Account and is shown Liability side of Balance Sheet

er1 is excise

For this you have to pay interest for three month @ 18%

LST Number means Local Sale Tax

13.5%

TDS File Challan no.281 last date of challan paid 7th every
month.Return filing Last date before 15th every quarter.

Indirect Tax : CST

Sales tax, as compared to VAT is the percentage of revenue
imposed on the retail sale of goods. Unlike VAT, sales tax
is levied on the total value of goods and services
purchased.

X Co.in Maharastra place order to Y Co in Kerala for a
material and Y Co.in Kerala Place order for that material
to Z Co. in Chennai and inform to supply directly to X in
Maharashtra .Here X is purchaser of Y and Y is the
purchaser of Z and Y asking Z to give the ownersp of
material to X insted of Y.Thais is sale in transit.Here
Consiner is Z and Consinee is X.Here other than C form
there is E-i and E-11 form also.Y purchaser of Z will give
C form to Z in exchange of E-1 and Y the seller of X will
get C form from X the purchaser.if X sells that matrl to A
in Maharashtra and give A E-II form and should charge 0%
tax.this is to avoid double taxation.

Taxation is a mean by which governments finance their expenditure by imposing charges on citizens and corporate entities.

Governments use taxation to encourage or discourage certain economic decisions. For example, reduction in taxable personal (or household) income by the amount paid as interest on home mortgage loans results in greater construction activity, and generates more jobs.

The taxation without representation refers to the inhabitants of the colonies being taxed by the government despite not having a representative government official to express the views of the citizens of the colonies.

Effects on accounting taxation is the appropriation of income taxes during the time the taxes incurred instead of when the taxes need to be paid.

The levy and collection of property tax on lands and buildings. Property taxation is levied on lands and buildings declared as rating areas by the government. Property Taxation is one of the major taxes collected by the department.

The aim of the "Taxation papers" is twofold:
☛ To facilitate the spreading of the analysis of the Commission's Taxation and Customs Union.
☛ To contribute to the debate on taxation in the European Union.

Infrastructure Cess tax regime is applicable to all the goods entering the province through sea or air. A Cess @ 0.85% (@0.125% of Gold only) is levied on the C and F value of goods as determine by the customs department.

Assessment for hotel tax is made during every financial year on the basis of return documents filed, inspection carried by the field staff and after giving the representative of the hotel an opportunity of being heard. Assessment order is issued and demand is raised in demand register.

Motor vehicle Tax is levied on every motor vehicle registered in any district with registration fee. Vehicle registration involves the recording of a motor vehicle in the official records after due verification. Vehicle registration is mandatory/compulsory under the law and is essential to prove the ownership of a vehicle. It is also required during the sale of a vehicle and transfer of its ownership.

Professional taxation, also known as an occupation taxation or a professional privilege taxation, is a taxation that a professional must pay to receive the right to practice a professional service. Professional taxation regime produces manually prepared taxation challans for business entities on annual basis. Criteria for calculating professional taxation is fixed, depending upon number of directors, employees and paid-up capital and annual turnover of establishment.

These include:
Adequacy:
Taxes should be just enough to generate revenue required for provision of essential public services.
Broad Basing:
Taxes should be spread over as wide as possible section of the population or sectors of economy, to minimize the individual tax burden.
Compatibility:
Taxes should be coordinated to ensure tax neutrality and overall objectives of good governance.
Convenience:
Taxes should be enforced in a manner that facilitates voluntary compliance to the maximum extent possible.
Earmarking:
Tax revenue from a specific source should be dedicated to a specific purpose only when there is a direct cost and benefit link between the tax source and the expenditure, such as use of motor fuel tax for road maintenance.
Efficiency:
Tax collection efforts should not cost an inordinately high percentage of tax revenues.
Equity:
Taxes should equally burden all individuals or entities in similar economic circumstances.
Neutrality:
Taxes should not favor any one group or sector over another and should not be designed to interfere-with or influence individual decisions making.
Predictability:
Collection of taxes should reinforce their inevitability and regularity.
Restricted exemptions:
Tax exemptions must only be for specific purposes (such as to encourage investment) and for a limited period.
Simplicity:
Tax assessment and determination should be easy to understand by an average taxpayer.

Taxation principles are the basic concepts by which a government is meant to be guided in designing and implementing an equitable taxation regime.

Income tax is an annual tax charged on income of a person by the government. It is charged for the corresponding assessment year at the rates laid down by the Finance Act for the assessment year in respect of the previous year.

An assessment year is the period that starts from 1 April and ends on 31 march. It is the year immediately succeeding the financial year wherein the income of the previous financial year is assessed. Government use assessment year for calculating tax on the previous year.