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Appendix
CS Professional Programme Module-III (New Course) June - 2010
INDEX Paper 5 Paper 6 PA PE R'S Strategic M anagement, Alliances and International Trade Advanced Ta x Laws and P ractice

III-1 III-4

Paper - 5 : Strategic Management, Alliances and International Trade Ch apter-2 : Environme ntal Scannin g an d Internal Appraisal A naly sis 2010 - June [2] Explain the following: (i) SW OT analysis (5 marks) 2010 - June [3] (a) Explain in detail Michel F. Porters five forces model of industry analysts. (10 marks) Chapter-3 : Planning and Formulation 2010 - June [1] In a market dominated by behemoths like SAIL and TISCO, finding a niche is of crucial impo rtance for a small player. What could a Lloyds do with a meager annual capa city of making 6 lakh tonnes of HR coils while SAIL sold over 1,600 lakh tonnes in the same time? Should Lloyds follow the market leade r or ad opt its own uniq ue ap proach to its business strategy? It is in the context of such questions that Lloyds attention came to rest o n the manufacturing p rocess. Almost all steel producers adop t the blast furnace techno logy. In this, the process starts with a clear differentiation among the ultimate products to be manufactured. So, m anufac turing batch size has to be large enough to take up customised orders. The raw material, iron ore, has to pass through several complex stages of manufacturing. Lloyds looked for an alternative technology that could suit its requirements. The solution lay in the electric arc furnace

CS Professional Programme Module- III (New Course) III-2 technology where the unique feature was that initial manufacturing stages need not differentiate among different products. Such a differentiation came at a much later stage. Translated into a business proposition, what is meant was that Lloyds could operate with a much smaller batch size of, say, 100 tonnes and deliver quickly. For instance, a 1,000 tonnes small order of specialised product custom-made to buyers specification could be delivered in as little as 15 d ays. Such a quick delivery schedule would not be possible for a large integrated steel manufacturer. In this manner, analogous to small gunboats that could efficiently torpe do a large slo w-mo ving ship , Lloyds carve d out a niche in the highly co mpe titive steel market. Answer the follow ing questions: (i) Comment on the nature of the business strategy o f Lloyds. (10 marks) (ii) W hat are the conditions in which such a strategy would succeed? Could fail? (10 marks) 2010 - June [2] Explain the following: (ii) BC G growth m atrix (5 marks) 2010 - June [3] (b) Distinguish betwe en goals and obje ctives. Also mention the major features of objectives in an organisation. (10 marks) Chapter-4 : Implementation and Control 2010 - June [2] Explain the following: (iii) McK inseys 7-S Framework (5 marks) Chapter-5 : Performance Evaluation 2010 - June [2] Explain the following: (iv) Balanced Sco re Card approa ch. (5 marks) Chapter-9 : Nature and Scope of Strategic Alliances 2010 - June [4] (a) Discuss the preliminary steps required for the creation of a successful alliance. ( 8 marks) 2010 - June [5] (b) Discuss the types of strategic alliance and its advantages. (10 marks) Chapter-10 : Foreign Collaborations and Joint Ventures 2010 - June [4] (b) D iscuss the restrictive cove nants being use d in the foreign collaboration and technology transfer agree ments. (8 marks) (c) W hat are the methods of funding investments in overseas joint-venture and wholly-owned subsidiaries? (4 marks) 2010 - June [5] (a) Discuss the important clauses to be incorporated in a foreign collab oratio n agreement. (10 marks)

CS Professional Programme Module- III (New Course) III-3 Chapter-11 : International Trade and Treaties 2010 - June [6] (b) E xplain the theo ry of compa rative advantage in international trade. (7 marks) (c) Why was NAFTA created and what objectives has it achieved? (5 marks) Chapter-12 : World Trade Organisation (WTO) 2010 - June [7] (b) Distinguish between of the following: (ii) Geo graphical ind ications and trade m arks. (v) Most favo ured nation (M FN ) and national treatment. (4 marks each) 2010 - June [8] W rite critical notes on the following: (i) World Intellectual Property Organisation (WIPO) (5 marks) Chapter-13 : WT O-M inisterial Conferences 2010 - June [8] W rite critical notes on the following: (iv) Role of WTO (5 marks) Chapter-14 : Anti-dumping Duties 2010 - June [6] (a) What is fair trade? (3 marks) (d) What are dem inimis margins and price undertakings which necessitate the suspension o r termination of anti-dump ing investigations? (5 marks) 2010 - June [8] W rite critical notes on the following: (v) Necessity of dumping for exporting countries. (5 marks) Chapter-15 : Subsidies and Countervailing Duties 2010 - June [7] (b) Distinguish between the following: (i) Prohibited subsid ies and actiona ble sub sidies. (iii) Green bo x and blue box. (iv) Substantive rules and procedural rules. (4 marks each) 2010 - June [8] W rite critical notes on the following: (iii) Export subsidy on agriculture (5 marks) Chapter-16 : Settlement of Disputes under World Trade Organisation 2010 - June [8] (b) W rite critical notes on the following: (ii) Multilateral trading system (5 marks) Chapter-17 : Objective Questions 2010 - June [7] (a) Re-write the following sentences after filling-in the blank spaces with appropriate word(s)/figures(s): (i) Quota is an impo rtant non-tariff barrier affecting the quantum of . (ii) Tariff is a source of to the government exchequer. (iii) W hen duty is assessed as a percentage of the value of the imported commodity, it is called . (iv) W hen the political relations between two countries are strained , a country imposes on the imports from that particular country. (1 mark each)

CS Professional Programme Module- III (New Course) III-4

Paper - 6 : Advanced Tax Law s and Practice Chapter-2 : Companies under Income Tax Laws 2010 - June [2] (a) Answer the following: (i) W hat is the quantum of Minimum Alternate Tax (M AT) for a dom estic company and foreign company for the assessmen t year 2010-11? (3 marks) 2010 - June [2] (c) D iscuss the concept of deemed dividend under section 2(22). (3 marks) Chapter-3 : Tax Planning 2010 - June [1] (c) Distinguish between tax evasion and tax av oidance. Indicate whether the follo wing acts can be considered as tax evasion/tax avoidance: (i) Rajat deposits Rs. 70,000 in PPF account to avail tax deduction under section 80C. (ii) Raman is using a motor car for his personal purposes, but charges as business expenditure. (5 marks) 2010 - June [2] (a) Answer the following: (ii) An enterprise seeks your advice regarding the applicability of the provisions of section 80-IC and the conditions, if any, to be fulfilled. Elucidate. (iii) Exp lain the meaning of jewellery and urban land under the Wealthtax Act,1957. (3 marks each) 2010 - June [2] (b) Distinguish between the following: (ii) Section 80-IE and section 80-IC in regard to substantial expansion. (3 marks) 2010 - June [3] (c) Pankaj is holding 15% equity shares of Young India Ltd., a company in which public is not substantially interested. Pankaj needs Rs. 5,00,000 to purchase a car for his personal use. He can borrow at a interest of 5% per annum from his company or from a bank @ 10% per annum interest. The com pany has sufficien t accum ulated profit to advance the requisite loan. Suggest the better alternative to Pankaj from income-tax point of view. (5 marks) Chapter-4 : Tax Management 2010 - June [2] (b) Distinguish between the following: (i) Sectio n 271AA and section 271 B. (3 marks)

CS Professional Programme Module- III (New Course) III-5 2010 - June [3] (a) Examine whether penalty can be levied under section 271(1)(c) even in a case where addition of concealed incom e does not result in taxab le income but only reduces the returned loss keeping in view Explanation 4 to section 2 71(1)(c) and cite relevant case law, if any. (5 marks) (b) Rana Iron Ltd. (RIL) provided free meal coupons to its employees. RIL entered into an agreement with Atul who was in the business of providing such coupons. The emplo yees were provided with coupons of Atul at the rate of Rs.50.00 per day per employee. RIL claimed that the value of the said coupons was not taxa ble perquisite within the meaning of Rule 3(7)(iii) of the Incometax Rules, 196 2. Assessing O fficer found that some of the coupons were misused for p urchase of gro cery and cosmetic items. It was estimated by the Assessing Officer that the m isuse am ounted to 30% of the amount of the free meal coupons considered it as a perquisite to the employees . The assessee company was held to be in default for non deduction of TDS from the employees to the extent of the value of the alleged perq uisite and held liable for levy of interest towards the short deduction of tax and levy of penalty. RIL contested the same. Examine whether the assessee co mpa ny had defaulted in its respo nsibility to deduct approp riate amount of tax from the emp loyees. Cite relevant case law. (5 marks) Chapter-6 : Central Excise Laws 2010 - June [5] (a) Determine the basis of valuation under section 4 or section 4A of the Central Excise Act, 1944 in the following cases, citing case law wherever available (i) Packaged products with MRP printed/marked thereon, expor ted to Nepal. (ii) A pack aged com mod ity covered under MR P notification and also the Standard of Weights and Measures Act, 197 6 unp acked and shown to the customer, tested and then sold to the customer. (iii) Chocolates distributed as free gift alongwith his bottles of soft drinks. (iv) Ice cream s sold in bulk to hotels. (v) Telephone instruments supplied in bulk to a service provider with MRP duly marked and the purchaser (i.e. the service provider) lent the instruments to its customers/subscribers retaining ownership. (5 marks) 2010 - June [5] (c) W hat is the theory of unjust enrichment? W hat are statutory provisions to stop such practices? (5 marks)

CS Professional Programme Module- III (New Course) III-6 2010 - June [6] (a) A small scale manufacturer has achieved turnover of Rs. 1.52 crore during financial year 2009-10. No rmal duty payable on the product is 10% plus education cess. Compute the excise duty payable by SSI Unit (i) If the unit wants to avail CENVAT credit; and (ii) If the unit wants to avail exem ption and C EN VA T credit. (Note: The turno ver is withou t taxes a nd d uties.) (5 marks) (c) When does e-payment of duty become manda tory under the Central Excise Act, 1944? (5 marks) 2010 - June [7] (a) Differentiate between the following: (i) Excise audit under section 14A and special audit under section 14AA of the Central Excise Act, 1944. (3 marks) 2010 - June [7] (b) C omp are and contrast Ru le 8 and Rule 9 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. (3 marks) (c) What are the provisions of CENV AT credit on capital goods? Explain with relevant case law. (3 marks) Chapter-7 : Custom Laws 2010 - June [4] {C } (c) Following particulars are available in respect of consignment of goods imported: (i) Cost at the factory of the exporter : US$ 20,000 (ii) Carriage/freight/insurance upto the port of shipment in the exporters country : US$ 400 (iii) Charges for loading on to the ship at the shipping port : US$ 100 (iv) Freight charges of the ship for transport upto the Indian port : US$ 1,200 Compu te the assessable value for the purpose of levy/payment of customs duty. (5 marks) 2010 - June [5] (c) OR Discuss the circumstances under which no custom duty is levied. (5 marks) 2010 - June [6] (b) What is importer exporter code (IEC ) number? W hat is the procedure for obtaining IEC number? (5 marks) 2010 - June [7] (a) Differentiate between the following: (ii) Preferential rates of customs duty and lower customs duty under trade agreements under the Customs Tariff Act, 1975. (iii) Transit of goods without payment of duty and transshipment of goods without payment of duty under the Customs Act, 1962. (3 marks each)

CS Professional Programme Module- III (New Course) III-7 Chapter-8 : Promissory Estoppel in Fiscal Laws 2010 - June [5] (b) Examine the powers of the Central Government to exempt partly or wholly any goods subject to customs duty, and also whether the withdrawal thereof would come under the purview of the doctrine of estopp el. Cite relevant case law, if available. (5 marks) Chapter-10 : Basic Concepts of International Taxation 2010 - June [8] Attempt the following: (i) Discuss the scope of the provisions the Central Government may make under section 90(A)(1) of the Income-tax Act, 1961 in respect of an agreement between specified associations. (4 marks) (ii) Com pute the arm length p rice (ALP ) in the following cases: (a) Medical Instruments Ltd. is a 100% Indian subsidiary of a US com pany. The parent company sells one of its products to the Indian subsidiary at a price of US$ 100 per unit. The same product is sold to unrelated buyers in India at a price of US$ 125 per unit. (b) The US parent company sells the same product to an unrelated com pany in India @ US$ 80 per unit. (2 marks each) Chapter-11 : Advance Ruling and Tax Planning 2010 - June [8] Attem pt the following: (iv) W hat is the procedure for making an application for obtaining advance rulings under section 245Q of the Income-tax Act, 1961? (4 marks) (v) Discuss the steps for c alculating relief under d ouble taxation treaty. (4 marks) Chapter-12 : Taxation of Inbound Transactions 2010 - June [8] (iii) Attempt the following: Com pute the incom e-tax in the following cases: (a) Royalty of Rs.10 lakh received by a foreign company from an Indian concern in pursuance of an agreement approved by the Central Government in the previous year 2007-08. (b) Rs. 10 lakh long -term capital gains received by an overseas financial organisation on transfer of units purch ased in foreign currency. (2 marks each) Chapter-14 : Objective Questions 2010 - June [1] (a) Choose the most appropriate answer from the given options in respect of the following: (i) Prior recommendation of the Presid ent of India is requ ired to Bills affecting taxation in which States are interested under Article (a) 271 of the C onstitution of Ind ia (b) 281 of the C onstitution of Ind ia

CS Professional Programme Module- III (New Course) III-8 (c) 274 of the C onstitution of Ind ia (d) 273 of the C onstitution of Ind ia (ii) All income arising to any person by virtue of a revocable transfer of assets is chargeable as the income of the transferor and shall be included in his total income under the Income-tax Act, 1961 (a) As per section 60 (b) As per section 61 (c) As per section 62 (d) As per sections 60 and 62 (iii) As per section 5, the following is not included in the total inco me o f a non-re sident company (a) Income which accrues or arises in India during the previous year (b) Income which is deemed to accrue or arise in Ind ia (c) Income which arises or accrues outside India. (d) Income which is received or deemed to be received in India. (iv) As per Article 270(1) read with Article 4 (a) of the Constitution of India, the proceeds of corporation tax are (a) Not divisible among the States (b) Divisible among the States (c) Divisible between the Centre and States (d) None of the above. (v) Part II of the First Schedule of Financ e Bill gives (a) Rates of income-tax (b) Rates of TDS (c) Tax on agricultural income (d) None o f the above (1 mark each) 2010 - June [1] (b) Re-write the following sentences after filling-in the blank spaces with appropriate word(s)/figure(s): (i) Any person discontinuing any business or profession shall give notice to the Assessing Officer under section 176(3 ) within _____ days thereo f. (ii) As per Explanation 4 to the section 115 JB, every company to which the section applies shall furnish a report in the prescribed form from _______. (iii) The Commissioner (Appeals) may admit an appeal under Chapter XX of the Income-tax Act, 1961 after the expiration of _______ of the receipt of order appealed against if he is satisfied that the appellant had sufficient cause for not presenting it within that period.

CS Professional Programme Module- III (New Course) III-9 A dom estic compa ny is liable to pay dividend tax at the rate of _______ of dividend declared. (v) As per section 263(2), the revision order shall be passed within _______ from the end of the financial year in which the order was passed by the Assessing Officer. (1 mark each) 2010 - June [4] {C } (a) Choose the most appropriate answer from the given options in respect of the following: (i) Non-dutiable goo ds mean s (a) The product not given in the Tariff Act (b) The product given in the Tariff Act (c) The pro duct given in the Tariff Act with ra te of duty (d) The pro duct given in the Tariff Act with zero ra te of duty. (ii) At the time of manufacture of Product-X, the rate of basic excise duty (BED) was 14% while at the time of re mov al the rate of duty was 9%. The duty applicable for the Product-X will be (a) 14% (b) 9% (c) 11.5% (d) None of the above. (iii) Excisable goods can be removed for export without payment of duty by using (a) B-3 bond (b) B-2 bond (c) B-4 bond (d) B-7 bond (iv) Registration under the central excise law is not required if the turnover of an SSI un it is (a) Less than Rs. 150 lakh (b) Less than Rs. 90 lakh (c) Less than Rs. 10 lakh (d) Less than Rs. 100 lakh. (v) In the case of Excise Audit, 2000, selection of the assessee is based on (a) Risk factor (b) Value of goods (c) Merit of the assessee (d) Any other factor (iv)

CS Professional Programme Module- III (New Course) III-10 Yearly audit is applicable where excise duty paid in cash is more than (a) Rs. 3 crore (b) Rs. 1.5 crore (c) Rs. 1 crore (d) Rs. 4 crore (vii) Deemed export me ans (a) Export through agent (b) Sale of goods to UN agencies (c) Local sale to a foreigner (d) None of the above. (viii) As per R ule 7 o f the drawback rules, the special bra nd rate of duty drawback should be applied (a) W ithin 90 days fro m the d ate of exports (b) W ithin 60 days fro m the d ate of exports (c) W ithin 30 days fro m the d ate of exports (d) W ithin 45 days from the date of exp orts. (1 mark each) 2010 - June [4] {C} (b) Rewrite the following sentences after filling-in the blank spaces with appropriate word(s)/figure(s): (i) Excisable goods consumed within the factory for manufacture of final product is called ________. (ii) Goods included in the ________ schedule of the Central Excise Act, 1944 are the sam e on w hich excise du ty is payab le under section 4A. (iii) MR P provisions are no t applicable for packaged comm odities meant for ________. (iv) Duty rebate is not allowed if the rebate amount is less than ______. (v) As per section 2 (38) of the C ustom s Act, 1962 ,stores means goods for use in a ________. (vi) Anti-dumping duty is imposed when export price is ________ than norm al price in the exp orting country. (vii) As per section 27 of the Customs Act, 1962, interest on delayed refund is payable after expiry of ______ __ months from the date of receipt of such order. (1 mark each) 2010 - June [8] Attem pt the following: (vi) State, with reasons in brief, whether the following statements are correct or incorrect: (a) A tax heaven is a cou ntry where there is lot of scope for tax evasion. (b) A non-resident is not liable to pay income-tax on the income earned and received outside India. (vi)

CS Professional Programme Module- III (New Course) III-11 (c) Section 92 of the Income-tax Act,1961 empowers income-tax officer to penalize a non-resident for tax avoidance. (d) As per section 115A of the Income-tax Act, 1961 where the total income of a foreign company includes any dividend, income-tax payable on such dividend will be at the rate of 30%. (1 mark each)

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