Session 3

Question 1

Transfer pricing implications

Answer 1

1. Arms length price
2. IRB scrutiny
3. tax audit to lift up the amt
4. raise additional assessment
5. penalty- incorrect return

Question 2

RPGT- NGNL

1. gift
2. deceased
3. btwn spouses
4. controlled co

Answer 2

1. AP+PE(tror) , DOT
2. DOD
3. same as 1
4. AP+PE-cash, DOT

Question 3

NGNL btwn cos

1. efficiency
2. scheme
3. liquidate

Answer 3

1. AP+PE(tror), DOT
2. AP+PE(tror), ori
3. same as 2

Question 4

Formula excessive diff + penalty

Answer 4

Final tax payable
- installment
balance [A]
- 30% final tax payable
balance
penalty 10% [B]
total tax payable (A+B)

Question 5

Plant

Answer 5

1. active function
2. capital in nature
3. enduring advantage
4. permanent use than trading
5. fixed capital vs circulating
6. perform function vs biz setting