CA Final DT paper may 2018

In that Charitable trust question

1.Donation made to other trusts having different object than that of donar trust...will it be deemed as"applied" for Chartitable trusts?

2.Also should we take actual acquisition cost as "applied" ? or " Value for the purpose of stamp duty" as "Applied"?

very easy ........ can see many exemptions in DT this time (old syllabus)

donation is to be excluded... amnd... from finance act 2017

Paper is easy but a bit lengthy.

The distinctive feature of today's paper is the style in which he asked.

Atleast 50 marks can be scored.

@ Bhoomi, are you referring to this amendment 

".... Explanation has been inserted to section 11 of the Income-tax Act so as to provide that any amount credited or paid, out of income referred to in clause (a) or clause (b) of sub-section (1) of section 11, being contributions with specific direction that they shall form part of the corpus of the trust or institution, shall not be treated as application of income."

But in question it nowhere says that donation was a corpus donation...I think the donation given in question can be termed as "Applied"...

You are right.. For more clearity about this point i took assumption that it is assumed that donation is not corpus.. In 1(b) while calculating MAT only fee for technical service was not deducted?

@ Chetan

You will deduct

1) dividend recieved from listed company as it is except u/s 10

2)That interest from foreign currency loan, since it would be taxed at rate lesser than 18.5 %

3) Also fee for technical service, since it would also be taxed at rate lesser than 18.5 %

This is as per me though.

Originally posted by : Chetan
	You are write.. For more clearity about this point i took assumption that it is assumed that donation is not corpus.. In 1(b) while calculating MAT only fee for technical service was not deducted?

By virtue of Explanation 1 of Section 115JB

Add:

  -> Expenditure incurred for providing technical services

Less:

   -> Interest Received from MMS Ltd

  -> Fee for technical Services.

  -> Dividend from Listed Indian Companies (10(34), subject to DDT u/s 115O)

  -> Dividend from Unlisted Companies (10(34), subject to DDT u/s 115O)

@ Chetan
Yes, u r correct