Classical

December 2014 - Paper 3

51:  

Under Section 271 C of the Income Tax Act, 1961 the amount of penalty for failure to deduct tax at source is

A.

10% of tax which is otherwise deductible under Section 194 C.

B.

100% of tax which is otherwise deductible under Section 194 C.

C.

200% of tax which is otherwise deductible under Section 194 C.

D.

300% of tax which is otherwise deductible under Section 194 C.

 
 

Option: D

Explanation :


52:  

Secondary market intermediaries for corporate securities in India are

I. Investors                                 II. Jobbers

III. Brokers and sub-brokers   IV. Portfolio consultants

A.

I, II and III only

B.

II, III and IV only

C.

II and III only

D.

III and IV only

 
 

Option: B

Explanation :


53:  

Assertion (A) : The span of management at the upper level is generally narrow while at the lower level span is wide.

Reason (R) : The task allocated to subordinates at the lower level of management are more specific and precise and thus making supervision easy and simple-Suggest correct code :

 

A.

(A) is correct, but (R) is wrong.

B.

(A) is wrong, but (R) is correct.

C.

Both (A) and (R) are correct.

D.

Both (A) and (R) are wrong.

 
 

Option: C

Explanation :


54:  

Margin of Safety is calculated by using

A.

Profit/P/V Ratio

B.

Fixed Cost/Contribution

C.

Break Even Sales/Sales

D.

Profit/Sales

 
 

Option: C

Explanation :


55:  

Which one of the following is not an example of tax evasion?

 

A.

Submitting misleading documents.

B.

Not maintaining proper accounts of income earned.

C.

Suppression of facts.

D.

Interpreting the tax law in ones own way to minimise tax liability.

 
 

Option: D

Explanation :




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