BBG Pvt. Ltd is a domestic company engaged in the business of running and maintaining of hotels in India had total turnover in Asst. Year 2019-20 of ₹180 crores declared the total taxable income for the year ended 31.03.

CS Executive · Tax Laws · PYQS · December 2020
BBG Pvt. Ltd is a domestic company engaged in the business of running and maintaining of hotels in India had total turnover in Asst. Year 2019-20 of ₹180 crores declared the total taxable income for the year ended 31.03.2020 of ₹12.5 crores. Tax payable on the income of ₹12.5 crores in the Asst. Year 2020-21 by the company shall be
(A) ₹3.64 Cr.
(B) ₹3.4775 Cr.
(C) ₹4.368 Cr.
(D) ₹4.173 Cr.

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A), (C). Official source note: Option A/ C both may be considered as correct. The turnover of FY 2018-19 (180 crore) is mentioned in the question paper. The turnover of FY 2017-18 is not mentioned in the question paper. Assuming the turnover of FY 2017-18 is also less than 400 crore, Option A is correct [12.5 crore * 25% + SC @ 12% + HEC 4%]. Otherwise Option C is correct [12.5 crore * 30% + SC @12%+ HEC 4%].

Topics: Assessment of Companies

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