Principle: An incorporated company under the Companies Act has a separate legal entity and corporate liability.
Factual Situation: Certain persons transferred a tea estate to an incorporated company and claimed exemptions from “ad valorem” duty on the ground that they themselves were shareholders in the company.
(a) The shareholders are liable to pay as the company is a separate legal person.
(b) The shareholders are not liable to pay since it is a transfer from them in one name to themselves under another name.
(c) The shareholders are liable because everybody has to pay duty on a transfer or conveyance.
(d) The shareholders are not liable to pay, but the company would pay on their behalf.
The answer is (a)
Mr. A walked 10 yards down “X” street. He then turned to the left and walked 10 yards down “Y” street. He again turned to the left and walked 10 yards down “Z” street. Then he turned to the left and walked 15 yards down another street. Then he turned to the left and walked 10 yards down that street. Again he turned to the left and walked 5 yards. Which street is he now on?
(a) X street
(b) Y street
(c) Z street
(d) Another street
The answer is (a).
A person earns ` 2,000 per month over and above his salary as additional allowance. However, 30% of such additional allowance is deducted as additional tax at source. If the person would deposit ` 1000 per month on a long term saving fetching 12% interest, his tax liability on the additional allowance would reduce to 10%. What is the effective interest for this person for money invested in the long term saving scheme?
The answer is (c).