Related Party Transactions
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Questions and Answers

What is the minimum percentage of voting stock/shares that a third person must control to be considered a related person?

  • 25% (correct)
  • 15%
  • 30%
  • 20%

    • Which of the following relationships does not necessarily imply related persons?

  • Officer/director of one another's business
  • Parent and subsidiary company
  • Strangers in the market (correct)
  • Employer and employee

    • When is a supplier required to obtain State-wise registration under GST?

  • When aggregate turnover exceeds a specified threshold limit
  • When making a taxable supply (correct)
  • When making a non-taxable supply
  • When importing services from outside India

    • What is the consequence if Q Ltd. has a deciding role in corporate policy, operations management, and quality control of R Ltd.?

    <p>Q Ltd. and R Ltd. are related</p> Signup and view all the answers

    What is the implication if Ms. Priya holds 30% shares of ABC Ltd. and 35% shares of XYZ Ltd.?

    <p>ABC Ltd. and XYZ Ltd. are related</p> Signup and view all the answers

    Under GST, what is the consequence if a supplier makes a taxable supply from a particular State/UT?

    <p>The supplier is required to obtain registration only if the aggregate turnover exceeds a specified threshold limit</p> Signup and view all the answers

    What is the essential requirement for two persons to be considered related persons under GST?

    <p>One person must control the other</p> Signup and view all the answers

    What is the implication if a third person controls (directly/indirectly) both ABC Ltd. and XYZ Ltd.?

    <p>ABC Ltd. and XYZ Ltd. are related</p> Signup and view all the answers

    What is the condition for a transaction to be considered a supply without consideration?

    <p>The transaction should be made in the course or furtherance of business</p> Signup and view all the answers

    Who is considered a related person under GST law?

    <p>A person who is influenced by another person, like members of the same family or subsidiaries of a group company</p> Signup and view all the answers

    What is the implication of a supply made without consideration between related persons?

    <p>It is considered a supply if made in the course or furtherance of business</p> Signup and view all the answers

    What is the condition for input tax credit to be blocked on a motor vehicle?

    <p>The motor vehicle is permanently transferred free of cost</p> Signup and view all the answers

    What is the implication of a supply made without consideration between distinct persons?

    <p>It is considered a supply if made in the course or furtherance of business</p> Signup and view all the answers

    What is the category of assets that includes old laptops being used in a business?

    <p>Tangible assets</p> Signup and view all the answers

    What is the implication of a supply made without consideration between a holding company and its subsidiary?

    <p>It is considered a supply if made in the course or furtherance of business</p> Signup and view all the answers

    What is the condition for a transaction to be considered a supply with consideration?

    <p>The transaction should be made with consideration</p> Signup and view all the answers

    Which of the following activities is not treated as a supply even if made without consideration?

    <p>Export of goods by a principal to his agent</p> Signup and view all the answers

    What is the condition under which import of services is considered a supply under section 7(1)(b)?

    <p>The import of services is for a consideration whether or not in the course or furtherance of business</p> Signup and view all the answers

    Which of the following is an example of a supply under section 7(1)(b)?

    <p>A proprietor uses an architect's services for his personal residence</p> Signup and view all the answers

    Under which circumstances is the supply of goods or services between related persons not treated as a supply?

    <p>When the supply is made for a value not exceeding fifty thousand rupees in a financial year</p> Signup and view all the answers

    Which of the following is a condition for supply of goods or services to be treated as made in the course or furtherance of business?

    <p>The supply is made in the course or furtherance of business</p> Signup and view all the answers

    What is the implication of importing services from a related person outside India?

    <p>It is treated as a supply, whether or not made in the course or furtherance of business</p> Signup and view all the answers

    Which of the following activities is treated as a supply under Schedule-I?

    <p>Permanent transfer or disposal of business assets</p> Signup and view all the answers

    What is the condition under which supply of goods or services between related persons is treated as a supply?

    <p>The supply is made in the course or furtherance of business</p> Signup and view all the answers

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