Indirect Tax Laws And Practice (Paper - 19) PDF

THE INSTITUTE OF COST ACCOUNTANTS OF INDIA INDIRECT TAX LAWS AND PRACTICE (PAPER - 19) MCQ BANK SL NO QUESTIONS OPT...

THE INSTITUTE OF COST ACCOUNTANTS OF INDIA INDIRECT TAX LAWS AND PRACTICE (PAPER - 19) MCQ BANK SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4 Actionable claim other 1 Goods within the meaning of supply does not includes: Movable property Money and securities than specified All of the above actionable claims 2 Items out of the purview of supply are provided in: Schedule I Schedule II Schedule III None of the above M/s R Associates of Chennai received certain consultancy services from A Yes. Being import of No. Since, party to the On the prior approval of 3 Inc. of USA. Both are not related person. The services received is without services in the course of None of the above contract are not related the Government any consideration. Does the same classify as supply? business X Ltd. Transferred certain assets forming part of business assets. The same was transferred free of cost without any consideration as a part of corporate Does not qualify as Supply of goods and 4 Supply of goods Supply of services social responsibility (CSR). What shall be the classification of such supply? supply services or both X Ltd. Not availed Input Tax Credit on such assets. While repairing the factory shed, few goods were also supplied along with 5 Composite Supply Mixed Supply Works Contract Service None of the above the labour service. Whether it is a: Tax rate as applicable Tax rate as applicable 6 What would be the tax rate applicable in case of mixed supply? on supply attracting the on supply attracting the Tax @ 28% None of the above lowest rate of tax highest rate of tax A person purchases a bundle of toothpaste along with Tooth brush. Toothpaste under this case is liable to GST @12% and tooth brush for 7 18% 12% 6% Nil instance is liable to GST @18% and is sold as a single unit for a single price. What shall be the tax rate applicable in case of such supply? Construction, Construction, fabrication, fabrication, completion, 8 As per the CGST Act, 2017, the term “works contract” includes: completion, erection, Both (a) and (b) None of the above erection, installation, installation, etc. of etc. of movable property immovable property Hotel provides short- Hotel provides short- Hotel provides short- term accommodation term accommodation Hotel provides short- 9 Which of the following are naturally bundled? term accommodation and coaching or and repairing services term accommodation and restaurant services teaching Indirect Taxes of customer watches What is the threshold limit of turnover in the preceding financial year for 10 opting to pay tax under composition scheme for States other than special ₹20 lacs ₹10 lacs ₹50 lacs ₹1.5 crore category States? What is the rate applicable under CGST to a registered person being a No composition for 11 2.50% 1% 0.50% manufacturer opting to pay taxes under composition scheme? manufacturer  THE INSTITUTE OF COST ACCOUNTANTS OF INDIA INDIRECT TAX LAWS AND PRACTICE (PAPER - 19) MCQ BANK SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4 Mr. Ram, a trader in Delhi has opted for composition scheme of taxation 0.5% CGST & 0.5% 2.5% CGST & 2.5% 12 under GST. Determine the rate of total GST payable by him under 5% IGST 5% of UTGST SGST UTGST composition scheme: Input tax credit on Input tax credit on inward supply of 13 Can a registered person under composition scheme claim input tax credit? Yes No inward supply of goods services only can be only can be claimed claimed He will cease to remain He will be liable to pay under the composition He can continue under He will cease to remain tax at normal rates of scheme from the What will happen if the turnover of a registered person opting to pay taxes composition scheme till under the composition 14 GST on the entire quarter following the under composition scheme during the year 2024-25 crosses threshold limit? the end of the financial scheme with immediate turnover for the quarter in which the year effect financial year 2024- 25 aggregate turnover exceeds threshold limit Inward supplies on Inter-State supplies of Export of goods or 15 Aggregate turnover does not include— which tax is payable on Exempt supplies persons having the services or both reverse charge basis same PAN number X Ltd. has provided following information for the month of January 2024: (i) Intra-State outward supply ` 8,00,000/- (ii) Inter-State exempt outward supply ₹5,00,000/- 16 ₹8,00,000/- ₹23,80,000/- ₹23,00,000/- ₹18,00,000/- (iii) Turnover of exported goods ₹ 10,00,000/- (iv) Payment made to GTA ₹ 80,000/- (ITC not availed by GTA) Calculate the aggregate turnover of X Ltd. The person was operating in regular scheme. Now in financial year 2022- 23, he wants to opt for the composition scheme. Which form he must file to 17 Form GST ITC-01 Form GST ITC-02 Form GST ITC-03 Form GST ITC-04 provide details of the input tax credit in respect of the stock of goods held with him on the day preceding the date of opting in composition scheme? The person was operating under normal scheme, but now he wants to 18 Form GST CMP-01 Form GST CMP-02 Form GST CMP-03 Form GST CMP-04 convert in composition scheme so which form he must file? 19 In which form can the person file for withdrawal of composition scheme? Form GST CMP-01 Form GST CMP-02 Form GST CMP-03 Form GST CMP-04 What document shall a person under composition scheme issue to its 20 Bill of supply Tax invoice Invoice Debit note customer? 21 Which return must be filed by the composition dealer? GSTR-3B GSTR-5 GSTR-4 GSTR-6  THE INSTITUTE OF COST ACCOUNTANTS OF INDIA INDIRECT TAX LAWS AND PRACTICE (PAPER - 19) MCQ BANK SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4 Calculate the tax to be paid by Mr. C, a composition dealer who supplied laptops being a trader from the following data: 22 4,704 7,404 4,074 None of the above (i) Cost of purchases ₹3,00,000 plus GST 12%. (ii) Profit Margin 40% on cost of purchases. If the show cause notice in Form GST CMP-05 has been issued on 15th 23 March 2019, then by when can the taxpayer (composition dealer) submit Within 90 days Within 180 days Within 15 days Within 60 days his reply? whose aggregate whose aggregate whose aggregate whose aggregate turnover in the turnover in the Service provider other than section 10 of CGST Act, 2017 can opt to pay turnover in the turnover in the 24 preceding financial preceding financial year GST under composition scheme only when preceding financial year preceding financial year year was Rs.150 lakh was Rs.75 lakh or was Rs.50 lakh or below was below Rs.50 lakh or below below Section 11(1) of the Section 6(1) of the Section 11(2) of the Section 11(3) of the Under _____ section of CGST Act and _____ section of IGST Act, 25 CGST Act & Section IGST Act & Section CGST Act & Section CGST Act & Section Government can issue a general exemption notification 6(1) of the IGST Act 11(1) of the CGST Act 6(2) of the IGST Act 6(3) of the IGST Act Section 11(2) of the Section 6(2) of the Section 11(1) of the Section 11(3) of the Under_____ section of CGST Act and _____ section of IGST Act, 26 CGST Act & Section IGST Act & Section CGST Act & Section CGST Act & Section Government exemption by way of special order 6(2) of the IGST Act 11(2) of the CGST Act 6(2) of the IGST Act 6(3) of the IGST Act If the actual tariff for a irrespective of tariff If the actual tariff for a If the actual tariff for a Services by a hotel, inn, guest house, club or campsite are not exempted for 27 unit of accommodation value for a unit of unit of accommodation unit of accommodation residential/lodging purposes— is below Rs.10,000 accommodation is exactly Rs.1,000 is above Rs.1,000 A business exhibition A business exhibition 28 One of the following is exempted from GST— Any business exhibition None of the above in India outside India Exemption can be claimed at ______ stage even if not claimed at______ Adjudication, Investigation, 29 None of the above Any, prior stage. Investigation Adjudication Exempted supply of Reverse Charge Partial Reverse Charge 30 Levy of GST on Priority Sector Lending Certificate (PSLC) under Forward Charge goods Mechanism (RCM) Mechanism Mr. A, who has opted for composition levy, supplies goods worth Rs.24,300 to Mr. B and issues an invoice dated 25.09.20XX for Rs.24,300. For Rs.24,300 – (b) or (c) at the option For Rs.24,300 – and Mr. B pays Rs.25,000 on 1.10.20XX against such supply of goods. The For Rs.25,000 – 25.09.20XX of supplier, who has 31 25.09.20XX and for excess Rs. 700 (being less than Rs.1,000) is adjusted in the next invoice for 1.10.20XX and for Rs.700 – opted for composition Rs.700 – 1.10.20XX supply of goods issued on 5.01.20XX. Identify the time of supply and value 5.10.20XX. levy of supply:  THE INSTITUTE OF COST ACCOUNTANTS OF INDIA INDIRECT TAX LAWS AND PRACTICE (PAPER - 19) MCQ BANK SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4 ABC Ltd has purchased for its customer 50 vouchers date 20th Aug 20XX worth ₹ 500 each from Ram Pvt. Ltd. a footwear manufacturing company. The vouchers were issued by Ram Pvt. Ltd on 20th Sep 20XX. The 32 20th Aug 20XX 20th Sep 20XX 1st Oct 20XX None of the above vouchers can be encashed at retail outlets of Ram Pvt. Ltd. The employees of ABC Ltd. enchased the same on 1st Oct 20XX. Determine the time of supply of vouchers. Determine the amount of GST in case of supply of service of ₹10,00,000 on 4th Sep 20XX and invoice has also been issued on the same date. The date 33 ₹ 50,000 ₹ 1,00,000 ₹ 70,000 ₹ 1,20,000 of payment is 30th Aug 20XX. The CGST rate has been increased from 5% to 12% w.e.f. 1st Sep 20XX There was decrease in tax rate from 28% to 18% w.e.f. 1.09.2024. Which 28% as date of invoice of the following rate is applicable if the supplier has not opted for 18% as both, payment and dispatch of goods composition levy and supplies goods to Customer? Further, Goods were 18% as it is lower of the and completion of 34 from factory, has none of the above removed from its factory on 31.08.2024; delivered at buyer place on two supply, has happened happened before 2.02.2024; invoice is issued on 31.08.2024 and payment is received on after change of rate change of rate 4.09.2024. Money transferred service provided to foreign entity by Indian supplier of 35 CGST & SGST CGST & UTGST IGST UTGST service is intermediary service and subject to If RR shipping Co. located in Chennai charges ocean freight charges for 36 transport of goods to USA for a customer located in Hyderabad, the place Chennai USA Hyderabad None of the above of supply of service will be 37 Agency fees paid to foreign banks for arranging finance is— Export of service Import of service Tax free service None of the above Mr. Ram a second-hand car dealer purchased a second hand car for 38 ₹2,50,000. He sold he same car to Mr. Lakshman for ₹3,00,000. Determine ₹ 3,00,000 ₹ 2,50,000 ₹ 50,000 None of the above value of supply? Thomas Cook Forex Pvt. Ltd. being a registered person under GST purchased 2000 USD from M/s R Academy at the rate of INR 30 per USD. 39 ₹ 1,30,000 ₹ 1,40,000 ₹ 2,00,000 None of the above Actual exchange rate at that time was ₹70 per Dollar. RBI reference rate not available. What shall be the value of such supply What will be the value of supply if X & Co., supply Sony television set for ₹85000 along with the exchange of an old TV and if the price of the Sony 40 ₹ 85,000 ₹ 1,00,000 ₹ 15,000 ₹ 1,15,000 television set without exchange is ₹1,00,000, the open market value of the Sony television set is: The time limit to pay the value of supply with taxes to the supplier to avail Till the date of filling of 41 3 months 6 months 180 Days the input tax credit is ______. annual return.  THE INSTITUTE OF COST ACCOUNTANTS OF INDIA INDIRECT TAX LAWS AND PRACTICE (PAPER - 19) MCQ BANK SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4 As per Rule 42(2) of the CGST Rules, 2017 where the aggregate of the September following the March following the June following the end amount calculated finally in respect of ineligible credit exceeds the end of the financial year end of the financial of the financial year to 42 aggregate of the amounts determined under rule 42(1)(i) and (j), such None of the above to which such credit year to which such which such credit excess shall be added to the output tax liability of the registered person in relates credit relates relates the month not later than the month of_____ As per Rule 42(2) of the CGST Rules, 2017 where the aggregate of the amount calculated finally in respect of ineligible credit exceeds the aggregate of the amounts determined under rule 42(1)(i) and (j), such excess shall be added to the output tax liability of the registered person in 43 the month not later than the month of September following the end of the interest 24% p.a. interest 18% p.a. interest 28% p.a. interest 12% p.a. financial year to which such credit relates and the said person shall be liable to pay _______on the said excess amount at the rate specified in sub- section (1) of Section 50 for the period starting from the1st day of April of the succeeding financial year till the date of payment Eligible Credit or 50% Eligible credit and 50% 44 Banking company or Financial Institution have an option of claiming: Only 50% Credit Only Eligible credit credit credit An assessee obtains new registration, voluntary registration, change of scheme from composition to regular scheme and from exempted 3 years from the date of 1 years from the date 5 years from the date of 45 None of the above goods/services to taxable goods/services. It can avail credit on inputs lying invoice of invoice invoice in stock. What is the time limit for taking said credit? 30th November of the The date of filing of 46 Maximum time limit for availing ITC is following financial Earliest of above two Later of above two. annual return year Amount equal to ITC In case of supply of plant & machinery on which ITC is taken, tax to be availed less 5% for 47 Tax on transaction valueHigher of above two Lower of above two paid on is every quarter or part thereof Mr. C, a practicing Cost Accountant purchased 3 laptops each having tax element of ₹1,25,000 in his firm name. Two laptops he utilized in his office 48 ₹ 1,25,000 ₹ 2,50,000 ₹ 2,75,000 None of the above whereas one laptop he gifted to his sister. What is the amount of ineligible ITC? ABC Pvt Ltd. purchased a machinery on 15th July 2023 for ₹10 lacs on which IGST was paid @ 18%. He availed the ITC & utilized the capital 49 ₹ 1,26,000 ₹ 1,35,000 Lower of (a) or (b) Higher of (a) or (b) goods. On 16th October 2024 he sold the machinery as second hand goods for ₹7,50,000. Calculate the amount of ITC that needs to be paid.  THE INSTITUTE OF COST ACCOUNTANTS OF INDIA INDIRECT TAX LAWS AND PRACTICE (PAPER - 19) MCQ BANK SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4 Mr. Ajay purchased goods from Mr. Chethan, a composition dealer worth ₹100,000. Since Mr. Chethan was trader so he was supposed to pay only Not eligible to claim 50 ₹ 990 ₹ 12,000 ₹ 1,000 1% of his turnover as his tax. The item so purchased was otherwise taxable credit at 12%. What is the amount of credit which Mr. Ajay is eligible to take? 51 What is the rate of TDS? 1% 4% 5% 18% Last day of the month to Within 10 days of the Within 20 days of the Within 15 days of the 52 What is the due date for payment of TDS? which payment relates subsequent month subsequent month subsequent month Within 10 days from Within 20 days from Within 05 days from The date of payment of 53 What is the due date for issue of TDS Certificate? the date of payment of the date of payment of the date of payment of TDS TDS TDS TDS Every registered person required to deduct tax at source under section 51 54 shall furnish return, in______, for the month in which such deductions Form GSTR-5 Form GSTR-6 Form GSTR-7 Form GSTR-8 have been made within 10 days after the end of such month. Within 10 days after Within 10 days after the Within 10 days after the the end of the month in end of the month in When should the e-commerce operator remit the amount of TCS to end of the month in which such amount which such amount was 55 No time limit for both government and file the necessary returns with the government? which such amount was was collected, but no collected, but no time collected time limit for filing the limit for paying the return money When he is required to When he is required to When his aggregate It is mandatory to collect tax at source u/s 56 When an e-commerce operator is required to register under GST? collect tax at source u/s turnover exceeds the register irrespective of 52 and his aggregate 52 threshold limit the threshold limit. turnover exceeds the threshold limit. Part A is completely Part B is completely Both Parts are filled 57 The validity period of E-Way Bill is said to initiate when: None of the above filled Filled completely E-Way bill generation facility of a person paying tax under regular scheme 58 will be blocked if he has not furnished the returns for a consecutive period 2 months 2 tax periods 3 tax periods 6 tax periods of? What shall be the validity of E-Way bill in case of vehicles other than over 59 One day per 200 kms. One day per 20 kms. Both (a) & (b) None of the above dimensional cargo? Supply of goods and Supply of goods and Export of goods and 60 Zero rated supply includes: services to a SEZ services by a SEZ Both (a) and (b) services. developer or SEZ Unit developer or SEZ Unit  THE INSTITUTE OF COST ACCOUNTANTS OF INDIA INDIRECT TAX LAWS AND PRACTICE (PAPER - 19) MCQ BANK SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4 Refund application is to be filed before the expiry of ____________ from 61 Two years One year 180 days 260 days the relevant date. Refund shall not be paid to the applicant if the amount of refund is less 62 ₹ 1,000 ₹ 5,000 ₹ 7,000 ₹ 10,000 than— Refunds would be allowed on a provisional basis in case of refund claims on account of zero-rated supplies of goods and/or services made by 63 70% 65% 80% 90% registered persons. At what percentage, would such provisional refunds be granted? ₹100 for everyday ₹50 for everyday ₹100 for everyday ₹50 for everyday subject subject to a maximum subject to a maximum subject to a maximum Late fee for annual return for a tax payer having an aggregate turnover up to to a maximum of 0.04% 64 of 0.25% of turnover in of 0.50% of turnover in of 0.50% of turnover in ₹5 crore in the relevant financial year is: of turnover in the State the State or Union the State or Union the State or Union or Union Territory Territory Territory Territory. Every registered person whose aggregate turnover during a financial year 65 exceeds 2 crore rupees shall get his accounts audited and furnish a copy of Form GSTR-9 Form GSTR-9C Form GSTR-11 Form GSTR-11A audited annual accounts and a reconciliation statement, duly certified, in— Chief Commissioner of Principal Chief Central tax as Commissioner of designated by the Board Central tax and and Commissioner of Two sitting High Court 66 The Appellant Authority for Advance Ruling shall comprise of : Commissioner of State None of the above. State tax/ Union Judges. tax/union Territory tax, Territory tax, having having jurisdiction jurisdiction over the over the applicant. applicant. 67 Appeal before AAAR can be filed within how many days? 30 days 60 days 90 days 120 days As per section 69(2) of CGST Act, 2017, where a person is arrested under sub-section (1) for an offence specified under sub- section (5) of section 68 132, the officer authorised to arrest the person shall inform such person of four twenty-four twenty-five twenty-six the grounds of arrest and produce him before a Magistrate within__________hours: Reduce rate of tax on any supply of goods or Pass on the benefit of What action should be taken by an assessee to satisfy with anti-profiteering services, if such input tax credit, if such 69 Both (a) and (b) none of the above provision? assessee has got the assessee has got such benefit of such reduced input tax credit rate  THE INSTITUTE OF COST ACCOUNTANTS OF INDIA INDIRECT TAX LAWS AND PRACTICE (PAPER - 19) MCQ BANK SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4 1,00,000 MT goods are imported for ₹10 lakh but goods actually received 70 10,00,000 9,50,000 50,000 10,50,000 are 95,000 MT. In this case, value of goods liable to duty is— Assessable value of goods is ₹5,00,000 (US $10,000 at ₹50 per US $) as per bill of entry for warehousing and BCD is 15%. The goods were cleared 71 ₹ 55,000 ₹ 66,000 ₹ 82,500 ₹ 99,000 from warehouse on date when BCD is 10% and rate is? ₹60 per $. IGST & GST Cess is NIL and Social Welfare Surcharge is 10%. Total duty = Calculate Free on Board value from following: Ex-factory price of exporter- 72 ₹10,000; Expenses upto loading of goods by foreign exporter- ₹12,000. ₹ 30,000 ₹ 22,000 ₹ 18,000 ₹ 22,250 Post importation cost- ₹8000: Calculate Cost of transport/handling under Rule 10(2)(a) if FoB and 73 $2,500 $6,000 $1,000 None of the above insurance cost [total] is $5000: From following data, find out the assessable value of imported goods: Cost of the machine at the factory of the exporting country- $ 5,000; Transport charges incurred by the exporter from his factory to the port for shipment- $ 74 250; Handling charges paid for loading the machine in the ship- $25; ₹ 2,62,545.47 ₹ 2,37,375.00 ₹ 2,59,875.00 None of the above Buying commission paid by the importer- $25; Freight charges from exporting country to India (including handling charges $ 100)- $500. Exchange rate to be considered: 1 $ = ₹45. Compute value: Machinery imported from USA by air (FOB price)- $8,000; Accessories compulsorily supplied along with the machinery $ 75 2,000; Air freight $2400; Insurance charges not available; Local agent’s ₹ 4,98,600 ₹ 6,03,929.25 ₹ 5,98,320 None of the above. commission to be paid in Indian Currency- `18,600; Exchange rate US $ 1 = ₹48: Determine price to be taken for computing deductive value in rule 7: Sale 76 quantity- 80 units @ ₹90, 50 units @ ₹95, 25 units @ ₹105, 40 units @ ₹ 105 ₹ 100 ₹ 95 ₹ 90 ₹100: cost of materials and fabrication or other the cost or value of all reasonable profit of reasonable profit of 77 Computed value DOES NOT consist of: processing employed in other expenses under foreign exporter Indian importer. producing the imported rule 10(2) goods. the sale involves an the sale involves abnormal discount or The proper officer shall have the powers to raise doubts on the truth or special discounts 78 abnormal reduction Both (a) & (b) None of the above. accuracy of the declared value based on certain reasons which may include: limited to exclusive from ordinary agents. competitive price.  THE INSTITUTE OF COST ACCOUNTANTS OF INDIA INDIRECT TAX LAWS AND PRACTICE (PAPER - 19) MCQ BANK SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4 Does the Adjudicating Authority incluValue of Personal Computer is 79 ₹1,10,000 and Personal Effects is ₹60,000 and duty-free allowance is ₹ 50,000 ₹ 60,000 ₹ 70,000 ₹ 10,000 ₹1,00,000. What is the value of the baggage liable to duty? After visiting UK for 10 days, Mr. K brought to India a laptop computer 80 valued at ₹76,000, personal effects valued at ₹1,20,000 and a personal ₹ 22,000 ₹ 8,470 ₹ 10,000 ₹ 15,000 computer for ₹72,000. What is the customs Duty payable? The current limit of ₹1 lakh per annum for duty free import of samples in ₹30 lakh per annum ₹3 lakh per annum ₹13 lakh per annum ₹3 lakh per month 81 terms of NT 154/94-Customs, dated 13.7.1994 is enhanced to: (w.e.f. 27.2.2010) (w.e.f. 27.2.2010) (w.e.f. 27.2.2010) (w.e.f. 27.2.2010). A Gentleman passenger returning to India having resided abroad for more 82 than a year shall be allowed clearance free of duty jewellery in his bona fide ₹ 50,000 ₹ 1,00,000 ₹ 1,50,000 None of the above. baggage to the extent of the following: A Lady passenger returning to India having resided abroad for more than a 83 year shall be allowed clearance free of duty jewellery in his bona fide ₹ 50,000 ₹ 1,00,000 ₹ 1,50,000 None of the above. baggage to the extent of the following: A person, who is engaged in a profession abroad, or is transferring his 84 residence to India after stayed abroad more than 2 years can bring, used ₹ 50,00,000 ₹ 25,00,000 ₹ 5,00,000 ₹ 50,000 household items without payment of duty up to: Section 58 the Principal Commissioner of Customs or Commissioner of Customs may, subject to such conditions as may be prescribed, license a 85 private warehouse public warehouse special warehouse warehouse _________wherein dutiable goods imported by or on behalf of the licensee may be deposited. Additional ____________grants the permission for manufacturing or other operations Assistant Commissioner Deputy Commissioner Commissioner of 86 Commissioner of in the bonded facility. of Customs of Customs Customs Customs At present manufacture, and other operations in which bonded warehouse Public Bonded Special Bonded Only Private Bonded 87 Both (a) and (b) is not allowed? Warehouse warehouses warehouse 88 Maximum duty drawback rate @____ on FOB value of exports. 45% 15% 25% 33% Once a _________ is cleared for home consumption, the bond submitted by the importer gets debited automatically in the customs automated system 89 Bill of Entry Shipping Bill Entry inwards Enty outwards and the details shall be made available electronically to the Jurisdictional Custom Officer Import of goods at Import of Goods at Import at Concessional Import of Goods 90 Full form of IIN concessional rate of duty Concessional Rate Rate Identification Identification Number Identification Number Identification Number Number  THE INSTITUTE OF COST ACCOUNTANTS OF INDIA INDIRECT TAX LAWS AND PRACTICE (PAPER - 19) MCQ BANK SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4 The importer who intends to avail the benefit of an exemption notification shall mention the _________ as indicated in sub-rule (2) of rule 4 of 91 IIN NII, Bill of Entry Bill of Entry Both (a) & (c ) Customs (Import of goods at Concessional rate of duty) Rules, and continuity bond number and details while filing the ________. The importer shall submit a monthly statement on the common portal in the 92 Form IGCR-3 (Import of Goods at Concessional Rate of Duty) appended to Tenth Twentieth Fiftieth Eleventh these rules by the _____ day of the following month. 93 Value of goods to be exported as gift can’t exceed ____in a licensing year ₹ 7,00,000.00 ₹ 10,00,000.00 ₹ 50,00,000.00 ₹ 5,00,000.00 94 Minimum value addition required to be achieved under DFIA is _____. 10% 15% 20% 5% Only projects having a minimum investment of ______in plant & 95 ₹1 crore ₹10 crores or above Below ₹5 crores ₹100 crores or above machinery shall be considered for establishment as EOUs. Rupees One Crore or @2% of average annual 8% of average annual 2% of average annual 8% of average annual Status holders shall be entitled to export freely exportable items (excluding export realization during export realization export realization export realization 96 Gems and Jewelry, Articles of Gold and precious metals) on free of cost preceding three during preceding 3 during preceding 3 during preceding 2 basis for export promotion subject to an annual limit of licensing years, licencing years licencing years licencing years whichever is lower. The companies or industries flexibility to allow a maximum _____ of their employees to work from home and along with prior permission to 97 temporarily remove goods such as laptops, computers, electronic 50% 100% 25% 15% equipment, etc., from the SEZ unit to a domestic tariff area without payment of duty. In case the developer submit the proposal to the State Government for The 98 SEZ approval, then state government forwards this proposal to the Board of five days forty days fifty-five days forty-five days Approval (BoA) along with its recommendation within. IGST under reverse CGST and SGST under CGST and UTGST When an SEZ supplies goods/services to a Domestic Tariff Area (DTA), it IGST under forward 99 charge mechanism reverse charge under reverse charge is exempt from paying taxes, although the receiver in the DTA has to pay: charge (RCM). mechanism (RCM). mechanism (RCM).  THE INSTITUTE OF COST ACCOUNTANTS OF INDIA INDIRECT TAX LAWS AND PRACTICE (PAPER - 19) ANSWERS TO MCQ BANK SL NO QUESTIONS CORRECT ANSWER 1 Goods within the meaning of supply does not includes: Money and securities 2 Items out of the purview of supply are provided in: Schedule III M/s R Associates of Chennai received certain consultancy services from A Inc. of USA. Both are not 3 No. Since, party to the contract are not related related person. The services received is without any consideration. Does the same classify as supply? X Ltd. Transferred certain assets forming part of business assets. The same was transferred free of cost 4 without any consideration as a part of corporate social responsibility (CSR). What shall be the Does not qualify as supply classification of such supply? X Ltd. Not availed Input Tax Credit on such assets. While repairing the factory shed, few goods were also supplied along with the labour service. Whether it 5 Works Contract Service is a: 6 What would be the tax rate applicable in case of mixed supply? Tax rate as applicable on supply attracting the highest rate of tax A person purchases a bundle of toothpaste along with Tooth brush. Toothpaste under this case is liable 7 to GST @12% and tooth brush for instance is liable to GST @18% and is sold as a single unit for a 18% single price. What shall be the tax rate applicable in case of such supply? Construction, fabrication, completion, erection, installation, etc. of 8 As per the CGST Act, 2017, the term “works contract” includes: immovable property 9 Which of the following are naturally bundled? Hotel provides short-term accommodation and restaurant services What is the threshold limit of turnover in the preceding financial year for opting to pay tax under 10 ₹1.5 crore composition scheme for States other than special category States? What is the rate applicable under CGST to a registered person being a manufacturer opting to pay taxes 11 0.50% under composition scheme? Mr. Ram, a trader in Delhi has opted for composition scheme of taxation under GST. Determine the rate 12 0.5% CGST & 0.5% SGST of total GST payable by him under composition scheme: 13 Can a registered person under composition scheme claim input tax credit? No What will happen if the turnover of a registered person opting to pay taxes under composition scheme He will cease to remain under the composition scheme with 14 during the year 2024-25 crosses threshold limit? immediate effect Inward supplies on which tax is payable on reverse charge basis 15 Aggregate turnover does not include— X Ltd. has provided following information for the month of January 2024: (i) Intra-State outward supply ` 8,00,000/- (ii) Inter-State exempt outward supply ₹5,00,000/- 16 ₹23,00,000/- (iii) Turnover of exported goods ₹ 10,00,000/- (iv) Payment made to GTA ₹ 80,000/- (ITC not availed by GTA) Calculate the aggregate turnover of X Ltd. The person was operating in regular scheme. Now in financial year 2022-23, he wants to opt for the 17 composition scheme. Which form he must file to provide details of the input tax credit in respect of the Form GST ITC-03 stock of goods held with him on the day preceding the date of opting in composition scheme? The person was operating under normal scheme, but now he wants to convert in composition scheme so 18 Form GST CMP-02 which form he must file? 19 In which form can the person file for withdrawal of composition scheme? Form GST CMP-04 20 What document shall a person under composition scheme issue to its customer? Bill of supply 21 Which return must be filed by the composition dealer? GSTR-4 Calculate the tax to be paid by Mr. C, a composition dealer who supplied laptops being a trader from the following data: 22 4,704 (i) Cost of purchases ₹3,00,000 plus GST 12%. (ii) Profit Margin 40% on cost of purchases. If the show cause notice in Form GST CMP-05 has been issued on 15th March 2019, then by when can 23 Within 15 days the taxpayer (composition dealer) submit his reply? Service provider other than section 10 of CGST Act, 2017 can opt to pay GST under composition whose aggregate turnover in the preceding financial year was Rs.50 24 scheme only when lakh or below Under _____ section of CGST Act and _____ section of IGST Act, Government can issue a general 25 exemption notification Section 11(1) of the CGST Act & Section 6(1) of the IGST Act Under_____ section of CGST Act and _____ section of IGST Act, Government exemption by way of 26 special order Section 11(2) of the CGST Act & Section 6(2) of the IGST Act Services by a hotel, inn, guest house, club or campsite are not exempted for residential/lodging 27 irrespective of tariff value for a unit of accommodation purposes— 28 One of the following is exempted from GST— A business exhibition outside India 29 Exemption can be claimed at ______ stage even if not claimed at______ stage. Adjudication, Investigation 30 Levy of GST on Priority Sector Lending Certificate (PSLC) under Reverse Charge Mechanism (RCM) Mr. A, who has opted for composition levy, supplies goods worth Rs.24,300 to Mr. B and issues an invoice dated 25.09.20XX for Rs.24,300. and Mr. B pays Rs.25,000 on 1.10.20XX against such supply (b) or (c) at the option of supplier, who has opted for composition 31 of goods. The excess Rs. 700 (being less than Rs.1,000) is adjusted in the next invoice for supply of levy goods issued on 5.01.20XX. Identify the time of supply and value of supply: ABC Ltd has purchased for its customer 50 vouchers date 20th Aug 20XX worth ₹ 500 each from Ram Pvt. Ltd. a footwear manufacturing company. The vouchers were issued by Ram Pvt. Ltd on 20th Sep 32 20th Sep 20XX 20XX. The vouchers can be encashed at retail outlets of Ram Pvt. Ltd. The employees of ABC Ltd. enchased the same on 1st Oct 20XX. Determine the time of supply of vouchers. Determine the amount of GST in case of supply of service of ₹10,00,000 on 4th Sep 20XX and invoice 33 has also been issued on the same date. The date of payment is 30th Aug 20XX. The CGST rate has been ₹ 1,20,000 increased from 5% to 12% w.e.f. 1st Sep 20XX There was decrease in tax rate from 28% to 18% w.e.f. 1.09.2024. Which of the following rate is applicable if the supplier has not opted for composition levy and supplies goods to Customer? Further, 28% as date of invoice and dispatch of goods from factory, has 34 Goods were removed from its factory on 31.08.2024; delivered at buyer place on 2.02.2024; invoice is happened before change of rate issued on 31.08.2024 and payment is received on 4.09.2024. Money transferred service provided to foreign entity by Indian supplier of service is intermediary service 35 IGST and subject to  THE INSTITUTE OF COST ACCOUNTANTS OF INDIA INDIRECT TAX LAWS AND PRACTICE (PAPER - 19) ANSWERS TO MCQ BANK SL NO QUESTIONS CORRECT ANSWER If RR shipping Co. located in Chennai charges ocean freight charges for transport of goods to USA for a 36 Hyderabad customer located in Hyderabad, the place of supply of service will be 37 Agency fees paid to foreign banks for arranging finance is— Import of service Mr. Ram a second-hand car dealer purchased a second hand car for ₹2,50,000. He sold he same car to 38 ₹ 50,000 Mr. Lakshman for ₹3,00,000. Determine value of supply? Thomas Cook Forex Pvt. Ltd. being a registered person under GST purchased 2000 USD from M/s R 39 Academy at the rate of INR 30 per USD. Actual exchange rate at that time was ₹70 per Dollar. RBI ₹ 1,40,000 reference rate not available. What shall be the value of such supply What will be the value of supply if X & Co., supply Sony television set for ₹85000 along with the 40 exchange of an old TV and if the price of the Sony television set without exchange is ₹1,00,000, the ₹ 1,00,000 open market value of the Sony television set is: The time limit to pay the value of supply with taxes to the supplier to avail the input tax credit is 41 180 Days ______. As per Rule 42(2) of the CGST Rules, 2017 where the aggregate of the amount calculated finally in respect of ineligible credit exceeds the aggregate of the amounts determined under rule 42(1)(i) and (j), September following the end of the financial year to which such 42 such excess shall be added to the output tax liability of the registered person in the month not later than credit relates the month of_____ As per Rule 42(2) of the CGST Rules, 2017 where the aggregate of the amount calculated finally in respect of ineligible credit exceeds the aggregate of the amounts determined under rule 42(1)(i) and (j), such excess shall be added to the output tax liability of the registered person in the month not later than 43 the month of September following the end of the financial year to which such credit relates and the said interest 18% p.a. person shall be liable to pay _______on the said excess amount at the rate specified in sub-section (1) of Section 50 for the period starting from the1st day of April of the succeeding financial year till the date of payment 44 Banking company or Financial Institution have an option of claiming: Eligible Credit or 50% credit An assessee obtains new registration, voluntary registration, change of scheme from composition to 45 regular scheme and from exempted goods/services to taxable goods/services. It can avail credit on 1 years from the date of invoice inputs lying in stock. What is the time limit for taking said credit? 46 Maximum time limit for availing ITC is Earliest of above two 47 In case of supply of plant & machinery on which ITC is taken, tax to be paid on is Higher of above two Mr. C, a practicing Cost Accountant purchased 3 laptops each having tax element of ₹1,25,000 in his 48 firm name. Two laptops he utilized in his office whereas one laptop he gifted to his sister. What is the ₹ 1,25,000 amount of ineligible ITC? ABC Pvt Ltd. purchased a machinery on 15th July 2023 for ₹10 lacs on which IGST was paid @ 18%. 49 He availed the ITC & utilized the capital goods. On 16th October 2024 he sold the machinery as second ₹ 1,26,000 hand goods for ₹7,50,000. Calculate the amount of ITC that needs to be paid. Mr. Ajay purchased goods from Mr. Chethan, a composition dealer worth ₹100,000. Since Mr. Chethan 50 was trader so he was supposed to pay only 1% of his turnover as his tax. The item so purchased was Not eligible to claim credit otherwise taxable at 12%. What is the amount of credit which Mr. Ajay is eligible to take? 51 What is the rate of TDS? 1% 52 What is the due date for payment of TDS? Within 10 days of the subsequent month 53 What is the due date for issue of TDS Certificate? Within 05 days from the date of payment of TDS Every registered person required to deduct tax at source under section 51 shall furnish return, in______, 54 Form GSTR-7 for the month in which such deductions have been made within 10 days after the end of such month. When should the e-commerce operator remit the amount of TCS to government and file the necessary Within 10 days after the end of the month in which such amount was 55 returns with the government? collected When he is required to collect tax at source u/s 52 and his aggregate 56 When an e-commerce operator is required to register under GST? turnover exceeds the threshold limit. 57 The validity period of E-Way Bill is said to initiate when: Both Parts are filled completely E-Way bill generation facility of a person paying tax under regular scheme will be blocked if he has not 58 2 tax periods furnished the returns for a consecutive period of? 59 What shall be the validity of E-Way bill in case of vehicles other than over dimensional cargo? One day per 200 kms. 60 Zero rated supply includes: Both (a) and (b) 61 Refund application is to be filed before the expiry of ____________ from the relevant date. Two years 62 Refund shall not be paid to the applicant if the amount of refund is less than— ₹ 1,000 Refunds would be allowed on a provisional basis in case of refund claims on account of zero-rated 63 supplies of goods and/or services made by registered persons. At what percentage, would such 90% provisional refunds be granted? Late fee for annual return for a tax payer having an aggregate turnover up to ₹5 crore in the relevant ₹50 for everyday subject to a maximum of 0.04% of turnover in the 64 financial year is: State or Union Territory Every registered person whose aggregate turnover during a financial year exceeds 2 crore rupees shall 65 get his accounts audited and furnish a copy of audited annual accounts and a reconciliation statement, Form GSTR-9C duly certified, in— Chief Commissioner of Central tax as designated by the Board and 66 The Appellant Authority for Advance Ruling shall comprise of : Commissioner of State tax/ Union Territory tax, having jurisdiction over the applicant. 67 Appeal before AAAR can be filed within how many days? 30 days As per section 69(2) of CGST Act, 2017, where a person is arrested under sub-section (1) for an offence 68 specified under sub- section (5) of section 132, the officer authorised to arrest the person shall inform twenty-four such person of the grounds of arrest and produce him before a Magistrate within__________hours: 69 What action should be taken by an assessee to satisfy with anti-profiteering provision? Both (a) and (b) 1,00,000 MT goods are imported for ₹10 lakh but goods actually received are 95,000 MT. In this case, 70 9,50,000 value of goods liable to duty is— Assessable value of goods is ₹5,00,000 (US $10,000 at ₹50 per US $) as per bill of entry for 71 warehousing and BCD is 15%. The goods were cleared from warehouse on date when BCD is 10% and ₹ 55,000 rate is? ₹60 per $. IGST & GST Cess is NIL and Social Welfare Surcharge is 10%. Total duty =  THE INSTITUTE OF COST ACCOUNTANTS OF INDIA INDIRECT TAX LAWS AND PRACTICE (PAPER - 19) ANSWERS TO MCQ BANK SL NO QUESTIONS CORRECT ANSWER Calculate Free on Board value from following: Ex-factory price of exporter- ₹10,000; Expenses upto 72 ₹ 22,000 loading of goods by foreign exporter- ₹12,000. Post importation cost- ₹8000: 73 Calculate Cost of transport/handling under Rule 10(2)(a) if FoB and insurance cost [total] is $5000: $1,000 From following data, find out the assessable value of imported goods: Cost of the machine at the factory of the exporting country- $ 5,000; Transport charges incurred by the exporter from his factory to the port 74 for shipment- $ 250; Handling charges paid for loading the machine in the ship- $25; Buying ₹ 2,62,545.47 commission paid by the importer- $25; Freight charges from exporting country to India (including handling charges $ 100)- $500. Exchange rate to be considered: 1 $ = ₹45. Compute value: Machinery imported from USA by air (FOB price)- $8,000; Accessories compulsorily 75 supplied along with the machinery $ 2,000; Air freight $2400; Insurance charges not available; Local ₹ 6,03,929.25 agent’s commission to be paid in Indian Currency- `18,600; Exchange rate US $ 1 = ₹48: Determine price to be taken for computing deductive value in rule 7: Sale quantity- 80 units @ ₹90, 50 76 ₹ 90 units @ ₹95, 25 units @ ₹105, 40 units @ ₹100: 77 Computed value DOES NOT consist of: reasonable profit of Indian importer. The proper officer shall have the powers to raise doubts on the truth or accuracy of the declared value 78 Both (a) & (b) based on certain reasons which may include: Does the Adjudicating Authority incluValue of Personal Computer is ₹1,10,000 and Personal Effects is 79 ₹ 10,000 ₹60,000 and duty-free allowance is ₹1,00,000. What is the value of the baggage liable to duty? After visiting UK for 10 days, Mr. K brought to India a laptop computer valued at ₹76,000, personal 80 ₹ 8,470 effects valued at ₹1,20,000 and a personal computer for ₹72,000. What is the customs Duty payable? The current limit of ₹1 lakh per annum for duty free import of samples in terms of NT 154/94-Customs, 81 ₹3 lakh per annum (w.e.f. 27.2.2010) dated 13.7.1994 is enhanced to: A Gentleman passenger returning to India having resided abroad for more than a year shall be allowed 82 ₹ 50,000 clearance free of duty jewellery in his bona fide baggage to the extent of the following: A Lady passenger returning to India having resided abroad for more than a year shall be allowed 83 ₹ 1,00,000 clearance free of duty jewellery in his bona fide baggage to the extent of the following: A person, who is engaged in a profession abroad, or is transferring his residence to India after stayed 84 ₹ 5,00,000 abroad more than 2 years can bring, used household items without payment of duty up to: Section 58 the Principal Commissioner of Customs or Commissioner of Customs may, subject to such 85 conditions as may be prescribed, license a _________wherein dutiable goods imported by or on behalf private warehouse of the licensee may be deposited. 86 ____________grants the permission for manufacturing or other operations in the bonded facility. Commissioner of Customs 87 At present manufacture, and other operations in which bonded warehouse is not allowed? Both (a) and (b) 88 Maximum duty drawback rate @____ on FOB value of exports. 33% Once a _________ is cleared for home consumption, the bond submitted by the importer gets debited 89 automatically in the customs automated system and the details shall be made available electronically to Bill of Entry the Jurisdictional Custom Officer 90 Full form of IIN Import of Goods at Concessional Rate Identification Number The importer who intends to avail the benefit of an exemption notification shall mention the _________ 91 as indicated in sub-rule (2) of rule 4 of Customs (Import of goods at Concessional rate of duty) Rules, Both (a) & (c ) and continuity bond number and details while filing the ________. The importer shall submit a monthly statement on the common portal in the Form IGCR-3 (Import of 92 Tenth Goods at Concessional Rate of Duty) appended to these rules by the _____ day of the following month. 93 Value of goods to be exported as gift can’t exceed ____in a licensing year ₹ 5,00,000.00 94 Minimum value addition required to be achieved under DFIA is _____. 20% Only projects having a minimum investment of ______in plant & machinery shall be considered for 95 ₹1 crore establishment as EOUs. Status holders shall be entitled to export freely exportable items (excluding Gems and Jewelry, Articles Rupees One Crore or @2% of average annual export realization 96 of Gold and precious metals) on free of cost basis for export promotion subject to an annual limit of during preceding three licensing years, whichever is lower. The companies or industries flexibility to allow a maximum _____ of their employees to work from 97 home and along with prior permission to temporarily remove goods such as laptops, computers, 50% electronic equipment, etc., from the SEZ unit to a domestic tariff area without payment of duty. In case the developer submit the proposal to the State Government for The SEZ approval, then state 98 government forwards this proposal to the Board of Approval (BoA) along with its recommendation forty-five days within. When an SEZ supplies goods/services to a Domestic Tariff Area (DTA), it is exempt from paying taxes, 99 IGST under reverse charge mechanism (RCM). although the receiver in the DTA has to pay: