CS-Executive

Subject: Taxation
Total Marks: 100
Suggested Answer Sheet

1. Deduction u/s 35AD is available in respect of expenditure on specified business provided

such business commenced its operation on or after 01-04-2009 subject to an exception that –
(a) Business of industrial undertaking may be commenced at any time on or after 01-04-2007
(b) Business of laying and operating a cross-country natural gas pipeline network may be
commenced at any time on or after 01-04-2007
(c) Business of cold chain facility may be commenced at any time on or after 01-04-2007
(d) All of the above

2. In case of loss, a partnership firm may claim deduction in respect of remuneration to

partner to the extent of –
(a) INR 1,50,000/- or remuneration paid, whichever is lower
(b) INR 1,50,000/-
(c) INR 1,50,000/- or 90% of book profit, whichever is lower
(d) Nil

3. Income from sub-letting of a house property is –

(a) Taxable under the head ‘Income from House Property’
(b) Taxable under the head ‘Income from Other Sources’
(c) Exempted
(d) Taxable under the head ‘Capital Gains’

4. Deduction u/s 24(a) is not available when –

(a) Net annual value is zero
(b) Net annual value is positive
(c) Net annual value is zero or negative
(d) Net annual value exceeds INR 1,00,000

5. Deduction u/s 54F is available on –

(a) Transfer of long term house property and acquisition of another house property
(b) Transfer of any capital asset other than house and acquisition of another house property
(c) Transfer of any long term capital asset other than a residential house property and
acquisition of one residential house property
(d) Transfer of any long term capital asset

6. Which out of the following income is exempt from tax?

(a) Sum received by a member from HUF
(b) Dividend received from a foreign company
(c) Agricultural income from Bangladesh
(d) Salary Income from a Non Profitable Organisation

7. Which of the following income is not exempt u/s 10?

(a) Share in total income of firm
(b) Income from agriculture in Lahore
(c) Bonus on life insurance
(d) Income from mutual funds

8. Maximum deduction allowed to an employee for children education allowance is –

(a) INR 300 per month for a child
(b) INR 100 per month for maximum of two children
(c) INR 100 per month for a child
(d) to the extent of actual expenses

9. Maximum deduction of Entertainment Allowance for a government employee is –

(a) 10% of salary
(b) INR 5,000
(c) Nil
(d) Actual expenses incurred

10. Sneha is an employee in a private company. In the previous year she received salary INR
1,80,000 and entertainment allowance INR 12,000. She spent INR 6,000 on entertainment.
Under section 16(ii), she is entitled to deduction of –
(a) INR 12,000
(b) INR 5,000
(c) INR 6,000
(d) Nil

11. Mr. X is a foreign citizen. His father was born in Mumbai in 1960 and mother was born
in USA in 1965. His grandfather was born in Chennai in 1935. Mr. X is coming to India to
see Taj Mahal and visit other historical places in India. He comes to India on 1st November,
2019 for 200 days. He has never come to India before. Determine his residential status for PY
2019-20.
(a) Resident but not ordinarily resident
(b) Resident and ordinarily resident
(c) Non-Resident
(d) None of the above

12. Any rent or revenue derived from land may be treated as agricultural income if-
(a) It is derived from land
(b) The land is situated in India
(c) The land is used for agricultural purpose
(d) All the above conditions are satisfied.

13. Which of the following income is agricultural income—

(a) Rent received from agricultural land
(b) Income from dairy farm
(c) Income from poultry farm
(d) Dividend from a company engaged in agriculture.
14. Which of the following additional incomes will not be treated as agricultural income
under the
Income- Tax Act, 1961:
(a) Additional income from selling ginned cotton as compared to unginned cotton
(b) Additional income from selling dried-up coffee as compared to raw coffee
(c) Additional income from selling cured tobacco as compared to green tobacco leaves
(d) Additional income from selling dried-up tea leaves as compared to raw tea leaves.

15. Ms. Kanhi received Rs. 60,000 by way of family pension from State Government. The
amount of family pension eligible for exemption under section 10(19) is:
(a) Rs. 60,000
(b) Rs. 40,000
(c) Rs. 20,000
(d) Nil

16. A company purchased plant and machinery for Rs 2 crores for a specified business, and
claimed deduction under section 35AD. However, the very next year the plant and machinery
purchased was put to use for unspecified business. Calculate Profit chargeable to tax in
accordance with the sub-section (7B) of section 35AD:
(a) 2 crores
(b) 1.7 crores
(c) 1.85 crores
(d) None of the above

17. Mr Nagraj Jadhav converts his capital asset acquired for an amount of INR 125000 in
2005-06, into stock in trade in the FY 2016-17. He thereafter sells this asset for INR
10,00,000 in 2019-20. Calculate taxable Capital Gains and Business Income.
(a) Capital Gain – 4,41,239 & Business Income – 2,50,000
(b) Capital Gain – 7,50,000 & Business Income – 0
(c) Capital Gain – Nil – Business Income – 2,50,000
(d) None of the above

18. Mr. Hussain purchased a residential house in the previous year 2005-06 for Rs. 2 crores.
The house property is sold for Rs. 10 crores in the previous year 2019-20 and the capital gain
is invested in two residential house properties worth Rs. 4 crores each. Calculate Taxable
Long Term Capital Gain
(a) 1.06 crores
(b) 5.06 crores
(c) 10 crores
(d) None of the above

19. Mr Srinivasan, purchases 2000 equity shares in ABC Ltd., for INR 50 per share
(Brokerage 1%), in Feb 1997. He gets 200 Bonus shares in Sep 2000. He again gets 2200
bonus shares in Sep 2007. FMV of the Shares on 1st Apr’01 was INR 125.
In Jan’20, he sells all the shares for INR 500 per share (Brokerage 2%). Compute the Capital
Gains
Taxable in the hands of Srinivasan in FY 2019-20. (a) 21,56,000
(b) 13,96,856
(c) 13,48,555
(d) None of the above

20. ABC Ltd. provided the following perquisites to its employee Srinivasan, for the FY 2019-
20.
1. Leased accommodation provided to the employee. Hire Charges INR 50000 pm; recovered
from employee INR 20000 pm
2. Accommodation was furnished and the actual hire charges paid by the Employer was INR
4050/- pm
3. He was also provided a Hyundai Santro with Chauffer and a Gift Voucher worth INR
9000/- Salary for the purposes of valuation of perquisites is INR 25,00,000/-. Compute the
taxable value of the perquisites.
(a) 1,76,000
(b) 2,25,000
(c) 2,14,200
(d) None of the above

21. Counter Insurgency Allowance granted to members of Armed Forces operating in areas
away from their permanent locations is exempt upto how much monetary limit?
(a) Up to Rs. 1,060 per month (for altitude of 9,000 to 15,000 feet)
(b) Up to Rs. 1,600 per month (for altitude above 15,000 feet)
(c) 3,900 per month
(d) a & b both

22. Hostel expenditure allowance is exempt upto how much monetary limit?
(a) Up to Rs. 100 per month per child up to a maximum of 2 children
(b) Up to Rs. 300 per month per child up to a maximum of 2 children
(c) Up to Rs. 300 per month per child
(d) Up to Rs. 100 per month per child

23. Gaurish, a dealer in shares received from his friend Anshul, the following without any
consideration:
1. Cash Gift INR 100,000 on his birthday (14th April)
2. Bullion, FMV INR 75,000 on his anniversary (22nd April)
3. Plot of land at Gurgaon on 1st Jun’17, stamp duty value INR 750,000 on that date.
Calculate Taxable Income.
(a) 8,50,000
(b) 2,75,000
(c) 8,25,000
(d) None of the above

24. Discuss the taxability of the following transaction in the hands of the recipient.
Nagappa, a member of her father’s HUF, transferred to the HUF a property without any
consideration. The Stamp Duty valuation was INR 12,00,000 (a) Taxable
(b) Non-Taxable
(c) Partially Taxable
(d) Partially Non Taxable

25. What is the rate of depreciation on buildings used for residential purpose and buildings
used for
non- residential purpose?
(a) Residential – 5%, Non- Residential – 5%
(b) Residential – 10%, Non- Residential – 10%
(c) Residential – 5%, Non- Residential – 10%
(d) None of the above

26. The appeal against the order of Appellate Tribunal can be filed to High Court:
(a) for any matter in the order
(b) only if any question of fact is involved
(c) only if any substantial question of law is involved
(d) None of the above

27. An Appeal to High Court against the order of ITAT is to be filed within a period
of________ from the date on which the ITAT’s order is communicated to the tax payer
(a) 30 Days
(b) 60 Days
(c) 90 Days
(d) 120 Days

28. Income Tax Authority below the rank of Deputy Commissioner of Income Tax:
(a) is appointed by the Central Board of Direct Taxes
(b) may be appointed by the Board/Director General/Chief
Commissioner/Director/Commissioner if authorised by Board
(c) is appointed only by the Central Govt.
(d) None of the above

29. The assessee can object to the jurisdiction of Assessing Officer, if no return is filed:
(a) within 3 months of notice u/s 142(1) or 148 for filing the return of income or time allowed
to show cause why best judgment assessment u/s 144 should not be made, whichever is
earlier
(b) within one month of notice u/s 142(1) or 148 for filing the return of Income or time
allowed to show cause u/s 144 whichever is earlier
(c) within the time allowed in notice u/s 142(1) or 148 for filing return of Income or time
allowed to show cause u/s 144 whichever is earlier
(d) None of the above

30. Where total income assessed by the Assessing Officer was Rs. 4,50,000 and the assessee
wishes to file an appeal to Income Tax Appellate Tribunal against the order of Commissioner
(Appeals). The fee for filing such appeal shall be:
(a) Rs. 1,500
(b) Rs 2,500
(c) Rs 4,500
(d) Rs 10,000

31. Tax credit in respect of MAT paid as per section 115JB will be allowed only in the
previous year in which the tax payable on the total income at the normal rate is –
(a) More than the tax payable under section 115JB
(b) Less than the tax payable under section 115JB
(c) Equal to the tax payable under section 115JB
(d) All of the above.

32. Metro Ltd., a domestic company, is assessed with a total income of Rs. 11.25 crore. The
surcharge payable by the company shall be at the rate of –
(a) 2%
(b) 5%
(c) 10%
(d) 12%.
33. Dividend distribution tax under section 115-O shall be deposited within ________ days
from the date of declaration/distribution/payment of dividend, whichever is earlier.
(a) 7 Days
(b) 10 Days
(c) 14 Days
(d) 20 Days.

34. Provisions of Section 115JB are applicable in case of –

(a) Domestic companies only
(b) Foreign companies only
(c) All companies
(d) Closely held companies.

35. For computing the Book Profit under section 115 JB, which of the following is not added
back to the profits?
(a) Income- Tax
(b) Provision for tax
(c) Dividend Distribution Tax U/S 115-O
(d) Securities Transaction Tax

36. Deduction u/s 80C, in respect of Life Insurance Premium, Contribution to Provident Fund
etc., is
allowed to?
(a) Any assessee
(b) An individual
(c) An individual / HUF
(d) An individual / HUF who is resident in India

37. The flat amount of deduction under section 80U is -

(a) Rs.50,000 and Rs.75,000
(b) Rs.75,000 and Rs. 1,00,000
(c) Rs.75,000 and Rs. 1,10,000
(d) Rs.75,000 and Rs. 1,25,000

38. Which of the following is covered under section 80D of the Income Tax Act, 1961 –
(a) Repayment of loan taken for higher education
(b) Medical treatment of handicapped dependent
(c) Medical Insurance Premium
(d) Reimbursement of medical expenses

39. Deduction under section 80E can be claimed for interest on loan for
(a) Any course of higher education
(b) Only post graduate courses
(c) Only graduate courses
(d) Any course of study after passing the Senior Secondary Examination or its equivalent
from any recognised school, board or university

40. Maximum qualifying limit for deduction under section 80C is -

(a) Rs. 50,000
(b) Rs. 1,10,000
(c) Rs. 1,00,000
(d) Rs. 1,50,000

41. Mr. Ganapathy a resident individual received Rs. 12 lakhs during the financial year 2019-
20 by way of dividend from domestic companies. The companies have paid dividend
distribution tax under Section 115-O on the dividend declared. The applicable rate of tax on
such dividend income is:
(a) 10.4%
(b) 31.2%
(c) Nil
(d) 15.60%

42. A domestic company whose turnover for the previous year 2017-18 Rs. 4.20 crores; for
previous year 2018-19 Rs. 8 crore and for previous year 2019-20 Rs. 12 crores. Its total
income (computed) for the assessment year 2020-21 is Rs. 3 crores. The rate of income tax
applicable for such company (without cess) is:
(a) 30%
(b) 40%
(c) 29%
(d) 25%

43. ABC Pvt. Ltd. has a business loss of Rs. 10 lakh. There is unexplained share application
money to the tune of Rs. 25 lakh. The total income of the company will be :
(a) Rs. 15 lakh
(b) Rs. 35 lakh
(c) Rs. 25 lakh
(d) Rs. 45 Lakh

44. Red Ltd. (an Indian company) has estimated its income for previous year 2019-20.
Calculate advance tax payable by it from the following :
– Business Income : Rs. 10,80,000;
– Income from house property (after deduction under section 24) : Rs. 7,20,000;
– Longtermcapitalgain(LTCG)ontransferofimmovablepropertyon1stNovember,2017:Rs.
3,60,000;
– Interest on bank deposits (other than saving bank account): Rs. 45,000.
– TDS on business income and interest was Rs. 60,000
– Deduction under section 80G is Rs.1,00,000.
(a) 5,23,580
(b) 5,55,660
(c) 5,65,890
(d) None of the above

45. Mr. X receives royalty on books Rs. 1,00,000 at a rate of 18 percent and incurs Rs. 10,
000 as expenditure for earning royalty. The books are covered under section 80QQB and
royalty is received from abroad and Rs. 50,000 are remitted to India till September 30, 2020.
Determine deduction under section 80 QQB for the assessment year 2020-21.
(a) 40,000
(b) 50,000
(c) 1,00,000
(d) None of the above

46.Provisions of Minimum Alternate Tax (MAT) are applicable to the companies which are
i. Indian companies
ii. Foreign companies in certain situations
iii. LLP
(a) (i) and (iii)
(b) (i) and (ii)
(c) All the three
(d) None of the above

47. In order to be entitled to concessional rate of tax for dividend received from a foreign
company, the Indian company should have the following minimum shareholding in such
foreign company –
(a) 10% (b) 25%
(c) 26%
(d) 51%.

48. Dividend distribution tax under section 115-O is payable by –

(a) Domestic companies only
(b) Foreign companies only
(c) Both domestic and foreign companies
(d) None of the above.

49. An Indian company having 30% voting power in a foreign company received dividend of
Rs. 10 lakh from the foreign company. The dividend so received by the Indian company is –
(a) Exempt
(b) Taxable @ 15%
(c) Taxable at the regular rates
(d) Taxable @ 20%

50. TDS is to be deducted @ _____ under this section by any person responsible for paying
any sum by way of consideration to a resident (not being in kind) under a Joint Development
Project u/s 194-IC.
(a) 2%
(b) 5%
(c) 10%
(d) None of the above

51. ABC ltd. has provided following information for the month of Sep, 2018:
Intra-State outward supply ₹ 8,00,000/-
Inter-State exempt outward supply ₹ 5,00,000/-
Turnover of exported goods ₹ 10,00,000/-
Payment made to GTA ₹ 80,000/-
Calculate the aggregate turnover of ABC Ltd.
(a) 13,00,000
(b) 18,00,000
(c) 8,00,000
(d) None of the above
52. TPI, a registered as religious trust u/s 12AA of the Income-tax Act, has provided the
following information with respect to the activities undertaken by it. You are requested to
compute its value of taxable supply:

Particulars
Renting of rooms where charges are ₹ 400 per day. 5,00,000
Renting of rooms where charges are ₹ 2,000 per day 6,00,000
Renting of community hall where charges are ₹ 22,000 per day 8,00,000
Renting of kalyanmandapam hall where charges are ₹ 6,000 per day. 6,00,000
Renting of shops for business purpose where charges are ₹ 12,000 per month. 7,00,000
Renting of shops for business purpose where charges are ₹ 6,000 per month 5,00,000
(a) 14,00,000
(b) 15,00,000
(c) 21,00,000
(d) None of the above

53. Nisha Enterprises had made supplies of INR 750,000 to Tee Kay Services. There was a
tax levied by Municipal Authorities on such sale of INR 75,000/-. CGST and SGST
chargeable on the supply was 37500/-. Packing charges, not included in the price above
amounted to INR 15,000. Nisha Enterprises received a subsidy of INR 30000/- from an NGO
on the sale of such goods, and the price mentioned above is after taking in to account the
subsidy. Discount offered is @ 1% and that’s mentioned on the Invoice. Determine the Value
of Supply.
(a) 8,70,000
(b) 8,62,500
(c) 8,40,000
(d) 8,32,500

54. What is the time of supply of goods, in case of forward charge?

(a) Date of issue of invoice
(b) Due date of issuance of invoice
(c) Earlier of (a) and (b)
(d) None of the above

55. What is the time of supply of service if the invoice is issued within 30 days from the date
of provision of service?
(a) Date of issue of invoice
(b) Date on which the supplier receives payment
(c) Date of provision of service
(d) Earlier of (a) & (b)

56. The activities to be treated as supply of goods or supply of services are referred to in –
(a) Schedule I
(b) Schedule II
(c) Schedule III
(d) None of the above

57. Gifts not exceeding _________ in value in a financial year by an employer to an

employee shall not be treated as supply of goods or services or both.
(a) ₹ 50,000
(b) ₹ 1,00,000
(c) ₹ 75,000
(d) ₹ 5,000

58. Composite supply means:

(a) a supply made by any person to a recipient consisting of two or more supplies of goods or
services or both, or any combination thereof, which are naturally bundled and supplied in
conjunction with each other;
(b) a supply made by a taxable person to a recipient consisting of two or more taxable
supplies of goods or services or both, or any combination thereof, which are naturally
bundled and supplied in conjunction with each other in the ordinary course of business, one
of which is a principal supply;
(c) two or more individual supplies of goods or services, or any combination thereof, made in
conjunction with each other by a taxable person for a single price
(d) None of the above

59. Mr. Damani is a registered dealer of electronic goods furnishes the following details for
August
2019 Sold electronics goods to Mr. Alex for INR 6,00,000 on the condition
i. the materials to be delivered at Mr. Alex place and
ii. Mr. Damani will lift old electronics goods of Mr. Alex from his premises by charging INR
15,000.
iii. Transportation for delivery of the goods arranged by Mr. Damani but the freight paid by
Mr. Alex for INR10,000 / -
Find the value of supply.
(a) 6,00,000
(b) 6,15,000
(c) 6,10,000
(d) None of the above

60. Where the goods are assembled or installed at site, the place of supply of goods will be
(a) Office of the contractor
(b) Registered office of the person who place the order
(c) Place where actual delivery to be made
(d) Place of such installation or assembly

61. ABC Ltd. supplied goods to XYZ Ltd., under a contract for the goods to be delivered to
the factory of XYZ Ltd. The goods were removed from the factory of ABC Ltd. on 9th
September, 2018 and the goods were delivered to the factory of XYZ on 15th September,
2018. The invoice was issued on 18th September, 2018 and the payment was credited to
ABC’s a/c on 20th October, 2018 although the entry in the books was made on 19th
September, 2018 when the cheque was received. Determine Time of supply
(a) 18th September, 2018
(b) 9th September, 2018
(c) 19th September, 2018
(d) None of the above

62. The value of supply of goods and services shall be the

(a) Transaction Value
(b) Market Value
(c) Maximum Retail Price
(d) None of the above

63. When can the transaction value be rejected for computation of value of supply
(a) When the buyer and seller are related and price is not the sole consideration
(b) When the buyer and seller are related or price is not the sole consideration
(c) It can never be rejected
(d) When the goods are sold at very low margins

64. What deductions are allowed from the transaction value

(a) Discounts offered to customers, subject to conditions
(b) Packing Charges, subject to conditions
(c) Amount paid by customer on behalf of the supplier, subject to conditions
(d) Freight charges incurred by the supplier for CIF terms of supply, subject to conditions

65. Rule 30 of the CGST Rules inter alia provides value of supply of goods or services or
both based on cost shall be ___ % of cost of production or manufacture or the cost of
acquisition of such goods or the cost of provision of such services.
(a) 100
(b) 110
(c) 125
(d) 150

66. What will be the value of supply if Manu supply television set for ₹ 35,000 along with the
exchange of an old TV and if the price of the television set without exchange is ₹ 50,000, the
open market value of the television set is:
(a) ₹ 50,000
(b) ₹ 35,000
(c) ₹ 65,000
(d) ₹ 15,000

67. Supply of goods in the course of import into the territory of India is:
(a) Intra-State supply
(b) Inter-State supply
(c) Export
(d) Neither Export nor Import

68. Which of the following is an inter-State supply?

(a) Supplier of goods located in Kolkata and place of supply of goods is to an SEZ located in
Kolkata
(b) Supplier of goods located in Kolkata and place of supply of goods in Delhi
(c) Supplier of goods located in Kolkata and place of supply of goods is to an SEZ located in
Chandigarh
(d) All of the above

69. Place of supply in case of installation of elevator is

(a) Where the movement of elevator commences from the supplier’s place
(b) Where the delivery of elevator is taken
(c) Where the installation of elevator is made
(d) Where address of the recipient is mentioned in the invoice

70. Place of supply of food taken on board at Delhi for an aircraft departing from Delhi to
Bangalore via Hyderabad is
(a) Address of the aircraft carrier mentioned on the invoice of the supplier
(b) Delhi
(c) Bangalore
(d) Hyderabad

71. What is the rate applicable under CGST to a registered person opting to taxes under
composition scheme, not being a manufacturer or a hotelier?
(a) 0.5%
(b) 1%
(c) 2.5%
(d) None of the above

72. Mr. A, an agriculturist supplies raw cotton (under reverse charge) to Mr. B who
manufactures cotton shirts. The date wise turnout of events is given below:
01.04.2019- Mr. B approaches Mr. A and places an order for 1 ton of cotton 10.05.2019- Mr.
B receives the goods
15.05.2019- Mr. A issues an invoice
20.05.2019- Mr. B makes a payment by cheque and accordingly records it in his books of
accounts.
25.05.2019- The payment gets debited from Mr.B’s bank account
Calculate time of supply
(a) 20.05.2019
(b) 25.05.2019
(c) 10.05.2019
(d) 15.05.2019

73. Determine the time of supply from the following particulars:

15th October The marriage hall was fixed and the advance of INR 25000 was paid
(amount agreed was INR 100,000)
20thOctober Invoice issued for INR 25000
30thNovember The marriage ceremony took place in the hall
14th December The invoice was issued for balance INR 75000 indicating & adjusting
the advance paid earlier
31st December The balance payment was received

(a) For INR 75,000 – 14th December & for INR 25,000 – 15th October
(b) For INR 75,000 – 31st December & for INR 25,000 – 14th December
(c) For INR 75,000 – 14th December & for INR 25,000 – 31st December
(d) For INR 75,000 – 31st December & for INR 25,000 – 15th October

74. Mr. Sunil Dutta a registered dealer deals with various item s. The details of his
transactions took place between 1 st April 2019 to 30th June 2019 as below -
Sl.
Particulars INR
no
(i) Sale of wooden furniture /shoes 2,00,000
(ii) Sale of Fish 80,000
(iii) Supply of sugar 1,00,000
(iv) Supply of firewood 50,000
(v) Supply of cotton shirts 1,20,000
(vi) Sale of raw silk 1,40,000
(vii) Supply of confectionery item 40,000
60,000
(viii) Sale of ceramic products

Supply of computer to Ramnath Institute for which 20% subsidy received

from Government of India
(ix) 6,00,000

Calculate the taxable supply

(a) 6,80,000
(b) 6,00,000
(c) 3,20,000

(d) None of the above

75. Mrs. Nandita a famous singer cum folk dancer provided the following details for the
month of September 19.

SL.
Particulars (INR )
No.

(i) Received from performance of folk dance 2,30,000

(ii) Received from talk show in television 40,000

(iii) Received from performance in television serial

4,60,000

(iv) Received from performing as singer

1,20,000

(v) Training in recreational activities relating to art

2,70,000
(vi) Received from promoting and branding of cultural events
 2,50,000

Received from Natural Cultural Trust as their brand ambassador related to

(vii) 9,00,000
folk dances

(a) 16,50,000
(b) 8,30,000
(c) 17,30,000
(d) None of the above

76. Which of the following is a special category state?

(a) Daman

(b) Kerala

(c) Uttaranchal

(d) Himachal Pradesh

77. A Casual Taxable person before applying for registration required to declare

(a) Residential address

(b) Mobile no

(c) Aadhaar card

(d) Income tax registration no

78. Advance payment deposited by Casual Taxable Person shall be credited in –

(a) Electronic Cash Ledger

(b) Electronic Credit Ledger

(c) Electronic Debtor Ledger

(d) Electronic Creditor Ledger

79. An Input Service Distributor shall not be required to file

(a) MonthlyReturn

(b) Quarterly Return

(c) Half yearly Return

(d) Annual Return

80. GST is chargeable at the

(a) Time of receiving order

(b) Time of supply

(c) Time of receiving the advance payment

(d) Time of receiving the full and final payment

81. In case of tax paid on works contract services where supplied for construction of plant
and machinery

(a) ITC can be availed

(b) ITC cannot be availed

(c) ITC can be available if the supply is more than INR 1.50 crores

(d) ITC can be available only on the hands of recipient

82. M gave goods for processing by Zebra. While M is registered in GST, Zebra is not
registered in GST. Both are at Chennai. The processing is liable for GST @ 5%. The goods
were received after processing on 11-07-2019. Entries in the books were made by Mr. M
on12-07-2019. The delivery challan was also received on 11-07-2019. Job work charges
amount to INR 1,00,000 (without GST). When and how much is the GST liability? And who
must pay?

(a) 11-07-2019; INR 5,000 and Zebra must pay

(b) 12-07-2019; INR 1,050; and Zebra must pay

(c) 11-07-2019; INR 5,000 and M must pay

(d) 12-07-2019; INR 2,500 and M must pay

83. R., applied for voluntary registration under CGST Act, 2017 on 5th July, 2018 and the
registration was granted on 15th July, 2019. R., was having the stock available against the
invoices for a period of 3 months old. R., shall be eligible for input tax credit on such stock as
held as on:

(a) 30th June, 2019

(b) 5th July, 2019

(c) 15th July, 2019

(d) 14th July, 2019

84. A Warehouse In-charge shall file with the Bond officer a monthly return containing
various details after close of the period within

(a) 7 days

(b) 10 days

(c) 14 days

(d) 20 days

85. Under Section 16 of IGST Act export would be considered (a) NIL rated supply

(b) Exempted supply

(c) Zero rated supply

(d) Taxable supply

86. CBIC stands for?

(a) Central Board of Income Tax and Customs

(b) Central Board of Indirect Taxes and Customs

(c) Central Board of Integrated Taxes and Customs

(d) None of the above

87. The projected nominal growth rate of revenue subsumed for a State during the transition
period shall be ____ % per annum.

(a) 10%

(b) 12%

(c) 14%

(d) 16%

88. A supply of goods and/or services in the course of __________ trade or commerce means
any supply where the location of the supplier and the place of supply are in different States,
two different union territory or in a state and union territory

(a) Intra state

(b) Inter state

(c) Export

(d) All of the above

89. On whose recommendations shall there be levied a cess and collected on for the purposes
of providing compensation to the States for loss of revenue

(a) Central Government

(b) State Government

(c) Council

(d) All of the above

90. Surajmal having its office at Bhopal submitted the following details for the quarter ended
September 2019

Sl No Particulars
INR
(i)
Supply of Petrol at Bhopal
12,00,000
(ii) Inward supply on which tax is payable on reverse charge basis 5,00,000
(iii) Supply of other petroleum product at Bhopal 1,00,000
2,00,000
(iv) Supply made to Indore branch without payment of consideration

(v) Taxable supply Made to Indore 4,00,000

Calculate Aggregate Turnover and and advise whether registration is mandatory for Surajmal

(a) Aggregate Turnover – 24,00,000 & Registration is required to be taken

(b) Aggregate Turnover – 19,00,000 & Registration is required to be taken

(c) Aggregate Turnover – 19,00,000 & Registration is not required to be taken

(d) Aggregate Turnover – 18,00,000 & Registration is not required to be taken

91. The proper officer have to prepare and submit summary report of inspector in Part – B of
form EBW – 03 after interception of the vehicle within

(a) 1 day

(b) 2 days

(c) 3 days

(d) 4 days

92. M/ s Prakash Equipment Ltd imported certain machineries from Denmark considering the
payment mode in Euro, has furnished the following details for the month of September 2018 :

1. FOB value of machines 12000 Euro

2. Freight paid (Air) 4000 Euro

3. Design and development charges paid at Denmark 700 Euro

4. Commission payable to local agent @2% on FOB in Indian Rupee.

5. Date of Bill of Entry is 18.09.2018 (Basic customs Duty rate is 10% and exchange rate as

notified by CBIC is INR 75 per Euro)

6. Date of Entry Inward is INR14.09.2018 (Basic customs Duty rate is 18% and exchange
rate as

notified by CBIC is INR 75 per Euro)

7. IGST @ 12%

8. Social Welfare Surcharge at applicable rate.

9. Insurance Charges – details not available

Calculate the Custom Duty (all types of custom duties) payable by M/s Prakash Equipment
Ltd for the month of September 2018.

(a) INR 3,37,721

(b) INR 3,50,848

(c) INR 3,43,297

(d) None of the above

93. Exclusive Economic Zone extends from the base line to

(a) 20 nautical miles

(b) 50 nautical miles

(c) 100 nautical miles

(d) 200 nautical miles

94. As per Indian Foreign Trade Policy all exports from India are measured in terms of

(a) Free on Board (FOB) value

(b) Cost Insurance and Freight (CIF) value

(c) .Exchange Rate of Foreign Currency

(d) Value as decided by Customs Official

95. Every registered person is required to maintain the details of –

(a) Details of employee and labour

(b) Details of tender and quotation

(c) Advance received and paid

(d) Future expansion plan

96. Payment of challan can be made over the counter with cash, cheque or demand draft
through authorized bank up to

(a) INR 2000

(b) INR 5000

(c) INR 10000

(d) INR 15000

97. M/ S Icon Pvt. Ltd. having its head office at Bhubaneswar is registered as Input Service
Distributor (ISD). It has another two operational units in different states namely Kolkata and
Ranchi.

M/ s Icon Pvt. Ltd. furnishes the following information for th e month of March 2019

INR
6,00,000
(i) CGST and SGST paid on services used only in Bhubaneswar

IGST, CGST & SGST paid on services used by three units 36,00,000
(ii)

Total turnover of the units for the financial year 2018 – 19 are as follows

Unit INR

Bhubaneswar 15,00,000

Kolkata
9,00,000
 6,00,000
Ranchi

Total Turnover 30,00,000

You are required to distribute the Input Credit from the above information.

(a) Bhubaneshwar – 14,00,000, Kolkata – 14,00,000 & Ranchi – 14,00,000

(b) Bhubaneshwar – 24,00,000, Kolkata – 10,80,000 & Ranchi – 7,20,000

(c) Bhubaneshwar – 18,00,000, Kolkata – 10,80,000 & Ranchi – 7,20,000

(d) None of the above

98. Gopal Associates having its head office at Lucknow and branches at Delhi, Chandigarh
and Jabalpur furnishes the following for the month of July 2019 for registration provisions

Sl No Particulars INR
(i) Supply of raw silk at Lucknow 11,00,000
(ii) supply of electronics goods at Lucknow 4,00,000
(iii) Taxable supply to Chandigarh branch 2,00,000
(iv) Supply of TV to Jabalpur branch 3,50,000
(v) Value of goods & services exported 1,50,000
(vi) Service provided by way of packing and storing of rice 1,00,000
(vii) Sale of goods by acting as an agent on behalf of principal 8,00,000

Find out the aggregate turnover for July 2019

(a) INR 31,00,000

(b) INR 21,50,000

(c) INR20,50,000

(d) None of the above

99. Social Welfare Surcharge on the aggregate duties of Customs Act at the time of import is
(a) 2%

(b) 3%

(c) 5%
(d) 10%

100. Value of export goods within the meaning of sub section (1) of Section 14 of Customs
Act 1962 is

(a) Transaction value

(b) Computed value

(c) Residual value

(d) Declared value