INTERMEDIATE EXAMINATION 33225 December 2022 P-IN(TX) Syllabus 2016 Indirect Taxation Time Allowed: 3 Hours Full Marks; 100. The figures in the margin on the right side indi full marks Wherever required, the candidate may make s GST (Section-A) Part-I (All questions are compulsory in Part-I) 1. (a) Choose the correct option from amongst the four alternatives given: Ixs=5 (i) Which of the following constitutional amendment governs GST Act? (A) 101st Amendment (B) 122nd Amendment (C) 12nd Amendment (D) 140th Amendment (ii) Every decision of the Goods and Service Tax Council (GST Council) shall be taken at a meeting, by majority of not less than of the weighted votes of the members present and voting Fill in the blank space from the below options: (A) 1/2 (i.e. 50%) AB) 1/3 (ise. 33°33%) (C) VA (ic. 75%) (D) 2/3 (i.¢, 66°67%) (iii) In which of the following situation, taxpayer needs to reverse the credit (ITC) already taken? (A) If payment is not made to the supplier within 1 year from the date of invoice. _(B) If payment is not made to the supplier within 90 days from the date of invoice. (C) If payment is not made to the supplier within 180 days from the date of ‘ invoice. (D) If payment is not made to the supplier within 45 days from the date of invoice. 23823 Please Turn OverP-I1(ITX) (2) Syllabus 2016 (iv) If the rate of tax and nature of supply of a service is not determinable at the time of receipt of advance, then what will be rate of tax and nature to be written in receipt Voucher? (A) 12%, Inter-State supply ) 18%, Inter-State supply (C) 12%, Intra-State supply (D) 18%, Intra-State supply (¥) Within how much time (including all possible extension) inputs sent directly by the supplier of inputs, to premises of job worker, without sending them first o premises of principal, should either be returned to the principal or must be supplied from the job worker's premises? Answer according to Section 143 of CGST Act, 2017. (A)-2 year from the sending of inputs to the job worker by the supplier Lyear from the sending of inputs to the job worker by the supplier “rT year from the date of receipt of inputs by the job worker (D) 2 year from the date of receipt of inputs by the job worker (b) Match the following: 1x5=5 Column-I Column-II | ® [L. | Integrated Goods and Services Tax!|_A_| Compulsory registration > i f | 2: | Casual Taxable Person making] B | Collected by Central Government) taxable supplies © | 3. | Agricultural Activities C_[72months ¢ € [4 | Transaction Value : D_| Exempt from GST 8 5. | Retention of Accounts E_| When price is sole consideration » (c) State whether the following statements are True or False: 1x55 @ “Invoice shall be prepared in three copies in case of taxable supply of goods.” (ii) “Mixed supply, is naturally bundied i.e. goods or services are usually provided together in normal course of business whereas in Composite supply, the goods or services can be sold separately.” (iii) 13th day of the succeeding month is the due date of GSTR-1 for Person registered under regular scheme with annual aggregate turnover up to & 1-50 crore. (assume there is no extension) yy (iv) “An unregistered person cannot generate e-Way bill.” __- (v) “e-Way bill not required in case of transfer of stock between Head Office and branch even if value of consignment is more than 100000 if delivery challan is available.”@) P-HQTX) o~ Syllabus 2016 ok 3 oS eo (d) Fill in the blanks: 7 1*5=5 (i) A maximum rate of tax of of goods and service as C can be imposed on intra state supply _ Ait) A retum under GST in form Non-resident taxable person. (iit) Deposits towards penalty is eredited into Electronics _ ledger of a taxable person. Vin HSN, N stands for __ Ge () Gifts exceeding ___ in value in a finanei ‘employee shall constitute supply of goods or serv “ cont ¥ ve Part-Il (Answer any four questions in Part-I) is required to be filed by a I year by ces or both, employer to riefly discuss the functions of (i) Goods and Services Tax Network (GSTN) Gi) GST Council 7 (>) Examine, whether the suppliers are cligible for composition scheme under sub-section 1 and/ or 2A of section 10 of CGST Act, 2017 in the following independent cases: (i) Mr. A, a registered dealer of Rajasthan is exclusively providing intra-state architect services. It has turnover of € 47 lakh in the preceding financial year. (ii) M/s. B & Sons, a registered dealer, is dealing in intra-state trading of electronic appliances in Jaipur (Rajasthan). It has turnover of 130 lakh in the preceding financial year. In the current financial year, it has also started providing repait services of electronic appliances. i) M/s. C & Bro, a registered dealer, is providing restaurant services in Maharashtra. It has turnover of & 74 lakh in the preceding financial year. It has started providing intra-state interior designing services in the current financial year and discontinued rendering restaurant services 3424358 3. (a) GTT Pvt. Ltd. owned by Mr. Varun, a famous Pop singer, wisl se a “Music Concert’ in Agra (U.P.). GTT Pvt. Ltd. (registered in Amritsar, Punjab) enters into a contract with an event management company, Aman (P) Ltd. (registered in Delhi) for organising the said music concert at an agreed consideration of & 8,00,000. Aman (P) Ltd. books the lawns of Hotel Bluewell, Agra (registered in U-P.) for holding the music concert, for a lump sum consideration of @ 3,00,000. GTT Pvt. Ltd fixes the entry fee to the music concert at & 1,550 per ticket You are required to determine place of supply respect of the supply(ies) involved in the given scenario and decide which whether CGST and SGST is payable or IGST needs to be paid. No need to calculate tax amount, Will your answer be different if the price per ticket is fixed at € 950 instead of & 1,550? 9 ek as? ele Please Turn OverP-I(ITX) (4) Syllabus 2016 4ST laws at Maharashtra, has received some (b) M/s. CDF (P) Ltd. registered under GS at taxable services covered under reverse charge ws 9 (3) of CGST Act, 2017 from Mr. Harish Chandra of Gujarat. Other details are as follows: ~| 08/08/2021 | 16/08/2021 |p (i) Time of supply for the purpose of payment of tax. (ii) Would your answer be different in (i) above, if services supplied on 11/06/2021, instead of 03/062 6 4. (a) Explain the provision of time limit of issue of invoice in the following cases under GST Law: (i) Incase of continuous supply of goods (ii) In case of continuous supply of services 2435 (b) KKJ Ltd. is registered with the jurisdictional GST authorities in the State of Tamil Nadu provided the following details: Receipts on outward supply (exclusive of GST) for the month of May, 2022 are as follows: Items ®) Intra-state 14,00,000 Inter-state 3,35,000 Assume applicable rate on outward supply as CGST@9% and SGST@9% and IGST@18%. Details of GST paid on inward supply are as follows during the month.: | nee CGsT | SGST paid paid @) | Life Insurance premium paid by company on the life 12,000 12,000 of factory employees as per policy of company f | Work contractor's service used for repair and| 80,000 80,000 renovation of factory building which is debited in : rofit and loss account Outdoor catering service availed for business meetings 35,000. 35,000 Purchase of manufacturing machine directly sent to} 90,000 90,000 job worker's premises under challan é ° dows(5) P-11(1TX) Syllabus 2016 *' Details of other Input Services: S.No. Particulars () _| Rent of one office building paid to unregistered owner of same state % 1,50,000 taxable @ 9% CGST, 9% SGST and 18 % IGST (ii) | Paid & 1,50,000 for transportation of goods by road, to out of state unregistered Goods Transport Agency applicable rate CGST @ 250% | and SGST @ 2:50% or IGST @ 5% Notes: (i) All the amount stated above in both the tables are exclusive of GST, wherever | applicable. i ii) Aggregate tumover of company in previous year was % 5 Crore. (iii) Opening balance of Input tax credit was NIL and all the conditions for credit of Input tax have been fulfilled. Company want to know from you, the below details regarding GST liability for the month of May, 2022: (A) Input Tax credit available for payment of tax (B) Gross tax to be paid under forward charges (C) Tax to be paid under reverse charges (D) Net tax liability to be paid minimum in cash 10 5. (a) “Under GST Aadhaar authentication is mandatory for persons who are already registered.” Examine ‘the correctness of the statement. You are also required to elaborate the relevant legal provisions. 9 (b) Mr. Varun a registered supplier of Gujarat, received the following amounts in respect of the various activities undertaken by him during the month of April, 2022: Ss. . Amount No. Particulars @) (i) | Consideration for renting of residential dwelling for use | 1,48,000 as office . (ii) | Business assets (old computers) given to friend free of No cost, the market value of all the computers was} amount & 1,50,000 charged No Input tax credit has been availed on such computers when used for business (iii) | Commission received as a recovery agent from a 95,000 non-banking finance company (NBFC) (iv)_| Actionable claim received from normal business debtors 11,00,000 (v) | Amount received from ADG Ltd. for performance of | 1,99,500 classical dance in one program Please Turn OverP-11(ITX) (6) Syllabus 2016 Notes: (i) All the amount stated above are exclusive of GST, w! (ii) Aggregate turnover of Mr. Varun in previous year was © 42,00,000 You are required to Compute Gross value of supplies, on which GST to be paid by Mr. Varun for the month of April, 2022, Correet legal provision should form part of your 6 herever applicable answer. 6. (a) AMAN Ltd. of Delhi, a registered supplier, is manufacturing taxable goods. It provides the following details of taxable supply made by it for the month of March, 2022. Particulars Amount @) List price of the goods (excluding taxes and discount and other | —15,00,000 charges) Subsidy received from Central Government for supply of taxable 1,90,000 goods to Government School. Directly linked to price CGST and SGST chargeable on the goods 75,000 | Tax levied by the Municipal Authority 32,000 | Secondary Packing charged 10,000 Notes: (i) AMAN Ltd. offers 2% discount on the list price of the goods which is recorded in the invoice for the goods. (ii) The list price of the goods after considering the subsidy, however, the other charges/taxes/fee are charged to the customers over and above the list price. Calculate the value of taxable supply made by AMAN Ltd. for the month of March. 2022. 6 (b) Discuss whether GST would be payable in following independent cases: (i) A Cost Accountant makes payment of LLP Registration fee of & 4,000 0” behalf of their clients and charges the client his professional fee of 12,000 along with expenses of € 4,000 incurred in form of payment to Registrar 0! Companies. (ii) A pharmaceutical company supplies free samples to doctors.(yy P-1I(ITX) Syllabus 2016 (iii) Vijyan Temple Charitable Trust, registered under section 10(23C)(v) of the Income-tax Act gives on rent a community hall, located within temple premises, to public for organizing a Diwali Mela. Rent charged is € 9,500. “ (iv) Bluefine Trucking Ltd. has given on hire 12 trucks to GGH Transporters of Mumbai (a goods transport agency) for transporting goods in various parts of a the country. The hiring charges for the trucks are € 10,100 per truck per day. (v) An individual buys a.car for personal use and after a year sells it to a car dealer. (vi) Provision of service or goods by a club or association or society to its members. 13«6=9 2 7. You are réquired to write short notes on any three out of four sub questions: 5x3-15 (@) “Acceptance of e-Way bill” (b) Consequences of not complying with the provisions related to “Tax collection at source (TCS)” under section 52 of CGST Act, 2017 (c) Salient features of Audit by tax authorities under section 65 of CGST Act, 2017 (@ State exception on which e-invoice provisions not applicable under GST law Customs (Section-B) Part-I (All questions are compulsory in Part-II) 8. Choose the correct option from amongst the four alternatives given: 1x5=5 (i) What is duty drawback rate under section 74 of Customs Act, 1962, in case of re-export of imported goods after using for 14 months (imported for business use) (A) 65% B) 98% © 81% (D) 70% Please Turn OverP-I1(TX) (8) Syllabus 2016 Gi) What is maximum permissible amount of freight under Customs Law in case of import by vessel? (A) 20% of FOB (B) 20% of FOB or actual amount, whichever is less AC) Actual amount - (D) 20% of FOB or actual amount, whichever is more ii) bill of entry is used for clearance of goods from warehouse for home consumption. (A) White (B) Yellow (C) Green (D) Orange (iv) Under Customs Act, 1962 which of this is not mandatory documents required for export of goods from India: (A) Bill of Lading/Airway Bill/Lorry Receipt/Railway Receipt/Postal Receipt (B) Commercial Invoice cum Packing List (C) Shipping Bil/Bill of Export (D) Bill of Entry (¥) According to Customs Act, 1962, up to how many nautical miles from base line Indian territorial waters extend? (A) Up to 200 nautical miles (B) Up to 12 nautical miles (C) Up to 188 nautical miles (D) Up to 212 nautical miles(9) P-11(1TX) Syllabus 2016 Part-IV (Answer any one question in Part-IV) 9 (a) DDY Industries Ltd. is an Indian company which registered under the Indian Companies Act, 2013. Company bought one machine through sea route for which details given below: (i) Cost of machine at the Port of exportation 12,000 UK. £ (ii) Freight from Port of Export to Port of Import 3,000 U.K. £ ii) Ship demurrage charges paid by the buyer at port importation % 14,000 (iv) Engineering charges paid by buyer to Consultancy firm in % 1,18,000 Mumbai as a condition of sale (v) Buyer had paid to seller cost for packing (included in Cost of 400 UK. £ 12000 at point (i) above, it was not as condition of sale) (vi) Actual selling commission paid to local agent of exporter % 75,000 (vii) Actual Landing charges at Port of importation is not _- ascertainable (viii) Actual insurance charges paid are also not ascertainable — Other informations: Bill of entry : Dated 12.02.2022 On that day: (a) Basic Custom Duty (BCD) rate was 15% (b) Exchange rate as notified by CBIC 1 UK.£ =% 98 (c) The inter-bank rate was 1 U.K.£ =% 99 Dated 15.02.2022 On that day: (a) Basic Custom Duty (BCD) rate was 20 % (b) Exchange rate as notified by CBIC 1 UK.£ =% 95 (c) The inter-bank rate was 1 U.K.£ =% 96 2 | Entry inward: 3°| Rate of social welfare surcharge is 10%. Integrated tax leviable under section 3(7) of Customs Tariff Act, 1975 @ 12% T compensation cess and Agriculture infastructure and development ease 5 | Ignore GS Please Turn Over.P-1K(ITX) (10) Syllabus 2016 (b) 10. (@) From the above particulars, Determine: (i) Determine the CIF/Assessable value in Indian rupee (ii) The total amount of all customs duties to be paid Correct legal provision should form part of your answer 10 Vinay imported certain goods in May, 2021. An ‘into Bond” bill of entry was presented on 14th May, 2021 and goods were cleared from the port for warehousing. ‘The order permitting the deposit of goods in warehouse for 4 months was issued on 21st May, 2021, Vinay deposited the goods in warehouse on the same day but did not clear the imported goods even after the warehousing period got over on 20th September 2021. ‘A notice was issued under section 72 of the Customs Act, 1962, demanding duty, interest and other charges. Vinay cleared the goods on 14th October, 2021. Customs duty paid on removal of the goods is € 7,17,000. You are required to compute the amount of interest payable on such removal explaining the provisions of the Customs Act, 1962. 5 EER Ltd,, an Indian company located at Chennai imported a commodity in January, 2022 from USA. which is covered by a Notification issued under section 9A of the Customs Tariff Act, 1975. The relevant particulars relating to import are as follows: (1) CIF value of the consignment — US $ 57,000 (2) Quantity imported — 910 kgs. (3) Exchange rate applicable — US $ 1 =% 73 (4) Basic Customs Duty (BCD) — 15% (5) Integrated tax leviable under section 3(7) of Customs Tariff Act, 1975 is 12%. (6) Rate of social welfare surcharge is 10% (7) As per the Notification, the anti-dumping duty leviable will be 70% of the difference between the cost of the commodity calculated @ US $ 87 per kg. and the landed value of the commodity as imported. You are required to calculate the amount of anti-dumping duty and Integrated tax leviable under section 3(7) of Customs Tariff Act, 1975 payable by EER Ltd. Note: Ignore GST compensation cess and Agriculture infrastructure and development cess. 5(il) P-IN(ITX) Syllabus 2016 (i) Discuss in brief, provisions of abatement available under section 22 of ° Customs Act, 1962 and calculate the amount of abatement if any, in the following independent cases: Value | Duty | Value | Ss. (before) | payable | (after) No. Cendition @ | (before) | @) ® @ _| Imported goods (other than warehoused) damaged | 6,00,000 | 60,000 | 2,00,000 after examination under section 17 but before actual clearance for home consumption Gi) | Imported warehoused goods damaged before | 3,00,000| 30,000 | 1,20,000 clearance for home consumption iii) | Imported warehoused goods deteriorated before | 4,00,000 | 40,000 | 3.00,000 clearance for home consumption 5 (ii) Discuss the conditions to be satisfied for Duty drawback under section 74 of Customs Act, 1962. 5