CA Final Idt MCQ Test

The correct answer is "all of the above." This means that input tax credit shall not be available in respect of goods used for personal consumption, membership of a club, and travel benefits extended to employees on vacations such as leave your home travel concession. In other words, these expenses do not qualify for input tax credit under the given circumstances.

Uber is liable to pay tax on the cab services it provides through local service providers. As an e-commerce operator, Uber facilitates the booking and payment process for passengers, but the actual service is provided by local cab services. Therefore, the responsibility to pay tax on these services falls on Uber, not the passengers or the local cab service providers.

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An agent is a person who carries out the business of supplying or receiving goods or services on behalf of another. This can include factors, brokers, commission agents, arhatias, del-credere agents, auctioneers, or any other mercantile agent. They act as intermediaries between the buyer and the seller, facilitating the transaction and representing the interests of the principal.

The turnover limit for composition levy is Rs. 75 lakhs. This means that if Mr. X's turnover is equal to or less than Rs. 75 lakhs, he can opt for composition levy. Composition levy is a simplified scheme under the Goods and Services Tax (GST) where taxpayers can pay a fixed percentage of their turnover as tax instead of the regular GST rates.

In order to comply with the conditions for the export of services, all of the mentioned criteria must be met. The supplies must be located in India, meaning that the services being exported must originate from India. The recipient of the services must be located outside India, indicating that the services are being provided to a foreign entity. Additionally, the place of supply must be outside India, further emphasizing that the services are being provided to a foreign location. Therefore, all of these conditions need to be complied with for the export of services.

The correct answer is No because the composition scheme is only available for businesses with a turnover of up to Rs. 1.5 crore. Since PQR Pvt. Ltd.'s threshold is crossed and expected to be below Rs. 80 lakh, it does not meet the eligibility criteria for the composition scheme.

The place of supply in this scenario would be Chennai because that is where the surgery was actually performed. The fact that Mr. X is a resident of Punjab and went to a doctor in Uttar Pradesh is irrelevant in determining the place of supply. The location where the service was actually provided is what matters in this case.

A registered person opting for the composition scheme cannot collect GST on his outward supply. The composition scheme is designed for small businesses with a turnover of up to Rs 1.5 crore and aims to simplify their tax compliance. Under this scheme, the taxpayer pays a fixed percentage of his turnover as tax and is not allowed to collect GST from his customers. Therefore, the correct answer is "no".

The exception for not bringing back goods sent for job work is "All of the above". This means that tools, moulds and dies, and jigs and fixtures are not exceptions and should be brought back after the job work is completed.

GST is a destination-based tax on consumption of goods and services. This means that the tax is levied at the final destination where the goods or services are consumed. The tax is collected by the state or union territory where the goods or services are consumed, rather than where they are produced or supplied from. This ensures that the tax revenue is received by the jurisdiction where the consumption takes place, allowing for a fair distribution of tax revenue among different states or union territories.

Input tax credit is available for the taxes paid on inputs used for making taxable supplies. In the given options, none of the conditions mentioned allow for input tax credit. Capital goods used for making exempted goods do not qualify for input tax credit as the end product is not taxable. Similarly, capital goods used exclusively for non-business purposes do not qualify as they are not used for making taxable supplies. Depreciation claimed on the tax component of capital goods is not relevant to the availability of input tax credit. Therefore, the correct answer is "None of the above."

The consideration received by Mr. Rohit in the form of payment in UK pounds falls within the ambit of money. Money is not limited to a specific currency, and as long as the payment is a medium of exchange that is widely accepted and recognized as a form of payment, it can be considered as money. In this case, the UK pound is a widely accepted currency, and therefore, the consideration received by Mr. Rohit can be considered as money.

The correct answer is "Temple is owned by sanatan charitable trust (registered under section 12AA of the income tax Act, 1961) and consideration charged is Rs.9000." This is because under GST, services provided by an entity registered under section 12AA of the income tax Act, 1961 are exempt from GST. In this case, the temple is owned by a registered charitable trust and the consideration charged is within the exemption limit of Rs.9000. Therefore, the renting of the open area in the precincts of the temple for a day for a marriage event would be exempt from GST.

Imports of goods in the territory of India are considered as inter-state supply because they involve the movement of goods from a place outside the state to a place within the state. This classification is important for determining the applicable GST (Goods and Services Tax) and any other taxes or duties related to inter-state transactions.

The correct answer is "All of the above". This is because a tourist is defined as a person who is not normally resident in India, stays for not more than 6 months in India, and stays for legitimate and non-immigrant purposes. So, all the given options accurately describe the characteristics of a tourist.

Section 16 of the given context provides for the condition to claim credit, and one of these conditions is that the receiver has received the goods. The question asks if there is any provision for deemed receipt of goods in the case of transfer of the document of title before or during the movement of goods. The correct answer "Yes" implies that there is indeed a provision for deemed receipt of goods in such cases.

The time of supply for redeemable vouchers is determined by the date of redemption, which is when the vouchers are actually used to purchase goods. In this case, the vouchers are valid until 30th June, so the time of supply will be on the date when Mr. A redeems the vouchers to make a purchase.

In this scenario, neither the unregistered GTA (Goods and Services Tax Agent) nor the unregistered person is liable to pay taxes. Since both parties are unregistered, they are not obligated to pay taxes under the current tax regulations. Therefore, the correct answer is "none of them."

The correct answer is "GST payable" because speed post services are not exempted or non-taxable under the GST regime. Therefore, Mr. Happy Singh will have to pay GST on the speed post services he avails to send the marriage invitations to his relatives and friends.

The correct answer is Rs 120000 because the GST amount is calculated based on the date of supply, which is 15th January 2020 in this case. Since the invoice was issued on 25th December 2019 and the payment was received on 20th January 2020, the CGST rate applicable is the one in effect on the date of supply. Therefore, the increased rate of 12% is applicable and the GST amount would be Rs 120000.

When Mr. Rohit gifted one laptop to his sister, he utilized it for personal purposes instead of using it for business purposes in his firm. Therefore, the tax element of Rs. 12000 on that laptop becomes ineligible for Input Tax Credit (ITC).

The correct answer is ICST because SEZ (Special Economic Zone) is considered as a territory outside the customs territory of India. Therefore, Integrated Goods and Services Tax (IGST) is charged on the services provided to SEZ.

Mr. Ajay could have availed the Input Tax Credit (ITC) until the due date for filing the GST annual return, which is 15 July 2019. After this date, he would not be able to claim the ITC for the Jan 2019 Month.

The person does not need to file a fresh declaration for the composition scheme in FY 19-20. Once registered in the composition scheme in FY 18-19, the person can continue to operate in the scheme in the following financial year without needing to file a new declaration.

The highest rate of tax prescribed by the GST council can be 40%. This means that the maximum tax rate that can be imposed on goods and services under the Goods and Services Tax (GST) system is 40%. This rate is applicable for specific goods or services that are categorized under the highest tax slab.

The correct answer is "final recipient place." This refers to the location where the goods are ultimately delivered or received by the customer. It is the place where the supply is considered to have been made, regardless of whether it was made before or during the movement of goods by the transfer of a document. This is an important concept in determining the applicable taxes and regulations for the supply of goods.

The correct answer is "6 months." This is because a tourist is defined as a person who is not normally a resident of India and enters the country for a stay of up to 6 months for a legitimate non-immigrant purpose.

The GST rate applicable for the supply of service on 05.06.2019 is 5%. Therefore, the GST amount would be 5% of Rs. 50000, which is Rs. 2500. However, since the CGST rate has been increased to 12% from 01.06.2019, the GST amount would be 12% of Rs. 50000, which is Rs. 6000. Therefore, the correct answer is Rs. 6000.

The time of supply of goods is 15 April 20xx because it is the date when the invoice was issued. According to the information provided, the advance was received on 1st April 20xx, but the actual supply of goods occurred on 25 April 20xx. However, the time of supply is determined based on the earliest of the following events: issuance of invoice, receipt of payment, or removal of goods. Since the invoice was issued on 15 April 20xx, it becomes the relevant date for determining the time of supply.

The correct answer is "State where the goods or services or both are finally consumed." This means that GST is payable in the state where the goods or services are ultimately used or consumed by the end consumer. The GST is levied based on the principle of destination-based consumption, where the tax revenue is collected by the state where the final consumption occurs. This ensures that the tax burden is borne by the end consumer rather than the state where the goods are procured or manufactured.

The transaction value under GST refers to the price actually paid or payable for the supply of goods, as well as the price actually paid for the supply of services. Additionally, it includes the price as such paid between related parties. Therefore, the correct answer is "All of the above" as it encompasses all the mentioned scenarios.

The value of supply in case of lottery tickets shall be 100/128 of the face value of the ticket or the price as notified in the official gazette by the organizing state, whichever is higher. This means that the value of the supply will be determined by either 100/128 of the face value of the ticket or the price set by the organizing state in the official gazette. Whichever amount is higher will be considered as the value of supply for the lottery tickets.

Since Mr M is a resident of UP, the place of supply of banking services should be UP. However, he opened the bank account in Delhi with ICICI Bank Ltd. and submitted his residence address of Punjab. Therefore, the correct answer is Punjab.

The correct answer is "No" because under the reverse charge mechanism, the recipient of the goods or services is liable to pay the tax instead of the supplier. Therefore, the supplier is not eligible to claim Input Tax Credit (ITC) for the tax paid on such supplies.

The place of supply in this case will be Bombay because Mr. Ram is a resident of Bombay and holds an account in ICICI Bank in Bombay. Even though he took certain services from ICICI Bank in Jaipur during his visit, the transactions are related to Chennai. However, the place of supply is determined by the location of the recipient, which in this case is Mr. Ram's account in Bombay.

An employer giving a gift to an employee is considered a supply. The correct answer is "More than 50000" because if the value of the gift exceeds 50000, it is considered a taxable supply and may be subject to certain tax regulations.

Zero rated supplies will be included in the computation of tax applies for the purpose of availing input tax credit.

The applicable rate of tax under CGST law for Mr. A, a registered trader who has opted for the composition scheme, is 0.5%.

All of the above options are not covered in the ambit of adjudicating authority. The adjudicating authority is responsible for determining the liability of a person under the relevant law. The Revisional Authority, Appellate Authority for advance ruling, and CBIC are separate bodies or authorities that have different roles and responsibilities, and they are not part of the adjudicating authority's jurisdiction.

The correct answer is "Yes, he can avail ITC in any situation." This means that regardless of whether the person makes export supplies to SEZ under bond or LUT, they will still be eligible to avail Input Tax Credit (ITC). This implies that the person can claim a credit for the taxes paid on inputs used in the supply of goods or services, regardless of the specific circumstances of the supply.

The composition turnover limit for the state of Jammu & Kashmir is Rs. 15000000. Since the turnover of Mr. Khan's firm in the preceding financial year is Rs. 8000000, which is below the composition turnover limit, he is eligible to opt for the composition scheme under GST.

According to the given information, Mr X became liable to pay tax on 1st August 2018 and obtained registration on 15th August 2018. In such cases, a person is eligible for input tax credit on input held in the stock as on the day before the date of registration. Therefore, Mr X would be eligible for input tax credit on inputs held in the stock as on 31st July 2018.

Article 269A(1) of the Indian constitution empowers the government of India to levy IGST (Integrated Goods and Services Tax) in case of inter-state supply. This article specifically deals with the power of the Union and State governments to levy and collect GST (Goods and Services Tax) on supplies in the course of inter-state trade or commerce. It provides a framework for the collection of IGST and ensures that both the Union and State governments have the authority to levy and collect taxes on such supplies.

To compute the value of exempted supply for the purpose of section 17(2) of the CGST Act 2017, we need to consider the details provided:



1. Value of alcoholic liquor for human consumption is rupees 150,000.

2. Value of architect services supplied for rupees 200,000.

3. Securities of face value of rupees 100,000 sold for rupees 95,000.



Now, let's break down the components:



Total value of supplies = Value of alcoholic liquor + Value of architect services + Value of securities sold

Total value of supplies = 150,000 + 200,000 + 95,000

Total value of supplies = 445,000



Now, let's calculate the value of taxable supplies:



Value of taxable supplies = Total value of supplies - Value of alcoholic liquor

Value of taxable supplies = 445,000 - 150,000

Value of taxable supplies = 295,000



So, the value of exempted supply for the purpose of section 17(2) of the CGST Act 2017 is rupees 295,000.

The time of supply of services is the date when the services are considered to be provided. In this case, the payment was received on 5th May 20XX and entered in the books of accounts on 1st May 20XX. According to the information provided, the date of payment entered in the books of accounts is considered as the time of supply of services. Therefore, the correct answer is 1st May 20XX.

The place of supply of services in this scenario will be USA because the American bank is the one providing the service of charging loan process charges. Even though the recipient of the service, Mangal Pvt. Ltd, is located in Mumbai, the place of supply is determined by the location of the supplier. Therefore, the correct answer is USA.

Article 366(12A) of the Indian constitution defines the GST. This article specifically states the meaning of "goods and services tax" for the purpose of the constitution. It provides a clear definition and understanding of the GST within the legal framework of the country. It is important to note that while Article 366(12A) defines the GST, other articles may also be relevant in terms of its implementation and regulation.