Tax And Regulatory Program – Indirect Tax
Tax and Regulatory Program Tax Proficiency test – Indirect tax Questionnaire Part A – Indirect tax
- 1.If Company A (situated in Gujarat) raises an invoice on Company B (situated in Delhi) for supply of goods from its warehouse (situated in Maharashtra) to Company B’s warehouse (situated in Tamil Nadu), in which State will CST be levied?
- A.
Gujarat
- B.
Delhi
- C.
Maharashtra
- D.
Tamil Nadu
- 2.Which of the following items are generally to be excluded for the purpose of computation of VAT liability?
- A.
Sales return within 6 months
- B.
Cash discount
- C.
Stock transfers
- D.
All of these
- 3.What would be the total VAT/ CST cash outlflow (assuming that the company takes all the available input credit) from the particulars provided below: • Input VAT - INR 750 • Input CST - INR 500 • Output VAT–INR 500 • Output CST – INR 500
- A.
INR 100
- B.
INR 250
- C.
INR 75
- D.
None of these
- 4.Company A imports tools and dies from France amounting to INR 5 crores and sells such goods on High Seas basis to Company B for INR 6 crores. Determine the amount on which VAT/ CST is required to be paid by Company A?
- A.
INR 5 crores
- B.
INR 6 crores
- C.
NIL
- D.
INR 1 crore
- 5.A company, incorporated in Uttar Pradesh, is a manufacturer of chocolates. During the festive season of Diwali, the Company in order to augment its sales, offers a discount scheme to customer’s based on the packets of chocolates purchased wherein, on purchase of 4 packets amounting to a minimum of INR 500, an additional packet of chocolate amounting to INR 100 would be given free. Basis the above, specify the amount on which VAT should be calculated?
- A.
INR 500
- B.
INR 100
- C.
INR 600
- D.
None of these
- 6.ABC Ltd. located in State B procured goods from XYZ Ltd. in State A. In order to pay CST at a concessional rate of 2%, which of the following Form is required to be provided by ABC Ltd. to XYZ Ltd.?
- A.
Form C
- B.
Form H
- C.
Form E-I
- D.
Form E-II
- 7.Which of the following type of lease is generally leviable to VAT?
- A.
Financial Lease
- B.
Operating Lease
- C.
Both the above
- D.
None of these
- 8.What is the standard rate of VAT across States?
- A.
12.5 – 15 per cent
- B.
10 per cent
- C.
4 – 5 per cent
- D.
26.85 per cent
- 9.X Ltd. carries out market research for various organizations. Services provided to which of the following organizations would be exempt from the levy of Service tax?
- A.
ABC Hospital
- B.
XYZ School
- C.
UNICEF
- D.
All of these
- 10.Company X hires a firm based out of England to provide management consultancy services. The firm comes to India to provide such consultancy whenever required by the Company X. Which of the following statement is true?
- A.
The above transaction qualifies as 'import' and Company X is liable to pay Service tax under ‘reverse charge mechanism’
- B.
B. The above transaction does not qualify as ‘import’ and hence not liable to Service tax
- C.
C. The law firm is liable to deposit Service tax as the services are performed in India
- D.
None of these
- 11.Ram buys a car for use of the same in providing Rent-a-cab services. Which of the following statement is true?
- A.
Ram can avail 100 per cent credit in the first year
- B.
Ram can avail 50 per cent of the credit only
- C.
C. Ram can avail 50 per cent of the credit in the first year and balance in the next year
- D.
D. Credit of Excise duty is not available to a service provider
- 12.Which of the following services would not be liable to Service tax?
- A.
Services provided in the State of Rajasthan by a person having a place of business in the State of Jammu and Kashmir
- B.
Services provided to an Export Oriented Unit
- C.
An interior decorator providing services in Srinagar
- D.
D. A foreign company provides service to the Indian subsidiary of an overseas company
- 13.What is the current rate of Service tax?
- A.
10.3 percent
- B.
10 percent
- C.
12.36 percent
- D.
10.2 percent
- 14.X Ltd and Y Ltd are associated enterprises. X Ltd shares its office space with Y Ltd for which Y ltd pays a rent of Rs 5000 per month. For the month of January, X Ltd made the entry in its books on 31 January 2011 but the consideration was received from Y Ltd on 12 February 2010. When is X Ltd liable to deposit Service tax on the rent received from Y Ltd?
- A.
5 January 2010
- B.
5 February 2010
- C.
5 March 2010
- D.
25 April 2010
- 15.Johny provides Goods transport agency services alpha for INR 10000. What would be the value on which Service tax would be charged?
- A.
INR 2500
- B.
INR 10000
- C.
INR 3300
- D.
NIL
- 16.How many services is a part of the Negative list?
- A.
10
- B.
11
- C.
12
- D.
There is no negative list under Service tax law
- 17.Which of the following statements is not true?
- A.
Excise duty is not leviable in the State of Jammu and Kashmir
- B.
Goods manufactured for own consumption are liable to Excise duty
- C.
Excise duty is levied on manufacture but collected on removal of goods from premises
- D.
Excise duty is not levied on manufacture of goods which are exported out of India
- 18.Company A, located in a Special Economic Zone, manufactures goods and correspondingly export/sells them. Identify the amount of sales on which Excise duty has to be discharged by the Company from the details provided below: • Sales to Domestic Tariff Area- INR 10 crores • Export Sales- INR 10 crores • Exempt sales- INR 10 crores
- A.
30 crores
- B.
10 crore
- C.
20 crores
- D.
No Excise duty is to be levied
- 19.X manufactures goods on job work basis for Company Y. Company Y provides raw material worth INR 1000. X puts in raw material of its own worth INR 100, labour of INR 200 and a margin of INR 100. Such goods are further sold by Company Y at INR 2000. On what value would X be liable to charge Excise duty?
- A.
Rs 2000
- B.
Rs 400
- C.
Rs 1400
- D.
Rs 300
- 20.Which of the following statements are true? At what point of time Customs duty becomes payable i. They enter territorial waters of India ii. Bill of entry is filed with the Customs authorities for home consumption iii. They are warehoused in Custom bonded warehouse iv. They are unloaded at the port
- A.
Ii
- B.
I and ii
- C.
Ii and iii
- D.
Iii
- 21.From the list of documents mentioned below, identify the documents which are required for clearance of goods through Customs on import of goods?
- A.
Bill of Entry
- B.
Invoice and packing list
- C.
Import license
- D.
All of these
- 22.The credit of which of the following Customs duty component is not available to a manufacturer under the Cenvat Credit Rules, 2004?
- A.
Basic Customs Duty
- B.
Additional Duty of Customs
- C.
Additional Customs duty
- D.
Secondary Higher Education Cess on Additional Customs duty
- 23.If Ram manufactures and sells machinery to Shyam for INR 20,000 and charges 2% freight thereon, what would be the amount of Excise Duty if the transfer of title would happen at Ram’s factory (assuming Excise duty rate @ 10%)?
- A.
INR 2000
- B.
INR 2020
- C.
INR 2040
- D.
None of these
- 24.Under which of the following schemes proposed by Director General of Foreign Trade, the Company can claim benefit for rendering services to foreigners traveling to India?
- A.
SFIS
- B.
EPCG
- C.
Advance authorization
- D.
Duty drawback
- 25.A, located in Maharashtra sells goods to B who is located in Delhi (wherein goods are supplied from Maharashtra to Delhi). To which State would SGST revenue accrue?
- A.
Maharashtra
- B.
Delhi
- C.
Centre
- D.
Both Maharashtra and Delhi
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