Tax

1. Which of the following conditions should be satisfied so that a company can be regarded as an Indian company?

All directors should be resident in India

All shareholders should be citizens of India

The registered office or the principal office of the company should be in India

All directors should be citizens of India

2. Mr. A's service tax liability for the half-year ended on March 31, 20XX is Rs. 50,000. However Mr. A has suffered unexpected loss in his business and is short of cash. Therefore, he decides not to pay service tax for the said half-year. Whether Mr. A's contention is valid?

Valid

Invalid

Cannot say

None of the above

3. What is the rate at which tax is required to be deducted u/s 194BB towards winnings from lotteries?

1%

2%

10%

30%

4. Children Education Allowance of Rs.100 per month is exempt;

To a max of 1 children

To a max of 2 children

To a max of 3 children

No such limit

5. Provident Fund Contribution is eligible for deduction under section:

80D

80C

80DDA

80G

6. Which is the most popular and common method for computing VAT liability?

Addition Method

Subtraction Method

Invoice Method

None of the above

7. Ram & Co have purchased goods from Sai Enterprises. Sai Enterprises is an unregistered dealer. Is this purchase eligible for availing input tax credit under VAT?

Yes

No

Cannot say

None of the above

8. Which of these taxes is not an indirect tax?

Excise duty

Custom duty

Tax on undisclosed foreign income and assets

Service tax

9. What is the rate of tax prescribed u/s 115BB in respect of winnings from lottery, crossword puzzle, etc.?

10%

15%

20%

30%

10. Rs.1.5 lakhs is the maximum qualifying amount for deduction under

Section 80CCC alone

Sections 80C and 80CCC

Section 80C, 80CCC and 80CCD (1)

Section 80C alone

11. 'Place of business' includes place of business of the agent. Examine the validity of the statement with reference to CST Act.

Valid

Invalid

Cannot say

None of the above

12. What is the basic source of income-tax law?

Income Tax Act, 1961

Circulars/ Notifications issued by CBDT

Judgments of courts

Constitution of India

13. Which of the following conditions should be satisfied so that a company can be regarded as an Indian company?

All directors should be resident in India

All shareholders should be citizens of India

All directors should be citizens of India

14. What is the rate of tax prescribed u/s 111A in respect of specified short term capital gains?

10%

15%

20%

30%

15. A tax or duty which is levied by Central Government on import of goods into India is known as-

Custom Duty

Excise Duty

Service Tax

VAT

16. ABC Maintenance Services Ltd. provided maintenance services for refrigerators and air-conditioners. Whether central excise duty is leviable in this case?

Yes

No

Cannot say

None of the above

17. Sales made within a State are known as

Intra-State sales

Inter-State sales

Cannot say

None of the above

18. 'CST paid on purchases made from outside the State cannot be claimed as ITC but ITC can be used for paying CST arising on inter-State sale' Examine whether the statement is correct with reference to VAT.

True

False

Cannot say

None of the above

19. Whether service provided on contract basis by a person to another is liable to service tax?

Yes

No

Cannot say

None of the above

20. Income under the Income Tax Act, 1961 is to be computed under-

5 heads

6 heads

4 heads

3 heads

21. What is the taxable event for levy of excise duty?

Sale

Manufacture

Purchase

None of the above

22. Which of the following is not a variant of VAT?

Gross Product Variant

Income Variant

Consumption Variant

Expense Variant

23. Rebate u/s 87A is available if the total income does not exceed-

Rs. 5 lakhs

Rs. 10 lakhs

Rs. 3 lakhs

Rs. 1 crore

24. What is the monetary limit prescribed u/s 40A(3) for disallowance of expenditure payment for which has been made in cash?

Rs. 20,000

Rs. 30,000

Rs. 35,000

Rs. 40,000

25. Which of the following incomes shall not be included in the total income of a non-resident?

Income received in India

Income deemed to accrue or arise in India

Income accruing or arising outside India

Income accruing or arising in India

26. What is the allowable Transport Allowance for commuting between place of residence and place of duty?

Rs.1,600 per annum

Rs.3,000 per month

Rs.1,600 per month

Rs.3.000 per annum

27. Which of the following is also known as 'Voucher Method' under VAT

Addition Method

Subtraction Method

Invoice Method

None of the above

28. As per Section 15 of the Income-tax Act salary is chargeable to tax on-

Receipt basis

Due basis

Due basis or receipt basis, whichever is earlier

Due basis or receipt basis, whichever is later

29. Sales made from one State to another are known as

Intra-State sales

Inter-State sales

Cannot say

None of the above

30. Whether service provided by a casual worker to employer who gives wages on daily basis to the workers is liable to service tax?

Yes

No

Cannot say

None of the above

31. Exemption of a certain amount (not exceeding the income clubbed) is available u/s 10(32), where a minor's income is clubbed with the income of the parent. The maximum exemption available is-

Rs. 1,200 in respect of each minor child

Rs. 1,500 in respect of each minor child

Rs. 2,000 in respect of each minor child

Rs. 2,500 in respect of each minor child

32. In respect of a resident assessee, who is of the age of 80 years or more at any time during the previous year 2015-16, -

Higher basic exemption of Rs. 2,50,000 is applicable

Higher basic exemption of Rs. 3,00,000 is applicable

Higher basic exemption of Rs. 5,00,000 is applicable

None of the above

33. What is the basic exemption limit for Mrs. X, a resident individual who is of the age of 80 years as on 30.03.2016

Rs. 5,00,000

Rs. 2,40,000

Rs. 3,00,000

Rs. 2,50,000

34. A provident fund not recognized by the Commissioner of Income-tax for tax purposes is known as-

Statutory Provident Fund

Recognized Provident Fund

Unrecognized Provident Fund

Public Provident Fund

35. Mr. A took a fight from New Delhi to Mumbai . Whether service tax is leviable in this case?

Yes

No

Cannot say

None of the above

36. An individual is said to be resident in India in any previous year, if he satisfies any one out of two specified conditions. Which of the following is a specified condition?

He has been in India during the previous year for a total period of 180 days

He has been in India during the previous year for a total period of 182 days

He has been in India during the previous year for a total period of 179 days

He has been in India during the previous year for a total period of 181 days

37. Share of income of HUF is _______ in the hands of the member

Taxable

Exempt

Cannot say

None of the above

38. Ram purchased goods from Shyam. Shyam has not shown the VAT charged on the purchase value, separately in the invoice. Is this purchase eligible for availing input tax credit under VAT?

Yes

No

Cannot say

None of the above

39. With reference to the provisions of the Finance Act, 1994 examine whether any 'consideration' is involved in grant given to a researcher to carry out any research of his choice. However, the researcher will have to provide IPR rights of the outcome of such research activity.

Yes

No

Cannot say

None of the above

40. What is the rate of depreciation (general rate) on plant & machinery?

10%

30%

15%

40%

41. Exemption u/s 54EC is available against capital gains arising on transfer of _____ capital asset.

Long-term

Short-term

Both (a) & (b)

Cannot say

42. What is the maximum amount of Gratuity that is exempt from Tax?

Rs.5,00,000

Rs.2,00,000

Rs.1,00,000

Rs.10,00,000

43. Mr. A holds 75% share in a partnership firm. Mrs. A received a commission of Rs. 25,000 from the firm for promoting the sales of the firm. Mrs. A possesses no technical or professional qualification. In whose hands will the commission income be assessed to tax?

Mrs. A

Mr. A

Partnership firm

None of the above

44. Abhinav, who is 32 years old, has to file a return of income if his gross total income is in excess of-

Rs. 2,00,000

Rs. 2,50,000

Rs. 3,00,000

Rs. 5,00,000

45. Audit u/s 44AB of the Income-tax Act, 1961 can be carried out by-

Lawyers

Company Secretaries

Chartered Accountants

All of the above

46. What is the rate of tax applicable to a domestic company for A.Y. 2016-17?

30%

35%

40%

45%

47. With reference to the provisions of the Finance Act, 1994 examine whether service tax is leviable on services provided in a vessel stationed at a distance of 54 nautical miles from the Indian land mass in Exclusive Economic Zone (EEZ) of India for carrying out fishing operations.

Yes

No

Cannot say

None of the above

48. Is the service of funeral, burial, crematorium, or mortuary and transportation of the deceased covered in negative list of services u/s 66D of the Finance Act, 1994?

Yes

No

Cannot say

None of the above

49. 'Goods specified in the Central Excise Tariff Act, 1985 as being subject to Nil rate of duty are also excisable goods'. Is this statement true?

True

False

Cannot say

None of the above

50. Mr. A boarded Rajdhani Express (fully AC train) from Kanpur on July 5, 2015 and disembarked at New Delhi. Whether service tax is leviable in this case?

Yes

No

Cannot say

None of the above

51. The Point of Taxation in a case where the invoice is issued within 30 day of completion of service is the date of invoice or date of payment, whichever is_______

Later

Earlier

Cannot say

None of the above

52. What is the due date for filing of a return of income for a company for A.Y. 2016-17?

31st July, 2016

30th September, 2016

31st October, 2016

31st August, 2016

53. What is the rate of tax prescribed u/s 112 in respect of long term capital gains?

10%

15%

20%

30%

54. Exemption u/s 54 is available against capital gains arising on transfer of _______ residential house property.

Long-term

Short-term

Both (a) & (b)

Cannot say

55. Profit motive is essential to call an activity a 'business'. Examine the validity of the statement with reference to CST Act.

Valid

Invalid

Cannot say

None of the above

56. Which of the following is not a method of computation of VAT?

Addition Method

Subtraction Method

Multiplication Method

Invoice Method

57. With reference to the provisions of the Finance Act, 1994 examine whether any 'consideration' is involved in the following case: 'Services are provided by A to B. However, payment for the services is made by C, a debtor of B, on the instructions of B' .

Yes

No

Cannot say

None of the above

58. Mr. Shiv has an agricultural land (costing Rs. 6 lakhs) in Lucknow and has been using it for agricultural purposes since 01.04.2000 till 01.08.2010 when the Government took over compulsory acquisition of this land. A compensation of Rs. 10 lakhs was settled. The compensation was received by Mr. Shiv on 01.07.2015. Compute the amount of capital gain taxable in the hands of M. Shiv.

Rs. 4 lakhs

NIL

Rs. (-) 50,739 (Loss)

Rs. 10 lakhs

59. What is the maximum amount of exemption available in respect of children education allowance?

Rs. 100 per month per child

Rs. 150 per month per child

Rs. 200 per month per child

Rs. 300 per month per child

60. Which of the following is not an excise duty?

Basic Excise Duty

National Calamity Contingent Duty

Additional Duty of Excise

Basic Custom Duty

61. Shiksha, an educational trust, runs a coaching centre which provides coaching for IIT-JEE entrance examinations to meritorious students of economically weak background. Whether service tax is leviable in this case?

Yes

No

Cannot say

None of the above

62. Ganesh received Rs. 60,000 from his friend on the occasion of his birthday. What is the amount taxable in the hands of Mr. Ganesh?

Rs. 60,000

NIL

Rs. 25,000

Rs. 10,000

63. What will be the Point of Taxation in a case where the invoice is not issued within 30 day of completion of service?

Date of invoice

Date of completion of service or date of payment, whichever is later

Date of completion of service

Date of completion of service or date of payment, whichever is earlier

64. What is the rate of depreciation on furniture & fittings?

5%

10%

20%

100%

65. Who is empowered to make Income Tax Rules?

Income Tax Department

Central Board of Excise & Customs

Central Board of Direct Taxes

Commissioner of Income Tax

66. What is the deemed income u/s 44AE in respect of heavy goods vehicle?

Rs. 5,000 per month

Rs. 7,500 per month

Rs. 10,000 per month

Rs. 12,500 per month

67. Y Ltd imported some goods from Norway. The said goods were warehoused in a public warehouse for a period of 3 months after which it is cleared for home consumption on payment of applicable customs duty. While transporting the goods from the warehouse to the factory of the importer, the said goods were damaged. Can duty paid on such goods be remitted to Y Ltd?

Yes

No

Cannot say

None of the above

68. With reference to the provisions of the Finance Act, 1994 examine whether any 'consideration' is involved in gifts received from friends at the time of wedding.

Yes

No

Cannot say

None of the above

69. Mr. A hired a car from a local cab operator for the whole day on a lumpsum consideration and visited Delhi's historical monuments. Whether service tax is leviable in this case?

Yes

No

Cannot say

None of the above

70. HRA granted to an employee is exempt u/s 10(13A) to the extent of least of three amounts. Which of the following is not an amount referred to above?

10% of salary

Actual HRA received

Rent paid less 10% of salary

40%/50% of salary

71. 'When there is a change in the rate of duty between date of manufacture and date of removal, duty will be levied at the rate prevalent on the date of removal. Is this statement true?

True

False

Cannot say

None of the above

72. If more than one Retail Sale Price is printed on package of excisable goods, how the Assessable Value (AV) will be determined in case of Retail Sale Price (RSP) valuation u/s 4A?

AV = Maximum of RSP

AV = Average of all the RSP

AV = Minimum of RSP

None of the above

73. 'A SSI unit can avail CENVAT credit on inputs only after is starts paying duty'. Examine the validity of the statement

Valid

Invalid

Cannot say

None of the above

74. In respect of a resident assesse, who is of the age of 60 years or more but less than 80 years at any time during the previous year 2015-16, -

Higher basic exemption of Rs. 2,50,000 is applicable

Higher basic exemption of Rs. 3,00,000 is applicable

Higher basic exemption of Rs. 5,00,000 is applicable

None of the above

75. Sun & Co purchased goods from Moon & Co, a registered dealer. Moon & Co has opted for composition scheme under the provisions of respective State VAT Act. Is this purchase eligible for availing input tax credit under VAT?

Yes

No

Cannot say

None of the above

76. The provisions of Section 44AE applies to persons owning not more than ______ goods vehicles at any time during the previous year.

5

10

15

20

77. Interest on Post Office Savings Bank Account (in case of an individual account) is exempt from tax to the extent of Rs_____

7,000

No limit

Rs. 3,500

Rs. 4,500

78. What is the maximum deduction available u/s 80C for contribution to PPF?

Rs. 1,00,000

Rs. 75,000

Rs. 1,50,000

Rs. 50,000

79. One of the fundamental aspects of the term 'goods' is that they should be marketable. 'Even one purchaser is enough for establishing marketability'. Is this statement true?

True

False

Cannot say

None of the above

80. How the Assessable Value (AV) is determined in case of Retail Sale Price (RSP) valuation u/s 4A?

AV = RSP

AV = RSP less: abatement

Cannot say

None of the above

81. The business of a HUF is transacted from Australia and all the policy decisions are taken there. Determine the residential status of the HUF.

Resident

Resident and ordinarily resident

Resident but not ordinarily resident

Non-resident

82. Mohan Builders have constructed an office building for M/s XYZ & Co. Whether central excise duty is leviable in this case?

Yes

No

Cannot say

None of the above

83. 'Pisciculture (breeding of fish) is not liable to service tax as the same is covered under negative list of services'. With reference to the provisions of Finance Act, 1994 examine the validity of the statement.

Valid

Invalid

Cannot say

None of the above

84. An assessee can file a belated return of income at any time before the completion of assessment or before the expiry of the following period, whichever is earlier

One year from the end of the relevant assessment year

Two years from the end of the relevant assessment year

Six months from the end of the relevant assessment year

Eighteen months from the end of the relevant assessment year

85. Mr. A has been provided a rent-free accommodation by his employer in a city having a population exceeding 25 lakhs. What will be the value of perquisite in the hands of Mr. A?

15% of salary

10% of salary

7.5% of salary

5% of salary

86. Which of the following is included in transaction value u/s 4?

All forms of packing (special, general, protective, etc)

Optional bought out items and accessories

Independent testing done by the buyer himself or through a third party

All forms of discount if passed on to the buyer

87. Under CST Act, goods declared to be of special importance in inter-state trade or commerce are known as-

Declared Goods

Exempt Goods

Cannot say

None of the above

88. The surcharge applicable in the case of an individual is:-

10% of tax payable

10% of tax payable if total income exceeds Rs. 10 lakhs

10% of tax payable if total income exceeds Rs. 1 crore

No surcharge payable

89. In respect of winnings from lottery, crossword puzzle or race including horse race or card game etc.

No deduction under Chapter VIA is allowed and basic exemption limit cannot be exhausted.

No deduction under Chapter VIA but unexhausted basic exemption limit can be exhausted.

Both deduction under Chapter VIA and basic exemption limit are allowed.

None of the above

90. Date of completion of service - 16.07.2015. Date of invoice - 11.08.2015. Date on which payment received - 26.08.2015. What is the point of taxation as per Point of Taxation Rules?

16.07.2015

11.08.2015

26.08.2015

Cannot say

91. What is the presumptive rate of tax u/s 44AD?

5%

8%

10%

12.5%

92. When is a firm said to be resident in India?

If all the partners of the firm are resident in India

If the control and management of its affairs is situated wholly in India

If the control and management of its affairs is situated wholly outside India

If the control and management of its affairs is situated wholly or partly in India

93. Section 43B shall be applicable to payment made in respect of:

Bonus or Commission

Interest on Loan

Service Tax

All of the above

94. What is the tax treatment of salary paid by Central Government to Mr. Jack, a citizen of India, Rs. 7 lakhs for the services rendered outside India?

Not taxable

Taxable but exempt

Taxable because deemed to accrue or arise in India

Taxable because accrued in India

95. Light Traders, a registered dealer having stock of goods worth Rs. 30,000, purchased from outside the State, wishes to opt for Composition Scheme. Advise the dealer whether it is possible.

Yes

No

Cannot say

None of the above

96. Income arising to a minor married daughter is-

To be assessed in the hands of the minor child

To be clubbed with the income of that parent whose total income, before including minor's income, is higher

Completely exempt from tax

To be clubbed with the income of the father

97. What will be the Point of Taxation in a case where the invoice is issued within 30 day of completion of service?

Date of invoice

Date of invoice or date of payment, whichever is later

Date of invoice or date of payment, whichever is earlier

Date of completion of service

98. The territorial waters of India extend to how many nautical miles into the sea from the coastline?

12

10

24

18

99. Which of these taxes is covered under the 'State List'?

Income Tax

Central Excise Duty

State Excise Duty

Service Tax

100. X of Mumbai sends goods by air to his branch office at London. Subsequently, he transfers the documents of title of such goods to a buyer at Scotland after said goods have crossed the customs frontier of India. Whether it amounts to inter-State sale as per CST Act?

Yes

No

Cannot say

None of the above

101. What is the relevant date for determination of rate of exchange in case of imported goods?

Rate of exchange, notified by CBEC, prevalent on the date of filing bill of entry

Rate of exchange, notified by RBI, prevalent on the date of filing bill of entry

Rate of exchange, notified by CBEC, prevalent on the date entry inwards is granted

Rate of exchange, notified by CBEC, prevalent on the date of filing Import General Manifest (IGM)

102. 'CST is not leviable on sale in course of export/ import'. Whether the statement is correct?

Correct

Incorrect

Cannot say

None of the above

103. Amar purchased goods from a registered dealer. He claims to have paid VAT on the said goods but the invoice pertaining to the said purchase has been lost on account of negligence of a clerk in his office. Is Amar entitled to avail input tax credit under VAT?

Yes

No

Cannot say

None of the above

104. Is the service by way of education as part of an approved vocational educational course covered in negative list of services u/s 66D of the Finance Act, 1994?

Yes

No

Cannot say

None of the above

105. Shiv purchased goods for being used in the execution of a works contract. Is this purchase eligible for availing input tax credit under VAT?

Yes

No

Cannot say

None of the above

106. Which of the following is excluded from transaction value u/s 4?

Outward handling upto the place of removal

All forms of packing (special, general, etc)

All forms of discount if actually passed on to the buyers

Dharmada or charity

107. Duty payable on the basis of Retail Sale Price is prescribed in which Section of the Central Excise Act?

Section 3(2)

Section 4A

Section 4

None of the above

108. CST is leviable on transactions of leasing / hiring of assets for a defined period. Examine the validity of the statement with reference to CST Act.

Valid

Invalid

Cannot say

None of the above

109. Whether CST is leviable on inter-State sale of electrical energy?

Yes

No

Cannot say

None of the above

110. With reference to the provisions of the Finance Act, 1994 examine whether any 'consideration' is involved in donations given to a charitable trust with the condition that such trust would display the name of the donor in a fair organized by it.

Yes

No

Cannot say

None of the above

111. Is the service of transportation of passengers with or without accompanied belongings, by Railways in an air conditioned coach covered in negative list of services u/s 66D of the Finance Act, 1994?

Yes

No

Cannot say

None of the above

112. In the case of conflict between the provisions of the Income-tax Act, 1961 and the notified Income Computation and Disclosure Standards (ICDS), the provisions of the______ shall prevail to that extent.

ICDS

Cannot say

Income-tax Act, 1961

None of the above

113. How many Schedules does the Income-Tax Act, 1961 contain?

XIV

XIII

XI

XII

114. The definition of person provided in Section 2(31) of the Income-Tax Act, 1961 is-

An exhaustive definition

An inclusive definition

An exclusive definition

None of the above

115. In case of a Union Territory, Parliament can make laws in respect of a matter included in State List. True or False?

True

False

Cannot say

None of the above

116. Retail Sale Price (RSP) valuation u/s 4A is applicable to which of the following goods?

All goods

Declaration of RSP on package of goods is required under Legal Metrology Act, 2009

Goods which are sold to retailers

None of the above

117. Which of the following is included in transaction value u/s 4?

Consultancy charges relating to design, layout, etc of final product done upto the place of removal

Optional bought out items and accessories

Independent testing done by the buyer himself or through a third party

All forms of discount if passed on to the buyer

118. A trader of steel articles purchases steel bars of 10 meters. He cuts the bars as per requirements of the customer and supplies the cut bars to them. He seeks clarification whether he will be liable to pay excise duty on the cut bars sold by him.

Yes

No

Cannot say

None of the above

119. Mr. A lets out his house property to Mr. B for a rental of Rs. 20,000/- per month. Mr. B further lets out the house property to Mr. C for a rental of Rs. 30,000/- per month. The income earned by Mr. B will be taxable under which head of income?

Income from House Property

Profits or Gains of Business or Professions

Capital Gains

Income from Other Sources

120. What is the rate of surcharge applicable to a foreign company for A.Y. 2016-17?

5%, if the total income exceeds Rs. 1 crore

2%, if the total income exceeds Rs. 10 crore

5%, if the total income exceeds Rs. 10 crore

121. Education cess @ 2% & secondary and higher education cess @ 1% is payable on?

Income tax only

Income tax plus surcharge, if applicable, minus rebate u/ 87A, if applicable

Surcharge only

Not payable

122. What is the rate of depreciation on purely temporary erections such as wooden structures?

5%

10%

20%

100%

123. Which of the following classes of assessees can be 'Resident but not Ordinarily Resident'?

Company

Firm

HUF

Co-operative Society

124. 'Waste of exempted goods is exempt from excise duty'. Is this statement true?

True

False

Cannot say

None of the above

125. The rate of tax applicable to a firm for A.Y. 2016-17 is:

30%

35%

40%

25%

126. Mr. A took a radio taxi for going to his hotel. Whether service tax is leviable in this case?

Yes

No

Cannot say

None of the above

127. Mr. A incurred short-term capital loss of Rs. 10,000 on sale of shares through the National Stock Exchange. Such loss can be set off-

Only against short-term capital gains

Against both short-term capital gains and long-term capital gains

Against any head of income

Cannot be set-off

128. Exemption u/s 54EC is available against capital gains arising on transfer of ______ capital asset.

Long-term

Short-term

Both (a) & (b)

Cannot say

129. Countervailing duty on subsidized articles shall be in force for a period of_____years from the date of its imposition?

4

5

15

12

130. A dealer can sell goods at concessional rate of CST if he obtains from the purchasing dealer Form___

Form C

Form H

Form E-I

Form E-II

131. In case of a self-occupied property, acquired with borrowed capital after 01.04.1999 and such acquisition was completed within 3 years from the end of the financial year in which the capital was borrowed, what is the maximum deduction allowed u/s 24(b) in respect of interest on borrowed capital?

Rs. 1,50,000

Rs. 2,00,000

No limit

Rs. 30,000

132. What is the rate of depreciation on water pollution control equipments?

10%

20%

30%

100%

133. A provident fund recognized by the Commissioner of Income-tax for tax purposes is known as-

Statutory Provident Fund

Recognized Provident Fund

Unrecognized Provident Fund

Public Provident Fund

134. The rate of duty at which excise duty is actually payable is known as-

Tariff rate of duty

Effective rate of duty

Cannot say

None of the above

135. Shyam Security Services Ltd provided security services to M/s Amar & Sons for the month of July, 2015. It completed providing such service on 31st July, 2015 and billed it for Rs. 1 lakh on 10th August, 2015. However, it had received the payment for the same on 4th August, 2015 itself. What is the point of taxation as per Point of Taxation Rules?

31st July, 2015

10th August, 2015

4th August, 2015

Cannot say

136. The definition of income provided in Section 2(24) of the Income-Tax Act, 1961 is-

An exhaustive definition

An inclusive definition

An exclusive definition

None of the above

137. What is the relevant date for determining applicable rate of duty?

Date of Removal

Date of Manufacture

Date of Purchase

None of the above

138. 'Since goods include all materials, articles and all other kinds of movable property, newspapers would also be considered goods' Examine the validity of the statement with reference to CST Act.

Valid

Invalid

Cannot say

None of the above

139. Which of the following is also known as 'Tax Credit Method' under VAT?

Addition Method

Subtraction Method

Invoice Method

None of the above

140. Shiksha, an educational trust, runs a play school and a higher secondary school. Whether service tax is leviable in this case?

Yes

No

Cannot say

None of the above

141. What is the rate of depreciation on computers?

10%

20%

30%

60%

142. What is the %age of deduction allowed u/s 35 to an assessee for contribution made to a research association for research in social science or statistical research?

100%

125%

175%

200%

143. Mr. C has been provided a rent-free accommodation by his employer in a city having a population not exceeding 10 lakhs. What will be the value of perquisite in the hands of Mr. C?

15% of salary

10% of salary

7.5% of salary

5% of salary

144. Mr. X has been provided a motor car (cubic capacity of engine does not exceed 1.6 liters) by his employer which is used partly for official use and partly for personal use. The maintenance expenses are met by the employer. What will be the value of perquisite in the hands of Mr. X?

Rs. 1,800 per month

Rs. 2,400 per month

Rs. 600 per month

Rs. 900 per month

145. Which 'list' of the Seventh Schedule to Article 246 of the Constitution contains the matters in respect of which the State Government has exclusive right to make laws?

Union List

State List

Concurrent List

None of the above

146. A London based entrepreneur enters into a contract of sale of goods with Madhav of Gujarat and sends the goods to India. Whether it amounts to inter-State sale as per CST Act?

Yes

No

Cannot say

None of the above

147. Under VAT, in case of stock transfer input tax paid in excess of______is allowed as ITC.

1%

2%

3%

4%

148. Does White Paper on VAT allow only a manufacturer to avail set off of input tax credit on capital goods and not a trader?

Yes

No

Cannot say

None of the above

149. Ms. Sapna, a non-resident, residing in Canada since 1990, came back to India on 19-02-2014 for permanent establishment in India. What is the residential status of Ms. Sapna for the A.Y. 2016-17?

Non-Resident

Resident and Ordinarily Resident

Resident

Resident but not Ordinarily Resident

150. Amendments made by the Finance Bill, in respect of service tax matters, come into force from the date______

On which the Finance Bill is presented by the Finance Minister

On which the Finance Bill is passed by the Rajya Sabha

On which the Finance Bill receives the assent of the President of India

None of the above

151. With reference to the provisions of the Finance Act, 1994 examine whether any 'consideration' is involved in grant given to a researcher to carry out a research in a particular field.

Yes

No

Cannot say

None of the above

152. Is the service by Department of Post by way of speed post, express parcel post, life insurance and agency services provided to general public covered in negative list of services u/s 66D of the Finance Act, 1994?

Yes

No

Cannot say

None of the above

153. An assessee carrying on business is required to get his accounts audited u/s 44AB of the Income-tax Act, 1961 if the total sales in business exceed-

Rs. 10 lakhs

Rs. 25 lakhs

Rs. 60 lakhs

Rs. 100 lakhs

154. Precious stones, bullions, gold and silver ornaments are charged to tax @ _____% VAT?

0%

1%

5%

13.5%

155. Which of the following is not agricultural income?

Income derived from the sale of seeds

Income from growing of flowers and creepers

Income from fisheries

Income from growing of bamboo

156. Abhishek has stayed in India in the P.Y. 2015-16 for 181 days, and he is a non-resident in 9 out of 10 years immediately preceding the current previous year and he has stayed in India for 365 days in all in the 4 years immediately preceding the current previous year. Find his residential status for the A.Y. 2016-17

Non-Resident

Resident and Ordinarily Resident

Resident

Resident but not Ordinarily Resident

157. Income accruing in London and received there is taxable in India in the case of-

Resident and ordinarily resident only

Both resident and ordinarily resident but not ordinarily resident

Both resident and non-resident

Only non-resident

158. Income from letting of machinery, plant and furniture is-

Always chargeable to tax under the head 'Profits and Gains of Business and Profession"

Always chargeable to tax under the head 'Income from other sources'

Not chargeable to tax

159. ABC Association, an unincorporated body of individuals, provided warehousing services to Mr. Ramesh for Rs. 7,50,000. ABC Association is of the view that since it is not a natural person, warehousing service provided by it will not be a 'service' in terms of Section 65B(44) of the Finance Act, 1994. Examine whether the view taken by ABC Association is valid in law?

Valid

Invalid

Cannot say

None of the above

160. An assessee is engaged in the business of letting out of house property on rent. Income from such business is taxable under which head of Income?

Profits or Gains of Business or Profession

Income from Other Sources

Cannot say

Income from House Property

161. The maximum period for which unabsorbed depreciation can be carried forward is-

4 years

8 years

Indefinitely

6 years

162. What is the reason for totally exempting agricultural income from income tax?

To boost the agricultural sector

To give benefit to the farmers

Under the Constitution, the Parliament has no power to levy tax on agricultural income

To remove compliances for the agricultural sector

163. Exemption u/s 54G towards capital gains arising on shifting of industrial undertaking from urban area is available to-

All assessees

Individual

Individual & HUF

Individual, HUF & Firm

164. Which of the following is included in transaction value u/s 4?

Testing and inspection charges

Optional bought out items and accessories

Independent testing done by the buyer himself or through a third party

All forms of discount if passed on to the buyer

165. Which of the following is included in transaction value u/s 4?

Pre-delivery inspection charges and after sales service charges collected by the manufacturer

Optional bought out items and accessories

Independent testing done by the buyer himself or through a third party

All forms of discount if passed on to the buyer

166. Exemption u/s 54F towards capital gains arising on transfer of capital asset is available to-

All assessees

Individual

Individual & HUF

Individual, HUF & Firm

167. Which of the following is excluded from the meaning of 'sale' under Central Sales Tax Act?

Dharmada

Weighment dues

Government subsidies

Insurance charges

168. Mr. A took the Metro to International Airport. Whether service tax is leviable in this case?

Yes

No

Cannot say

None of the above

169. Is the selling of space or time slots for advertisement broadcast by FM radio covered in negative list of services u/s 66D of the Finance Act, 1994?

Yes

No

Cannot say

None of the above

170. Date of completion of service - 16.07.2015. Date of invoice - 11.08.2015. Date on which payment received - 01.08.2015. What is the point of taxation as per Point of Taxation Rules?

16.07.2015

11.08.2015

01.08.2015

Cannot say

171. The return of a company has to be verified by-

The managing Director or Director

The General Manager

The Secretary

The CFO

172. What is the rate of depreciation on books owned by assessees carrying on business in running lending libraries?

10%

15%

20%

100%

173. Mr. B has been provided a rent-free accommodation by his employer in a city having a population exceeding 10 lakhs but not exceeding 25 lakhs. What will be the value of perquisite in the hands of Mr. B?

15% of salary

10% of salary

7.5% of salary

5% of salary

174. Exemption u/s 54B towards capital gains arising on transfer of urban agricultural land is available to-

All assessees

Individual

Individual & HUF

Individual, HUF & Firm

175. Which 'list' of the Seventh Schedule to Article 246 of the Constitution contains the matters in respect of which the Parliament (Central Government) has exclusive right to make laws?

Union List

State List

Concurrent List

None of the above

176. Goods are imported at a port city. State Government of the port city intends to levy customs duty on such imported goods as they have landed at a port which comes under its (State Government) jurisdiction. Whether the State Government's stand is valid?

Valid

Invalid

Cannot say

None of the above

177. One of the fundamental aspects of the term 'goods' is that they should be marketable. 'Actual sale is necessary for being marketable'. Is this statement true?

True

False

Cannot say

None of the above

178. Which of the following is excluded from the meaning of 'sale' under Central Sales Tax Act?

Dharmada

Weighment dues

Cash discount

Insurance charges

179. Samar is a dealer of textiles in Vapi, Gujarat. Madhav of Lucknow approached him and purchased goods worth Rs. 1 lakh. However, instead of taking the delivery of the goods in Vapi, he directed Samar to deliver the goods in hi factory located at Surat Gujarat. Whether CST is leviable on this transaction?

Yes

No

Cannot say

None of the above

180. Is the service provided by way of supply of farm labour relating to agriculture covered in negative list of services u/s 66D of the Finance Act, 1994?

Yes

No

Cannot say

None of the above

181. Share of profit of Mr. P, who is a partner in M/s PQR is-

Exempt from tax

Taxable as his business income

Taxable as his salary

Taxable under the head 'Income from Other Sources'

182. Exemption u/s 54 towards capital gains arising on transfer of residential house property is available to-

All assessees

Individual

Individual & HUF

Individual, HUF & Firm

183. Which of the following is included in transaction value u/s 4?

Bought out essential items if the same are fitted to the main article at the time of removal

Optional bought out items and accessories

Independent testing done by the buyer himself or through a third party

All forms of discount if passed on to the buyer

184. Date of completion of service - 16.07.2015. Date of invoice - 21.08.2015. Date on which payment received - 26.08.2015. What is the point of taxation as per Point of Taxation Rules?

16.07.2015

21.08.2015

26.08.2015

Cannot say

185. What is the rate of additional depreciation on plant & machinery acquired by an industrial undertaking?

10%

15%

20%

25%

186. What is the rate of depreciation on intangible assets?

10%

25%

30%

100%

187. Mr. X has been provided a motor car (cubic capacity of engine exceeds 1.6 liters) by his employer which is used partly for official use and partly for personal use. The maintenance expenses are met by the employer. What will be the value of perquisite in the hands of Mr. X?

Rs. 1,800 per month

Rs. 2,400 per month

Rs. 600 per month

Rs. 900 per month

188. The rebate u/s 87A shall be least of the amount of income-tax payable or Rs...

2,000

5,000

1,000

10,000

189. Mr. A travelled from Mumbai to Kanpur in Pushpak Express, in sleeper class. Whether service tax is leviable in this case?

Yes

No

Cannot say

None of the above

190. Is the service by way of renting of residential dwellings for use as residence covered in negative list of services u/s 66D of the Finance Act, 1994?

Yes

No

Cannot say

None of the above

191. Export of goods is complete when the goods cross the-

Territorial Waters of India

Indian Custom Waters

Sea port/ airport

None of the above

192. A company, other than an Indian company, would be a resident in India for the P.Y. 2015-16 if, during that year,

Its POEM is in India

Its control and management is wholly or partly in India

Majority of its directors are resident in India

Its control and management is wholly outside India

193. With reference to the provisions of the Finance Act, 1994 examine whether service tax is leviable on services provided in a vessel stationed at a distance of 10 nautical miles from the Indian land mass.

Yes

No

Cannot say

None of the above

194. Which of the following is not agricultural income?

Income derived from the sale of seeds

Income from growing of flowers and creepers

Income from breeding of livestock

Income from growing of bamboo

195. What is the rate of surcharge applicable to a domestic company for A.Y. 2016-17?

7%, if the total income exceeds Rs. 1 crore

12%, if the total income exceeds Rs. 10 crore

5%, if the total income exceeds Rs. 10 crore

196. Capital gain arising on compulsory acquisition of a capital asset is chargeable to tax in the year in which-

Such capital asset is acquired

Compensation is received

Cannot say

None of the above

197. With reference to the provisions of the Finance Act, 1994 examine whether service tax is leviable on services provided in a vessel stationed at a distance of 54 nautical miles from the Indian land mass in Exclusive Economic Zone (EEZ) of India for extraction of oil.

Yes

No

Cannot say

None of the above

198. Industrial Training Institute (ITI), Manikpuri offers a short term Modular Employable Course in Information & Communication Technology Sector. The said course is approved by the National Council of Vocational Training. ITI, Manikpuri is registered with the Directorate General of Employment and Training, Ministry of Labour and Employment. Revenue raised a demand for service tax on the services provided by ITI, Manikpuri. Examine whether the demand raised by Revenue is valid.

Valid

Invalid

Cannot say

None of the above

199. For non-payment or short-payment of advance tax-

Interest is payable u/s 234A

Interest is payable u/s 234B

Interest is payable u/s 234C

Interest is not payable

200. What is the rate of depreciation on motor cars other than those used in the business of running them of hire?

10%

15%

30%

40%

1. Which of the following conditions should be satisfied so that a company can be regarded as an Indian company?

2.

What first name or nickname would you like us to use?

2. Mr. A's service tax liability for the half-year ended on March 31, 20XX is Rs. 50,000. However Mr. A has suffered unexpected loss in his business and is short of cash. Therefore, he decides not to pay service tax for the said half-year. Whether Mr. A's contention is valid?

3. What is the rate at which tax is required to be deducted u/s 194BB towards winnings from lotteries?

4. Children Education Allowance of Rs.100 per month is exempt;

5. Provident Fund Contribution is eligible for deduction under section:

6. Which is the most popular and common method for computing VAT liability?

7. Ram & Co have purchased goods from Sai Enterprises. Sai Enterprises is an unregistered dealer. Is this purchase eligible for availing input tax credit under VAT?

8. Which of these taxes is not an indirect tax?

9. What is the rate of tax prescribed u/s 115BB in respect of winnings from lottery, crossword puzzle, etc.?

10. Rs.1.5 lakhs is the maximum qualifying amount for deduction under

11. 'Place of business' includes place of business of the agent. Examine the validity of the statement with reference to CST Act.

12. What is the basic source of income-tax law?

13. Which of the following conditions should be satisfied so that a company can be regarded as an Indian company?

14. What is the rate of tax prescribed u/s 111A in respect of specified short term capital gains?

15. A tax or duty which is levied by Central Government on import of goods into India is known as-

16. ABC Maintenance Services Ltd. provided maintenance services for refrigerators and air-conditioners. Whether central excise duty is leviable in this case?

17. Sales made within a State are known as

18. 'CST paid on purchases made from outside the State cannot be claimed as ITC but ITC can be used for paying CST arising on inter-State sale' Examine whether the statement is correct with reference to VAT.

19. Whether service provided on contract basis by a person to another is liable to service tax?

20. Income under the Income Tax Act, 1961 is to be computed under-

21. What is the taxable event for levy of excise duty?

22. Which of the following is not a variant of VAT?

23. Rebate u/s 87A is available if the total income does not exceed-

24. What is the monetary limit prescribed u/s 40A(3) for disallowance of expenditure payment for which has been made in cash?

25. Which of the following incomes shall not be included in the total income of a non-resident?

26. What is the allowable Transport Allowance for commuting between place of residence and place of duty?

27. Which of the following is also known as 'Voucher Method' under VAT

28. As per Section 15 of the Income-tax Act salary is chargeable to tax on-

29. Sales made from one State to another are known as

30. Whether service provided by a casual worker to employer who gives wages on daily basis to the workers is liable to service tax?

31. Exemption of a certain amount (not exceeding the income clubbed) is available u/s 10(32), where a minor's income is clubbed with the income of the parent. The maximum exemption available is-

32. In respect of a resident assessee, who is of the age of 80 years or more at any time during the previous year 2015-16, -

33. What is the basic exemption limit for Mrs. X, a resident individual who is of the age of 80 years as on 30.03.2016

34. A provident fund not recognized by the Commissioner of Income-tax for tax purposes is known as-

35. Mr. A took a fight from New Delhi to Mumbai . Whether service tax is leviable in this case?

36. An individual is said to be resident in India in any previous year, if he satisfies any one out of two specified conditions. Which of the following is a specified condition?

37. Share of income of HUF is _______ in the hands of the member

38. Ram purchased goods from Shyam. Shyam has not shown the VAT charged on the purchase value, separately in the invoice. Is this purchase eligible for availing input tax credit under VAT?

39. With reference to the provisions of the Finance Act, 1994 examine whether any 'consideration' is involved in grant given to a researcher to carry out any research of his choice. However, the researcher will have to provide IPR rights of the outcome of such research activity.

40. What is the rate of depreciation (general rate) on plant & machinery?

41. Exemption u/s 54EC is available against capital gains arising on transfer of _____ capital asset.

42. What is the maximum amount of Gratuity that is exempt from Tax?

43. Mr. A holds 75% share in a partnership firm. Mrs. A received a commission of Rs. 25,000 from the firm for promoting the sales of the firm. Mrs. A possesses no technical or professional qualification. In whose hands will the commission income be assessed to tax?

44. Abhinav, who is 32 years old, has to file a return of income if his gross total income is in excess of-

45. Audit u/s 44AB of the Income-tax Act, 1961 can be carried out by-

46. What is the rate of tax applicable to a domestic company for A.Y. 2016-17?

47. With reference to the provisions of the Finance Act, 1994 examine whether service tax is leviable on services provided in a vessel stationed at a distance of 54 nautical miles from the Indian land mass in Exclusive Economic Zone (EEZ) of India for carrying out fishing operations.

48. Is the service of funeral, burial, crematorium, or mortuary and transportation of the deceased covered in negative list of services u/s 66D of the Finance Act, 1994?

49. 'Goods specified in the Central Excise Tariff Act, 1985 as being subject to Nil rate of duty are also excisable goods'. Is this statement true?

50. Mr. A boarded Rajdhani Express (fully AC train) from Kanpur on July 5, 2015 and disembarked at New Delhi. Whether service tax is leviable in this case?

51. The Point of Taxation in a case where the invoice is issued within 30 day of completion of service is the date of invoice or date of payment, whichever is_______

52. What is the due date for filing of a return of income for a company for A.Y. 2016-17?

53. What is the rate of tax prescribed u/s 112 in respect of long term capital gains?

54. Exemption u/s 54 is available against capital gains arising on transfer of _______ residential house property.

55. Profit motive is essential to call an activity a 'business'. Examine the validity of the statement with reference to CST Act.

56. Which of the following is not a method of computation of VAT?

57. With reference to the provisions of the Finance Act, 1994 examine whether any 'consideration' is involved in the following case: 'Services are provided by A to B. However, payment for the services is made by C, a debtor of B, on the instructions of B' .

59. What is the maximum amount of exemption available in respect of children education allowance?

60. Which of the following is not an excise duty?

61. Shiksha, an educational trust, runs a coaching centre which provides coaching for IIT-JEE entrance examinations to meritorious students of economically weak background. Whether service tax is leviable in this case?

62. Ganesh received Rs. 60,000 from his friend on the occasion of his birthday. What is the amount taxable in the hands of Mr. Ganesh?

63. What will be the Point of Taxation in a case where the invoice is not issued within 30 day of completion of service?

64. What is the rate of depreciation on furniture & fittings?

65. Who is empowered to make Income Tax Rules?

66. What is the deemed income u/s 44AE in respect of heavy goods vehicle?

68. With reference to the provisions of the Finance Act, 1994 examine whether any 'consideration' is involved in gifts received from friends at the time of wedding.

69. Mr. A hired a car from a local cab operator for the whole day on a lumpsum consideration and visited Delhi's historical monuments. Whether service tax is leviable in this case?

70. HRA granted to an employee is exempt u/s 10(13A) to the extent of least of three amounts. Which of the following is not an amount referred to above?

71. 'When there is a change in the rate of duty between date of manufacture and date of removal, duty will be levied at the rate prevalent on the date of removal. Is this statement true?

72. If more than one Retail Sale Price is printed on package of excisable goods, how the Assessable Value (AV) will be determined in case of Retail Sale Price (RSP) valuation u/s 4A?

73. 'A SSI unit can avail CENVAT credit on inputs only after is starts paying duty'. Examine the validity of the statement

74. In respect of a resident assesse, who is of the age of 60 years or more but less than 80 years at any time during the previous year 2015-16, -

75. Sun & Co purchased goods from Moon & Co, a registered dealer. Moon & Co has opted for composition scheme under the provisions of respective State VAT Act. Is this purchase eligible for availing input tax credit under VAT?

76. The provisions of Section 44AE applies to persons owning not more than ______ goods vehicles at any time during the previous year.

77. Interest on Post Office Savings Bank Account (in case of an individual account) is exempt from tax to the extent of Rs_____

78. What is the maximum deduction available u/s 80C for contribution to PPF?

79. One of the fundamental aspects of the term 'goods' is that they should be marketable. 'Even one purchaser is enough for establishing marketability'. Is this statement true?