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Created on February 18, 2026 By

CA Sonal Saboo

CMA Inter

Inter Direct and Indirect Taxation PN-7 Quiz 6

This quiz is based on the CMA Direct and Indirect Taxation paper.
Each question is multiple-choice with 4 options, and only 1 option is correct.
Attempt the quiz to test your understanding of CMA DIT concepts.

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Category: Direct and Indirect Taxation PN - 7

1. The supply of goods to SEZ unit is treated as in the hands of the supplier:

a. Exempt Supply – Reversal of credit

b. Deemed Taxable Supply – No reversal of credit

c. Zero Rated supply

d. Non-Taxable Supply – Outside the Scope of GST

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Category: Direct and Indirect Taxation PN - 7

2. Whether credit on inputs should be availed based on receipt of documents or receipt of goods

a. Receipt of goods

b. Receipt of Documents

c. Both

d. Either receipt of documents or Receipt of goods

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Category: Direct and Indirect Taxation PN - 7

3. Value of services rendered is ` 1,00,000/. Date of issue of invoice is 5th October 2023. Advance Received is ` 25,000/- on 20th September 2023. Balance amount received on 7th October 2023. What is the time of supply for ` 1,00,000?

a. 5th October 2023 for ` 1,00,000/-

b. 20th September 2023 for ` 1,00,000/-

c. 20th September 2023- ` 25,000/- and 5th October 2023 for ` 75,000/-

d. 20th September 2023 ` 25,000/- and 7th October 2023 for ` 75,000/-

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Category: Direct and Indirect Taxation PN - 7

4. What is the time of supply of service in case of reverse charge mechanism?

a. Date of payment as entered in the books of account of the recipient

b. Date immediately following 60 days from the date of issue of invoice

c. Date of invoice

d. Earlier of (1) & (2)

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Category: Direct and Indirect Taxation PN - 7

5. What is the time of supply of service if the invoice is issued within 30 days from the date of provision of service?

a. Date of issue of invoice

b. Date on which the supplier receives payment

c. Date of provision of service

d. Earlier of (1) & (2)

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Category: Direct and Indirect Taxation PN - 7

6. If place of supply in Territorial water, then what will considered as Place of supply?

a. Actual location (territorial Water)

b. Principal Establishment of Supplier

c. Any establishment of supplier of his choice

d. coastal State or Union Territory where the nearest point of the appropriate baseline

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Category: Direct and Indirect Taxation PN - 7

7. A registered taxable person is eligible to claim refund in respect of export of goods and services in the following cases:

a. Under bond, without payment of IGST and claim refund of unutilized input tax credit.

b. On payment of IGST and claim refund of IGST paid on such goods and services

c. None of the above

d. Both (1) and (2)

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Category: Direct and Indirect Taxation PN - 7

8. Zero rated supply includes:

a. Export of goods and services

b. Supply of goods and services to a SEZ developer or SEZ Unit

c. Supply of goods and services by a SEZ developer or SEZ Unit

d. Both (1) and (2)

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Category: Direct and Indirect Taxation PN - 7

9. State the taxability of satellite launch services provided to both international and domestic customers by ANTRIX Corporation Limited (“ANTRIX”) which is a wholly owned Government of India Company under the administrative control of Department of Space (DOS).

a. Taxable

b. Not taxable

c. Exempt

d. None

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Category: Direct and Indirect Taxation PN - 7

10. A hotel owner provided accommodation in Haryana, through an electronic commerce operator – Cool Trips. The hotel owner is not liable to get registered as per the provisions of section 22(1) of the CGST Act. Who is the person liable to pay GST in this case?

a. Hotel Owner

b. ECO

c. Customer

d. Both by Hotel owner & ECO

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Category: Direct and Indirect Taxation PN - 7

11. Which of the following service is notified by Government for ECO?

a. services by way of transportation of passengers by a radio- taxi, motor cab, maxi cab and motor cycle

b. services by way of providing accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes, except where the person supplying such service through ECO is liable for registration under section 22(1) of the CGST

c. services by way of house-keeping, such as plumbing, carpentering etc., except where the person supplying such service through ECO is liable for registration under subsection 22(1) of the CGST Act

d. All of these

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Category: Direct and Indirect Taxation PN - 7

12. An exempt supply includes:

a. Supply of goods or services or both which attracts Nil rate of tax

b. Non- taxable supply

c. Supply of goods or services or both which are wholly exempt from tax under Section 11 of the CGST Act or under Section 6 of IGST Act

d. All of the above

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Category: Direct and Indirect Taxation PN - 7

13. Mr. X of Delhi is participating in Hitex Furniture Expo in Haryana where he has no fixed place of business and exhibiting his products. During the expo, the said products will be sold to the people attending and intending to purchase such products. In such scenario, Mr. X shall obtain which of the following registration under the CGST Act, 2017?

a. Non–resident taxable person registration

b. Casual taxable person registration

c. Regular taxpayer registration

d. No registration under GST required.

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Category: Direct and Indirect Taxation PN - 7

14. The term ‘casual taxable person’ includes:

a. A person occasionally supplying goods or services or both in a State or a Union territory where he has no fixed place of business.

b. A person occasionally supplying goods or services or both in a State or a Union territory where he has fixed place of business

c. Both (a) and (b)

d. None of the above

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Category: Direct and Indirect Taxation PN - 7

15. Which of the following is not a supply under the CGST Act, 2017?

a. . Goods supplied free of cost by X & Sons to its agent for further supply to customer at ₹ 5,000 for which invoice will be issuedby the agent in his own name.

b. Importation of accounting services (for business purposes) free of cost from a dependent father residing in US.

c. An expensive watch gifted to an employee for ₹ 50,000. No other gifts provided to such employee during the entire financial year.

d. A machinery disposed off free of cost on which input tax credithas been availed

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Category: Direct and Indirect Taxation PN - 7

16. Where the goods being sent or taken on approval for sale or return are removed before the supply takes place, the invoice shall be issued:

a. before/at the time of supply

b. 6 months from the date of removal

c. Earlier of (a) or (b)

d. None of the above

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Category: Direct and Indirect Taxation PN - 7

17. Rule 30 of the CGST Rules inter alia provides value of supply of goods or services or both based on cost shall be % of cost of production or manufacture or the cost of acquisition of such goods or the cost of provision of such services

a. 100

b. 10

c. 110

d. 120

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Category: Direct and Indirect Taxation PN - 7

18. What deductions are allowed from the transaction value?

a. Discounts offered to customers, subject to conditions

b. Packing Charges, subject to conditions

c. Amount paid by customer on behalf of the supplier, subject to conditions

d. Freight charges incurred by the supplier for CIF terms of supply, subject to conditions

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Category: Direct and Indirect Taxation PN - 7

19. When can the transaction value be rejected for computation of value of supply?

a. When the buyer and seller are related and price is not the sole consideration

b. When the buyer and seller are unrelated or price is not the sole consideration

c. It can never be rejected

d. When the goods are sold at very low margins

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Category: Direct and Indirect Taxation PN - 7

20. The value of supply should include:

a. Any non-GST taxes, duties, cesses, fees charged separately by supplier

b. Interest, late fee or penalty for delayed payment of any consideration for any supply

c. Subsidies directly linked to the price except subsidies provided by the Central and State Government

d. All of the above

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Category: Direct and Indirect Taxation PN - 7

21. Which of the following shall not be included in value of supply?

a. GST

b. Interest

c. Late fee

d. Commission

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Category: Direct and Indirect Taxation PN - 7

22. What is the time of supply of vouchers when the supply with respect to the voucher is identifiable?

a. Date of issue of voucher

b. Date of redemption of voucher

c. Earlier of (a) & (b)

d. (a) & (b) whichever is later

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Category: Direct and Indirect Taxation PN - 7

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

a. Date of issue of invoice

b. Due date of issue of invoice

c. Date of receipt of consideration by the supplier

d. Earlier of (a) & (b)

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Category: Direct and Indirect Taxation PN - 7

24. Whether a registered person under composition scheme shall claim input tax credit?

a. yes

b. no

c. Input tax credit on inward supply of goods only can be claimed

d. Input tax credit on inward supply of service only can be claimed

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Category: Direct and Indirect Taxation PN - 7

25. In case of Manufacturer (except Ice cream , pan masala, tobacco) for whom concessional rate applicable under composition scheme, the rate of tax is:

a. 2.50%

b. 0.50%

c. 1%

d. No composition for manufacturer

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Inter PN-7 Direct and Indirect Taxation Quiz 6

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