Final PN-19 Indirect Tax Laws & Practice Quiz 2

1. Mr. Ajay purchased goods from Mr. Chethan, a composition dealer worth ₹100,000. Since Mr. Chethan was trader so he was supposed to pay only 1% of his turnover as his tax. The item so purchased was otherwise taxable at 12%. What is the amount of credit which Mr. Ajay is eligible to take?

2. ABC Pvt Ltd. purchased a machinery on 15th July 2023 for ₹10 lacs on which IGST was paid @ 18%. He availed the ITC & utilized the capital goods. On 16th October 2024 he sold the machinery as second hand goods for ₹7,50,000. Calculate the amount of ITC that needs to be paid.

3. Mr. C, a practicing Cost Accountant purchased 3 laptops each having tax element of ₹1,25,000 in his firm name. Two laptops he utilized in his office whereas one laptop he gifted to his sister. What is the amount of ineligible ITC?

4. In case of supply of plant & machinery on which ITC is taken, tax to be paid on is

5. Maximum time limit for availing ITC is

6. An assessee obtains new registration, voluntary registration, change of scheme from composition to regular scheme and from exempted goods/services to taxable goods/services. It can avail credit on inputs lying in stock. What is the time limit for taking said credit?

7. Banking company or Financial Institution have an option of claiming:

8. As per Rule 42(2) of the CGST Rules, 2017 where the aggregate of the amount calculated finally in respect of ineligible credit exceeds the aggregate of the amounts determined under rule 42(1)(i) and (j), such excess shall be added to the output tax liability of the registered person in the month not later than the month of September following the end of the financial year to which such credit relates and the said person shall be liable to pay            on the said excess amount at the rate specified in sub- section (1) of Section 50 for the period starting from the1st day of April of the succeeding financial year till the date of payment

9. As per Rule 42(2) of the CGST Rules, 2017 where the aggregate of the amount calculated finally in respect of ineligible credit exceeds the aggregate of the amounts determined under rule 42(1)(i) and (j), such excess shall be added to the output tax liability of the registered person in the month not later than the month of     

10. The time limit to pay the value of supply with taxes to the supplier to avail the input tax credit is                .

11. What will be the value of supply if X & Co., supply Sony television set for ₹85000 along with the exchange of an old TV and if the price of the Sony television set without exchange is ₹1,00,000, the open market value of the Sony television set is:

12. Thomas Cook Forex Pvt. Ltd. being a registered person under GST purchased 2000 USD from M/s R Academy at the rate of INR 30 per USD. Actual exchange rate at that time was ₹70 per Dollar. RBI reference rate not available. What shall be the value of such supply

13. Mr. Ram a second-hand car dealer purchased a second hand car for ₹2,50,000. He sold he same car to Mr. Lakshman for ₹3,00,000. Determine value of supply?

14. Agency fees paid to foreign banks for arranging finance is—

15. If RR shipping Co. located in Chennai charges ocean freight charges for transport of goods to USA for a customer located in Hyderabad, the place of supply of service will be

16. Money transferred service provided to foreign entity by Indian supplier of service is intermediary service and subject to

17. There was decrease in tax rate from 28% to 18% w.e.f. 1.09.2024. Which of the following rate is applicable if the supplier has not opted for composition levy and supplies goods to Customer? Further, Goods were removed from its factory on 31.08.2024; delivered at buyer place on 2.02.2024; invoice is issued on 31.08.2024 and payment is received on 4.09.2024.

18. Determine the amount of GST in case of supply of service of ₹10,00,000 on 4th Sep 20XX and invoice has also been issued on the same date. The date of payment is 30th Aug 20XX. The CGST rate has been increased from 5% to 12% w.e.f. 1st Sep 20XX

19. ABC Ltd has purchased for its customer 50 vouchers date 20th Aug 20XX worth ₹ 500 each from Ram Pvt. Ltd. a footwear manufacturing company. The vouchers were issued by Ram Pvt. Ltd on 20th Sep 20XX. The vouchers can be encashed at retail outlets of Ram Pvt. Ltd. The employees of ABC Ltd. enchased the same on 1st Oct 20XX. Determine the time of supply of vouchers.

20. Mr. A, who has opted for composition levy, supplies goods worth Rs.24,300 to Mr. B and issues an invoice dated 25.09.20XX for Rs.24,300. and Mr. B pays Rs.25,000 on 1.10.20XX against such supply of goods. The excess Rs. 700 (being less than Rs.1,000) is adjusted in the next invoice for supply of goods issued on 5.01.20XX. Identify the time of supply and value of supply:

21. Levy of GST on Priority Sector Lending Certificate (PSLC) under

22. Exemption can be claimed at           stage even if not claimed at            stage.

23. One of the following is exempted from GST—

24. Services by a hotel, inn, guest house, club or campsite are not exempted for residential/lodging purposes—

25. Under      section of CGST Act and         section of IGST Act, Government exemption by way of special order