NATIONAL MANAGEMENT COLLEGE –THUDUPATHY
MODEL EXAM III DATE :27.5.2022
COURSE : CMA INTERMEDIATIATE SUB: INDIRECT TAXATION
MARKS : 100 HOURS: 3 HRS
PART A (40X1=40 MARKS)
Multiple Choice Questions (MCQ)
1.GST is levied on supply of all goods and services except:
(A) Alcoholic liquor for human consumption (B) Tobacco
(C) Health Care Services (D) All of the above
2.Which article of the Constitution outlines the composition and functions of the GST
Council?
(A) 270 (B) 279A (C) 246A (D) 269A
3.Which of the following activity is outside the scope of supply and not taxable under
GST?
(A) Services by an employee to the employer in the course of or in relation to his employment.
(B) Services of funeral
(C) Actionable Claims, other than lottery, betting and gambling
(D) All of the above
4. A _______ supply comprising of two or more supplies shall be treated as the supply of
that particular supply that attracts highest rate of tax.
(A) Composite (B) Mixed (C) Both (A) and (B) (D) None of the above
5.Which of the following is not included in aggregate turnover?
(A) Exempt supplies of goods or services or both
(B) Export of goods or services or both
(C) Inter-State supply of goods or services or both
(D) Value of inward supplies on which tax is paid under reverse charge
6.The maximum rate of IGST can be:
(A) 20% (B) 30% (C) 40% (D) None of the above
7.GST is payable by the recipient under reverse charge on:
(A) Sponsorship services (B) Transport of goods by rail
(C) Transport of passengers by air (D) All of the above
8.What of the following services provided to an educational institution – Debo Public
School – are exempt from GST?
(A) Transportation of staff of the school (B) Cleaning of the school
(C) Services relating to conduct of higher secondary exams
(D) All of the above
9.Transportation of passengers by ____ are exempt from GST.
(A) Air conditioned stage carriage (B) Radio Taxi
(C) Air terminating in Nagaland airport (D) All of the above
10.The value of supply should include:
(A) Any non-GST taxes, duties, cess, 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 Governments
(D) All of the above
11. Discount given after the supply is deducted from the value of taxable supply, if –
(A) Such discount is given as per the agreement entered into at/or before the supply
(B) Such discount is linked to the relevant invoices
(C) Proportionate input tax credit is reversed by the recipient of supply
(D) All of the above
12. What is the time limit for taking ITC?
(A) 180 days (B) 1 year
(C) 20th October of the next financial year or the date of filing annual return whichever is earlier.
(D) No limit
13.A supplier takes deduction of depreciation on the GST component of the cost of
capital goods as per Income Tax Act, 1961. The supplier can –
(A) avail only 50% of the said tax component as ITC
(B) not avail ITC on the said tax component
(C) avail 100% ITC of the said tax component
(D) avail only 25% of the said tax component as ITC
14.Which of the following inward supplies are not eligible for ITC in case of a company
manufacturing shoes?
(A) Food and beverages (B) Outdoor catering
(C) Health Services (D) All of the above
15. Rohan Toys is a registered supplier of goods in Delhi. It intends to attend a 7 days
Business Fair organized in Mumbai (next month) where it does not have a fixed place
of business. Examine which of the following statements are true for Rohan Toys:
(A) Rohan Toys is not required to obtain registration in Mumbai for attending a 7 days Business Fair
(B) Rohan Toys has to obtain registration as a casual taxable person for attending theBusiness Fair
(C) Rohan Toys has to obtain a Unique Identification Number for attending the Business Fair
(D) None of the above
16.Deposits towards tax, penalty, interest, fee or any other amount are credited into the
____ of a taxable person.
(A) Electronic liability register (B) Electronic credit ledger
(C) Electronic cash ledger (D) All of the above
17. What does N stand for in HSN?
(A) Network (B) Nationalization
(C) Nomenclature (D) Nomination
18.Which form is furnished for submission of details of outward supplies u/s. 37?
(A) GSTR – 1 (B) GSTR – 2
(C) GSTR – 3 (D) GSTR – 5
19.Compensation to states under GST(Compensation to States ) Act , 2017 is paid by
(A) Central Government from consolidated fund of India
(B) Central Government from GST compensation fund of India
(C) Central Government directly from the collection of compensation cess
(D) GST Council under Constitution of India
20.Zero rated supply includes supplies made-
(A) By SEZ unit in India (B) to SEZ unit in India
(C) Both (a & (B) above (D) None of the above
State whether the following are ‘True’ or ‘False’
- The relevant form for application for revocation of cancellation of GST registration is
GST REG-22.
- . Place of supply of services, in relation to training and performance appraisal
provided to a registered person, will be the location of provider of Service.
- The frequency to file GSTR – 1 is monthly.
- Goods sent for a demonstration on returnable basis. It is a supply.
- . IGST would be levied and collected by the Central Government as well as State
Government on all inter-state transactions of taxable goods or services.
- As per the definition under CGST Act, person does not include Central Government or
a State Government.
- When goods are imported into India, CGST is levied. 8. GST will not abolish all the indirect taxes levied in India
- Goods are classified in the GST regime in India using SAC code.
- . A person of Tripura is eligible to opt for composition levy provided his previous year
turnover (aggregate) exceeds Rs.75 lakh.
Fill in the blanks:
- Where any article exported by an exporter to India at less than its normal value, the
Central Govt., may impose ____________ upon such importation into India.
- If the assessment is delayed for imported goods, then those goods can be stored in
public warehouse without executing a bond, is called ___________________.
- ____ means where goods are cast into sea to reduce weight of ship to prevent it
from sinking and the thrown goods sink.4. Certificate of registration for GST shall be granted in Form ______.
- Mr. C, a practicing CMA, provided services to The Institute of Cost Accountants of
India by way of teaching to students is a _______ (taxable/ exempted) service.
- _________ supply means the supply of goods or services, which constitute the
predominant element of a composite supply and to which another supply is
ancillary/secondary
- The form of return which is to be filed by the input service distributor is __________.
- . Indirect taxes are ______ based taxes.
- Indian GST Model is chosen from ___________(country) model.
- . In HSN, N stands for ________________.
Answer the following questions (12*5=60 Marks)
1.Mr. Naidu, an advocate, handles company related matter in Chennai provided the
services related to incorporation of a company to Mr. Chandrakant in Bengaluru. Mr.
Naidu charges fees as follows –
- Professional and consultation fees for incorporation of company ` 80,000/-
- Filing fees,registration charges etc paid to Register of Companies ` 40,000/-
- Reimbursement of travelling expenses ` 80,000/-
- Incidental and out of pocket expenses on actual basis ` 7,000/-
Calculate the tax liability considering GST rate 18%
2.M/s Super Agro Ltd furnishes the following details of various services provided for the
month of April 2020 Rs
`1) Plantation of tea and coffee 260000
2) Processing of tomato ketchup 210000
3) Sale of rice on commission basis 250000
4) Rearing of silkworm and horticulture 330000
5) Rent of vacant land for various ceremony 540000
6) Sale of wheat on commission basis 80000
7) Rent of agro machinery 325000
Determine the tax liability of each transaction
3.Write short notes on the followings in relation to GST Act:
1.Fringe benefits 2. Disposal 3. Exempt supply 4. Air Travel Agent
4.M/s Unicorn Ltd agreed to do the job work for M/s Techno Ltd
(i) M/s Techno Ltd supplied the following to M/s Unicorn Ltd for completion of jobWork
Raw materials 8,00,000
Packing materials 80,000
(ii) M/s Unicorn Ltd agreed to supply services for the purpose of performing
theactivities as required by M/s Techno Ltd for ` 2,50,000/-
(iii) Job worker profit ` 1,60,000
(iv) Materials consumed ` 28,000
Find the transaction value to levy GST in the hands of M/s Unicorn Ltd
5.Mr Prakash a dealer made the inter-state supply of goods and services based at Indore
furnishes the following information for the Financial Year 2020 – 21
`(i) sale of taxable goods from Head office located at Delhi 2,50,000
(ii) Supply of taxable services by branch office at Jalandhar 80,000
(iii) Supply of goods exempted from GST 30,000
(iv) Export of goods and services 1,50,000
(v) Sale of goods by acting as an agent on behalf of principal 17,00,000
Find out the aggregate turnover for the F.Y 2020-21.
6.PQR a registered supplier of service at Kolkata (West Bengal) has furnished the following
information for the month of August 2020, which are exclusive of taxes
(i) Intra state taxable supply of service 7,60,000
(ii) Legal fees paid to an advocate located within the state of West Bengal 30,000
(iii) Rent paid to State Government for his office building 40,000
Compute the net GST liability for the month of August 2020, considering rate of GST is
18% i.e. CGST – 9%, SGST – 9% and IGST – 18%
7.Gopal babu furnishes the following particulars relating to the services supplied to his
different clients for the month of June 20201. Total invoice raised for ` 15,00,000/- out of which tax invoice for ` 3,00,000/- was
raised to SEZ unit for service supplied.
- Amount of ` 2,36,000/- which was inclusive of tax was received from Magnum
Agency as an advance on 22.06.20 to whom service was supplied in August ‘20
You are required to compute
(a) Value of taxable service (b) Amount of tax payable
(c) Due date for tax payment (d) The document to be issued
Assume the rate of GST is 18% i.e. CGST – 9%, SGST – 9% and IGST – 18%
8.M/s Puneet Pvt. Ltd furnishes the following information for the month of April 2020
(a) He is liable to make payment of tax CGST – ` 3,00,000/- and SGST – ` 3,00,000/-
against the taxable supply.
(b) Tax was deposited on 12th July 2020 on his own without department taking any action.
Compute the amount of interest payable by Puneet Pvt Ltd
9.Mr. Pravin Mittal has self assessed tax liability under IGST ACT as ` 60,000/-. He fails to
pay the tax within 30 days from the due date of payment of such tax. Determine the
Interest and Penalty payable by him with the following particulars available in his
records
Date of collection of tax 12.06.2020
Date of payment of tax 22.08.2020
(IGST rate 18%)
10.M/S Lion King Agency imported a machine from China, furnishes the following information for
the month of July 20XX
Chinese Yuan
(i) Cost of Machine at China (factory of exporter) 80000
(ii) transport charges from the factory of exporter to the port of shipment 3200
(iii) Handling charges paid for loading the machine in the ship 200
(iv) Buying commission paid by M/s lion King Agency 400
(v) Lighterage charges paid by importer 800
(vi) Freight incurred from port of entry to Inland Container Depot 4000
(vii) Ship demurrage charges 1600
(viii) freight charges from China to India 20000
(ix) Date of Bill of Entry is 28.07.20XX (rate of BCD is 20% and exchange
rate as notified by CBIC is` 10.10 per China Yuan)
(x) Date of Entry Inward is 22.07.20XX (rate of BCD is 12% and exchange
rate as notified by CBIC is ` 10.50 per China Yuan)
(xi) IGST payable @12%
(xii) Social welfare Charges at applicable rate
From the above information compute the followings –
(a) Assessable Value
(b) Total Custom Duty
(c) Eligible Input Tax Credit to M/s Lion King Agency
11.Rakesh Giri has imported goods from England and finally re-assessed under section 18(2) of
the Custom Act, 1962 for such consignment. Details are as follows –
(a) Date of provisional assessment 19.06.20XX
(b) Date of final Assessment 06.08.20XX
(c) Duty Demand for consignment ` 2,90,000.00
(d) Date of payment of duty demanded 11.08.20XX
Determine whether any Interest payable or receivable by Rakesh Giri on the final reassessment of two consignment.
12.Mr.Sriman Chowdhury imported goods from South Africa on May 20XX and were cleared from
KolkataPort for warehousing at Siliguri on 8th May, 20XX after assessment.
- Assessable value was ` 2,60,000/- calculated on the basis of rate of exchange of ` 56.40 – 1US Dollar.
- The rate of duty on that date was 25% (assume that no additional duty is payable)
- The goods were warehoused at Siliguri and were cleared from Siliguri warehouse on
4thJune, 20XX, when the rate of duty was 15% and exchange rate was ` 56.70 = 1 UD Dollar.
What is the duty payable while removing thegoods from Siliguri on 4th June, 20XX.
