ELEMENTS OF INDIRECT TAXES - MARCH 2020 (MCQS)

S.Y B.COM

SEMESTER - 4

ELEMENTS OF INDIRECT TAXES

(EIDT)

MCQS - MARCH 2020

1. Services by employee to employer in course of or in relation to his employment is treated as _____________.

A. Supply of Goods

B. Neither supply of goods nor supply of services

C. Supply of services

D. None of the above

2. When a recipient of goods or services is liable to pay tax under the CGST Act. This is known as.

A. Vertical charge Mechanism 

B. Reverse charge Mechanism

C. Backward charge Mechanism 

D. Forward charge Mechanism

3. Mr. P is engaged in supplying goods in Inter-state trade and commerce; he is liable for registration under GST, if his aggregate turnover in financial year exceeds __________.

A. Rs. 20 lacs 

B. Rs. 40 lacs 

C. Zero 

D. Rs. 10 lacs

4. The liability to pay GST on goods/Services arises at _________ of supply of goods/Services.

A. Any time after 

B. Any time before 

C. The time 

D. None of the above

5. Activities to be considered as supply even if it is made without consideration are mentioned in schedule ____________ of CGST Act.

A. I

B. III 

C. V 

D. II

6. Invoice should be issued within ____________ days from the date of supply of service 

A. 45 

B. 30 

C. 10 

D. 60

7. Taxable person whose registration has been surrendered or cancelled is liable file his final return in from ___________.

A. GSTR-8 

B. GSTR-9 

C. GSTR-7 

D. GSTR -10

8. Transaction value is accepted as value for supply of goods or services if:

A. (1) Supplier and recipient of supply are not related

     (2) The price is sole consideration for the supply

B. (1) Supplier and recipient of supply are not related

     (2) The price is not a sole consideration for the supply

C. (1) Supplier and recipient of supply are related 

     (2) The price is not a sole consideration for the supply

D. (1) Supplier and recipient of supply are related

     (2) The price is sole consideration for the supply

9. Taxable person opting for composition scheme is prohibited from collecting tax on __________ supplies from recipient.

A. Inward and Outward both 

B. Outward

C. Neither Inward nor Outward 

D. Inward

10. Following data is noted from the records of Dhanashree Ltd (supplier of Service) and Krutika Ltd (recipient of service covered by reverse charge mechanism)

(1) Date of completion of service by Dhanashree Ltd to Krutika Ltd: 20/11/2019

(2) Date of issue of invoice by Dhanashree Ltd to Krutika Ltd: 15/10/2019

(3) Date of Payment by Krutika Ltd: 21/12/2019 (as per books of krutika Ltd) amount debited by bank in current account of krutika Ltd on 20/12/2019.

 Which date is treated as time of supply?

A. 20/12/2019 

B. 20/11/2019

C. 21/12/2019 

D. 15/12/2019

11. Integrated GST (IGST) is levied on ________ and it is collected by ________

A. Intra-state Supply, State Government

B. Inter – State supply, Central Government

C. Intra- State supply, Central Government

D. Inter – State Supply, State Government

12. As per Section 2(52) of CGST Act, Goods means every kind of movable property except________

A. Money and Securities 

B. Money and Standing Grass

C. Money and Standing timbers 

D. Money and Actionable Claims

13. _________ is a taxable event in GST

A. Sale of goods and services 

B. Manufacture of Goods

C. Supply of Goods and services or both 

D. Export of goods

14. For registered person paying tax under composition scheme, tax payment for the quarter should be made on or before _____ of the month succeeding quarter

A. 18th 

B. 13th 

C. 15th 

D. 10th

15. Indirect taxes are ________ in nature.

A. Regressive 

B. Progressive 

C. Possessive 

D. None of these

16. A registered person paying tax under Composition scheme is required to file Annual return in form______

A. GSTR – 9 

B. GSTR - 01 

C. GSTR – 04 

D. GSTR – 3B

17. Activities or Transactions which shall be treated neither as supply of goods nor as supply of serviced are specified in schedule _______ of CGST Act.

A. IV 

B. II 

C. I 

D. III

18. Where a consideration is payable for supply of goods or services or both then ______ is treated as recipient.

A. A person who is liable to pay consideration

B. A person who has given order

C. A person to whom goods are delivered or service is rendered

D. None of the above

19. Import of goods is treated as ________ and it subject to _______ and ______

A. Intra – state Supply, CGST, Customs duty

B. Intra – state supply, CGST, SGST

C. Inter – state supply, IGST, Customs duty

D. Inter – state supply, CGST, Customs duty

20. As per section 2(102) of CGST Act. Service means anything, other than_______

A. Goods 

B. Goods, Money and Securities

C. Goods and Money 

D. Inter – State supply, CGST, customers’ duty

21. GST pertaining to supply of current month should be normally paid on monthly basis by ______ day of succeeding month.

A. 15th 

B. 10th 

C. 20th 

D. 25th

22. Mr. Hardik carries his business in the state of Uttarakhand, he wants to opt for the composition scheme, specify the threshold limit of Aggregate turnover, for Mr. Hardik to get the benefit of Composition Scheme.

A. 1 crore 

B. 75 Lacs 

C. 50 Lacs 

D. 1.5 crore

23. Under the CGST Act, Central Government and State Government are _______

A Not treated as person 

B. Treated as person

C. Not liable to pay GST 

D. None of the above

24. Indirect taxes are levied on _______

A. Value of goods and services 

B. Profit earned by person

C. Wealth of person 

D. income of person

25. Mr. X is manufacturer of Ice-Cream and his aggregate turnover for the financial year 2018-19 is ₹ 25 lacs, so he is not eligible for ________

A. Filling of Return 

B. Composition scheme

C. Registration 

D. None of the above

26. On supply of Alcohol for human consumption _______

A. State – VAT is levied

B. GST is levied

C. Presently GST is not levied but in future GST Council may impose GST on it

D. GST is not levied at all

27. Power of Central Government and State Government to impose Goods and Service Tax (GST) is conferred by Article _______ of Constitution of India.

A. 264 

B. 246A 

C. 264A 

d. 246

28. GST is ________

A. Destination – based consumption tax 

B. Starting point based manufacture tax

C. Sales based consumption tax 

D. None of above

29. Under the Central Goods and Services Act, refund sought by tax payer is made in ______ from for the relevant date

A. 2 months 

B. 2 years 

C. 2 weeks 

D. 2 days

30. Mr. Y is a manufacturer of Chemicals and he is registered under the composition scheme, at what rate he is liable o pay GST (CGST + SGST).

A. 1% of Turnover in the inter-state trade.

B. 2% of Turnover in the state

C. 0.5% of Turnover in the state

D. 1% of Turnover in the state

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