Quiznetik

Indirect Taxes- GST | Set 2

1. In case of sponsorship services provided by Mr. A to M/s AB Ltd., liability to pay GST is on:

Correct : B. M/s AB Ltd.

2. In case of renting of land, inside an Industrial estate, by State Government to a registered manufacturing company, GST is:

Correct : C. Applicable under Reverse Charge

3. In case of services by an insurance agent to Ms. ABC Insurance Co. Ltd., GST is to be paid by:

Correct : B. ABC Insurance Co. Ltd.

4. Sitting fees received by director of XYZ Ltd., is liable for GST in the hands of the

Correct : B. XYZ Ltd.

5. Services by a recovery agent to M/s ZZZ Bank Ltd., are liable for GST in the hands of:

Correct : A. M/s ZZZ Bank Ltd.

6. In case of lottery procured from State Government by a lottery distributor, GST is payable by:

Correct : A. Lottery distributor

7. Reverse charge under section 9(3) of the CGST Act is applicable:

Correct : C. On Notified goods & services

8. If Tobacco leaves procured from an Agriculturist by a registered person, then:

Correct : A. Reverse charge is applicable

9. In case M/s. PQR Ltd., a registered person, has availed rent-a-cab service from M/s ABC Travels (Proprietor) service then which one of the following is true:

Correct : B. Reverse charge is applicable if ABC Travels is not registered

10. Reverse charge is applicable:

Correct : C. Both intra-State and inter-State supplies

11. Which of the following persons can opt for composition scheme?

Correct : D. Person providing restaurant services

12. What is the threshold limit of turnover in the preceding financial year for opting to pay tax under composition scheme for States other than special category States?

Correct : D. 1.5 crore

13. What is the threshold limit of turnover in the preceding financial year for opting to pay tax under composition scheme for special category states?

Correct : C. 75 lacs

14. What is the rate applicable under CGST to a registered person being a manufacturer opting to pay taxes under composition scheme?

Correct : C. 0.5%

15. What is the rate applicable under CGST to a registered person being a hotelier (providing restaurant and accommodation services) opting to pay taxes under composition scheme?

Correct : D. Not eligible for composition scheme thus liable to pay normal tax

16. Mr. Richard, a trader in Delhi has opted for composition scheme of taxation under GST. Determine the rate of total GST payable by him under composition scheme:

Correct : A. 0.5% CGST & 0.5% SGST

17. Can a registered person opt for composition scheme only for one out of his 3 business places having same Permanent Account Number?

Correct : B. No

18. Can composition scheme be availed if the registered person effects inter-State supplies?

Correct : B. No

19. Can a registered person under composition scheme claim input tax credit?

Correct : B. No

20. Can a registered person opting for composition scheme collect tax on his outward supplies?

Correct : B. No

21. Which of the following will be excluded from the computation of ‘aggregate turnover’?

Correct : D. Value of inward supplies on which tax is paid on reverse charge basis

22. What will happen if the turnover of a registered person opting to pay taxes under composition scheme during the year 2019-20 crosses threshold limit?

Correct : C. He will cease to remain under the composition scheme with immediate effect

23. What is the threshold limit of turnover in the preceding financial year for opting to pay tax under composition scheme for a trader in Mumbai?

Correct : C. 150 lacs

24. For certain Special category States, the reduced limit of ` 75 lakhs for opting composition scheme is available. The reduced limit of ` 75 Lakhs is not available for?

Correct : D. Jammu & Kashmir

25. ABC Ltd is manufacturer of goods opting for Composition Scheme has effected turnover of ` 60 Lakhs during the financial year 2019-20. The CGST portion for composition tax payable by ABC Ltd is

Correct : A. 30,000

26. GST Ltd. has business places at Lucknow, UP and Kanpur, UP having the same PAN; and Aggregate Turnover in the financial year not exceeding ` 75 lakhs. Can it opt composition levy for Lucknow and normal levy at Kanpur?

Correct : A. No

27. Which one of the following is true?

Correct : D. Incomes from specified/defined charitable activities of a registered trust (u/s 12AA of Income

28. Select the correct statement?

Correct : D. Transfer of a going concern is exempt from GST

29. Service by whom, by way of any activity in relation to any function entrusted to a municipality under Article 243 W of the Constitution, is exempted?

Correct : D. All of above

30. Which is a wrong statement?

Correct : D. All the above mentioned

31. Services to a single residential unit is, exempted if:

Correct : A. It is pure labour service only

32. Which exemption option is right from the following?

Correct : B. For letting out any residential dwelling for use as residence

33. Services by a hotel, inn, guest house, club or campsite are exempted for residential / lodging purposes -

Correct : B. If the actual tariff for a unit of accommodation is below ` 1,000

34. Transportation of passengers exempted if -

Correct : D. None of the above

35. Transportation of passengers is exempted -

Correct : C. In a metered cab/auto rickshaw / e rickshaw

36. Transportation of goods is not exempted if it is -

Correct : A. by a goods transport agency / courier agency

37. Transportation of agricultural produces, milk, salt and food grain including flour, pulses and rice, ‘relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap’, newspaper or magazines registered with the Registrar of Newspapers - is exempted –

Correct : D. If it is by all of the above

38. Which of the following is exempted –

Correct : A. Services by way of loading, unloading, packing, storage or warehousing of rice

39. Core services of which organization is not exempted -

Correct : C. Services by Port Trusts

40. If the aggregate turnover of in F.Y. 2018-19 of M/s ABCD Enterprises, Kanchipuram, Tamil Nadu, India was ` 18 lakh, exemption is available for the following services rendered to ABCD Enterprises

Correct : D. All of the above

41. Which of the following is exempted?

Correct : B. Long term (30 or more years) leases of industrial plots or plots for development of infrastructure for financial business by State Government Industrial Development Corporations or Undertakings to industrial units

42. One of the following is exempted from GST -

Correct : C. A business exhibition outside India

43. Which of the following is not exempted -?

Correct : D. Rearing horses

44. Services by educational institution is exempted if the services are to -

Correct : B. Its own students, faculty / staff

45. Services by a Non-Profit entity (Registered or Unregistered) are exempted -

Correct : B. If they are to its own members, provided the contribution received is up to ` 7500 per month from a member towards sourcing goods/services from any third person for common use of members

46. Which of the following are exempted services?

Correct : C. Services by an artist by way of a performance in folk or classical art forms of music/ dance / theatre with consideration therefor not exceeding ` 1.5 lakh

47. Transportation of passengers by are exempt from GST.

Correct : C. Metro

48. Transportation of by a GTA in a goods carriage is exempt from GST.

Correct : D. All of the above

49. What of the following services provided to an educational institution – Debo Public School- are exempt from GST?

Correct : D. All of the above

50. Transportation of passengers by are exempt from GST.

Correct : C. air, terminating in Nagaland airport

51. Which of the following services provided by Department of Posts are exempt from GST?

Correct : D. None of the above

52. Distribution of electricity by a distribution utility is a:

Correct : B. Exempt Supply

53. An exempt supply includes

Correct : D. All of the above

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

Correct : D. Earlier of (a) & (b)

55. The date on which the supplier receives the payment shall be

Correct : C. the date on which the payment is entered in his books of account or the date on which the payment is credited to his bank account whichever is earlier

56. Mr. A sold goods to Mr. B. Determine the TOS in accordance with the provisions of Section 12 of the CGST Act, 2017 in case supply involves movement of goods. Date of removal - 1st Oct. 2019 Date of Invoice - 2nd Oct. 2019 Date when goods made available to the recipient - 3rd Oct. 2019 Date of receipt of payment - 15th Nov. 2019

Correct : A. 1st Oct. 2019

57. Mr.A sold goods to Mr. B. Determine the TOS in accordance with the provisions of Section 12 of the CGST Act, 2017 in case supply involves movement of goods. Date of removal - 3rd Oct. 2019 Date of Invoice - 1st Oct. 2019 Date when goods made available to the recipient - 4th Oct. 2019 Date of receipt of payment - 25th Nov. 2019

Correct : B. 1st Oct. 2019

58. Determine the Time of supply in accordance with provisions of Section 12 of the CGST Act, 2017 in case supply involves movement of goods. Date of Invoice : 02-10-2019 Date goods made available to recipient : 03-10-2019 Date of receipt of payment : 15-11-2019

Correct : A. Date of Invoice : 02-10-2019

59. Determine the Time of supply in accordance with provisions of Section 12 of the CGST Act, 2017 in case supply involves movement of goods. Date of Removal of goods : 03-10-2019 Date of Invoice : 01-10-2019 Date goods made available to recipient : 04-10-2019 Date of receipt of payment : 25-11-2019

Correct : B. Date of Invoice : 01-10-2019

60. Determine the Time of supply in accordance with provisions of Section 12 of the CGST Act, 2017 in case supply involves movement of goods. Date of Removal of goods : 05-11-2019 Date of Invoice : 04-11-2019 Date goods made available to recipient : 06-11-2019 Date of receipt of payment : 01-10-2019

Correct : B. Date of Invoice : 04-11-2019

61. Mr. A sold goods to Mr. B. Determine the TOS in accordance with the provisions of Section 12 of the CGST Act, 2017 in case supply does not involve movement of goods. Date of delivery - 2nd Oct. 2019 (Date when the goods made available to the recipient) Date of Invoice - 3rd Oct. 2019 Date of receipt of payment - 15th Nov. 2019

Correct : A. 2nd Oct. 2019

62. Determine the Time of supply in case goods are supplied on approval basis Removal of goods : 01-12-2019 Issue of Invoice : 15-12-2019 Accepted by recipient : 05-12-2019 Receipt of payment : 25-12-2019

Correct : B. Issue of Invoice : 15-12-2019

63. Where the supplier of taxable goods receives an amount upto in excess of the amount indicated in the tax invoice, the time of supply to the extent of such excess amount shall, at the option of the said supplier, be the date of issue of invoice in respect of such excess amount.

Correct : A. 1,000

64. The time of supply to the extent it relates to an addition in the value of supply by way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which

Correct : A. The supplier receives such addition in value

65. Tax invoice must be issued by on supplies made by him.

Correct : C. Every Registered person not paying tax under composition scheme

66. An invoice must be issued

Correct : A. At the time of removal of goods

67. In case of goods sent on sale on approval basis, invoice has to be issued

Correct : C. When the recipient accepts the goods or six months from the date of supply whichever is earlier

68. 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

Correct : C. earlier of (a) or (b)

69. GST a dealer has sent some goods to CST, another dealer, for Sales on Approval Basis. In absence of any confirmation even after 6 months, it will be treated as

Correct : B. Deemed Supply of Goods

70. What is time of supply of goods liable to tax under reverse charge mechanism?

Correct : D. Earlier of (a) or (b) or (c)

71. Determine the Time of supply in accordance with provisions of Section 12 of the CGST Act, 2017 in case recipient of goods is liable to pay tax under reverse charge mechanism. Date of Invoice : 01-10-2019 Date of receipt of goods : 15-10-2019 Date of payment in books : 10-10-2019 Date of debit of payment in Bank A/c : 12-10-2019

Correct : A. Date of Invoice : 01-10-2019

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

Correct : A. Date of issue of voucher

73. What is the time of supply of vouchers when the supply with respect to the voucher is not identifiable?

Correct : B. Date of redemption of voucher

74. What is date of receipt of payment?

Correct : D. Earlier of (a) and (b)

75. XYZ Ltd. has purchased for its employees 100 vouchers dated 24-02-2019 worth 1,000 each from ABC Ltd. a footwear manufacturing company. The vouchers were issued by ABC Ltd. on 25-02-2019. The vouchers can be encashed at retail outlets of ABC Ltd. The same were given to employees on 26-02-2019. The employees of XYZ Ltd. encashed the same on 01-03-2019. Determine time of supply of vouchers.

Correct : B. 25-02-2019

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

Correct : D. Earlier of (a) and (b)

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

Correct : D. Date of receipt of payment or date of issue of invoice whichever is earlier

78. What is the time of supply of service if the invoice is not issued within 30 days from the date of supply of service and no advance payments are received?

Correct : B. Date of completion of supply of service

79. What is the time of supply of service for the supply of taxable services up to ` 1000 in excess of the amount indicated in the taxable invoice?

Correct : A. At the option of the supplier – Invoice date or Date of receipt of consideration

80. How is the date of receipt of consideration by the supplier determined?

Correct : C. Earlier of (a) and (b)

81. Value of services rendered is ` 1,18,000. Date of issue of invoice is 5th Sept. 2019. Advance received is ` 20,000 on 20th August 2018. Balance amount received on 7th Sept. 2019. What is the TOS of service?

Correct : C. 20th August 2019 - ` 20,000 and 5th Sept. 2019 - ` 98,000

82. Determine the TOS in accordance with provisions of CGST Act, 2017. Date of actual supply of service - 10th Nov. 2019 Date of Invoice - 30th Nov. 2019 Date on which payment received - 15th Dec. 2019

Correct : B. 30th Nov. 2019

83. Determine the TOS in accordance with provisions of CGST Act, 2017 Date of actual supply of service - 10th Nov. 2019 Date of Invoice - 30th Nov. 2019 Date on which payment received - 15th Nov. 2019

Correct : C. 15th Nov. 2019

84. Determine the TOS in accordance with provisions of CGST Act, 2017 Date of actual supply of service - 10th Nov. 2019 Date of Invoice - 12th Dec. 2019 Date on which payment received - 30th April 2020

Correct : A. 10th Nov. 2019

85. Determine the TOS in accordance with provisions of CGST Act, 2017 Date of actual supply of service - 10th Nov. 2019 Date of Invoice - 22th Dec. 2019 Date on which payment received - 12th Dec. 2019

Correct : A. 10th Nov. 2019

86. From the following information determine the reverse charge basis. Date of Invoice : 30-1-2019 Date of completion of service : 30-1-2019 Date of payment by recipient : 10-2-2019 Entry for receipt of service in recipient’s books : 12-2-2019

Correct : B. Date of payment by recipient : 10-2-2019

87. If Supply of Services has ceased under a contract before the completion of supply:

Correct : B. Invoice has to be issued at the time of cessation to the extent of the supply effected

88. The tax invoice should be issued the date of supply of service.

Correct : A. Within 30 days from

89. In case of taxable supply of services, invoice shall be issued within a period of from the date of supply of service.

Correct : A. 30 day

90. Continuous supply of services” means a supply of services who provided, or agreed to be provided, continuously or on recurrent basis, under a contract, for a period exceeding MONTHS with periodic payment obligations and includes supply of such services as the Government may, subject to such conditions, as it may, by notification, specify

Correct : A. Three

91. In case of continuous supply of services, where due date of payment is ascertainable from the contract, invoice shall be issued

Correct : B. on or before the due date of payment

92. In case of continuous supply of services, where due date of payment is not ascertainable from the contract, invoice shall be issued

Correct : A. before or at the time when the supplier of service receives the payment

93. Minimum Service periods required to constitute a continuous supply of services with periodic payment

Correct : C. Exceeding 3 months

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

Correct : D. Earlier of (a) and (b)

95. From the following information determine the TOS of goods where goods are taxed on reverse charge basis Date of issue of invoice by the supplier - 30th Nov. 2019 Date of receipt of goods - 30th Nov. 2019 Date of payment by the recipient - 10th Dec. 2019 Entry of receipt of services in the recipient’s BOA - 12th Dec. 2019

Correct : A. 30th Nov. 2019

96. From the following information determine the reverse charge basis. Date of Invoice : 30-1-2019 Date of completion of service : 30-1-2019 Date of payment by recipient : 15-1-2019 Entry for receipt of service in recipient’s books : 30-1-2019

Correct : B. Date of payment by recipient : 15-1-2019

97. What is the time of supply of service in case an associated enterprise receives services from the service provider located outside India?

Correct : C. Earlier of (a) and (b)

98. A Ltd. is located in India and W Ltd. located in USA are associated enterprises (as A Ltd. holds 51% of the shares of W Ltd.). W Ltd. provides some technical services to A Ltd. in India. From the following details, determine the TOS for A Ltd. (as importation of services is the case of RCM) Agreed Consideration - $ 10,000. Date on which services are supplied on W Ltd. - 16th Dec. 2019 Date on which invoice is sent by W Ltd. - 19th Dec. 2019 Date of entry in the Books of Account of A Ltd. - 30th Dec. 2019 Date on which payment is made by A Ltd. - 23rd March 2020

Correct : C. 30th Dec. 2019

99. What is the time of supply of vouchers in respect of services when the supply with respect to the voucher is identifiable?

Correct : A. Date of issue of voucher

100. There was increase in tax rate from 20% to 24% w.e.f. 1.09.2019. Which of the following rate is applicable when services are provided after change in rate of tax in September 2019, but invoice issued and payment received, both in August, 2019 :

Correct : C. 20% as invoice and payment were received prior to rate change