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Past papers/ Taxation/ May 2026
Paper 33 Qs
Question Paper · May 2026

CA Inter Taxation

This page contains all 33 questions from the CA Inter Taxation Question Paper for the May 2026 attempt cycle, sourced from CPREP.

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Q.1 02 marks medium ⚡ Try this Q →
Case: Mr. Vijay aged 57 years, is employed in M/s Veera Industries Ltd. since 1.4.2002. His basic salary is ₹1,20,000 p.m. He has joined the pension scheme of Central Government referred to in section 80CCD on 1.4.2010 and his contribution is 10% of his basic salary in which the employer also contributes equal amount. Mr. Vijay had purchased a house property in Allahabad on 1.4.2015 for ₹51 lakhs out of his savings. On 12.4.2025, he gifted the said house property to his wife, Mrs. Rashmi (50 years), who in turn gifted it to her daughter-in-law, Anushka (24 years) on 1.5.2025. Mr. Prabhas, their tena…
Examine the applicability of advance tax provisions in the hands of Mrs. Rashmi for previous year 2025-26.
(A) Advance tax not applicable to Mrs. Rashmi as gross receipts under section 44ADA do not exceed ₹50 lakhs.
(B) Advance tax payable in 4 instalments — 15%, 45%, 75% and 100% of advance tax — by 15 June, 15 Sept, 15 Dec and 15 March respectively.
(C) Advance tax payable in single instalment by 15th March, 2026 since she opts for presumptive taxation u/s 44ADA.
(D) Advance tax payable in two instalments — 60% by 15 December, 2025 and balance 40% by 15 March, 2026.
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Answer: (C)

As per Section 211(1) of the Income Tax Act, 1961, an assessee who opts for the presumptive taxation scheme under Section 44ADA is required to pay the entire advance tax in a single instalment on or before 15th March of the financial year. This is a special provision for professionals covered under Section 44ADA, distinguishing them from regular assessees who pay in 4 instalments. Since Mrs. Rashmi's gross receipts of ₹45 lakhs do not exceed the threshold of ₹75 lakhs (applicable from AY 2024-25 onwards for Section 44ADA), she is eligible to opt for presumptive taxation and accordingly must pay advance tax in one instalment by 15th March, 2026.

Section 44ADA of the Income Tax Act 1961Section 211(1) of the Income Tax Act 1961
PLAN

Write it like this

Time target 3 min 36 sec

1The skeleton

- Lead with the option letter AND the section together — write '(C) — Section 211(1) read with Section 44ADA' in your first line so the examiner ticks the concept before reading further.
- State the single-instalment rule immediately — say 'entire advance tax is payable in one instalment on or before 15th March' because that's the exact fact being tested; don't save it for later.
- Confirm eligibility before concluding — mention that gross receipts of ₹45 lakhs are within the ₹75 lakh threshold, so the presumptive scheme is actually available to Mrs. Rashmi; skipping this step loses the application mark.
- Contrast with regular 4-instalment rule — one line saying normal assessees pay in 4 instalments distinguishes your answer and shows you know WHY this provision is special, which is what earns the second mark.
- End with the specific date — close with '15th March, 2026' (not just '15th March') to show you've applied it to PY 2025-26; examiners reward year-specific application.

2Examiner-rewarded phrases

“the entire amount of advance tax shall be paid in a single instalment on or before the 15th March of the financial year”“as per section 211(1), an assessee opting for presumptive taxation under section 44ADA”“since the gross receipts do not exceed ₹75 lakhs, Mrs. Rashmi is eligible to offer income under section 44ADA”

3Common trap

Don't fall for this

Heads up — most students write '15th March' and stop, forgetting to verify that the ₹45 lakh receipts actually fall within the ₹75 lakh ceiling. If you skip that eligibility check, you've assumed the scheme applies without proving it — the examiner won't give full marks for an unverified conclusion.

Q.1.a 15 marks medium income-tax ⚡ Try this Q →
Mr. Prakash, aged 64 years, a resident individual, is a proprietor of M/s Prakash Tyres engaged in the business of manufacture and sale of tyres for two-wheelers. He furnishes the following Profit & Loss A/c for the year ended 31st March, 2026: Profit & Loss A/c for the year ended 31st March, 2026 (extracts): Debit side: (i) Depreciation: ₹10,00,000 (ii) Interest on loan taken from State Bank of India for installation of pollution control equipment (loan availed 1.6.2025): ₹2,00,000 (iii) Purchases from a micro enterprise registered under MSMED Act (payment outstanding as on 31.3.2026, beyond the time limit u/s 15 of MSMED Act): ₹1,00,000 (iv) Interest on enhanced compensation received from Land Acquisition Officer: NIL on debit side; this item appears on credit (v) Contribution to a registered political party by cheque: ₹50,000 (vi) Dividend received from Indian companies (gross): NIL on debit side; appears on credit Credit side: - Net profit (before considering the items listed above): ₹50,00,000 - Interest on enhanced compensation received: ₹2,50,000 - Dividend from Indian companies: ₹2,00,000 Additional information: (i) Mr. Prakash had taken a loan of ₹15,00,000 from a recognised housing finance company on 1.5.2024 for purchase of a residential house property (self-occupied). Loan instalment of ₹2,00,000 (principal ₹50,000 + interest ₹1,50,000) paid during PY 2025-26 — not debited to P&L. (ii) During the year, Mr. Prakash purchased and installed a new plant & machinery for ₹50,00,000 on 1.10.2025 in his factory. The machinery is eligible for normal depreciation only (no additional depreciation as Mr. Prakash is not in a notified backward area). (iii) An imported air pollution control equipment costing ₹6,00,000 was purchased and installed on 1.6.2025 with the loan taken from SBI [item (ii) of P&L]. (iv) Land of his factory (acquired August 2010 for ₹15,00,000; SDV on date of acquisition ₹15,50,000) was compulsorily acquired by State Government in October 2025; compensation of ₹80,00,000 received in November 2025. CII for FY 2010-11 = 167 and for FY 2025-26 = 376. Compute the total income of Mr. Prakash for AY 2026-27 and the tax liability under both the default tax regime (section 115BAC) and the optional regime (old). Indicate which regime is more beneficial.
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Computation of Total Income of Mr. Prakash for AY 2026-27

I. Income from Business/Profession

Starting with net profit before listed items: ₹50,00,000. IT depreciation replaces book depreciation: new P&M (₹50L × 15%) = ₹7,50,000; air pollution control equipment (₹6L × 40%) = ₹2,40,000; total IT depreciation = ₹9,90,000 (both assets used > 180 days, full rate). Interest on SBI loan is allowed under Section 36(1)(iii) of the Income Tax Act 1961 as loan was for business equipment put to use. MSMED purchases of ₹1,00,000 are disallowed under Section 43B(h) (payment outstanding beyond Section 15 of MSMED Act time limit); since not deducted from base profit, no adjustment needed. Political party contribution not a business expense; no deduction here (claimed under Chapter VI-A). Interest on enhanced compensation and dividends are not business income and are excluded. Business Income = ₹38,10,000.

II. Income from House Property

Self-occupied residential property: Annual Value = Nil. Under the old regime, interest on housing loan u/s 24(b) of the Income Tax Act 1961 = ₹1,50,000 (loan from recognised HFC after 01.04.1999, limit ₹2,00,000; actual interest ₹1,50,000 within limit). HP Income (Old) = −₹1,50,000. Under the new regime (Section 115BAC), deduction u/s 24(b) for self-occupied property is not available. HP Income (New) = Nil.

III. Capital Gains — Compulsory Acquisition of Factory Land

Under Section 45(5) of the Income Tax Act 1961, for compulsory acquisition, capital gain is taxable in the year of receipt of compensation. Compensation of ₹80,00,000 received November 2025 → AY 2026-27. Land held since August 2010 (> 24 months) → Long Term Capital Asset.

Finance Act 2024 amended Section 112 with effect from 23.07.2024: for immovable property acquired before 23.07.2024 and transferred on or after 23.07.2024, individuals may opt for either (a) 20% with indexation or (b) 12.5% without indexation — whichever is lower.

Option A (20% + Indexation): Indexed cost = ₹15,00,000 × 376/167 = ₹33,77,246; LTCG = ₹46,22,754; Tax = ₹9,24,551.
Option B (12.5%, no indexation): LTCG = ₹65,00,000; Tax = ₹8,12,500.

Option B yields lower LTCG tax. However, total income under Option B exceeds ₹1 crore triggering 15% surcharge (vs 10%). Net effect computed in tax table shows Option B is still marginally better under both regimes. LTCG adopted = ₹65,00,000 at 12.5%.

IV. Income from Other Sources

Interest on enhanced compensation: Taxable under Section 56(2)(viii) of the Income Tax Act 1961 in year of receipt; 50% deduction allowed under Section 57(iv): ₹2,50,000 × 50% = ₹1,25,000. Dividend from Indian companies: ₹2,00,000 (fully taxable post abolition of DDT). Total IOS = ₹3,25,000.

V. Gross Total Income and Deductions

HeadOld RegimeNew Regime
Business₹38,10,000₹38,10,000
House Property−₹1,50,000Nil
LTCG (12.5%)₹65,00,000₹65,00,000
IOS₹3,25,000₹3,25,000
GTI₹1,04,85,000₹1,06,35,000
80C (principal repayment)−₹50,000N/A
80GGC (political party, cheque)−₹50,000N/A
Total Income₹1,03,85,000₹1,06,35,000

Section 80C of the Income Tax Act 1961: principal repayment of ₹50,000 to recognised HFC for residential house eligible within ₹1,50,000 limit. Section 80GGC of the Income Tax Act 1961: 100% deduction for contribution by cheque to registered political party (not available under new regime).

VI. Tax Liability

Old Regime (Senior Citizen — 60 to 79 years; basic exemption ₹3,00,000):
Normal income = ₹1,03,85,000 − ₹65,00,000 = ₹38,85,000.
Tax: Nil + 5% on ₹2L + 20% on ₹5L + 30% on ₹28.85L = ₹9,75,500.
LTCG tax @12.5%: ₹8,12,500. Total = ₹17,88,000.
Surcharge @15% (income > ₹1 crore ≤ ₹2 crore): ₹2,68,200.
Tax + Surcharge = ₹20,56,200. Cess @4% = ₹82,248.
Total Tax (Old Regime) = ₹21,38,448.

New Regime (Section 115BAC; basic exemption ₹4,00,000 for all; no age benefit):
Normal income = ₹1,06,35,000 − ₹65,00,000 = ₹41,35,000.
Tax: Nil + 5% on ₹4L + 10% on ₹4L + 15% on ₹4L + 20% on ₹4L + 25% on ₹4L + 30% on ₹17.35L = ₹8,20,500.
LTCG tax @12.5%: ₹8,12,500. Total = ₹16,33,000.
Surcharge @15%: ₹2,44,950. Tax + Surcharge = ₹18,77,950. Cess @4% = ₹75,118.
Total Tax (New Regime) = ₹19,53,068.

Conclusion: The new tax regime under Section 115BAC is more beneficial by ₹1,85,380 (₹21,38,448 − ₹19,53,068). Mr. Prakash should also elect the 12.5% LTCG rate (without indexation) under the amended Section 112 as that results in lower overall tax under both regimes.

Section 32(1)(ii) of the Income Tax Act 1961Section 36(1)(iii) of the Income Tax Act 1961Section 43B(h) of the Income Tax Act 1961Section 15 of the Micro, Small and Medium Enterprises Development Act 2006Section 45(5) of the Income Tax Act 1961Section 48 of the Income Tax Act 1961Section 56(2)(viii) of the Income Tax Act 1961Section 57(iv) of the Income Tax Act 1961
PLAN

Write it like this

Time target 27 min

1The skeleton

- Open head-by-head, not item-by-item — write the five heads as sub-headings (Business, HP, CG, IOS, Tax), because the examiner's checklist ticks each head separately and you lose part-marks if they can't locate it.
- In Business Income, show two depreciation lines explicitly — one for new P&M at 15% and one for pollution control equipment at 40%, then strike net IT depreciation against book depreciation; examiners are specifically checking that you know the 40% rate for pollution control assets and don't lump them.
- For Capital Gains, invoke Section 45(5) in your first line before the numbers — write 'Since land was compulsorily acquired, capital gain is chargeable in the year of receipt of compensation as per Section 45(5)'; without this, the examiner has no hook to give you the method mark even if your arithmetic is perfect.
- Show both LTCG options (20% with indexation vs 12.5% without) as a mini-table and pick the lower tax — the Finance Act 2024 grandfathering clause is the 5-mark pivot of this question; if you skip Option A entirely you signal you don't know the amendment exists.
- Run a parallel two-column format for GTI → Deductions → Total Income (Old | New) — this is the format ICAI's own suggested answer uses, and it lets the surcharge trigger (>₹1 crore) show up visually, which itself carries marks.
- End with a one-line conclusion naming the winning regime and the rupee difference — 'The new regime u/s 115BAC is more beneficial by ₹X; Mr. Prakash should opt for the same' is the sentence that clinches the last presentation mark most students leave on the table.

2Examiner-rewarded phrases

“Since the compensation was received during the previous year 2025-26, capital gain shall be chargeable to tax in the assessment year 2026-27 as per the provisions of section 45(5) of the Income-tax Act, 1961.”“Deduction of 50% of such interest income is allowable under section 57(iv); accordingly, income chargeable under the head 'Income from Other Sources' shall be ₹1,25,000.”“As payment to the micro enterprise was outstanding beyond the time limit specified under section 15 of the MSMED Act, the same is not allowable as deduction by virtue of section 43B(h) of the Income-tax Act, 1961.”

3Common trap

Don't fall for this

The single biggest mark-killer here: students treat the MSMED purchase of ₹1,00,000 as a disallowance and ADD it back to net profit — but it was never deducted in the P&L in the first place (the question gives you net profit 'before considering' these items), so adding it back double-counts and inflates business income. Read the base figure carefully before touching the adjustments.

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Q.2 02 marks medium ⚡ Try this Q →
Case: Mr. Vijay aged 57 years, is employed in M/s Veera Industries Ltd. since 1.4.2002. His basic salary is ₹1,20,000 p.m. He has joined the pension scheme of Central Government referred to in section 80CCD on 1.4.2010 and his contribution is 10% of his basic salary in which the employer also contributes equal amount. Mr. Vijay had purchased a house property in Allahabad on 1.4.2015 for ₹51 lakhs out of his savings. On 12.4.2025, he gifted the said house property to his wife, Mrs. Rashmi (50 years), who in turn gifted it to her daughter-in-law, Anushka (24 years) on 1.5.2025. Mr. Prabhas, their tena…
In whose hands the rental income from the house property let out to Mr. Prabhas would be taxable for AY 2026-27?
(A) In the hands of Mrs. Anushka (daughter-in-law), as she is the legal owner on the date the rent accrued.
(B) In the hands of Mrs. Rashmi (wife of Mr. Vijay) by virtue of clubbing under section 64(1)(iv) — gift of house from spouse.
(C) In the hands of Mr. Vijay, since the property was gifted by him to his wife and indirectly transferred to daughter-in-law without adequate consideration; section 64(1)(iv) read with section 64(1)(vi).
(D) Rent for April 2025 (₹50,000) in hands of Mr. Vijay; rent from May 2025 onwards (₹54,000 p.m.) in hands of Mrs. Anushka.
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Answer: (C)

Under Section 64(1)(iv) of the Income Tax Act, 1961, income from an asset transferred by an individual to his/her spouse without adequate consideration is clubbed in the hands of the transferor. Further, under Section 64(1)(vi), income from an asset transferred directly or indirectly to the son's wife (daughter-in-law) without adequate consideration is also clubbed in the transferor's hands.

Here, Mr. Vijay first gifted the house to Mrs. Rashmi (his wife) on 12.4.2025, who then gifted it to Anushka (daughter-in-law) on 1.5.2025. This constitutes an indirect transfer by Mr. Vijay to his son's wife without adequate consideration. The two-step gift does not break the chain of clubbing — the tax authorities look through such arrangements.

Accordingly, the entire rental income of ₹54,000 p.m. from May 2025 onwards (for AY 2026-27) is taxable in the hands of Mr. Vijay by virtue of Section 64(1)(iv) read with Section 64(1)(vi). Option (A) ignores the clubbing provisions; Option (B) incorrectly applies only 64(1)(iv) and stops at Mrs. Rashmi; Option (D) incorrectly splits income between two persons.

Section 64(1)(iv) of the Income Tax Act 1961Section 64(1)(vi) of the Income Tax Act 1961
PLAN

Write it like this

Time target 3 min 36 sec

1The skeleton

- Lead with BOTH sections upfront — write '§64(1)(iv) read with §64(1)(vi)' in your very first line; examiners are trained to look for the dual-section citation and you lose the reasoning marks if either is missing.
- Name the two-step gift chain explicitly — state 'Mr. Vijay → Mrs. Rashmi (12.4.2025) → Anushka (1.5.2025)' as a mini-timeline; this shows you've tracked the indirect transfer and aren't just guessing the section.
- Use the word 'indirectly' — §64(1)(vi) specifically covers indirect transfers, so drop that word when describing the Vijay→Anushka leg; it's the exact statutory trigger and signals you know the mechanism, not just the answer.
- Conclude with 'in the hands of Mr. Vijay' — state the final answer as a one-line conclusion after your reasoning; for MCQs, examiners want to see you arrived at (C) through logic, not luck.

2Examiner-rewarded phrases

“income from asset transferred directly or indirectly to the son's wife without adequate consideration shall be clubbed in the hands of the transferor”“the provisions of section 64(1)(vi) are attracted as the transfer, though routed through the spouse, is effectively an indirect transfer to the daughter-in-law”“accordingly, the rental income is includible in the total income of Mr. Vijay”

3Common trap

Don't fall for this

Watch out — the most common mistake here is stopping at §64(1)(iv) and marking Mrs. Rashmi as the answer. The whole trap of this question is the two-step gift; if you don't spot that Vijay is the original transferor of an asset that ultimately reaches his daughter-in-law, you'll pick (B) and lose both marks even though you 'know' clubbing.

Q.2.a 06 marks medium income-tax ⚡ Try this Q →
Mr. Shankar, a 44-year-old Indian citizen, has been employed with M/s Nomad Skills LLC, UAE (a non-resident employer) since April 2016, drawing a salary of ₹36,00,000 for the financial year 2025-26 (received in Dubai and credited to his Dubai bank account). On 11.12.2025 he returned to India and joined M/s Shakin Pro (an Indian company) as its CEO at a salary of ₹8,50,000 for the period 11.12.2025 to 31.3.2026. He continued his stay in India thereafter. During PY 2025-26 he also undertook the following transactions: (a) Sold 300 listed equity shares of X Ltd. (an Indian company) on 14.10.2025 through a recognised stock exchange. STT paid. Sale consideration ₹6,00,000; cost (acquired 1.6.2018) ₹2,40,000; FMV on 31.1.2018 = ₹1,800 per share. (b) Sold 250 unlisted equity shares of Y Ltd. (a foreign company) off-market on 8.10.2025 for ₹4,50,000. Cost of acquisition (in 2014) ₹1,00,000. (c) Won ₹70,000 from an online game (TDS @ 30% deducted by the deductor). His past stay in India during the previous 7 financial years (2018-19 to 2024-25) was 60 days per year (as per his passport). Determine the residential status of Mr. Shankar for AY 2026-27 and compute his total income chargeable to tax in India for AY 2026-27 under the default tax regime.
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Q.2.b 04 marks medium income-tax ⚡ Try this Q →
Examine the TDS / TCS implications under the Income-tax Act, 1961 in the following two independent situations for FY 2025-26: (i) M/s Stylo Enterprises (a partnership firm with turnover of ₹15 crores in FY 2024-25) sold the following luxury goods to Mr. X (an individual customer, not a registered dealer) on 25.10.2025: — One handbag of brand "GICCI" for ₹12,00,000 — One wrist watch of brand "RAWO" for ₹9,22,000 Discuss the TCS obligation of M/s Stylo Enterprises under section 206C(1F)/206C(1H) on these transactions, including the applicable rates and threshold, and compute the TCS, if any. (ii) M/s Robo Ltd. (a domestic company with turnover ₹150 crores in FY 2024-25) made a payment of ₹3,00,000 to Mrs. Sandhya on 18.7.2025 for purchase of personalised diaries to be distributed to its employees. Mrs. Sandhya is a registered manufacturer of stationery products. Discuss the TDS / TCS obligation under section 194Q / 206C(1H) and quantify, if any.
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Q.3 02 marks medium ⚡ Try this Q →
Case: Mr. Vijay aged 57 years, is employed in M/s Veera Industries Ltd. since 1.4.2002. His basic salary is ₹1,20,000 p.m. He has joined the pension scheme of Central Government referred to in section 80CCD on 1.4.2010 and his contribution is 10% of his basic salary in which the employer also contributes equal amount. Mr. Vijay had purchased a house property in Allahabad on 1.4.2015 for ₹51 lakhs out of his savings. On 12.4.2025, he gifted the said house property to his wife, Mrs. Rashmi (50 years), who in turn gifted it to her daughter-in-law, Anushka (24 years) on 1.5.2025. Mr. Prabhas, their tena…
Assume that instead of gifting the house property to his wife, Mr. Vijay had gifted it on 12.4.2025 to his major son Bhanu (aged 23 years) who in turn let it out to Mr. Prabhas on the same terms. In whose hands would the rental income be taxable for AY 2026-27?
(A) In the hands of Mr. Vijay — clubbing applies on transfer of asset to son.
(B) In the hands of Mr. Bhanu — clubbing under section 64(1) does not apply to a major son.
(C) In the hands of Mr. Vijay — section 60 deemed transfer of income without transfer of asset.
(D) 50% in hands of Mr. Vijay and 50% in hands of Mr. Bhanu under section 64.
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Q.3.a 06 marks medium income-tax ⚡ Try this Q →
Mr. Pratham, aged 42 years, is employed as a Manager (Production) with M/s Tata Tyres Ltd. at its Dhanbad plant. He has the following income & benefits during PY 2025-26: (i) Basic salary ₹80,000 p.m. (uniform throughout the year). (ii) On 1.7.2025, his employer transferred him from Dhanbad to Mumbai. The employer paid for his stay (along with his family) in a 5-star hotel in Mumbai for the first 20 days from 1.7.2025 to 20.7.2025 (cost ₹1,80,000), pending availability of company-leased accommodation. Thereafter, the employer provided him an unfurnished company-leased flat at Mumbai (rent paid by employer ₹50,000 p.m.) from 21.7.2025 to 31.3.2026. (iii) The employer sold a car (1500 cc, used in business) to Mr. Pratham on 1.10.2025 for ₹2,00,000. The car had been purchased new by the employer on 1.4.2022 for ₹8,00,000. (iv) Group health insurance premium of ₹15,000 paid by employer in March 2026 covering Mr. Pratham, his spouse and one dependent child. (v) Mr. Pratham's son's school fees of ₹50,000 (annual) paid directly by employer to a school in Mumbai (school maintained by employer; cost of education in similar locality ₹35,000 p.a.). (vi) Leave Travel Concession of ₹40,000 received in October 2025 for a holiday trip to Goa undertaken by air (economy class fare for shortest route; this is the only LTC claim in current block; previous block fully exhausted). (vii) Family pension of ₹15,000 p.m. received by his wife (Mrs. Pratham, no other income) from a private trust set up by Mr. Pratham's deceased father (corpus ₹10,00,000). Compute the total income of Mr. Pratham (and his wife where applicable) for AY 2026-27 under the OLD tax regime. Note: assume city of Mumbai is "metro" with population > 40 lakhs.
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Q.3.b 04 marks medium income-tax ⚡ Try this Q →
Mr. Avinash, aged 45 years, a resident individual, furnishes the following information for PY 2025-26: (i) He had booked an under-construction apartment in Pune from a developer in FY 2020-21 with booking amount of ₹60,00,000 paid on 15.6.2020. The agreement value was ₹50,00,000 (registered on 15.6.2020). Possession of the apartment was given by the developer on 1.4.2025 when the stamp duty value was ₹75,00,000. (ii) On 16.1.2026, a gold chain of Mr. Avinash (FMV on date of theft = ₹13,00,000) was stolen from his residence. The chain had been purchased by him in March 2018 for ₹6,00,000. He received an insurance claim of ₹4,50,000 in February 2026 in respect of the theft. Discuss with reasons the taxability of the above two transactions in the hands of Mr. Avinash for AY 2026-27. Compute the income chargeable to tax, if any, under the appropriate head(s).
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Q.4 02 marks medium ⚡ Try this Q →
Case: Mr. Vijay aged 57 years, is employed in M/s Veera Industries Ltd. since 1.4.2002. His basic salary is ₹1,20,000 p.m. He has joined the pension scheme of Central Government referred to in section 80CCD on 1.4.2010 and his contribution is 10% of his basic salary in which the employer also contributes equal amount. Mr. Vijay had purchased a house property in Allahabad on 1.4.2015 for ₹51 lakhs out of his savings. On 12.4.2025, he gifted the said house property to his wife, Mrs. Rashmi (50 years), who in turn gifted it to her daughter-in-law, Anushka (24 years) on 1.5.2025. Mr. Prabhas, their tena…
What is the deduction available to Mr. Vijay under section 80CCD in respect of his contribution and his employer's contribution to the pension scheme of the Central Government for AY 2026-27?
(A) Mr. Vijay's own contribution: deduction u/s 80CCD(1) restricted to 10% of salary, max ₹1,50,000 (within section 80CCE limit). Employer contribution: deduction u/s 80CCD(2) up to 14% of salary (since he is a Central Govt employee; also allowed even under default tax regime).
(B) Both own contribution and employer contribution allowed at 14% of salary u/s 80CCD(2).
(C) Own contribution: deduction u/s 80CCD(1) up to 10% of salary; Employer contribution: deduction u/s 80CCD(2) up to 10% of salary (Mr. Vijay is not a Central Govt employee — employed in M/s Veera Industries Ltd.).
(D) No deduction is available to Mr. Vijay since contributions to the Central Govt pension scheme are not deductible for private-sector employees.
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Q.4.a 06 marks medium income-tax ⚡ Try this Q →
Mr. Navyam, aged 39 years, a resident individual, furnishes the following particulars of income / loss for PY 2025-26: (1) Salary income (gross) — ₹9,00,000 (2) Rent received from a let-out house property (annual) — ₹4,80,000; municipal taxes paid ₹30,000; interest on housing loan ₹2,80,000 (3) Income from a sole-proprietorship business — Profit ₹2,50,000 (after allowable deductions) (4) Loss from speculation business — ₹1,80,000 (5) Income from owning and maintaining race horses — ₹40,000 (6) Long-term capital gain on sale of equity-oriented fund (STT paid on sale; held > 12 months) — ₹2,30,000 (7) Short-term capital loss on sale of listed equity shares (STT paid) — ₹50,000 (8) Long-term capital loss on sale of unlisted equity shares — ₹1,00,000 (9) Interest from savings bank account — ₹15,000 Brought-forward losses (from AY 2024-25 / 2023-24, all duly returned in time): - Brought-forward business loss — ₹1,00,000 (from AY 2024-25) - Brought-forward speculation loss — ₹60,000 (from AY 2023-24) - Brought-forward LTCL on shares — ₹40,000 (from AY 2024-25) Compute the gross total income of Mr. Navyam for AY 2026-27 under the default tax regime and the amount of losses, if any, to be carried forward.
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Q.4.b 04 marks medium income-tax ⚡ Try this Q →
Discuss with reasons the due dates / time limits prescribed under the Income-tax Act, 1961 in respect of the following: (i) Filing of an updated return of income u/s 139(8A) by a partnership firm for AY 2025-26 — what is the last date and what additional tax is payable? (ii) Filing of return of income for AY 2026-27 by a non-working partner of an audited firm (firm subject to tax audit u/s 44AB). (iii) Filing a revised return of income u/s 139(5) by an Indian company for AY 2025-26 (original return filed within due date). (iv) Application for allotment of PAN by a person who has tax liability for the first time during PY 2025-26.
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Q.4.b-alt 04 marks medium income-tax ⚡ Try this Q →
OR (in lieu of the above 4(b)): Examine whether the following persons are required to file their return of income for AY 2026-27. Give reasons: (i) Mr. Dhruv, aged 62 years, a resident individual. His income for PY 2025-26 consists only of fixed-deposit interest of ₹2,70,000 (TDS deducted ₹26,000). He has deposited ₹10,00,000 in cash in his savings account and total deposits (including FD renewals) in all his bank accounts during PY 2025-26 aggregate to ₹48,00,000. (ii) Dr. Nirav, aged 50 years, a resident individual, is a surgeon practising independently. His gross professional receipts during PY 2025-26 are ₹10,50,000 and net profit is ₹2,40,000 (no other income).
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Q.5 02 marks medium ⚡ Try this Q →
Case: Mr. Jayesh, proprietor of M/s Jayesh Enterprises engaged in the business of manufacture and sale of jewellery products has two units - Unit A and Unit B. He sold Unit A on 12th January, 2026 to M/s Rose Ltd. for a lump sum consideration of ₹1,600 lakhs by way of slump sale. Unit A was set up by Mr. Jayesh in March, 2018. The summarised balance sheet of M/s Jayesh Enterprises as on 12th January, 2026 (the date of slump sale) is given below: Liabilities (₹ in lakhs): - Own Capital: 800 - Revaluation Reserve (For assets of Unit A): 150 - Bank Loan (75% for Unit A): 200 - Trade Creditors (Unit A:…
Compute the net worth of Unit A of M/s Jayesh Enterprises for the purpose of slump sale under section 50B for AY 2026-27.
(A) Net worth = ₹615 lakhs (Building 450 + Machinery 240 + Other depreciable assets 0 + Land 35 + Debtors 90 + less Bank Loan 150 + Trade Creditors 65 + revaluation 50 reduction).
(B) Net worth = ₹600 lakhs (Building 450 + Machinery 240 + Land 35 + Debtors 90 + Other 25 = 840; less liabilities 150 + 65 + revaluation reserve 25 = 240; net = 600).
(C) Net worth = ₹685 lakhs (all Unit A assets at WDV / book value, exclude revaluation reserve from liabilities).
(D) Net worth = ₹650 lakhs (assets at fair value less Unit A liabilities).
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Q.5.a 10 marks medium gst ⚡ Try this Q →
SSP Ltd., registered under GST in Gandhinagar, Gujarat, furnishes the following details of supplies made and received during October 2025. All amounts are exclusive of GST. Applicable GST rates: CGST 9%, SGST 9% and IGST 18% on goods/services unless otherwise stated. Outward supplies during October 2025: (1) Supply of goods to Mr. Kartik, a registered person in Gujarat, for ₹4,00,000 — comprising taxable goods ₹2,80,000 and exempted goods ₹1,20,000. (2) Single-purpose voucher of ₹50,000 (face value) issued to AVC Ltd., Gujarat — voucher specifies the goods (taxable @ 18%) and is redeemable at SSP outlet. (3) Supply of taxable goods through B-kart (an e-commerce operator notified u/s 9(5)? — assume NOT u/s 9(5)) to customers in Maharashtra ₹2,00,000. (4) Branch transfer of taxable goods (made at cost ₹1,00,000; open-market value ₹1,20,000) from Gandhinagar Gujarat to its own GSTIN in Mumbai Maharashtra (both branches registered). (5) Pure-labour service of construction of a single residential unit otherwise than as part of a residential complex, supplied in Rajasthan to Mr. Verma (unregistered): ₹3,50,000. Inward supplies during October 2025: (6) Audit fee of ₹2,25,000 paid to CA Vijay Jain, Ahmedabad Gujarat (registered). (7) Taxable goods purchased from M/s VXT Ltd., Surat Gujarat (registered) for ₹6,00,000. A credit note of ₹50,000 (excluding GST) was issued by VXT Ltd. on 15.10.2025 (with reduction of GST proportionally). Additional information: (i) Opening balance of ITC as on 1 October 2025: CGST ₹15,000; SGST ₹15,000; IGST ₹40,000. (ii) All outward supplies of taxable goods are at 18% (CGST 9% + SGST 9%) unless inter-State. (iii) Pure-labour single-residential-unit construction is exempt under Notification 12/2017-CT(R). (iv) Voucher: place of supply applies on the date of issue of voucher (single-purpose). (v) B-kart sales — TCS @ 1% IGST collected by B-kart on net taxable. (vi) Branch transfer is a deemed supply between distinct persons; value is open-market value. (vii) Mr. Verma is unregistered and the supply is in Rajasthan. (viii) Audit-fee invoice of CA Vijay Jain dated 31.10.2025 — ITC eligible. Compute the net minimum GST liability payable in cash by SSP Ltd. for the month of October 2025, after utilising eligible ITC. Show your workings clearly under the heads CGST, SGST and IGST.
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Q.5.b 05 marks medium gst ⚡ Try this Q →
M/s Kabira Industries, registered under GST in Karnataka, furnishes the following details for the month of July 2025 (all amounts exclude GST; applicable rates: CGST 9% + SGST 9% on intra-State; IGST 18% on inter-State): (a) Total outward taxable supplies (intra-State): ₹53,00,000. (b) Total inward taxable supplies (intra-State, eligible for ITC): ₹48,00,000. (c) Opening balance of ITC on 1 July 2025: CGST ₹56,250; SGST ₹56,250 (i.e. ₹1,12,500 total). (d) During the immediately preceding three months (April, May, June 2025), Kabira Industries had paid more than 1% of its monthly tax liability in cash in two of the three months (April and June). It is not engaged in export. (e) Taxable value of zero-rated supplies (with payment of IGST during PY 2024-25) — none. (f) Income tax paid by Kabira Industries during the immediately preceding financial year (FY 2024-25) on which TDS was deducted in its name: ₹1,15,000. (g) Refund of ITC was claimed and received in July 2025 in respect of inverted-duty structure: ₹40,000. Calculate the maximum amount of ITC that can be utilised to discharge the output tax liability for July 2025 and the net tax payable through electronic cash ledger, considering Rule 86B of the CGST Rules, 2017. Show all workings.
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Q.6 02 marks medium ⚡ Try this Q →
Case: Mr. Jayesh, proprietor of M/s Jayesh Enterprises engaged in the business of manufacture and sale of jewellery products has two units - Unit A and Unit B. He sold Unit A on 12th January, 2026 to M/s Rose Ltd. for a lump sum consideration of ₹1,600 lakhs by way of slump sale. Unit A was set up by Mr. Jayesh in March, 2018. The summarised balance sheet of M/s Jayesh Enterprises as on 12th January, 2026 (the date of slump sale) is given below: Liabilities (₹ in lakhs): - Own Capital: 800 - Revaluation Reserve (For assets of Unit A): 150 - Bank Loan (75% for Unit A): 200 - Trade Creditors (Unit A:…
Compute the capital gain/loss arising from the slump sale of Unit A by M/s Jayesh Enterprises for AY 2026-27.
(A) Long-term capital gain of ₹985 lakhs, since Unit A was set up in March 2018 (held > 36 months).
(B) Short-term capital gain — entire excess of consideration over net worth, since slump sale is always treated as STCG.
(C) Long-term capital gain on portion attributable to assets held > 36 months and STCG on land (acquired Sep 2024).
(D) Long-term capital gain of ₹915 lakhs (₹1,600 lakhs consideration less ₹685 lakhs net worth) — Unit A held > 36 months.
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Q.6.a 05 marks medium gst ⚡ Try this Q →
BVG Ltd., a registered person in Bengaluru, Karnataka, has the following inward supplies during October 2025. The annual return for FY 2024-25 was filed on 25 October 2025. Determine eligible ITC for October 2025 with reasons. (Tax rates: CGST 9% + SGST 9%; IGST 18%; unless stated otherwise.) (1) Imported zero-rated material (raw material exported back after job-work — assume Notification 79/2017-Customs); IGST paid at customs ₹70,000. (2) Works-contract service for foundation of a new factory shed (a part of immovable property): ₹10,250 (CGST + SGST). (3) Raw materials purchased from M/s Amber Enterprises (registered) for ₹4,00,000; invoice dated 1.10.2025 received but the goods received on 5.11.2025 in two lots (3 lots overall — last lot received on 5.11.2025). (4) Purchase of new truck (capital goods) by BVG Ltd. for use in transport of its own raw materials within factory premises only — ₹12,00,000. (5) ABG Ltd., a registered supplier in Karnataka, supplied tools to BVG Ltd. in 3 separate consignments under one invoice of ₹3,00,000 dated 28.10.2025. Two consignments received on 30.10.2025 and the last consignment was received on 4.11.2025. Indicate, with reasons, the eligible ITC of BVG Ltd. for October 2025.
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Q.6.b 05 marks medium gst ⚡ Try this Q →
Sky Airways Pvt. Ltd. (SAPL), an air-transport service provider registered under GST in Chennai, Tamil Nadu, has the following transactions: (a) Mr. Ravi, an unregistered individual residing in Mumbai, books a return air-ticket on the SAPL website for the journey Delhi → Jaipur → Delhi (departure from Delhi, return to Delhi within 7 days). Ticket price ₹15,000. (b) Mr. Ravi is a "Silver Tier" loyalty programme member of SAPL — annual membership fee ₹4,000 paid by him. (c) During the return journey, Mr. Ravi watched a paid in-flight movie. The fee of ₹250 was charged to his ticket. Determine the place of supply for each of the above three supplies (a), (b) and (c) and indicate the type of GST (CGST + SGST or IGST) payable, with reasons. (SAPL's registered place of business is Chennai, TN.)
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Q.7 02 marks medium ⚡ Try this Q →
Case: Mr. Jayesh, proprietor of M/s Jayesh Enterprises engaged in the business of manufacture and sale of jewellery products has two units - Unit A and Unit B. He sold Unit A on 12th January, 2026 to M/s Rose Ltd. for a lump sum consideration of ₹1,600 lakhs by way of slump sale. Unit A was set up by Mr. Jayesh in March, 2018. The summarised balance sheet of M/s Jayesh Enterprises as on 12th January, 2026 (the date of slump sale) is given below: Liabilities (₹ in lakhs): - Own Capital: 800 - Revaluation Reserve (For assets of Unit A): 150 - Bank Loan (75% for Unit A): 200 - Trade Creditors (Unit A:…
Compute the amount of tax to be deducted at source by Mr. Jayesh on payments made to Mr. Naresh during PY 2025-26.
(A) TDS u/s 194J on professional fees ₹20,000 = ₹2,000; TDS u/s 194H on commission ₹35,000 = ₹700. Total TDS = ₹2,700.
(B) No TDS u/s 194J — professional fees ₹20,000 below ₹30,000 threshold. No TDS u/s 194H — commission ₹35,000 below ₹15,000 aggregate annual threshold. Total TDS = Nil.
(C) No TDS u/s 194J — professional fees ₹20,000 below ₹30,000 threshold. TDS u/s 194H on commission ₹35,000 @ 2% = ₹700. Total TDS = ₹700.
(D) TDS u/s 194J on professional fees ₹20,000 @ 10% = ₹2,000; no TDS on commission since ₹35,000 below ₹40,000 threshold for FY 2025-26. Total = ₹2,000.
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Q.7.a 05 marks medium gst ⚡ Try this Q →
HIM Corporation Ltd., a Public Sector Undertaking, is registered in Shimla, Himachal Pradesh as a tax deductor under section 51(1)(d) of the CGST Act, 2017. During May 2025, the following bills (all values exclusive of GST; rates GST 18% unless stated; payments made by HIM Corporation Ltd. on the dates indicated) were received: (1) Hilux Traders, Shimla HP (registered): supply of stationery items, taxable value of bill ₹2,45,000; payment made on 20.5.2025. (2) Mr. Arun, Shimla HP (registered as labour contractor): pure-labour supply for office repairs, taxable value of bill ₹2,60,000; payment made on 25.5.2025. (3) M/s Adhunik Heavy Electricals, Raipur Chhattisgarh (registered): supply of electrical equipment (taxable @ IGST 5%) — bill value ₹3,80,000; payment made on 28.5.2025. (This is an inter-State supply.) (4) Jain & Sons, Shimla HP (registered): grant of right to use hoardings situated in Himachal Pradesh and Punjab for a consideration of ₹4,00,000 (split equally between the two States) — payment made on 30.5.2025. Calculate the amount of TDS (CGST + SGST or IGST) to be deducted by HIM Corporation Ltd. for the month of May 2025 and deposited with the Government, indicating each transaction separately with reasons.
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Q.7.b 05 marks medium gst ⚡ Try this Q →
Reproduce the list of additional accounts and records required to be maintained by every registered person executing works-contract under Rule 56(14) of the CGST Rules, 2017.
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Q.8 01 marks medium ⚡ Try this Q →
M/s YKR LLC, a Foreign Portfolio Investor (FPI) registered with SEBI as a Category-I FPI, earned profit of ₹50 lakhs from trading in listed equity shares (held as investment) on a recognised stock exchange in India during PY 2025-26. Under which head of income is this profit chargeable to tax in India?
(A) Profits and gains of business or profession (PGBP).
(B) Capital gains (deemed by virtue of section 2(14) read with the FPI provisions of the Act).
(C) Income from other sources.
(D) Exempt under section 10(38).
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Q.8.a 05 marks medium gst ⚡ Try this Q →
Expand the term "Specified Actionable Claims" as defined in section 2(102A) of the CGST Act, 2017 and discuss the treatment of Specified Actionable Claims under the CGST Act, 2017. Give the value of supply rules applicable.
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Q.8.b 05 marks medium gst ⚡ Try this Q →
With reference to section 31 of the CGST Act, 2017 read with Rule 53 of the CGST Rules, 2017, answer the following: (i) State the conditions and circumstances under which a "revised tax invoice" can be issued by a registered person. (ii) Explain the provisions relating to "consolidated revised tax invoice" issued to unregistered recipients.
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Q.8.b-alt 05 marks medium gst ⚡ Try this Q →
OR (in lieu of the above 8(b)): With reference to section 44(1) of the CGST Act, 2017 read with the relevant rules, answer the following on annual return: (i) List the persons who are exempted from filing annual return. (ii) Mention the due date for filing of annual return for any financial year.
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Q.9 02 marks medium ⚡ Try this Q →
Mr. Aman, a registered taxable person under GST, was required to file his GSTR-3B for the month of June 2025 by 20th July 2025. He filed the return on 25th September 2025. His total tax liability for June 2025 was ₹30,000 (CGST ₹15,000 + SGST ₹15,000), entirely paid through electronic cash ledger on 25th September 2025. Compute the total interest payable by Mr. Aman under the CGST Act for the delay in payment of tax.
(A) ₹1,128 (interest @ 18% p.a. on ₹15,000 for 67 days under CGST only).
(B) ₹2,256 (interest @ 18% p.a. on ₹30,000 (CGST+SGST) for 67 days).
(C) ₹1,128 — interest @ 18% p.a. on ₹15,000 (CGST share) for 67 days from 21 July 2025 to 25 September 2025.
(D) ₹558 (interest @ 18% p.a. on ₹15,000 for 76 days; only CGST share considered).
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Q.10 01 marks medium ⚡ Try this Q →
M/s Suraj Apparels (registered under GST in Maharashtra) made supplies through Y-kart, an e-commerce operator, during the month of October 2025. Gross sales through Y-kart were ₹4,60,000 and sales returns from customers (within return window) were ₹88,500. Compute the amount of TCS to be collected by Y-kart under the IGST Act for inter-State supplies (assume all supplies are inter-State and TCS rate is 1% under IGST).
(A) ₹4,600 (TCS @ 1% on gross sales of ₹4,60,000).
(B) ₹3,715 (TCS @ 1% on net of returns: ₹4,60,000 − ₹88,500 = ₹3,71,500).
(C) ₹2,302.50 (TCS @ 0.5% IGST on net taxable value).
(D) ₹885 (TCS @ 1% on returns ₹88,500 — refundable).
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Q.11 02 marks medium ⚡ Try this Q →
Case: M/s HHG & Co., a partnership firm, located at Sanand, Gujarat, is engaged in the business of manufacture and supply of semi-conductors. The firm got itself registered under GST on 14th April, 2025 (PAN-based ARN dated 11th April, 2025). It opted for composition levy at the time of registration but withdrew from the scheme with effect from 11th July, 2025 (intimation in form GST CMP-04 filed on 8th July, 2025). Following supplies were made by the firm: Outward supplies during quarter ending June 2025 (under composition): - Intra-State supply of semi-conductors: ₹52,00,000 (excl. tax) - Tradin…
In respect of the supply made by HHG & Co. to VGT Ltd., what is the last date by which the tax invoice was required to be issued, and is the invoice dated 11 July 2025 within time?
(A) Last date is 5 July 2025 (date of removal of goods); invoice issued on 11 July 2025 is delayed.
(B) Last date is 4 August 2025 (within 30 days of removal); invoice issued on 11 July 2025 is in time.
(C) Last date is 5 August 2025 (one month from removal); invoice issued on 11 July 2025 is in time.
(D) No tax invoice required since HHG & Co. is under composition for first half of period.
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Q.12 02 marks medium ⚡ Try this Q →
Case: M/s HHG & Co., a partnership firm, located at Sanand, Gujarat, is engaged in the business of manufacture and supply of semi-conductors. The firm got itself registered under GST on 14th April, 2025 (PAN-based ARN dated 11th April, 2025). It opted for composition levy at the time of registration but withdrew from the scheme with effect from 11th July, 2025 (intimation in form GST CMP-04 filed on 8th July, 2025). Following supplies were made by the firm: Outward supplies during quarter ending June 2025 (under composition): - Intra-State supply of semi-conductors: ₹52,00,000 (excl. tax) - Tradin…
Determine the place of supply of semi-conductors made by HHG & Co. to SLM Ltd. on 15 August 2025 for use in offshore oil rigs operating in territorial waters (12 nautical miles off Gujarat coast).
(A) Maharashtra (registered location of recipient SLM Ltd.).
(B) Gujarat — by virtue of section 9 of the IGST Act, supplies in territorial waters are attributable to the nearest coastal State.
(C) No place of supply — territorial waters are non-taxable territory.
(D) Union Territory (Other Territory) under the IGST Act.
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Q.13 02 marks medium ⚡ Try this Q →
Case: M/s HHG & Co., a partnership firm, located at Sanand, Gujarat, is engaged in the business of manufacture and supply of semi-conductors. The firm got itself registered under GST on 14th April, 2025 (PAN-based ARN dated 11th April, 2025). It opted for composition levy at the time of registration but withdrew from the scheme with effect from 11th July, 2025 (intimation in form GST CMP-04 filed on 8th July, 2025). Following supplies were made by the firm: Outward supplies during quarter ending June 2025 (under composition): - Intra-State supply of semi-conductors: ₹52,00,000 (excl. tax) - Tradin…
On withdrawal from the composition scheme effective 11 July 2025, by what date must HHG & Co. furnish a statement of stock containing details of inputs in stock, semi-finished and finished goods?
(A) Within 30 days from the date of withdrawal — i.e. by 10 August 2025 — in form GST ITC-01.
(B) Within 60 days from withdrawal — i.e. by 9 September 2025.
(C) Within 90 days — by 9 October 2025.
(D) No stock statement required on withdrawal since opening stock under composition cannot avail credit.
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Q.14 02 marks medium ⚡ Try this Q →
Case: M/s HHG & Co., a partnership firm, located at Sanand, Gujarat, is engaged in the business of manufacture and supply of semi-conductors. The firm got itself registered under GST on 14th April, 2025 (PAN-based ARN dated 11th April, 2025). It opted for composition levy at the time of registration but withdrew from the scheme with effect from 11th July, 2025 (intimation in form GST CMP-04 filed on 8th July, 2025). Following supplies were made by the firm: Outward supplies during quarter ending June 2025 (under composition): - Intra-State supply of semi-conductors: ₹52,00,000 (excl. tax) - Tradin…
Determine the effective date of registration of HHG & Co. for GST purposes.
(A) 11 April 2025 — date of application for registration (ARN).
(B) 14 April 2025 — date when registration was granted.
(C) 1 April 2025 — beginning of the financial year in which registration was granted.
(D) Date the firm became liable to register, which is to be determined separately.
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Q.15 02 marks medium ⚡ Try this Q →
Case: M/s HHG & Co., a partnership firm, located at Sanand, Gujarat, is engaged in the business of manufacture and supply of semi-conductors. The firm got itself registered under GST on 14th April, 2025 (PAN-based ARN dated 11th April, 2025). It opted for composition levy at the time of registration but withdrew from the scheme with effect from 11th July, 2025 (intimation in form GST CMP-04 filed on 8th July, 2025). Following supplies were made by the firm: Outward supplies during quarter ending June 2025 (under composition): - Intra-State supply of semi-conductors: ₹52,00,000 (excl. tax) - Tradin…
Compute the tax payable by HHG & Co. for the quarter ending June 2025 (under composition scheme as a manufacturer of goods).
(A) ₹55,500 (composition rate of 1% on aggregate turnover ₹55,50,000 = ₹52,00,000 + ₹3,50,000).
(B) ₹1,11,000 (1% on ₹55,50,000, plus penalty for late CMP-08).
(C) ₹27,750 (composition rate of 0.5% CGST on ₹55,50,000).
(D) ₹52,000 (1% only on semi-conductor supplies; trading goods not eligible for composition).
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Q.16 02 marks medium ⚡ Try this Q →
Case: M/s HHG & Co., a partnership firm, located at Sanand, Gujarat, is engaged in the business of manufacture and supply of semi-conductors. The firm got itself registered under GST on 14th April, 2025 (PAN-based ARN dated 11th April, 2025). It opted for composition levy at the time of registration but withdrew from the scheme with effect from 11th July, 2025 (intimation in form GST CMP-04 filed on 8th July, 2025). Following supplies were made by the firm: Outward supplies during quarter ending June 2025 (under composition): - Intra-State supply of semi-conductors: ₹52,00,000 (excl. tax) - Tradin…
How shall the import of services from the foreign consultancy (UK) for ₹6,00,000 on 20 October 2025 by HHG & Co. be treated under GST?
(A) Treated as supply by virtue of Schedule I to the CGST Act (import of services for consideration in course of business); GST payable by HHG & Co. on reverse charge basis as IGST.
(B) Not a supply since HHG & Co. is the recipient and the supplier is outside India.
(C) Treated as supply only if value > ₹50 lakhs; below threshold ₹6 lakhs is exempt.
(D) Treated as supply but tax payable by foreign supplier on forward charge.
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