Q1Presumptive income scheme eligibility
0 marks easy
Case: Mr. Naveen, aged 40 years, is engaged in the manufacturing business. He follows mercantile system of accounting. The details pertaining to his business for the year ending on 31.3.2024 is as under – Capital receipts: ₹1.20 crores; Turnover: ₹2.80 crores; Amount received in cash (out of turnover): ₹8 lakhs; Amount received in cash (out of capital receipts): ₹2 lakhs; Amount received through account payee cheque/NEFT and other prescribed mode (out of turnover): ₹2.50 crores; Total payment: ₹1.60 crores; Cash payment (out of total payments): ₹9 lakhs; Net profit as per books: ₹10.50 lakhs. Analys…
Is Mr. Naveen eligible to declare income on presumptive basis under the provisions of the Income-tax Act, 1961 for A.Y. 2024-25?
(a) No, since turnover of Mr. Naveen exceeds the threshold limit of ₹2 crores.
(b) Yes, since aggregate cash receipts during the year do not exceed 5% of total amount received.
(c) Yes, since amount received in cash during the year do not exceed 5% of turnover.
(d) No, as cash payments during the year exceed 5% of aggregate payments.
Q1Place of supply and tax liability for hotel accommodation se
0 marks easy
Case: XYZ Private Limited is a mid-sized company, registered in Delhi, dealing in the manufacturing and distribution of electronic goods in India. The company has been operating for over a decade and has a robust supply chain network across the Country. The Company needs to ensure compliance with various GST regulations related to return filing, registration, and payment of tax. The company is exploring to expand its sales channel in India through distributors in each State. In the month of June, the company: (a) Organized a distributor conclave in Udaipur, Rajasthan, where distributors from Rajasth…
Which of the following statements is correct under GST law in relation to the hotel accommodation service received by the Company?
(a) The hotel shall charge CGST and SGST in the invoice issued to the Company.
(b) The Hotel shall charge IGST in the invoice issued to the Company
(c) The Hotel shall issue a bill of supply to the Company.
(d) The Hotel shall charge CGST and SGST to the extent the charges are related to participants of Rajasthan and IGST to the extent charges are related to the participants of Gujarat and Madhya Pradesh, on the invoice issued to the Company.
Q2Presumptive income scheme with additional cheque receipt
0 marks easy
Case: Mr. Naveen, aged 40 years, is engaged in the manufacturing business. He follows mercantile system of accounting. The details pertaining to his business for the year ending on 31.3.2024 is as under – Capital receipts: ₹1.20 crores; Turnover: ₹2.80 crores; Amount received in cash (out of turnover): ₹8 lakhs; Amount received in cash (out of capital receipts): ₹2 lakhs; Amount received through account payee cheque/NEFT and other prescribed mode (out of turnover): ₹2.50 crores; Total payment: ₹1.60 crores; Cash payment (out of total payments): ₹9 lakhs; Net profit as per books: ₹10.50 lakhs. Analys…
What would be your answer to MCQ 1, assuming for the purpose of answering this MCQ and MCQ 3 that Mr. Naveen has additionally received ₹10 lakhs by way of crossed cheque (out of turnover) during the P.Y. 2023-24?
(a) No, since turnover of Mr. Naveen exceeds the threshold limit of ₹2 crore.
(b) No, since the aggregate cash receipts during the year exceed 5% of turnover.
(c) No, as cash payments during the year exceed 5% of aggregate payments.
(d) No, due to both (a) and (b)
Q2Place of supply of gift items
0 marks easy
Case: XYZ Private Limited is a mid-sized company, registered in Delhi, dealing in the manufacturing and distribution of electronic goods in India. The company has been operating for over a decade and has a robust supply chain network across the Country. The Company needs to ensure compliance with various GST regulations related to return filing, registration, and payment of tax. The company is exploring to expand its sales channel in India through distributors in each State. In the month of June, the company: (a) Organized a distributor conclave in Udaipur, Rajasthan, where distributors from Rajasth…
What shall be the place of supply in relation to the gift items purchased by XYZ Private Limited?
(a) Rajasthan i.e. the location where the goods were received
(b) Delhi i.e. the principal place of business of the Company
(c) Punjab i.e. the location from where the goods were dispatched
(d) Permanent location of participants receiving the gifts
Q3Audit requirement for business accounts
0 marks easy
Case: Mr. Naveen, aged 40 years, is engaged in the manufacturing business. He follows mercantile system of accounting. The details pertaining to his business for the year ending on 31.3.2024 is as under – Capital receipts: ₹1.20 crores; Turnover: ₹2.80 crores; Amount received in cash (out of turnover): ₹8 lakhs; Amount received in cash (out of capital receipts): ₹2 lakhs; Amount received through account payee cheque/NEFT and other prescribed mode (out of turnover): ₹2.50 crores; Total payment: ₹1.60 crores; Cash payment (out of total payments): ₹9 lakhs; Net profit as per books: ₹10.50 lakhs. Analys…
Is Mr. Naveen required to get his books of account audited during the P.Y. 2023-24?
(a) No, since turnover of Mr. Naveen does not exceed the threshold limit of ₹10 crores.
(b) Yes, since amount received in cash during the year exceeds 5% of turnover.
(c) Yes, since cash payments during the year exceed 5% of aggregate payments.
(d) No, since the amount received in cash during the year does not exceed 5% of total amount received.
Q3Input tax credit eligibility for gifts and insurance
0 marks easy
Case: XYZ Private Limited is a mid-sized company, registered in Delhi, dealing in the manufacturing and distribution of electronic goods in India. The company has been operating for over a decade and has a robust supply chain network across the Country. The Company needs to ensure compliance with various GST regulations related to return filing, registration, and payment of tax. The company is exploring to expand its sales channel in India through distributors in each State. In the month of June, the company: (a) Organized a distributor conclave in Udaipur, Rajasthan, where distributors from Rajasth…
Which of the following statements is true in relation to the gift items and the insurance policy purchased by the Company?
(a) The company is not eligible to avail the input tax credit in relation to both, gift items and the insurance policy.
(b) The company is eligible to avail the input tax credit related to gifts valuing less than ₹50,000.
(c) The company is eligible to avail the input tax credit only on insurance policy as the same is provided to employees i.e. related person of the Company.
(d) There is no restriction in availment of input tax credit related to gifts and insurance policy.
Q4Disallowances under Income-tax Act
0 marks easy
Case: Mr. Naveen, aged 40 years, is engaged in the manufacturing business. He follows mercantile system of accounting. The details pertaining to his business for the year ending on 31.3.2024 is as under – Capital receipts: ₹1.20 crores; Turnover: ₹2.80 crores; Amount received in cash (out of turnover): ₹8 lakhs; Amount received in cash (out of capital receipts): ₹2 lakhs; Amount received through account payee cheque/NEFT and other prescribed mode (out of turnover): ₹2.50 crores; Total payment: ₹1.60 crores; Cash payment (out of total payments): ₹9 lakhs; Net profit as per books: ₹10.50 lakhs. Analys…
What is the amount of profits and gains of business chargeable to tax in the hands of Mr. Naveen as per books of account?
(a) ₹10,50,000
(b) ₹16,11,000
(c) ₹16,81,000
(d) ₹16,60,000
Q4E-way bill requirement for non-motorized cart transportation
0 marks easy
Case: XYZ Private Limited is a mid-sized company, registered in Delhi, dealing in the manufacturing and distribution of electronic goods in India. The company has been operating for over a decade and has a robust supply chain network across the Country. The Company needs to ensure compliance with various GST regulations related to return filing, registration, and payment of tax. The company is exploring to expand its sales channel in India through distributors in each State. In the month of June, the company: (a) Organized a distributor conclave in Udaipur, Rajasthan, where distributors from Rajasth…
Which of the following statements is correct in relation to the issuance of e-way bill for transportation of goods between factory and warehouse in non-motorized cart?
(a) E-way bill is required to be issued by the company for each instance of transportation of goods irrespective of the consignment value of goods.
(b) E-way bill is not required to be issued in the given case irrespective of the consignment value of the goods.
(c) E-way bill is required to be issued for goods of the consignment value above ₹50,000
(d) E-way bill is required to be issued for goods of the consignment value above ₹1,00,000
Q5Presumptive income without audit
0 marks easy
Case: Mr. Naveen, aged 40 years, is engaged in the manufacturing business. He follows mercantile system of accounting. The details pertaining to his business for the year ending on 31.3.2024 is as under – Capital receipts: ₹1.20 crores; Turnover: ₹2.80 crores; Amount received in cash (out of turnover): ₹8 lakhs; Amount received in cash (out of capital receipts): ₹2 lakhs; Amount received through account payee cheque/NEFT and other prescribed mode (out of turnover): ₹2.50 crores; Total payment: ₹1.60 crores; Cash payment (out of total payments): ₹9 lakhs; Net profit as per books: ₹10.50 lakhs. Analys…
What is the amount of profits and gains of business chargeable to tax in the hands of Mr. Naveen if he does not want to get his books of account audited?
(a) ₹17,40,000
(b) ₹16,96,000
(c) ₹22,40,000
(d) ₹16,80,000
Q5GST registration requirement for additional place of busines
0 marks easy
Case: XYZ Private Limited is a mid-sized company, registered in Delhi, dealing in the manufacturing and distribution of electronic goods in India. The company has been operating for over a decade and has a robust supply chain network across the Country. The Company needs to ensure compliance with various GST regulations related to return filing, registration, and payment of tax. The company is exploring to expand its sales channel in India through distributors in each State. In the month of June, the company: (a) Organized a distributor conclave in Udaipur, Rajasthan, where distributors from Rajasth…
Which of the following statements is most appropriate in relation to the new warehouse taken on rent by the Company?
(a) Separate GST registration is not required mandatorily.
(b) Separate GST registration is required mandatorily.
(c) GST registration is required as a casual taxable person for the term of rent agreement.
(d) Separate GST registration is required once the rent is more than ₹20 lakh per annum.
Q6Residential status of Indian citizen working abroad
0 marks easy
Mrs. Sarika, an Indian citizen, is in employment with an overseas company located in UAE. She is not liable to tax in UAE. During the P.Y. 2023-24, she comes to India for 121 days. She was in India for 50 days, 100 days, 76 days and 145 days in the financial years 2019-20, 2020-21, 2021-22 and 2022-23, respectively. Her annual income for the previous year 2023-24 is as follows: Salary accrued or arisen in UAE: ₹15,00,000; Income accrued and arisen in India: ₹2,00,000; Income deemed to be accrued and arisen in India: ₹7,00,000; Income arising and received in UAE, from a business set up in India: ₹5,00,000; Life Insurance premium paid by cheque in India: ₹1,00,000. Mrs. Sarika has opted out of the default tax regime under section 115BAC. From the information given above,
Q6Computation of net GST liability with input tax credit
0 marks easy
Craftmodel Limited, a registered dealer in Patna (Bihar), is engaged in various types of supplies. It is not engaged in renting of cars business. The company provided the following details for the month of January, 2024: Outward supply of goods to non-related persons (intra-State in Bihar: market value ₹3,00,000, transaction value ₹4,00,000; inter-State to other States: market value ₹7,50,000, transaction value ₹6,00,000); Pledged 5% equity shares to merchant banker for proposed IPO (face value ₹5,00,000, market value ₹8,00,000); Stock transfer of goods worth ₹58,000 without consideration to branch at Gaya (Bihar) declared as additional place of business; Intra-State inward supply of services for business use ₹12,00,000 (30 invoices, but 10 invoices amounting to ₹2,50,000 not furnished by suppliers in GSTR-1); Outward supply of milling of paddy into rice services (intra-State) ₹2,00,000; Outward supply of trucks on hire to Governmental authority (intra-State) ₹1,50,000; Amount paid to IIM Ahmedabad for 15 days management training to 10 managers from 10th January ₹5,00,000 (participation certificates provided); Purchased air tickets for employees from Patna to Guwahati in economy class ₹1,00,000 (basic fare ₹80,000); Omitted invoice from Rahuketu dated 2nd December 2023 for car rental including fuel cost ₹30,000 (excluding tax) with no payment till end of January 2024; GST rates: car rental 5% IGST or 2.5% CGST/SGST each; air transport 5% IGST or 2.5% CGST/SGST each; all others 18% IGST or 9% CGST/SGST each; no opening ITC balance; all conditions for ITC compliance met. Calculate the net GST liability payable in cash for January 2024.
Q7Computation of taxable salary with various allowances and pe
0 marks easy
Mr. Anshul, a salaried employee in a private company, furnishes you the following information for the year ended on 31-03-2024: Basic salary ₹75,000 p.m., increased to ₹85,000 p.m. from 1st December 2023; Dearness allowance at 50% of basic salary (40% of D.A. forms part of salary for retirement benefits); Entertainment allowance ₹10,000; Employer's contribution to recognized provident fund at 18% of basic salary (employees also contribute equivalent amount); Professional tax paid ₹2,200 (of which ₹1,800 paid by employer); House rent allowance ₹16,000 p.m. (rent paid ₹17,000 p.m. in Meerut); Conveyance allowance ₹1,500 p.m. for official duty reimbursement; Loan of ₹2,00,000 from employer on 1.7.2023 for medical treatment of brother for tuberculosis (interest 5%, outstanding as on 31.3.2024, SBI rate of interest on 1.4.2023 was 11%); Free education provided to sister in company-owned school at ₹900 p.m. with no recovery; Leave travel concession given to Anshul, wife and three children (daughter aged 6, twin sons aged 4) with cost of air tickets reimbursed at ₹20,000 for adults and ₹25,000 lumpsum for three children. Compute the taxable salary of Mr. Anshul if he has shifted out of the default tax regime under section 115BAC.
Q7Taxable value of supply under GST
0 marks easy
Briefly examine the taxable value of supply in the following independent cases:
Q8Total income computation under section 115BAC
0 marks easy
Karan, a resident aged 50 years, furnishes the following information for the year ended on 31-03-2024: Salary (Gross) ₹2,75,000; Income from let out house property (₹2,85,000); Interest on loan paid for self-occupied house property ₹1,20,000; Income from sale of rubber products from rubber plants ₹2,00,000; Business income - Retail business ₹1,20,000; Business income - wholesale business (₹1,00,000); Brought forward business loss (A.Y. 2023-24) (₹1,35,000); Dividend received from ABC Ltd., an Indian company carrying on agricultural operations ₹13,500; Long term capital gain from sale of listed equity shares ₹2,00,000 (STT paid on sale and purchase); Short-term capital gains on sale of shares (₹1,10,000); Lottery winnings (gross) ₹45,000; Contribution to provident fund and NSC ₹1,50,000; Income of minor son Raju from special talent ₹1,50,000; Interest from Bank received by Raju on deposit made out of his special talent ₹10,000. Compute Karan's total income under the default tax regime under section 115BAC for the A.Y. 2024-25 assuming his wife does not earn any income.
Q8Revocation of cancellation of GST registration
0 marks easy
Ranmo Limited, a registered entity under GST, has demerged its operations with effect from 31st October, 2023. The registration of Ranmo Limited has been cancelled suo-motu by the Proper Officer. The order of cancellation of registration was passed on 4th November, 2023 and was served on 7th November, 2023. Ranmo Limited wishes to apply for revocation of cancellation of registration on 4th February, 2024. The tax consultant of Ranmo Limited advised that application for revocation of cancellation or registration is time barred and hence not valid in law. Examine the technical veracity of the advice given by Tax Consultant of Ranmo Limited.
Q9Return filing requirements when income below exemption limit
0 marks easy
In each of the following independent situations, examine whether these persons are required to file their return of income or loss for A.Y.2024-25 if their total income for the P.Y. 2023-24 do not exceed the basic exemption limit:
Q9E-invoicing applicability to Government entities
0 marks easy
Mr. X, a registered person under GST, has aggregate turnover in the preceding financial year amounting to ₹8 crore. He is desirous to know whether e-invoicing is applicable for supplies made by registered person to Government Departments or establishments/Government agencies/local authorities/PSUs which are registered solely for the purpose of deduction of tax at source as per provisions of section 51 of the CGST Act, 2017. Advise Mr. X.
Q10Comprehensive computation of total income and tax liability
0 marks easy
Mr. Anand, a resident Indian aged 45 years, has provided you the following information for the previous year ended on 31.03.2024: He owns an industrial undertaking established in a SEZ with total turnover ₹200 lakhs, export turnover received in India in convertible foreign exchange on or before 30.9.2024 of ₹120 lakhs, profit from this industry ₹35 lakhs (fulfills all conditions of section 10AA); Mr. Anand sold equity shares of Indian companies on 14th March, 2024 (Sam Ltd.: sale value ₹150 per share, purchase price ₹120 with STT paid at acquisition on 2nd Feb 2024; Jam Ltd.: sale value ₹100 per share, purchase price ₹72 with STT paid at acquisition on 16th April 2017, 1250 shares, FMV on 31.1.2018 ₹50; CII F.Y. 2017-18: 272, F.Y. 2023-24: 348; sale proceeds subject to brokerage 0.1% and securities transaction tax 0.125%); Medical insurance premium paid ₹90,000 on 1.9.2023 via cheque for himself and wife till 31.8.2027, plus cash payment of ₹7,500 for preventive health checkup; Royalty from abroad ₹2,88,000 for artistic book (rate 16% of value, expenditure ₹40,000, remitted to India till 30.9.2024: ₹2,50,000); Income-tax refund ₹15,750 (including interest ₹1,750) relating to A.Y. 2023-24; Ground floor self-occupied residential building with first floor let out at ₹15,000 p.m.; Municipal taxes ₹30,000 for current financial year; Bank loan of ₹50 lakhs for property construction taken in 2020 with repayment of ₹2,05,000 during 2023-24 (including interest ₹1,00,000); Deposited ₹1,30,000 in Public Provident Fund and ₹80,000 in 5 years term deposit in name of minor son Aman. Compute the total income and tax liability of Mr. Anand under section 115BAC as well as under normal provisions for the A.Y. 2024-25. Ignore AMT provisions.
Q10ITC reconciliation mechanism under CGST Rules
0 marks easy
Briefly explain the manner of dealing with difference in ITC available in auto-generated statement containing the details of ITC and that availed in return prescribed in terms of rule 88D of the CGST Rules, 2017.