QGST-1GST rate on rental of commercial property and maintenance ma
0 marks easy
Case: ABC Ltd. has manufacturing unit in Rajasthan, ancillary units in Madhya Pradesh and Gujarat (registered in each State), and owns a hotel in Udaipur, Rajasthan. ABC Ltd. owns a commercial space rented to a registered person at monthly rent of ` 50,000. Maintenance is ABC Ltd.'s responsibility. During April, ABC Ltd. incurred expenses on maintenance materials recoverable from tenant with invoice. Maintenance material rate: 5%. ABC Ltd. agreed to provide hotel to Mr. X (unregistered person from Maharashtra) for a business conference. ABC Ltd. supplied machinery in June: Basic price ` 45,000 (befo…
For the transaction related to renting of commercial space, what should be the rate of tax charged by ABC Ltd.?
(A) The rate of GST on rent and maintenance material related recovery shall be 18%.
(B) The rate of GST on rent shall be 18% and, on the material, shall be 5%.
(C) No GST shall be charged on the recovery related to material used in maintenance. Rate of GST on rent shall be 18%.
(D) The rate of GST on rent and maintenance material related recovery shall be 5%.
QGST-10Tax deduction at source under section 51 CGST Act; composite
0 marks easy
Determine amount of tax, if any, to be deducted in the above case. Will your answer be different if Ramlala Enterprises is registered under composition scheme? Examine the implications of GST on supply of food and beverages at cinema halls.
QGST-2Value of supply under section 15 CGST Act; treatment of TCS
0 marks easy
Case: ABC Ltd. made a supply of machinery in June with basic price ` 45,000 (before TCS), Tax Collected at Source under Income-tax Act ` 2,500, and subsidy of ` 3,500 from Green Foundation Pvt. Ltd. for usage of green energy (linked to units of energy saved, not machinery).
Compute the value of supply under section 15 of the CGST Act, 2017 made by ABC Ltd. in the month of June.
(A) ` 45,000
(B) ` 47,500
(C) ` 48,500
(D) ` 51,000
QGST-3Place of supply and GST applicability for hotel accommodatio
0 marks easy
Case: ABC Ltd. owns and operates a hotel in Udaipur, Rajasthan. ABC Ltd. agreed to provide the hotel to Mr. X for a business conference to be held at Udaipur. Mr. X is an unregistered person residing in Maharashtra.
With respect to the hotel accommodation service provided to Mr. X, GST payable by ABC Ltd. is ____________.
(A) nil, GST on accommodation service is payable by the recipient, Mr. X, under reverse charge
(B) nil, GST on accommodation services provided to an unregistered person is exempt from GST
(C) in the nature of CGST and SGST
(D) in the nature of IGST
QGST-4Input Tax Credit availability for CSR goods
0 marks easy
Case: ABC Ltd. spent an amount of ` 5 lakh on the procurement of certain goods which were distributed as part of the corporate social responsibility [CSR] expenditure required under the provisions of the Companies Act, 2013.
Which of the following options is correct with regard to the availability of ITC to ABC Ltd. in respect of GST paid on the procurement of goods meant for the purpose of corporate social responsibility activity?
(A) The amount of ITC related to such procurement of goods is not available to ABC Ltd.
(B) The amount of ITC related to such procurement of goods is available to ABC Ltd.
(C) The amount of ITC only to the extent of 50% of amount of such procurement of goods is available to ABC Ltd.
(D) The amount of ITC shall be available to the registered person to whom such goods are distributed under CSR activity.
QGST-5GST audit requirements for annual return and reconciliation
0 marks easy
Case: During the scrutiny proceedings in the State of Gujarat, jurisdictional GST officer asked ABC Ltd to submit the copy of audited financial statements for Gujarat and was of the view that ABC Ltd. is required to get his accounts audited by a Chartered Accountant separately under GST Law for filing annual return and reconciliation statement in each State.
Which of the following options is correct with regard to the advice given by GST officer in respect of auditing of accounts?
(A) There is no requirement of separate audit of the financial statements from the perspective of GST provisions.
(B) Only reconciliation statement shall be audited by a Chartered Accountant.
(C) The annual return as well as the reconciliation statement shall be audited by a Chartered Accountant.
(D) Separate audit of financial statements at each State level is required by ABC Ltd. under the GST law.
QGST-6GST computation; output tax; input tax credit; reverse charg
0 marks easy
Case: M/s Cute & Co., a partnership firm, registered supplier under GST in Bengaluru (Karnataka State), for October 2023: (i) Intra-State taxable supply of Direct Selling Agent (DSA) service to public sector Bank: ` 2,50,000. (ii) Rent paid for residential dwelling for office: ` 25,000 (Owner not GST registered; intra-State supply availed). (iii) Purchased car for official use of managing partners: ` 9,00,000 (Inter-State purchase). (iv) Availed IT services for business from Partner's friend Mr Allan Waugh from Melbourne, Australia (no consideration; Open Market value ` 1,25,000; Inter-State transac…
Compute the net GST payable in cash, by M/s Cute & Co. for the month of October, 2023. Correct legal provisions should form part of your answer.
QGST-7Time of supply of vouchers and interest/late fees under sect
0 marks easy
Case: M/s Sasta Bazaar issued and redeemed the following coupons: (i) Coupon issued 20.06.2023, worth ` 2,000 redeemable against purchase of specific plastic items, redeemed on 31.07.2023. (ii) Coupon issued 01.08.2023 worth ` 3,000 redeemable against purchase of any item, redeemed on 18.08.2023. (iii) Interest of ` 10,000 for late payment from a customer on 11.11.2023 for supply of goods originally made on 24.06.2023.
Determine the time of supply for the purpose of payment of GST.
QGST-8Place of supply under section 12 IGST Act for services and g
0 marks easy
Determine the place of supply with reasons in the following independent circumstances.
QGST-9Supply of services through refraining from act; e-invoicing
0 marks easy
Briefly explain with correct legal provision whether the compensation amount received is liable to GST or not. If considered as taxable, calculate the total GST payable. State the conditions to be complied with. Advice whether it is mandatory to issue e-invoice and list entities exempt from mandatory e-invoicing requirement.
Q1Section 10(10D) exemption on life insurance maturity proceed
0 marks easy
Case: Mr. Akash (aged 47 years) is a CEO of BAC Enterprises (P) Ltd. During the P.Y.2023-24, he has earned the following income: Salary of ` 45 lakhs, long-term capital gain on sale of listed equity shares (STT paid) amounting to ` 6,54,000, dividend of ` 12,00,000 from shares of Indian companies, interest on saving bank account with SBI of ` 16,000, interest on fixed deposits with BOB of ` 45,000. He has multiple life insurance policies with the following details: X (issued 1.4.2017, annual premium ` 40,000 + GST ` 7,200, matured 31.3.2026, consideration ` 7,00,000, sum assured ` 5,00,000), Y (issu…
Which are the life insurance policies in respect of which Mr. Akash would be eligible for exemption under section 10(10D) in respect of maturity proceeds? Choose the option most beneficial to Mr. Akash.
(A) X, Y and Z
(B) X and Y
(C) X, Z and A
(D) Y and Z
Q2Section 10(10D) exemption on life insurance surrender
0 marks easy
Case: Mr. Akash (aged 47 years) is a CEO of BAC Enterprises (P) Ltd. During the P.Y.2023-24, he has earned the following income: Salary of ` 45 lakhs, long-term capital gain on sale of listed equity shares (STT paid) amounting to ` 6,54,000, dividend of ` 12,00,000 from shares of Indian companies, interest on saving bank account with SBI of ` 16,000, interest on fixed deposits with BOB of ` 45,000. He has multiple life insurance policies with the following details: X (issued 1.4.2017, annual premium ` 40,000 + GST ` 7,200, matured 31.3.2026, consideration ` 7,00,000, sum assured ` 5,00,000), Y (issu…
What would be your answer to MCQ 1, if Mr. Akash surrendered LIC A in A.Y. 2026-27 and claimed exemption under section 10(10D) in respect of such LIC? This information is only for the purpose of this MCQ.
(A) X, Y and Z
(B) X and Y
(C) X, Z and A
(D) Y and Z
Q3Chapter VI-A deductions under normal tax regime
0 marks easy
Case: Mr. Akash (aged 47 years) is a CEO of BAC Enterprises (P) Ltd. During the P.Y.2023-24, he has earned the following income: Salary of ` 45 lakhs, long-term capital gain on sale of listed equity shares (STT paid) amounting to ` 6,54,000, dividend of ` 12,00,000 from shares of Indian companies, interest on saving bank account with SBI of ` 16,000, interest on fixed deposits with BOB of ` 45,000. He has multiple life insurance policies and also made payments towards medical insurance premium.
What would be the amount of deduction available to Mr. Akash under Chapter VI-A for the A.Y. 2024-25 if he has exercised the option to shift out of the default tax regime?
(A) ` 82,170
(B) ` 78,500
(C) ` 2,28,500
(D) ` 2,32,170
Q4Tax liability under section 115BAC default tax regime
0 marks easy
Case: Mr. Akash (aged 47 years) is a CEO of BAC Enterprises (P) Ltd. During the P.Y.2023-24, he has earned salary of ` 45 lakhs, long-term capital gain of ` 6,54,000, dividend of ` 12,00,000, and interest income of ` 61,000.
What is Mr. Akash's tax liability for A.Y.2024-25 under the default tax regime under section 115BAC?
(A) ` 16,97,350
(B) ` 16,80,190
(C) ` 18,41,270
(D) ` 18,84,170
Q5Tax liability under normal provisions of the Act
0 marks easy
Case: Mr. Akash (aged 47 years) is a CEO of BAC Enterprises (P) Ltd. During the P.Y.2023-24, he has earned salary of ` 45 lakhs, long-term capital gain of ` 6,54,000, dividend of ` 12,00,000, and interest income of ` 61,000.
What is Mr. Akash's tax liability for A.Y.2024-25 if he has exercised the option to shift out of the default tax regime?
(A) ` 17,30,470
(B) ` 18,93,720
(C) ` 17,29,210
(D) ` 17,27,500
Q6Deduction of purchases under mercantile system of accounting
0 marks easy
Case: Mr. Anil started business of manufacturing tables in February 2024. He follows mercantile system of accounting. He purchased wood from: Mr. A (15.02.2024, ` 5 lakhs, payment due within 30 days, paid on 29.03.2024), Mr. B (17.03.2024, ` 7 lakhs, no written agreement, paid on 15.04.2024), Mr. A again (25.03.2024, ` 8 lakhs, payment due within 40 days, paid on 30.11.2024).
How much deduction would be available to Mr. Anil in A.Y. 2024-25 in respect of purchases made during the P.Y. 2023-24 while computing business income?
(A) Nil
(B) ` 5 lakhs
(C) ` 13 lakhs
(D) ` 12 lakhs
Q7Tax Collected at Source under Liberalised Remittance Scheme
0 marks easy
Case: Mr. Sunil took an education loan of ` 8 lakhs on 1.7.2023 from State Bank of India, Mumbai, for his son's MBA from University of Oxford, UK and remitted the said amount through the same bank (authorised dealer) under LRS. He further remitted ` 2 lakhs on 15.10.2023 to his son for personal expenditure through Bank of India (authorised dealer) under LRS. He also remitted ` 6 lakhs on 28.3.2024 out of personal savings under LRS through Union Bank of India for his sister's medical treatment in London. He furnished undertaking containing details of earlier remittances.
What is the amount of tax to be collected from Mr. Sunil in respect of the remittance of amounts to his son and sister?
(A) TCS@0.5% of ` 1 lakh in respect of remittance for son's education; @5% of ` 2 lakhs in respect of remittance for son's personal expenditure and 5% of ` 6 lakhs in respect of remittance for sister's medical treatment.
(B) TCS@0.5% of ` 1 lakh in respect of remittance for son's education; @20% of ` 2 lakhs in respect of remittance for son's personal expenditure and 5% of ` 6 lakhs in respect of remittance for sister's medical treatment.
(C) TCS@0.5% of ` 1 lakh in respect of remittance for son's education; no TCS in respect of remittance for son's personal expenditure and sister's medical treatment since each transaction is of less than ` 7 lakhs.
(D) TCS@0.5% of ` 1 lakh in respect of remittance for son's education; @5% of ` 1 lakh in respect of remittance for sister's medical treatment.
Q8Tax liability under section 115BAC with various capital gain
0 marks easy
Case: Mr. Garg, aged 45 years and a resident in India, is having a total income of ` 5,70,000 comprising of long term capital gains taxable under section 112 of ` 70,000, long term capital gains taxable under section 112A of ` 1,50,000, short term capital gains taxable under section 111A of ` 1,00,000 and other income of ` 2,50,000.
Compute his tax liability for A.Y. 2024-25 under the default tax regime under section 115BAC.
(A) Nil
(B) ` 5,200
(C) ` 9,360
(D) ` 19,760
Q9Residential status under section 6(1) and 6(1A); taxable inc
0 marks easy
Case: Ms. Rita, an Indian citizen and an MBA from Howard University, was employed in AFL LLP of Country A since June, 2016. She came to India on 15.11.2023 and joined as CEO of Autofit Ltd. Ms. Rita was in India before she left for overseas education in May, 2012 and was subsequently employed outside India and never visited India thereafter. There is no income-tax in Country A. She has earned interest income of ` 2,40,000 (net) in Country A and salary income from AFL LLP of ` 15 lakhs up to the date of her return to India in the financial year 2023-24. Salary income (computed) of Ms. Rita from Autof…
What would be the residential status of Ms. Rita and her total income for the A.Y. 2024-25?
Q10Income from house property; deductions under section 24; sta
0 marks easy
Case: Mr. Raj, a resident in India, owns two house properties, one in Delhi and another in Kanpur. The Delhi property is let out. Delhi property: Standard rent ` 1,72,000 p.a., Municipal valuation ` 2,05,000 p.a., Fair rent ` 1,95,000 p.a., Rent received ` 15,000 p.m., Municipal tax 5% of municipal valuation. Kanpur property (self-occupied): Municipal tax paid ` 3,500 on 10.6.2023. Loans: SBI loan of ` 35 lakhs@12% p.a. in April 2021 for Delhi house (stamp duty value ` 40 lakhs); Loan of ` 25,00,000@10% on 1-7-2021 for Kanpur house construction (began June 2021, completed December 2022). No repaymen…
Compute total income of Mr. Raj for the A.Y. 2024-25 under both tax regimes.
Q11Section 54 exemption; capital gains on residential property;
0 marks easy
Case: Mr. Rajkumar bought a residential house for ` 5 crores in March 2016. He entered into an agreement for sale with Ms. Nikita (not a relative) in July 2023 for ` 17 crores. Payment: 10% through account payee bank draft on agreement date, 80% on possession date (10.11.2023), balance after registration completion (05.02.2024). Stamp duty value: July 2023 was ` 19 crores, revised to ` 20 crores on 05.02.2024. Brokerage: 1% on sale consideration. Subsequently purchased another residential house for ` 13 crores in Mumbai in March 2024. CII: 2015-16: 254; 2023-24: 348.
Compute the capital gains chargeable to tax in the hands of Mr. Rajkumar for A.Y. 2024-25. What would be the capital gain, if any, in A.Y. 2025-26 if Mr. Rajkumar transfers the new residential house in December 2024 for ` 15 crores?
Q12Partnership firm income; SEZ deductions; business income; in
0 marks easy
Case: Mr. Rajesh is a working partner in M/s Sunflower Associates with capital contribution of ` 15 lakhs. Partnership deed authorises: interest to partners @ 13%, remuneration to partners @20,000 per month (wholly allowable as deduction). SEZ unit set up in May 2017: total turnover ` 120 lakhs, export turnover ` 45 lakhs, net profit ` 7.5 lakhs (export turnover received in convertible foreign exchange by 30.9.2024 was ` 40 lakhs). Warehousing facility for storage of edible oil: net profit ` 7,50,000 (P&L items: debited - personal drawings ` 70,000, advance income-tax ` 1,00,000, purchase of warehou…
Compute the total income and tax payable by Mr. Rajesh for the A.Y. 2024-25 under default tax regime and normal provisions of the Act.
Q13Aadhaar number intimation; PAN operative/inoperative status;
0 marks easy
Case: Mr. Rahul, an Indian citizen residing in Mumbai, files his return of income every year on time. He has Aadhaar number as well. He has not intimated his Aadhaar number to the prescribed authority till August 2023. He approached you on 1.9.2023.
What would be the consequences for not intimating the Aadhaar number to the prescribed authority and the effective date from which those consequences would become effective? What would be your answer if Mr. Rahul wants to intimate his Aadhaar number to the prescribed authority now?