QB-1GST suo-motu registration – period to apply for regular regi
0 marks hard
Case: Vidhula Impex Ltd. is engaged in supplying sports goods. The company did not opt for registration under GST. The proper officer under GST, based on enquiry, finds that the concern is liable for registration and he registers the firm on temporary basis on 15th June, 2020.
After being granted the registration certificate, the company availed the following services for the purpose of its business:
(i) Renting of motor vehicles from Blue Taxi Pvt. Ltd. where GST was charged @ 12%.
(ii) Appointed Mr. Rajesh as Technical Director for advisory role in business and the payment was made based on the c…
After the grant of temporary registration, Vidhula Impex Ltd. needs to apply for registration within __________ from the date of grant of temporary registration, if no extension of period is to be granted for such temporary registration.
(A) 30 days
(B) 90 days
(C) 7 days
(D) 15 days
QB-10Exceptions to Rule 86B – electronic credit ledger restrictio
0 marks easy
Restrictions have been imposed on the use of amount available in the electronic credit ledger vide rule 86B of the CGST Rules, 2017. Is there any exceptions to rule 86B? If yes, state the exceptions.
QB-2Reverse charge mechanism under GST – specified services
0 marks hard
Case: Vidhula Impex Ltd. is engaged in supplying sports goods. The company did not opt for registration under GST. The proper officer under GST, based on enquiry, finds that the concern is liable for registration and he registers the firm on temporary basis on 15th June, 2020.
After being granted the registration certificate, the company availed the following services for the purpose of its business:
(i) Renting of motor vehicles from Blue Taxi Pvt. Ltd. where GST was charged @ 12%.
(ii) Appointed Mr. Rajesh as Technical Director for advisory role in business and the payment was made based on the c…
In case of which of the following services, the company is liable to pay tax under reverse charge?
(A) Renting of Motor Vehicles
(B) Directorship services
(C) Both (a) and (b)
(D) Neither (a) nor (b)
QB-3Credit note issuance for invoice with excess value charged
0 marks hard
Case: Vidhula Impex Ltd. is engaged in supplying sports goods. The company did not opt for registration under GST. The proper officer under GST, based on enquiry, finds that the concern is liable for registration and he registers the firm on temporary basis on 15th June, 2020.
After being granted the registration certificate, the company availed the following services for the purpose of its business:
(i) Renting of motor vehicles from Blue Taxi Pvt. Ltd. where GST was charged @ 12%.
(ii) Appointed Mr. Rajesh as Technical Director for advisory role in business and the payment was made based on the c…
Which document is required to be issued by the company in respect of the invoice issued on 28th February, 2021?
(A) Debit note
(B) Credit note
(C) Bill of supply
(D) Revised Tax invoice
QB-4Final return (GSTR-10) due date after GST registration cance
0 marks hard
Case: Vidhula Impex Ltd. is engaged in supplying sports goods. The company did not opt for registration under GST. The proper officer under GST, based on enquiry, finds that the concern is liable for registration and he registers the firm on temporary basis on 15th June, 2020.
After being granted the registration certificate, the company availed the following services for the purpose of its business:
(i) Renting of motor vehicles from Blue Taxi Pvt. Ltd. where GST was charged @ 12%.
(ii) Appointed Mr. Rajesh as Technical Director for advisory role in business and the payment was made based on the c…
The Company needs to file its Final return by __________
(A) 30th April, 2021
(B) 30th August, 2021
(C) 15th June, 2021
(D) 30th June, 2021
QB-5E-way bill cancellation window
0 marks hard
Case: Vidhula Impex Ltd. is engaged in supplying sports goods. The company did not opt for registration under GST. The proper officer under GST, based on enquiry, finds that the concern is liable for registration and he registers the firm on temporary basis on 15th June, 2020.
After being granted the registration certificate, the company availed the following services for the purpose of its business:
(i) Renting of motor vehicles from Blue Taxi Pvt. Ltd. where GST was charged @ 12%.
(ii) Appointed Mr. Rajesh as Technical Director for advisory role in business and the payment was made based on the c…
Which of the following statements is correct in respect of e-way bill generated for goods in the month of February for which order was cancelled?
(A) Once generated, e-way bill cannot be cancelled.
(B) E-way bill can be cancelled within 24 hours of generation
(C) E-way bill can be cancelled within 48 hours of generation
(D) E-way bill can be cancelled within 72 hours of generation
QB-6E-way bill generation – blocking of GSTIN under Rule 138E fo
0 marks easy
Mr. Shambhu, a trader registered under GST in Delhi is engaged in wholesale business of toys for kids. Mr. Nandi registered under GST in Patiala, a regular return filer supplies toys in bulk to Mr. Shambhu for selling to end consumers. Mr. Shambhu paying tax in regular scheme in Delhi, has not filed GSTR-3B for last 2 months. Mr. Nandi wants to generate e-way bill for toys amounting to ₹5,00,000 to be supplied to Mr. Shambhu. Also Mr. Narayan from Jammu approached Mr. Shambhu for purchasing toys amounting to ₹75,000 for the purpose of return gift on his son's first birthday party. Shambhu wants to generate an e-way bill in respect of an outward supply of goods to Mr. Narayan.
Examine with reference to the provisions under GST law, whether Mr. Nandi and Mr. Shambhu can generate e-way bill.
QB-7Late fee for delayed GSTR-3B filing u/s 47 CGST Act
0 marks easy
Mr. Ayushman, a registered person having intra-State aggregate turnover of ₹1.2 crores in the preceding financial year did not file GSTR-3B for the month of September, 2021 by 10th November, 2021. The amount of tax payable for the month of September, 2021 is ₹8 lakh. All his supplies are intra-State supplies.
QB-8Cancellation and revocation of GST registration u/s 29 CGST
0 marks easy
Mr. X of Haryana intends to start business of supply of building material to various construction sites in Haryana. He has taken voluntary registration under GST in the month of April. However, he has not commenced the business till December due to lack of working capital. The proper officer suo-motu cancelled the registration of Mr. X. You are required to examine whether the action taken by proper officer is valid in law?
Mr. X has applied for revocation of cancellation of registration after 40 days from the date of service of the order of cancellation of registration. Department contends that application for revocation of cancellation of registration can only be made within 30 days from the date of service of the order of cancellation of registration. However, Mr. X contends that the period of submission of application may be extended on sufficient grounds being shown. You are required to comment upon the validity of contentions raised by Department and Mr. X.
QB-9GST exemptions on services provided to Government – pure ser
0 marks easy
Gita Services Limited, registered under GST, is engaged in providing various services to Government. The company provides the following information in respect of services provided during the month of April:
(i) Supply of manpower for cleanliness of roads not involving any supply of goods.
(ii) Service provided by Fair Price Shops owned by Gita Services Limited by way of sale of sugar under Public Distribution System against consideration in the form of commission.
(iii) Service of maintenance of street lights in a Municipal area involving replacement of defunct lights and other spares alongwith maintenance. Generally replacement of defunct lights and other spares constitutes 35% of the supply of service.
(iv) Service of brochure distribution provided under a training programme for which 70% of the total expenditure is borne by the Government.
Comment on the taxability or otherwise of the above transactions under GST law. Also state the correct legal provisions for the same.
Q1TDS on purchase of goods u/s 194Q
0 marks hard
Case: Mr. Subhash is a retailer of car spare parts. He started his business in May, 2020. His turnover for the P.Y. 2020-21 was ₹10.50 crores. He generally purchases goods from Car accessories & Co. only. Car accessories & Co. manufactures and sells spare parts directly to the customers as well as through an e-commerce platform – CarParts.com. Car accessories & Co.'s turnover from the business for the P.Y. 2020-21 was ₹15 crores.
The relevant information of purchases made by Mr. Subhash in P.Y. 2021-22:
- Date of credit 15.05.2021 | Date of payment 02.06.2021 | Value without GST ₹40,00,000 | GST @1…
Is Mr. Subhash required to deduct tax at source in respect of the purchase transactions made directly with Car accessories & Co.? If yes, when and what is the amount of tax to be deducted?
(A) Yes; ₹2,150 on 17.08.2021 and ₹1,050 on 14.02.2022
(B) Yes; ₹2,537 on 17.08.2021 and ₹1,050 on 14.02.2022
(C) Yes; ₹500 on 18.06.2021, ₹2,150 on 17.08.2021 and ₹1,050 on 14.02.2022
(D) No, Mr. Subhash is not liable to deduct tax at source.
Q2TCS on sale of goods u/s 206C(1H)
0 marks hard
Case: Mr. Subhash is a retailer of car spare parts. He started his business in May, 2020. His turnover for the P.Y. 2020-21 was ₹10.50 crores. He generally purchases goods from Car accessories & Co. only. Car accessories & Co. manufactures and sells spare parts directly to the customers as well as through an e-commerce platform – CarParts.com. Car accessories & Co.'s turnover from the business for the P.Y. 2020-21 was ₹15 crores.
The relevant information of purchases made by Mr. Subhash in P.Y. 2021-22:
- Date of credit 15.05.2021 | Date of payment 02.06.2021 | Value without GST ₹40,00,000 | GST @1…
Is Car accessories & Co. required to collect tax at source in respect of the sale transactions with Mr. Subhash? If yes, when and what is the amount of tax to be collected?
(A) Yes; ₹500 on 30.06.2021, ₹2,150 on 17.08.2022 and ₹1,050 on 28.02.2022
(B) Yes; ₹1,490 on 30.06.2021, ₹2,537 on 17.08.2021 and ₹1,239 on 28.02.2022
(C) Yes; ₹1,490 on 30.06.2021
(D) No, Car accessories & Co. is not liable to collect tax at source.
Q3TDS/TCS applicability based on business commencement and tur
0 marks hard
Case: Mr. Subhash is a retailer of car spare parts. He started his business in May, 2020. His turnover for the P.Y. 2020-21 was ₹10.50 crores. He generally purchases goods from Car accessories & Co. only. Car accessories & Co. manufactures and sells spare parts directly to the customers as well as through an e-commerce platform – CarParts.com. Car accessories & Co.'s turnover from the business for the P.Y. 2020-21 was ₹15 crores.
The relevant information of purchases made by Mr. Subhash in P.Y. 2021-22:
- Date of credit 15.05.2021 | Date of payment 02.06.2021 | Value without GST ₹40,00,000 | GST @1…
Assume that Mr. Subhash has started the retail business of car spare parts in May, 2021. In such case, would the answer of MCQ 1 and 2 be different? If yes, what would be the answer of MCQ 1 and 2?
(A) No, the answer of MCQ 1 and 2 would be the same
(B) Yes, the answer of MCQ 1 would change to (d) but the answer of MCQ 2 would be the same
(C) Yes, the answer of MCQ 1 would change to (d) and the answer of MCQ 2 would change to (b)
(D) Yes, the answer of MCQ 1 would change to (d) and the answer of MCQ 2 would change to (a)
Q4TDS on e-commerce transactions u/s 194O
0 marks hard
Case: Mr. Subhash is a retailer of car spare parts. He started his business in May, 2020. His turnover for the P.Y. 2020-21 was ₹10.50 crores. He generally purchases goods from Car accessories & Co. only. Car accessories & Co. manufactures and sells spare parts directly to the customers as well as through an e-commerce platform – CarParts.com. Car accessories & Co.'s turnover from the business for the P.Y. 2020-21 was ₹15 crores.
The relevant information of purchases made by Mr. Subhash in P.Y. 2021-22:
- Date of credit 15.05.2021 | Date of payment 02.06.2021 | Value without GST ₹40,00,000 | GST @1…
Are the provisions of tax deduction/collection at source attracted in respect of the transactions with CarParts.com? If yes, who has to deduct/collect at source and at what rate?
(A) Mr. Subhash is required to deduct tax at source on ₹12 lakhs @0.1%.
(B) Car accessories & Co. is required to collect tax at source on ₹12 lakhs @0.1%.
(C) CarParts.com is required to deduct tax at source on ₹12 lakhs @0.1%.
(D) CarParts.com is required to deduct tax at source on ₹12 lakhs @1%.
Q5TCS rate where PAN not furnished u/s 206CC
0 marks hard
Case: Mr. Subhash is a retailer of car spare parts. He started his business in May, 2020. His turnover for the P.Y. 2020-21 was ₹10.50 crores. He generally purchases goods from Car accessories & Co. only. Car accessories & Co. manufactures and sells spare parts directly to the customers as well as through an e-commerce platform – CarParts.com. Car accessories & Co.'s turnover from the business for the P.Y. 2020-21 was ₹15 crores.
The relevant information of purchases made by Mr. Subhash in P.Y. 2021-22:
- Date of credit 15.05.2021 | Date of payment 02.06.2021 | Value without GST ₹40,00,000 | GST @1…
If Mr. Subhash has not furnished his PAN to Car accessories & Co. but has furnished his Aadhar number, what would be the rate of TCS for the purpose of MCQ 2?
(A) 5%
(B) 1%
(C) 0.1%
(D) Car accessories & Co. is not liable to collect tax at source.
Q6Capital gains on property – stamp duty value, STCG and secti
0 marks easy
Ashiyana Developers has completed one of its housing projects in Gurugram in January, 2021 which comprises of 10 residential units. It has transferred 9 residential units in February, 2021 and remaining one residential unit in May, 2021 to Mr. Suraj. All the units were transferred by way of first time allotment. The consideration received from Suraj for the residential unit is ₹50 lakhs while the stamp duty value of the unit in May, 2021 is ₹57 lakhs. Due to some emergency in the family, Mr. Suraj was in urgent need of funds and he sold such residential unit to Mr. Prakash in December, 2021 for ₹53 lakhs. The stamp duty value of the unit was ₹61 lakhs in December, 2021. Determine the capital gain/income which is chargeable to tax in the hands of Mr. Suraj and Mr. Prakash from the above transactions for A.Y. 2022-23.
(A) In the hands of Mr. Suraj – STCG of ₹11 lakhs; In the hands of Mr. Prakash – ₹8 lakhs as income under the head 'Other sources'
(B) In the hands of Mr. Suraj – ₹7 lakhs as income under the head 'Other sources', STCG of ₹4 lakhs; In the hands of Mr. Prakash – ₹8 lakhs as income under the head 'Other sources'
(C) In the hands of Mr. Suraj – STCG of ₹11 lakhs; In the hands of Mr. Prakash – Nil
(D) In the hands of Mr. Suraj – ₹7 lakhs as income under the head 'Other sources', STCG of ₹11 lakhs; In the hands of Mr. Prakash – ₹8 lakhs as income under the head 'Other sources'
Q7Residential status – citizen of foreign country with Indian
0 marks easy
Mr. Rajesh, aged 53 years, and his wife, Mrs. Sowmya, aged 50 years, are citizens of Country X. They are living in Country X since birth. They are not liable to tax in Country X. Both of them have keen interest in Indian Culture. Mr. Rajesh's parents and grandparents were born in Country X. Mrs. Sowmya visits India along with Mr. Rajesh for four months every year to be with her parents, who were born in Delhi and have always lived in Delhi. During their stay in India, they organize Cultural Programme in Delhi-NCR. Income of Mr. Rajesh and Mrs. Sowmya from the Indian sources for the P.Y. 2021-22 is ₹18 lakhs and ₹16 lakhs, respectively.
What is the residential status of Mr. Rajesh and Mrs. Sowmya for A.Y. 2022-23?
(A) Both are resident and ordinarily resident in India
(B) Both are non-resident in India
(C) Mr. Rajesh is resident but not ordinarily resident in India and Mrs. Sowmya is non-resident
(D) Mrs. Sowmya is resident but not ordinarily resident in India and Mr. Rajesh is resident and ordinarily resident in India.
Q8ULIP taxability u/s 10(10D) – premium exceeding threshold
0 marks easy
Mr. A has taken two ULIPs. ULIP 'X' is issued on 1.1.2021 and ULIP 'Y' on 1.5.2021. The sum assured of ULIP 'X' and ULIP 'Y' is ₹30 lakhs and ₹40 lakhs, respectively. The annual premium paid by Mr. A during the P.Y. 2021-22 is ₹3 lakhs and ₹4 lakhs, respectively. What would be the taxability of the consideration received by Mr. A on maturity of both the ULIPs?
(A) Consideration received on the maturity of ULIP 'X' would be exempt u/s 10(10D) while the profits and gains from receipt of consideration on the maturity of ULIP 'Y' would be taxable.
(B) Consideration received on the maturity of ULIP 'Y' would be exempt u/s 10(10D) while the profits and gains from receipt of consideration on the maturity of ULIP 'X' would be taxable.
(C) Consideration received on the maturity of both ULIP 'X' and ULIP 'Y' would be exempt u/s 10(10D)
(D) The profits and gains from receipt of consideration on the maturity of both ULIP 'X' and ULIP 'Y' would be taxable.
Q9Scope of total income u/s 5 – resident vs non-resident
0 marks easy
From the following particulars of income furnished by Mr. Ashutosh, aged 65 years, pertaining to year ended 31.03.2022, compute the total income for the A.Y. 2022-23:
(i) Capital gain on sale of land in Jaipur to Mr. Ramesh, a non-resident, outside India. The consideration is also received outside India in foreign currency – ₹1,50,000
(ii) Rent from property in Delhi, let out to a branch of a foreign company. The rent agreement is entered outside India. Monthly rent is also received outside India – ₹1,20,000
(iii) Agricultural income from a land situated in Nepal, received in Nepal – ₹55,000
(iv) Interest on savings bank deposit in UCO Bank, Delhi – ₹18,000
(v) Income earned from business in London which is controlled from Delhi (₹35,000 is received in India) – ₹60,000
(vi) Gift received from his daughter on his birthday – ₹55,000
(vii) Past foreign taxed income brought to India – ₹37,000
(viii) Fees for technical services rendered to Shine, Ltd., a foreign company, for business outside India and received also outside India – ₹12,000
Q10Perquisite value of employer's RPF contribution u/s 17(2)(vi
0 marks easy
Mr. Sunil is the CEO of Sheetal Textiles Ltd. His basic salary is ₹6,00,000 p.m. He is paid 8% as D.A. He contributes 10% of his pay and D.A. towards his recognized provident fund and the company contributes the same amount. The accumulated balance in recognized provident fund as on 1.4.2020, 31.3.2021 and 31.3.2022 is ₹50,35,000, ₹71,46,700 and ₹94,57,700, respectively. Compute the perquisite value chargeable to tax in the hands of Mr. Sunil u/s 17(2)(vii) and 17(2)(viia) for the A.Y. 2021-22 and A.Y. 2022-23.
Q11Capital gain on slump sale u/s 50B – net worth computation
0 marks easy
Mr. Aditya is a proprietor of Star Stores having 2 units. On 1.4.2021, he has transferred Unit 2, which he started in 2004-05, by way of slump sale for a total consideration of ₹18 lakhs. The professional fees & brokerage paid for this transfer are ₹78,000. His Balance Sheet as on 31-03-2021 is as under:
Liabilities: Own Capital ₹20,50,000; Revaluation reserve ₹2,50,000; Bank Loan (70% for Unit 1) ₹8,50,000; Trade Creditors (20% for Unit 2) ₹4,50,000; Unsecured Loan (30% for Unit 2) ₹4,00,000; Total ₹40,00,000
Assets – Unit 1: Land ₹12,75,000; Furniture ₹2,00,000; Debtors ₹2,00,000; Total ₹16,75,000
Assets – Unit 2: Land ₹7,50,000; Furniture ₹5,00,000; Debtors ₹3,50,000; Patents ₹7,25,000; Total ₹23,25,000
Other Information:
1. Land of Unit 2 was purchased at ₹5,00,000 in the year 2004 and revalued at ₹7,50,000 as on 31.3.2021.
2. No individual value of any asset is considered in the transfer deed.
3. Patents were acquired on 01-12-2019 on which no depreciation has been provided.
4. Furniture of Unit 2 of ₹5,00,000 were purchased on 01-12-2020 on which no depreciation has been provided.
5. Fair market value of capital asset transferred by way of slump sale of Unit 2 is ₹18,10,000.
Compute the capital gain for A.Y. 2022-23.
Q12Clubbing of income – spouse's salary, minor child income, di
0 marks easy
Mr. Samrat and his wife, Mrs. Komal, holds 12% voting power each in ABC (P) Ltd. Mr. Samrat and Mrs. Komal are working in ABC (P) Ltd. However, Mrs. Komal is not qualified for the job. From the following information given in respect of F.Y. 2021-22, you are required to compute the gross total income of Mr. Samrat and Mrs. Komal for the A.Y. 2022-23:
(i) Dividend of ₹22,500 and ₹45,000 is received by Mr. Samrat and Mrs. Komal, respectively, from ABC (P) Ltd. Mr. Samrat has instructed the company to pay 50% of his dividend to Ms. Kajal, daughter of his deceased brother.
(ii) Salary earned by Mr. Samrat and Mrs. Komal from ABC (P) Ltd. is ₹8,50,000 and ₹5,50,000, respectively.
(iii) Business income earned by Mr. Samrat from his sole proprietary business is ₹15,60,000.
(iv) Interest on fixed deposit earned by Mrs. Komal of ₹9,00,000.
(v) Their son, Akash, aged 10 years having PAN, received interest of ₹54,000 from bank on a fixed deposit created by his grandfather in his name.
Q13Gross total income under section 115BAC – set-off and carry
0 marks easy
Mr. Rajesh, a resident individual, furnished the following information in respect of income and loss earned by him for the F.Y. 2021-22:
Income from Salary: ₹3,40,000
Long term capital loss on sale of shares of Reliance Ltd. (STT paid at acquisition and sale): (₹1,15,000)
Loss from let out property in Delhi: (₹75,000)
Interest on self-acquired property in Mumbai: (₹50,000)
Winnings from lottery tickets: ₹40,000
Cost of acquisition of lottery tickets: ₹10,000
Profit and gains from manufacturing business (after deducting normal depreciation of ₹10,000 and additional depreciation of ₹4,000): ₹96,000
Long term capital gains on sale of house property: ₹1,40,000
Brought forward losses and unabsorbed depreciation pertaining to A.Y. 2021-22:
Brought forward business loss from manufacturing business: (₹35,000)
Unabsorbed normal depreciation: (₹10,000)
Brought forward loss from the activity of owning and maintaining the race horses: (₹50,000)
Compute the Gross total income of Mr. Rajesh for the Assessment Year 2022-23 and the amount of loss, if any, that can be carried forward if he wants to opt for the provisions of section 115BAC for the first time.
Q14Total income and tax – regular provisions vs section 115BAC,
0 marks easy
Mr. Rishabh, a resident individual, aged 54 years, is engaged in the business of manufacturing clothes. He earned profit of ₹82,45,000 as per profit and loss account after debiting and crediting the following items:
(i) Depreciation: ₹15,40,000
(ii) Short term capital gains on transfer of listed equity shares in a company on which STT is paid: ₹10,00,000
(iii) He received income-tax refund of ₹15,550 which includes interest on refund of ₹4,550.
(iv) Dividend income from Indian companies: ₹15,00,000
Additional information:
(i) Mr. Rishabh installed new plant and machinery for ₹65 lakhs on 1.10.2021 which was put to use on 1.1.2022. Depreciation (including additional depreciation) on this amount of ₹65 lakhs is included in the depreciation debited to profit and loss account which has been computed as per Income-tax Rules.
(ii) Mr. Rishabh took a loan from SBI of ₹50 lakhs on 15.9.2021 @10.5% p.a. to purchase such plant and machinery. Total interest upto 31.3.2022 has been paid on 31.3.2022 and the same has been debited to profit and loss account.
(iii) Advance tax paid during the year is ₹17,50,000.
(iv) Rishabh purchased goods for ₹40 lakhs from Mr. Ram, his brother. The market value of the goods is ₹35 lakhs.
(v) He paid ₹40,000 as life insurance premium taken on the life of his married daughter who is not dependent on him. The sum assured is ₹5,00,000 and the policy was taken on 1.4.2016.
(vi) He paid ₹45,000 by cheque towards health insurance policy covering himself, his spouse and his children.
(vii) On 1.7.2021, Mr. Rishabh withdrew ₹1.5 crores in cash from three current accounts maintained by him with HSBC. There are no other withdrawals during the year. He regularly files his return of income.
You are required to compute the total income and tax payable by Mr. Rishabh for the A.Y. 2022-23, in the manner so that he can make maximum tax savings.
Q15Return filing obligation for resident with foreign bank acco
0 marks easy
Mrs. Shivani is a US Citizen. She got married to Mr. Sriram, an Indian citizen and resident of India, in the year 2015. Since then, she has been staying in India. She has a Bank account in US. She sold a residential house in US and earned a long term capital gain of ₹2 lakhs. She invested the whole sales consideration in Capital Gain bonds under section 54EC so that no long term capital gain is taxable. She does not have any source of income in India during the P.Y. 2021-22. Is she required to furnish her return of income? If yes, can she furnish a belated return?