Paper 11 Indirect Taxation MCQ: Multiple Choice Questions and Answers

 

CMA INTERMEDIATE EXAMINATION

Paper  11  Indirect Taxation 




Paper 11 Indirect Taxation Multiple Choice Questions and Answers

A. Choose the most appropriate alternative for the following  

(i) Renting of a marriage hall owned by a Trust registered under section 12AA of the Income-tax Act, 1961 is not exempt from GST where

a)         charges are more than Rs. 5,000 per day.

b)         charges are more than Rs. 1,000 per day.

c)          charges are more than Rs. 10,000 per day.

d)         None of the above.

(ii) 'Zero rated Supply' means

a)         export of goods or services or both.

b)         import of goods or services or both.

c)          supply of goods or services or both to a Special Economic Zone Developer or a Special Economic Zone Unit.

d)         export of goods or services or both and supply of goods or services or both to a Special Economic Zone Developer or a Special Economic Zone Unit.

(iii) The period prescribed for issuance of tax invoice in the case of provision of services is

a)         generally 45 days from the date of the supply of service (in case of Banking companies- 30 days from the date of supply).

b)         generally 30 days from the date of the supply of service (in case of Banking companies- 60 days from the date of supply).

c)          generally 30 days from the supply of service (in case of Banking companies - 45 days from the date of supply).

d)         30 days from the date of supply of service in all cases.

(iv) Annual Return shall be filed by

a)         every registered person.

b)         registered person having annual turnover of Rs. 2 crores and above.

c)          registered person having annual turnover of Rs. 1.5 crores and above.

d)         None of the above.

(v) In the common portal, every claim of input tax credit of a registered person shall be credited to

a)         Electronic Cash Ledger.

b)         Electronic Credit Ledger.

c)          Electronic Liabilities Register.

d)         Electronic Credit Register.


B. Choose the most appropriate alternative for the following  

(i) GST has replaced the following law(s):

a)         Customs.

b)         VAT.

c)          Central excise.

d)         Both (B) and (C).

(ii) GST is a __________________ based tax.

a)         origin.

b)         destination.

c)          territory.

d)         None of the above.

(iii) In IGST, I stands for

a)         Integrated.

b)         International.

c)          Inter-State.

d)         Indian.

(iv) The Chairperson of GST Council is

a)         Prime Minister of India.

b)         Finance Minister of India.

c)          Minister of State for Finance.

d)         None of the above.

(v) Under GST law the phrase 'Goods' does not include

a)         Actionable claim.

b)         Growing crops on the land agreed to be severed before supply.

c)          Money and Securities.

d)         None of the above.


C. Choose the most appropriate alternative for the following  

(i) Which of the following manufacturer cannot opt for composition levy?

a)         Manufacturer of pan masala.

b)         Manufacturer of ice-cream.

c)          Manufacturer of tobacco substitutes.

d)         All of the above.

(ii) GST is payable in respect of services rendered to an employer by an employee on

a)         regular basis in the course of employment.

b)         contract basis not in the course of employment.

c)          Neither (A) nor (B).

d)         Both (A) and (B).

(iii) Which of the following shall not be included in value of supply?

a)         Commission.

b)         Late fee or penalty for delay.

c)          GST.

d)         Interest.

(iv) Where a person becomes liable to get registered under GS T law, he should furnish application for registration within -------------- days

a)         15.

b)         30.

c)          60.

d)         90.

(v) Following taxes are levied in interstate supply of goods under GST law:

a)         CGST only.

b)         SGST and IGST.

c)          IGST and CGST.

d)         IGST only.


D. Choose the most appropriate alternative for the following  

(i) Sale under CST Act includes a transaction in the nature of/a delivery of goods on __________ .

a)         job work.

b)         hypothecation.

c)          hire purchase.

d)         pledge.

(ii) MRP of Rs. 80 is printed on an excisable product sold in the State of West Bengal and Rs. 84 for rest of India. The assessable value adopted for the purposes of central excise will be

a)         As per MRP for the sales in respective States.

b)         Rs. 84.

c)          Rs. 82.

d)         Rs. 80.

(iii) The selling price of machinery is Rs. 10,000. The product attracts Basic Excise Duty @ 12.5% and CST @2%. What would be the CST payable?

a)         225.

b)         200.

c)          196.

d)         221.

(iv) Central Excise Revenue Audit conducted by the _____________ .

a)         C & AG.

b)         Excise department.

c)          Cost Accountant.

d)         Chartered Accountant.

(v) Name the product not eligible for SSI exemption under Central Excise:

a)         Sugar.

b)         Computer.

c)          Watches.

d)         Bicycle.

(vi) Sources of Service tax are

a)         Finance Act, 1994.

b)         CBEC Circulars.

c)          Notifications issued by the CBEC.

d)         All three above, besides others.

(vii)The inter-state turnover as per books of Achaya is Rs. 12 lakhs. The same includes freight charges of Rs. 1.2 lakhs, not shown separately in the invoices. The total turnover of the assessee as per the CST Act is (` Lakhs):

a)         10.2.

b)         10.8.

c)          12.

d)         None of the above.

(viii)Assessable value of goods for customs purposes is

a)         Actual Value.

b)         Deemed Value.

c)          Standard Value.

d)         None of the above.

(ix) Which of the following is covered under Reverse Charge mechanism?

a)         Motor-cab hire charges.

b)         Directors remuneration.

c)          Commission.

d)         Telephone Charges.

(x) When the actual date of service was on 31st March, 2017 and invoice was raised on 10th April, 2017, what would be the point of taxation when the payment for the said service was received on 15th March, 2017?

a)         31st March, 2017.

b)         6th April, 2017.

c)          15th March, 2017.

d)         10th April, 2017.


E. Choose the most appropriate alternative for the following  

(i) Which of the following is not a consumption based tax?

a)         Value Added Tax (VAT).

b)         Central Excise.

c)          Service Tax.

d)         Central Sales Tax.

(ii) Who is not empowered to perform Special Audit u/s. 14A of the Central Excise Act?

a)         Cost Accountant.

b)         Chartered Accountant.

c)          Assistant Commissioner of Central Excise (Audits).

d)         None of the above.

(iii) The selling price of a motor cycle is Rs. 65,000. The product attracts Basic Excise Duty @ 12.5% and CST @ 2%. What would be the assessable value of the product under the Central Excise Act?

a)         56644.88.

b)         74587.50.

c)          56277.06.

d)         None of the above.

(iv) What is the frequency of filing returns under Central Excise by a Small Scale Industry?

a)         Bi-monthly.

b)         Monthly.

c)          Quarterly.

d)         Half-yearly.

(v) Name the product which is not eligible for CENVAT Credit.

a)         Raw material.

b)         Furnace oil.

c)          Diesel for generation of electricity.

d)         None of the above.

(vi) Which of the following is levied in lieu of Central Excise Duty on import of goods?

a)         Safeguard Duty.

b)         Counter Veiling Duty (CVD).

c)          Special Additional Duty.

d)         Anti-dumping Duty.

(vii)What would be the value of household article a person can bring without payment of customs duty, when he has stayed abroad for 18 months and shifting his residence to India?

a)         Rs.60,000.

b)         Rs. 1,00,000.

c)          Rs. 2,00,000.

d)         Rs. 5,00,000.

(viii)Which of the following services is covered under Reverse Charge Mechanism?

a)         Chartered Accountants Service.

b)         Cost Accountant Service.

c)          Legal Service.

d)         Information Technology Software Service.

(ix) Which of the following persons can pay service tax on Receipts Basis, if the value of taxable services is Rs. 50 lakhs or less in the previous financial year?

a)         Company.

b)         Hindu Undivided Family.

c)          Limited Liability Partnership (LLP).

d)         None of the above.

(x) VAT Rate of Computer, if sold within Tamil Nadu, is 5%. If the product is sold to an unregistered buyer in Kerala, the CST rate will be

a)         Nil.

b)         2%.

c)          5%.

d)         10%.