Paper 11 Indirect Taxation True or False with answer

Abhimaynu Sah

 

CMA INTERMEDIATE EXAMINATION

Paper  11  DIRECT TAXATION


Paper 11 Indirect Taxation True or False

A. State whether the following are True or False                          


1)  Under GST the phrase "Aggregate Turnover" includes exempt supplies also. True

2)  A person can issue normal tax invoice in respect of supplies which were suppressed by him and are detected by the GST officers subsequently. False

3)  GST is payable once registered even if the turnover is less than the prescribed limit. True

4)  A registered person under GST law gives a free spoon along with every soap purchased. This is a case of composite supply under GST law. False

5) Buying and selling of second hand goods is not subject to GST. False


B. State whether the following are True or False                          


1)  When goods are imported into India, CGST is levied. False

2)  The highest rate of tax levied under IGST is 28%. True

3)  GST will not abolish all the indirect taxes levied in India. True

4)  GST threshold limit for North-Eastern and hilly states is Rs. 25 lakhs. False

5)  Goods are classified in the GST regime in India using SAC code. False


C. State whether the following are True or False                          


1) The scope of supply of goods or services or both includes, inter alia, sale, exchange and lease. True

2) A person of Tripura is eligible to opt for composition levy provided his previous year turnover (aggregate) exceeds Rs.75 lakh. False

3) A registered person under GST law gives a free spoon along with every soap purchased. This is a case of composite supply under GST law. False

4) Under GST law, every registered person whose aggregate turnover during a financial year exceeds Rs.2 crore has to get his accounts audited by a chartered accountant or a cost accountant. True

5) Input credit can be claimed for machinery purchased and sent directly to a job worker registered under the tax payer. True


D. State whether the following are Correct or Incorrect


1)  Service provider providing services under the brand name of other can claim Small Service Provider Exemption. Incorrect

2) MRP valuation shall apply to goods covered under MRP valuation scheme even if they are supplied in bulk quantity not intended for retail sale. Correct

3)  Outsourced manufacturing unit can act as an Input Service Distributor. Correct

4) Taxable event in case of import of goods, under customs, is the date of entry into Indian Territorial Waters. Incorrect

            5) A dealer dealing with works contract is liable to pay VAT on the value of materials transferred while executing the contract. Correct                          

E. State whether the following are Correct or Incorrect                          

a) Goods are classified under Central Excise Tariff Act based on 'Historic System of Nomenclature (HSN)'. Incorrect

b)  Free samples are exempt from Central Excise Duty. Incorrect

c)  Cenvat Credit on input services can be used for payment of service tax by a person engaged in construction of complex service claiming abatement. Correct

d)  Goods Transport Agencies (GTA) shall neither register under service tax rules nor pay service tax as the services provided by them are covered under Reverse Charge. Incorrect

e)  Service Tax and VAT are mutually exclusive. Correct

                     


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