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
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
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
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
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