Mohd Rafi

099400 78723

TEST PAPER FOR JUNE 2011 ICWAI - INTER

APPLIED INDIRECT TAXATION
CENTRAL EXCISE
Objective -Type Questions: Q1. Fill in the blanks : (i) Goods covered by Central Excise Tariff but fully exempt from duty are _EXCISABLE_______ . (excisable/not excisable) (ii) SSI units whose turnover exceeds Rs. ___90 Lakhs______ per annum have to furnish declaration inprescribed form for Central excise purposes. (iii) Compressing and bottling gas ____is not_____ (is/isnot) manufacture. (iv) Affixing brand name, labelling or re-labelling and repacking from bulk pack to small pack of readymade garment ___is_____ (is/is not) manufacture. (v) Cenvat credit ____can_____ (can/can not) be utilised for payment of service tax on output service. (vi) In case of Central Excise and Customs, appeals must be filed within ____60____ days from the date of communication of order. (vii) Job work done under Cenvat provisions ____is______ (is/is not) exempt from service tax.

Q2. State with reasons, whether True or False : (i) Cenvat credit on capital goods can be availed in full in the year of purchase. (ii) Wastes and scrap are always treated as excisable goods. (iii) Excise duty is payable on all sample, even if given free.

(ii) False: waste and scrap will not be excisable unless it is specified in the Central Excise Tariff Act.Mohd Rafi Answer to the question no. (ii) CETA specifies some _____process____ (process/operations) as amounting to manufacturer. Hence. even if these are given free.e. Answer to question no. such refund of duty to the . Up to 50% in the year of purchase and balance 50% in the next year or years. Q3. Writes notes on Doctrine of unjust enrichment in case of refunds under Central Excise and Customs? Answer to Q 1. ‘Unjust Enrichment’ It means the assessee gaining double benefits under the law out of one transaction. and Excise must be ____movable_____ (movable/immovable) and Q4. Example 1: X Ltd. Subsequently X Ltd. 1985. manufactured and sold goods to its buyer by collecting excise duty.f. (iii) Processing can amount to manufacture if a ___new________ (new/existing) _____identifiable_______(identifiable/similar) product known in the market emerges. This will be said to be manufactured ___even if______ (even if/unless) as per court decisions they do not amount to manufacture. State with reasons. 4: False: Brand name owner is not the manufacturer Descriptive & Practical Questions : Q1. Fill in the blanks : (i) Goods under Central ___marketable______ (marketable/packaged). claimed refund of excise duty for the same transaction. whether true or false : Brand owner is considered as manufacturer under Central Excise.2: 099400 78723 (i) False: Cenvat credit on capital goods has to be availd in two stages. (iii) True: Excise duty has to be paid on all samples if fully manufactured. 1-4-2010 can avail the Cenvat Credit on capital goods in full in the year of receipt. Note: SSI units w.

collected the excise duty and not remitted to the department of Excise.Mohd Rafi 099400 78723 manufacturer will amount to excess and un-deserved profit. Note: Finance Act 2009. amendment of Section 14A and 14AA. (b) Who can conduct such audit? [Ref : Q6. 1944.”. (2) Only a practicing Cost Accountant or Chartered Accountant can carry out the audit. Finance Act 2009. provisions in respect of ‘unjust enrichment’ were incorporated under Central Excise Act. This is called as ‘unjust enrichment’ Example 2: Y Ltd.”. claimed the Cevnat credit of excise duty and duty drawback. Unjust Enrichment) it should be transferred to a Consumer Welfare Fund instead of paying it to the assessee. Where refund is due (i. 1944 which will be applicable even for Service Tax and Customs duty. (5) The expenses and fees for conducting the audit shall be paid by the Excise department to the Cost auditor. (c) Who can order such audit? Answer Q2 (c): The authority for ordering the CENVAT Credit Audit is the Commissioner of Central Excise. Thereby. This is called as ‘unjust enrichment’. .e. amendment of Section 14AA. Q2. the words “cost accountant or chartered accountant” shall be substituted. This is known as ‘unjust enrichment’ Example 3: Z Ltd. (a) What is special Audit under section 14AA of CEA? (cenvat credit Audit) Answer Q2 (a): CENVAT Credit Audit (Section 14AA of Central Excise Act) (1) The authority for ordering the CENVAT Credit Audit is the Commissioner of Central Excise. for the words “cost accountant. (4) The Cost Accountant or Chartered Accountant has to submit his audit report within the time specified by the Commissioner of Commissioner of Central Excise. the words “cost accountant or chartered accountant” shall be substituted. Dec ’08 / Paper-10] 3 Answer Q2 (b): Practicing Cost Accountant or Chartered Accountant can conduct Cenvat Credit audit under Section 14AA of the Central Excise Act. (3) The Cost Accountant or Chartered Accountant has to be nominated by the Commissioner of Commissioner of Central Excise. (b). for the words “cost accountant.

20. 20. Under the scheme the manufacturer can exercise any one of the following two options: .000 x 80%) Cost of production = Rs. aggregate clearances) of a manufacturer does not exceeds Rs.966. 400 lakhs. 400 lakhs: It means the turnover is less than or equal to Rs. 2. (a) Determine the value of a product and excise duty payable on the basis of following data (i) Goods sold at Depot Price 20. Assume cost of production is 80% of the invoice price in above question.Ex.000 (i.e. 400 lakhs.e.40 (b) Complete AV under C . Answer Q3 (b): 80% of the invoice value = Rs.000 Freight from factory to Depot 500 Insurance 500 Octroi 1200 Star VAT 800 CE 16%.E.200 – 800 = Rs. Does not exceeds Rs.18. 16.V = Rs. If the previous year taxable turnover of a manufacturer is equal to Rs.16. SAH Cess 1% Answer Q3 (a): Assessable value = Rs. Write short note on Exemption to Small Scale Industry units.000 Total Excise Duty = Rs.600 (i. Assessable value) Q4. then such a manufacturer is also eligible to avail the benefit under the NT. 400 lakhs then he can in the current year claim the exemption benefits available to a SSI. Q3. Education Cess 2%. Answer Q4: If in a previous year the turnover (i. 17.Mohd Rafi (d) What is the time limit for submission of report? Answer Q2 (d): 099400 78723 The Cost Accountant or Chartered Accountant has to submit his audit report within the time specified by the Commissioner of Commissioner of Central Excise.e. if the goods are used for captive consumption.600 Total A. 8/2003 C.000 = Rs. 1.000 – 1.000 Add: 10% on 16.

The exporter while filing the shipping bill has to declare that exports are under DEPB scheme. Do not seek exemption. the exporters are allowed a duty exemption pass book credit against exports. [Ref : Q3. Meaning of “accessory” for excise duty purpose. It is a post-export scheme. June ’09 / Paper-10] 5 Answer to Q7: Valuation Audit (Section 14A of Central Excise Act) (1) Deputy Commissioner of Central Excise or Assistant Commissioner with prior approval of Chief Commissioner can order the Valuation of Assessable Value. (2) Audit has to be done by a qualified Cost Accountant or Chartered Accountant (3) The Cost Accountant has to be nominated by the Chief Commissioner (4) The maximum time limit for submission of such cost audit report is 180 days from the date of receipt of cost audit order by the manufacturer (5) The expenses and audit fees shall be paid by excise department to the cost auditor. 1944. (d). 150 lakhs. 150 lakhs pay excise duty and claim CENVAT credit on inputs. the exporters are issued DEPB licence which can be used for payment of Customs duties on any imports Q7. Answer to Q5. convenience of effectiveness of something else. 14A of Central Excise Act. pay full duty and claim CENVAT credit on inputs Q5. (6) The auditor is required to find:    Whether the assessable value of goods manufactured by the assessee is correct Whether classification of goods has been done correctly Wherever certification is required and whether such certification has been obtained Whether the cost of production shown in the cost sheet is in accordance with the Cost Accounting Standard 4 issued by the Institute of Cost and Works Accountants of India . Q6. Based on the proof of export. Answer to Q6: Under the DEPB scheme. For turnover in excess of Rs. Accessory means an object or device not essential in itself but adding to beauty.Mohd Rafi Option 1: Option 2: 099400 78723 Claim exemption upto a turnover of Rs. Duty Entitlement Pass Book (DEPB) scheme. Special Audit as per S.

4. Determine the assessable value under Central Excise Law from the following details : Cost of raw material supplies Rs. 20 on each packet. A Ltd. After completing the job-work. Explain the provisions relating to cenvat credit on goods. 5. the finished product of 5.000 packets are returned to A Ltd. Valuation as per Rule 10A: Job Work Where the goods are sold by the principal manufacturer for delivery at the time of removal of the goods from the factory of the job worker.000 Job worker’s charges including profit Rs.000 packets x Rs 20 x 60%) Q10.000 Transportation charges for returning the finished packets to A Ltd. Answer to Q8: Job worker means a person engaged in the manufacture of production of goods on behalf of principal manufacturer. and the price is the sole consideration for the sale. then the value of the excisable goods shall be the transaction value of the said goods sold by the principal manufacturer Q9. from any inputs or goods supplied by the said principal manufacturer or by any other person authorized by him. 9. supplies raw material to a job worker J Ltd.000 Answer to Q9: Assessable value = Rs. Rs. services and capital goods under Central Excise.000 Transportation charges for sending raw material to the job worker Rs. Who is a job worker? State how is value determined when the goods are manufactured on job work basis. 28. putting the retail sale price as Rs.e.Mohd Rafi Whether raw material shown in the purchase book matches with the purchase invoice 099400 78723 Q8. The product in the packet is covered under MRP provisions and 40% abatement is available on it. and where the principal manufacturer and the buyer are not related. 4. 60.000 (i. Answer to Q10: Goods: Any input .

000 ———— . are never capitalized in accounts for income-tax purposes but are defined as capital goods for CENVAT. 00. SAH Education Cess Rs. 2008.000 1.000 ———— 2.Mohd Rafi   which is used “in the manufacture” or which is used “in relation to manufacture” 099400 78723 is an eligible input. An assessee cleared various manufactured final products during June. 00. Education Cesses—as applicable. Excise duty paid on capital goods received during the month was as follows : Basic duty Rs. if assessee had no opening balance in PLA account? What is last date for payment? Answer to Q11: Excise duty liability for the month of June 2008 Particulars On final product Duty payable Input tax credit On other than capital goods 50. tools.000 ———— SAH 2. Q11. Services: “Input service” means any service used by a provider of taxable service for providing an output service or used by the manufacturer. Items like spare parts. During the month.00. he received various inputs on which total duty paid by suppliers of inputs was as follows : Basic duty Rs. 100.000. 200. Capital goods: The term “Capital goods” under CENVAT Rules is DIFFERENT from capital goods as understood in accounting or in income-tax.000.000. The duty payable for June.000.000.000 ———— 2. whether directly or indirectly in or in relation to the manufacture and clearance of final products from the place of removal. 240. dies. SAH education CEss Rs. 50.000 ———— 4. 1.000 500 BED 2. 120. 10.000 ———— ST ———— ———— Cess 4. Education Cess Rs. How much duty the assessee will be required to pay by GAR-7 challan for the month of June 2008. tubes fittings etc. 2008 on his final products was as follows : Basic Rs. SAH Education Cesss Rs. 12. 500. Service Tax paid on input services was as follows : Service Tax Rs. Education Cess Rs. 2. Education Cess Rs.

The concession under Customs Act for person who is transferring his residence to India whereby he is eligible to bring used personal and household articles to India without duty is applicable to Indian residents returning from overseas after 2 years but not available to foreigners. Fill in the blanks : General Free Allowance (GFA) under Customs Act is __not allowed________ (allowed/not allowed) on unaccompanied baggage. GFA is ___allowed_______ (allowed/not allowed) on alcoholic liquor or wines up to two litres.000 10.34.320 ———— 2.680 099400 78723 60 100 ———— 660 ———— 1. Answer to Q4: False: A person who is transferring his residence to India is eligible to bring used personal and household articles to India without duty.000 ———— 1. Beyond _____200_____ (100/200) nautical miles is High Seas. Q4.000 ———— 56. Q2.Mohd Rafi On capital goods On input services CENVAT Credit Net duty payable (Rs.000 ———— 120 200 ———— 1. .340 CUSTOMS LAWS Objective -Type Questions : Q1.e. The provisions are applicable to all (i. foreigners coming for residing in India as well as Indian resident coming after 2 years and who is transferring his residence to India).000 ———— 10. Fill in the blanks : Exclusive economic zone extends to ___200_______ (200/300) nautical miles from the base line of the coast.) 6. Fill in the blanks : Basic Customs duty is levied under section _____12_____ of the Customs Act. Q3.

72. Briefly explain the procedure for assessment and clearance of imported goods through a customs sea port under the Customs Act.000.Mohd Rafi Descriptive & Practical Questions : 099400 78723 Q1. 20. Education cess is as applicable.523/If the buyer is the manufacturer is eligible to avail Cenvat credit the following duties CVD Rs.36. 1. Basic customs duty payable is 10%.635 . 4. How much Cenvat can be availed of by importer if he is manufacturer? Answer to Q2: Total Customs Duty is Rs. Answer to Q1: The entire import procedure has been explained in the following lines GOODS SHOULD ARRIVE AT CUSTOMS PORT PERSON IN CHARGE OF CONVEYANCE IS REQUIRED TO SUBMIT IMPORT GENERAL MANIFEST/IMPORT REPORT GOODS CAN BE UNLOADED ONLY AFTER GRANT OF ENTRY INWARDS IMPORTER HAS TO SUBMIT BILL OF ENTRY GOODS ARE ASSESSED TO DUTY GOODS CAN BE CLEARED FROM PORT AFTER OUT OF CUSTOMS CHARGE ORDER IS ISSUED BY COUSTOMS OFFICER Q2. Find the customs duty payable. excise duty would have been 16%. Customs value (Assessable value of imported goods) is Rs.00. 1962. CVD Rs.512 Spl. Special CVD is at appropriate rates. If the goods were produced in India.

However. Q4. the market price of which is less than the amount of drawback due thereon. Answer to Q5. 1962 and the rules and regulations thereunder are same as applicable to any imported goods.00. they shall be entered in the like manner as the goods are entered on the first importation and they are governed by the Customs Act. What do you understand by transit and transhipment of goods? Under what conditions do they enjoy exemptions from duty under the Customs Act. Also state the amount of credit available to the importer. Answer to Q4: Customs duty payable is Rs. if the goods have already suffered the customs duty then duty drawback is allowed to the extent of customs duties. (b) If the Central Government is of the opinion that goods of any specified description in respect of which drawback is claimed under this Chapter are likely to be smuggled back into India. eductioan cess is 2% and secondary and higher education cess is 1% on duty. 1. If the goods arrive at such customs station in India as ultimate destination. then    these goods are examined and assessed to pay duty.600 Note: Cenvat credit is Nil for the importer. Central Excise Duties and Service Tax Drawback Rules. 1995. (d) Duty drawback is not allowed if the exporter has already availed the Duty Entitlement Pass Book (DEPB) or other export incentives.Mohd Rafi 099400 78723 Q3. Duty drawback shall not be allowed in the following circumstances (a) In respect of any goods. (c) CENVAT credit claim is on inputs and input services then no duty drawback is allowed. No additional duty of customs is chargeable on such goods u/s 3(5) of the Act. The assessable value of an imported items is Rs. 1962? Answer to Q3: Transit or Transhipment of goods ultimately reaches their destination. Basic customs duty is 20%.000. Compute the amount of customs duty payable. . 20. Q5. if it is in India then all provisions governing for imported goods also applicable for these goods. where all the industry Drawback rates will not apply. Mention briefly any five illustrative cases under the Customs. (e) If the sale proceeds not received within the time period allowed by Reserve Bank of India.

Rate of Duty Drawback should not be less than 1% of Free On Board. in case rate of Duty Drawback is less than 1% of FOB. Answer to Q3. Fill in the blanks : A secondary and higher education cess of ___1%_______ (1%/2%) has been imposed on services liable to service tax under the Finance Act. whether True or False : In case of delayed payment of service tax the assessee has to pay simple interest @13% for the period for which the payment is delayed. As per Rule 7 of Drawback Rules the special brand rate of duty drawback can be applied based on the satisfaction of following conditions:      Exporter has to apply for fixation of special brand rate within 30 days from the date of export. All industry rates do not cover 80% of the duties paid by the exporter. Fill in the blanks : Finance Act. 2007. 1994 for the period for which the payment is delayed. SERVICE TAX Objective -Type Questions : Q1.Mohd Rafi 099400 78723 Q6. Write notes on Special Brand Rate. Q3. 500 per shipment. under Section 75 of the Finance Act. Answer to Q6. State with reasons. Exported goods value is more than the value of imported goods.a. Ture: there is mandatory payment of simple interest at the rare of 13% p. 1994 which contains provisions relating to service tax ____does not______ (does/does not) provide for criminal liability in service tax matters. Amount of Drawback should not be less than Rs. . Q2.

State the provisions relating to general exemption available to small service providers. (b)(ii). State briefly the provisions for valuation of taxable services for charging Service Tax. Write notes on Appeals under service tax. Appeals to the Customs Excise and Service Tax Appellate Tribunal(CESTAT): Within 3 months from the date of receipt or order by the assessee or Commissioner as the case may be. and any amount credited or debited. Further period of 3 months can be extended.Mohd Rafi Descriptive & Practical Questions : Q1. deduction from account and any form of payment by issue of credit notes or debit notes and book adjustment.e. The High Court may admit an appeal beyond 180 days.  Gross value of services includes value of taxable services plus service tax thereon. 1994 contains the following provisions for Valuation of Taxable Services for Charging Service Tax :  Service tax chargeable on any taxable service with reference to its gross value on receipt basis. The High Court may admit a memoran-dum of cross objections after the expiry of the relevant period (i. 10.  Where the gross amount charged by a service provider. as the case may be. Dec ’08 / Paper-10] 5 Answer to Q1: 099400 78723 Appeals to the Commissioner (Appeals): Within 3 months from the receipt of the order. valuation will be on basis of valuation rules  “Gross amount charged” includes payment by cheque.00. The Tribunal can condone the delay in filing cross objections beyond 45 days. Cross objection can be file within 45 days from the date of receipt of Notice of filing the appeal from Tribunal. . Answer to Q2: The Small Service Provider whose turnover of all taxable services from one or more premises does not exceeds Rs. 10. credit card.  Where the gross amount charged for the taxable service shall include any amount received towards the taxable service before.000 during the previous year. Section 67 of the Finance Act. in the books of account of a person liable to pay service tax. whether called “Suspense account” or by any other name. Answer to Q3. then no service tax in the current year on receipt basis upto Rs. to any account. where the transaction of taxable service is with any associated enterprise. during or after provision of such service.  Where consideration is not ascertainable. [Ref : Q3. 45 days) Appeals to the Supreme Court: Within 60 days from the date of the order or TRIBUNAL or HIGH COURT received. Q2.000. Q3. The Tribunal can condone the delay in filing appeal beyond 3months. for the service provided or to be provided is inclusive of service tax payable.00. Appeals to the High Court: Within 180 days from the date of order of Tribunal received by the commissioner or assessee.

it has provided taxable services valuing Rs. Service Tax Registration is required if —  the taxable turnover of the service provider during the previous year exceeds Rs. Outline the provisions relating to registration under service tax.5 lakhs. Invoice should be issued within 14 days from the date of completion of taxable service or receipt of any payment towards value of taxable service.30%) . Rs. Ltd. What is the exemption available to exporter of service from service tax? Answer to Q5: A service provider can export services without payment of service tax. Explain ‘Export of Services’ under service tax.287. Registration is not required if the service provider's taxable turnover is less than Rs. ABC Co. 8. During 2010-11. 8 lakhs during the financial year 2009-10.e.  the service receiver is liable to pay service tax being recipient of service under Reverse Charge. Answer to Q6: Service tax = Rs. 10 lakhs and has received payments towards payable services Rs. It has also received services in the nature of transport of goods by road valuing Rs. 50. for the financial year 2010-11. For this he has to satisfy the following two conditions:   The services to be provided from India and used outside India [Rules 3(2) of Export of Services Rules] Payment for such service is received by the service provider in convertible foreign exchange [Rule 3(2)(b) of Export of Services Rules] Service tax not applicable on export of services Q6. or  the service tax provider is acting as an input service distributor irrespective of his turnover. whichever is earlier. 9 lakhs during the previous year.000 x 25% x 10. 1.50 (i. 9 lakhs. Answer to Q4: Registration under Service Tax Any person liable to pay service tax has to register with the Superintendent of Central Excise within 30 days from the date of commencement of the business of providing taxable service. It is advisable to register in the same year in which taxable services of the service provider is likely to exceed Rs. Q5. 9 lakhs. payable by ABC Co. It is given that goods transport service is exempt to the extent of 75% of value thereof.Mohd Rafi 099400 78723 Q4. Ltd. provided services valuing Rs. Compute the service tax. in respect of which it is the person liable to pay service tax.000. if any. 50.

the power giving surety bond becomes insolvent or dies. the death must be informed to the registering sales tax authority within 30 days and provide fresh surety bond or security with 90 days. State with reasons.e. include newspapers. 50. however. no sales tax will be levied on sale of news papers (ii) Development of software for marketing Answer to Q1(ii): . If the surety. Any transaction in connection with or incidental or ancillary to such trade. articles or commodities and all kinds of movable property. commerce or manufacture or concern. Q2.000 exclusive of Service Tax. Objective -Type Questions: Q1. The term does not. Answer to Q2: True: Any trade. Descriptive & Practical Questions : Q1. commerce or manufacture or concern with or without profit. State with reasons whether sales tax will be levied on the following (any two) : (i) Sales of newspapers Answer to Q1(i): Goods include all materials.Mohd Rafi Note: it is assumed that Freight charges of Rs. Hence. whether True or False: Security demanded from dealer under the Central Sales Tax Act. i. whether True or False : Under Central Sales Tax Act. 1956 can be satisfied in the form of Security Bond. State with reasons. Answer to Q1: True: The Security may be in the form of “surety bond”. for an activity to be classified as business profit motive is immaterial. 099400 78723 CENTRAL SALES TAX ACT & VAT ACT.

2% Invoice No. 3 dt. Therefore.T. 11 Rs. 2 dt. however. Q2. 15th October. articles or commodities and all kinds of movable property.S. The copyright in the programme may remain with originator of programme but the moment copies are made and marketed. 1956 gives taxable turnover. The term does not.500 tax not shown Invoice No. include stocks. Answer to Q2: The tax to be levied on turnover of a dealer and the turnover so calculated in accordance with the provisions of section 8A of CST Act. 20.S. 31st October. 11 Rs. 5 dt. . 51.T. Invoice No. 11 Rs.T. shares or securities. Following deductions can be made from the sale price to arrive at taxable turnover: Cash discount Cost of installation Discount (cash/trade) Insurance charges (buyer) Goods returned (within six months) Goods rejected = = = = = = xxxx xxxx xxxx xxxx xxxx xxxx Q3. are goods. 1 dt. Lotus etc. Compute Turn over and C.000 + C. Write short note on taxable turnover. they become goods. A Dealer effected following inter state sales during 2nd quarter of 2011. Date Value in Rs. 20. 70.Mohd Rafi 099400 78723 In Tata Consultancy Services it has been held that computer software packages sold off the self like Oracle. more necessary assumption. Goods worth 5. no central sales tax on sale of stocks. 15th August. CST in Rs. 1st August. Answer to Q3: Invoice No.000 exclusive of Tax were returned from Invoice No. 15. (iii) Shares and debentures Answer to Q1(iii): Goods include all materials.T.000 + T 2% Invoice No. shares or securities. 4 within 6 months. 11 Rs. 31st August. 11 Rs.000 + 2% S.000 + 2% S. 4 dt. Gross Value in Rs. Invoice No.

400 71. Q5. are cognizable mention a few.400 1.100) 1.490 15. Appeal should be normally decided within 6 months from the date of acceptance of the appeal.000 20.010 300 400 (100) 3. Delay up to 60 days can be condoned by Appellate Authority.410/-.410 20.000) 1.400 51. F and so on Where registration under CST is compulsory but not got registered False representation Collecting taxes in contravention of provisions of the Act.000 70.T.900 099400 78723 CST payable is Rs.Mohd Rafi 1 2 3 4 5 1st Aug 11 15th Aug 11 31st Aug 11 15th Oct 11 31st Oct 11 Returns within 6 months Total 20. 5. Offences under C.490 400 1. The following offences are called as cognizable offences     Providing false declaration in Form C.000.000 50. E II. Answer to Q4: Cognizable offences means a police officer can arrest the person without warrant. .300 20. A fee for filing appeal is Rs. Q4. Note: It is assumed that Buyer issued Form ‘C’. Appellate Authority can grant stay to operation of order of highest authority of State.S.500 15. Answer to Q5: Appeal should be filed within 90 days from the date on which order is served on dealer.70. Write short notes on Appeals to appellate authority under CST Act. against which appeal has been filed before it.400 (5. 3. E I.000 (5.73.

000. (b) Invoice No.000 2.08.200. 2.400 Taxable Turnover (Rs.400 (tax not shown separately). if the buyers did not issue C Form? Answer to Q6: Statement showing total turnover. 52.323) 50. 800 i.200 31.00. 26. 2008 : Rs.e. 31.077 8.400 x 4/104 = Rs.323 323 8. 50.) Workings 5th July 2008 13th Aug 2008 18th Sep 2008 27th Sep 2008 Sub-total Less: sales return within six months from the date of sale Net amount 4. (a) Invoice No.12.) 1. Total Rs. 2B dated 27th September.08.200 x 4/104 = 1.) 1.200 2. 2008 : Rs. 4.000 8.000 x 4% = 2.000 (31.400 8. 25 26 27 28 Total Turnover (Rs. 2008 : Rs.000 x 4%= 800 1.e. Total Rs. dated 13th August. taxable turnover and central sales tax payable for the quarter July 2008 to September 2008: Date Invoice No.077 Central Sales Tax payable (Rs.200 2.200 – 1. What is the turnover and what is tax payable. Rs.400 x 4/104 = Rs. 1. 2008.000 plus tax @ 4% Rs.000 50.800. Sales Tax rate is 4% if goods are sold within the State. 25 dated 5th July.Mohd Rafi 099400 78723 Q6. Goods returned within 6 months were Rs.000 20.400 52.077 (1.000 20.400 – 4.200 8. Tax not shown separately. 8. 20.08. (c) Invoice No. 323 2.000 800 20.12.000.12.323 1.000 30.16.000 plus tax @ 4% i.323 2. 27 dated 18th September.12. 20. (d) Invoice No. 2008 : Rs. What is the impact of VAT on CST? Answer to Q7: . 2008-September.400 (inclusive of taxes). A dealer effected following inter-state sales during the quarter July.800 31.000 Q7.

only restricted input credit will be given. Answer to Q8: Difference between Zero Rated Sales and Exempted Sales Zero Rated Sales (1) (2) (3) (4) VAT @ 0% ITC can be availed Refund available Dealer in the VAT Chain Exempted Sales VAT @ NIL No ITC on inputs No refund at all Dealer is out of VAT Chain ---. Distinguish ‘zero rated sale’ and ‘exempt sale’ with reference to VAT. It means up to @2% tax paid on inputs ITC not allowed.Mohd Rafi The impact of VAT on CST:   099400 78723 If goods are purchased from another state. If goods are sent to another State on stock transfer basis. Input Tax Credit (ITC) of CST paid in other state will not be granted by the State where the goods are consumed or sold. Q8.END ---- .

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