Hyderabad Chapter of SIRC

CA FINAL
IDT
Crash Course Practical

I. What goods are kept out of GST levy?

2. From the following ‘List’, Tick the levies of state government that are subsumed in GST levy:

a) Central sales tax

b) Value added tax
c) Entertainment tax
d) Luxury tax
e) Expenditure tax
f) Tax on Agriculture
g) Purchase tax
h) Octroi
i) Entry tax
j) State Excise duty
k) Toll tax
l) Tax on house property and Land
m) Registration charge/fee
n) Water and sewerage tax
o) Education cess
p) Secondary Education cess
q) Swatch Bharath Cess
r) Krishi Kalyan Cess
s) Infrastructure Cess

3. State the activities without any consideration that attracts GST.

4. Which of the following is supply of ‘goods’ and which supply of ‘service’?

a) Transfer of business assets by a person and no longer has it formed part of business assets
b) Transfer of goods with right to use
c) Transfer of goods without right to use
d) Works contract
e) Supply of articles of food and beverages by a Club to its’ members
f) Temporary transfer of trade mark
g) Leasing of capital goods
h) Renting of immovable property
i) Supply of goods
j) Lease of building
k) Supply of goods for processing
l) Job work

5. Which of the following neither supply of ‘goods’ or ‘service’?

 a) Construction of residential complex
b) A person employed in an organization
c) Salary paid to Managing Director
d) Sitting fees paid to Director
e) Fee paid to Supreme Court to file appeal
f) Sale of land
g) Sale of Lottery Ticket
h) Stake in World cup betting
i) Sundry Debtors
j) Income of RBI Governor
k) Amount received by Chief Vigilance Officer from government
l) Salary received by MP

6. Determine the Transaction value and GST (CGST & SGST) payable from the following information:

Basic price: Rs.1700/unit

GST Rate: 18%
Trade Discount: 6%
Cash Discount: 1%
Volume Discount: Half a percent.

7. Are the following elements includable in the transaction value of supply of goods or service under
CGST Act?

a) Packing cost
b) Commission
c) Year ending Discount
d) Over riding commission
e) Breakage allowance
f) Interest on delayed payment
g) Subsidy linked to price
h) Stamp duty
i) Entertainment tax
j) CGST, SGST & UTGST
k) Registration fee
l) Excise duty on Alcoholic liquor

8. What is the scope of supply under CGST Act, 2017?

9. Determine whether the supply of ‘goods’ in the following cases is inter-state or intra-state?
Sl. No. Location of supplier Place of supply Location of the receiver Intra or Interstate transaction
1 Cochin Trichur Kannur
2 Mumbai Pune Bengaluru
3 Chennai Kolkatta Howrah
4 Agra Bhopal Nagpur
5 Hyderabad Dubai Mysore
6 London Paris Lucknow
7 Coimbatore Texas Madurai
8 Bali Jamshedpur Ludhiana
9 Brussels Sweden Denmark
10 Colombo Dehradun Timpu
10. State the conditions for exclusion of any expense as a ‘pure agent’ to value the supply of goods or
service.

11. Determine the GST payable by a money changer at a rate of 18% under different options in the
following case: ( Conversion rate of US $ Rs.64.84 and Euro: Rs.71.71) [RBI Reference Rate: $=64.83 &
Euro = 71.72]

Sold 15000 US $
Bought 23000 Euros

12. What is the GST payable at 12% rate if X P Ltd., is an Air Travel Agent and if Basic fare is 40% of
Total fare excluding taxes?

Domestic Tickets Booked: Rs.25 lac

International Tickets booked: Rs. 45 lac

13. LIC of India has a policy with investment portion constituting 30 percentile of the premium. The
half yearly premium payable is Rs.20000/-. If GST rate is 18% what is the total GST payable under
different option if the policy is for 20 years.

14. Which of the following are interstate supply? (Tick the one which are interstate supply)

1. Supply of goods to a unit in SEZ

2. Supply of goods to a 100% EOU
3. Supply of service to SEZ
4. Supply of service to a STP unit
5. Supply of goods to UN or an international organization

15. What is the place of supply in the following cases where the service provider and service receiver
is in India?

1. Renting of a marriage hall at Mumbai to Mrs. C of Calicut

2. Repair of Air conditioner of Mr.A located at Amritasar by Voltas Ltd at Vijayawada.
3. A beautician at Bangalore providing beauty service to Mrs.M of Mangalore at her residence at
Mangalore.
4. Mr..D of Delhi takes a Room at a Hotel located at Trichy.
5. Mrs. E, an Architect who prepares drawing to construct a Hotel at Munnar, Kerala.
6. Ms. F of Faridabad organizes a Miss. India contest at Dadar
7. Dominos Pizza, Nungambakkam, Chennai sells edible preparations to customers having head
office at Mumbai.
8. BCCI, Mumbai conducts IPL Match at Nasik and charges Rs.1000/peson as entry ticket.
9. ABT Parcel service, Patna, transports household articles of Mr.G of Raipur to Rajkot.
10. Mrs. E of Ernakulam owns a House boat that is given on rental to a tourist of Udaipur for rides at
backwaters of Kerala state.

16. Who can take ITC on Motor vehicles?

17. On what documents ITC is admissible? Can one type of GST be used to pay another type of GST?

18. What is the Depreciation amount for the year 2017-18 and ITC admissible in the following case?
19. ABC Ltd., Chennai, purchased a Lathe at a cost of Rs.50 lac from HMT limited, Bangalore that
attracts GST @ 12%. ABC Ltd arranged transportation by incurring a cost of Rs.5000/- + GST of 5%. An
expense of Rs.3000/-+ GST of 12% was incurred by ABC Ltd., to erect the machine at their factory. The
machine was received, erected and capitalized on 01/07/2017. Assume Depreciation rate of 15% on
Plant and machinery under Income tax Act, 1961.

20. Is ITC admissible in the following cases?

a) Outdoor catering engaged by WIPRO Ltd., to provide food to employees.

b) Cab provided by Infosys Ltd., to pick and drop employees on official duty.

c) Mobile/Cell phone charges reimbursed by TCS ltd to employees.

d) Telecommunication Towers

e) Pipelines laid outside factory premises.

f) Beauty parlour service used by Receptionist of Hotel Taj Palace and billed by parlor in the name
of Hotel.

g) Club Membership to Managing Director of Cadbury India Limited.

h) Goods stolen in the factory of Ford India Limited

i) Goods destroyed by flood in the factory of Toyoto Limited.

j) Goods received from a Composition Dealer who paid GST @1%

21. PQR & Co.,, a manufacturer, selling tools and hardware like drills, polishers, spades etc. It sells a
power drill to M & Co., a wholesaler. The MRP is Rs. 5,500 but PQR & Co., sells it for Rs. 3,000 to M&
Co., M& CO sells to consumers at MRP.

22. The following information is provided in respect of manufacture of a product “X” at Chennai for
the purpose of captive consumption in another factory at Cochin of the same manufacturer and there
is no sale of such product. Determine the total GST paid at 12%. (All figures in Rs.)
Cost of direct materials (includes GST Rs.1,545) 16,545
Cost of direct employees 12,300
Consumable stores and repairs 8,400
Quality control cost 4,300
Research & development cost 2,700
Administrative cost:
Production related 3,000
Others 1,500
Selling and distribution cost (on allocation basis) 3,600
Scrap value realized 1,500

Product is not sold in the market.

23. Determine the Time of supply in the following cases:

a) M/.s Reel Escape P Ltd., promotes a residential complex of 12 units. The terms of payment are as
follows:

On booking : Rs.10000
Within 30 days from the date of booking: 5% of Flat cost
By 30 September 20% of Flat cost
By 30 November 30% of flat cost
By 31 December 40% of Flat cost
Balance on handing over
All the Flats were Booked on 1 July 2017
All the Flats were delivered on 26 January, 2018
Each Flat admeasures BUA:11500sqft; PA: 170 and sold at Rs.5999/ sqft.

b) Date of supply of technical details to T (P) ltd. by K (P) Ltd.,: 30 July 2017
Date of issue of invoice: 3 January 2018
Rate of Service tax as on 22 January 2018: 12%
Rate of Service tax as on 1 July 2017: 18%

c) Mrs G provides construction service to Mumbai Municipal Corporation for building a school that
was exempted under a Notification. However, the Notification was rescinded on 01.01.2018. Mrs G
issued Invoice on 02.01.18 and received payment on 28.01.2018.

d) M/s.Hype Ltd is a book publisher in UK. The company has copy right to publish a Book written by
Mr Slow in India and paid an amount of 70000Euros on 20 July 2017 though, the amount was payable
on 31 March 2018 as per the agreement.

e) M/s. Delay transport co (p) Ltd., provided vehicle to SAIL, Salem to transport Iron rods from their
factory to Ford India ltd., Chennai. The vehicle left the factory on 2 January 2018 and reached Chennai
on 7 January 2018. The transport co issued consignment note dated: 1 January 2018 and issued a bill
for Rs.40000/- The freight was paid Ford India Ltd., on 9 January 2018.

24. Determine the transaction value and GST payable from the following data:
Cum tax sale price of Air-conditioner: Rs. 52000
CGST - 6%
Special Secondary packing to withstand transportation jerks extra at Rs.1500
Cost of secondary packing: Rs.500
Freight: Rs.1200/- Transit Insurance: Rs.100/- Loading / unloading charges: Rs.200/- if delivery
required by buyer at his premises.
Trade Discount: 5%, Cash discount: 0.5% and Overriding commission: 0.5/- on basic price.

25. M & Co., sold certain goods to PQR & Co., for Rs.20,000 (excluding GST 28%) on 09.09.2017. The
buyer, PQR & Co., is a related person as defined under section: 15 of CGST Act, 2017. PQR & Co., did
not sell the goods, but used it as an intermediary product. The cost of production of the said goods
determined as per CAS-4 was Rs.16,000.
Determine the transaction value and GST payable in the given case.
What will be the transaction value, if in the aforesaid case, PQR & Co is not related to the assessee?

26. The following details are available in the books of TVS motors Ltd., Chennai for the period August,
2017:
 Income:

Dividend from investment in shares/securities : Rs.15 lac

Interest from Bank Deposits 5 lac
Sale of goods attracting 5% GST 250 lac
Sale of Goods attracting 12% GST 450 lac
Export of goods attracting 28% GST 210 lac
Supply of services attracting 12% GST 40 lac
Supply of services attracting 18% GST 70 lac

Input and Input service details:

Purchase of goods @ 5% GST 200 lac

Purchase of goods @ 12%GST 390 lac
Purchase of goods @ 28% GST 170 lac
Financial audit services @18% GST 5 lac
Advertisement services @ 18% GST 20 lac
Payment made to ICRA 25 lac (GST-18% extra)
Legal service relatable to taxability of goods 01 lac (GST extra @ 18%)
Rent paid to Depots for DTA sales 02 lac (GST extra@18%)

What is the ITC admissible and ITC reversible?

27. Sundaram Clayton Ltd., manufactures three taxable goods viz., A, B & C, one Exempted goods viz.,
D and one ‘Nil’ rate goods viz., E under GST law.

The turnover of the goods for the tax period January 2018 is furnished below:

A - Rs. 150 lac; B – Rs. 250 lac; C – Rs.350 Lac; D – Rs. 450 lac and E – Rs.50 lac.

The company uses a Drilling machine purchased on 1/7/17 to manufacture Product ‘A’ at a value of
Rs.20 lac (GST:12%); a Cutting machine to manufacture to produce product ‘C’ at a value of Rs.15 lac
(GST:18%) on 01/08/17 and a Hobbling machine on 01/09/17 to that was used to manufacture Product
‘B, “D’ and ‘E’.

What is the ITC admissible and the ITC payable?

28. Sundaram Fasteners Ltd., disposed a machine purchased on 1/7/17 at a price of Rs.40 lac (GST
12%) on 28/03/18 at book value claiming depreciation@ 15% under SLM. The company has taken ITC
on the said machine. What is the tax payable or ITC reversible?

29. M/s. CPCL wants to know the admissibility of ITC on the following items: Advise:

1. Lorry purchased at Rs.22 lac (GST 12%)

2. Water sprinkler falling under Chapter:87 purchased for Rs.4 lac (GST12%)
3. Crane purchased falling under Chapter:87 to move the goods within the factory.
4. Restaurant service used by a Conference service provider
5. Works contract service sued to repair the Air conditioner.
6. Works contract service used to put foundation to erect a machine.
7. Works contract service used to repair a factory building.
8. Outdoor catering service used to provide food to employees.
9. Inputs stolen in the factory.
10. Goods given as free sample to customers.

30. Mystery Ltd., imported a Black Box by Flight MH 371 from Malaysia at CIF value of A$: 12000 plus
sales commission at 3% on FOB. The other details are as follows:
Freight charges: A$ 1200
Insurance : A$ 120
Exchange Rate RBI BCD IGST
Notified by CBEC Ref.Rate
Date of arrival of Conveyance:02.08.2017 51.30 51.25 10% 5%
Date of Filing of Bill of Entry:03.07.2017 51.20 51.15 5% 12%
Date of Return of assessed BOE:03.07.2017 51.10 51.35 7.5% 6%
Date of Customs clearance:05.08.2017 51.40 51.45 14% 7%
Date of Grant Entry inwards:03.08.2017 51.50 51.55 10% 5%

What was the total duty paid by the importer?

31. Determine the service tax payable under various options by M/s. Thomas Cook P. Ltd., from the
following information:

52000 Euros bought against 55000 US Dollors

75000 US Dollar sold against 68000 Sterling Pounds

Actual rate at which the currency converted:

ER: $ : Buy rate: Rs.69.94; Sell rate: 69.95
ER: € : Sell rate: Rs.70.12; Buy rate:70.15
ER: £: Sell rate: Rs.83.42; Buy rate:83.45

RBI Reference rate: $ = Rs.69.93; € = Rs.70.17; £ = 83.44 (both Buy and Sell rates)

32. Mr and Mrs.Wanderer visited California on 03.07.17 and returned to India 09.07.17. Both are
Residents of India and hold valid Passport in India. Mr. Wanderer has brought a Motion Camera and a
Laptop that has Invoice price of 1400 US$ and 500 US $ respectively. Mrs. Wanderer has brought a
Platinum coated Necklace of price 250 US $. The Exchange rate on the date of departure of the Flight
from USA was Rs.67.40 and on the date of arrival of the Flight the exchange rate was Rs. 67.55.

Calculate the customs duty payable by Mr and Mrs. Wanderer, considering the relevant provisions of
Customs Act, 1962 and Rules.

33. Can there be a stay application before CESTAT under amended provisions of Customs Act, 1944?
Should an appellant make pre-deposit of duty, if any duty was paid before issue of notice? Can there
be pre-deposit through Cenvat A/c. debit?

34. Determine the assessable value for the purpose of Customs Act, 1962 and calculate the CVD
payable from the following information in respect of import of ‘Dark Chocolates’ from Switzerland :
(i) FOB Value Swiss Francs 19,000 (ii) Sea Freight SF 2,000 (iii) Design and development charges paid
in UK Sterling Pounds 800 at exchange rate of Rs.87 (iv) Design and development charges paid in India
– Rs.20,000 (v) Commission paid to local agents 3% of FOB Value (vi) Date of Bill of Entry 10-07-2017
(Exchange rate notified by CBEC: SW F = 64) (vii) Date of entry Inward 02-08-2017 (Exchange rate
notified by CBEC 1 SW F = 66). (viii) Quantity imported: 9500 Kgs. Insurance charges are not
ascertainable. Make assumptions where required and provide suitable explanations.
RSP to be affixed Rs.399/box (Each container carries 250gms of chocolate)
Type of Duty As on 01.07.2017 As on 01.08.2017
BCD 5% 7.5%
IGST 5% 12.0%
Other duties as applicable.
(8 marks)
35. Determine the Export obligation and time limit to fulfill the obligation from the following
information under EPCG License if the goods were imported on 01/01/2017:

FOB Price of the Crane: 15 thousand Euros; BCD: 7.5%’ ACD U/s;3(1) of CTA, 1975: 6%; Other duties
as applicable. Assume ER of Rs.72 /-.
(4 marks)
36. What is the difference between DFIA and IA?

37. Explain the following terms:

i. Nexus Certification (ii) RCMC (iii)EEFC (iv) MEIS (v) BOA (vi) Green Card (vii) RA (viii) TEE ix)
SEIS (x)EODC (xi) ARO (xii) e-BRC (xiii) REPL (Xiv) Value Addition (xv) NFE (xvi) EPC (xvii) RCMC (xviii)
Deemed Export (xix) NFE (xx)e-IEC (xxi) FIRC (xxii) FIEO (xxiii) MAI (xxiv) LOP & LOI.

38. Can there be post export EPCG? Can a service provider claim EPCG License?

39. State the criteria for Status Holders?

40. What advantages SEZ enjoy over 100% EOUs?

41. Which products falls under RCM payment of GST?