Taxation – II

Indirect Tax

Time – 1 Hour 15 Minutes

Full Marks - 30

Group – A (5x4=20)

1. Differentiate between a Direct Tax and an Indirect Tax.

Or/
What are the main objectives for the commencement of GST in India?
2. Mr. A, a registered person under GST of West Bengal sold goods costing `4,00,000 to Mr. B of
West Bengal. Then Mr. B sold that goods after value addition of 20% to Mr. C of Punjab and Mr.
C sold goods to Mrs. D of Punjab after a value addition of 10%. Compute the amount of GST
payable by Mr. A,B and C. If the rate of GST is 18%.
3. Define Taxable supply and Exempt Supply under CGST act.
4. “Place of supply plays an important role for laveing tax under the rule of GST”. Comment on the
statement. (5)
Or/
(I) Who are liable to registered under GST?
(II) Define Inward and Outward supply. (3+2)

Group – B (10x1=10)

5. Mr. X, a supplier of goods, pays GST under regular scheme. Mr. X is not eligible for any threshold
exemption. He has made the following outward taxable supplies in a tax period:

Particulars (`)

Intra-State supply of goods 8,00,000

Inter-State supply of goods 3,00,000

He has also furnished the following information in respect of purchases made by him in that tax period:

Particulars (`)

Intra-State purchases of goods 3,00,000

Inter-State purchases of goods 50,000

Mr. X has following ITCs with him at the beginning of the tax period:

Particulars (`)
CGST 30,000

SGST 30,000

IGST 70,000

Note:

(i) Rate of CGST, SGST and IGST to be 9%, 9% and 18% respectively.

(ii) Both inward and outward supplies are exclusive of taxes, wherever applicable.

(iii) All the conditions necessary for availing the ITC have been fulfilled.

Compute the net GST payable by Mr. X during the tax period. Make suitable

assumptions as required.
Or/

XYZ Ltd., is engaged in manufacture of taxable goods. Compute the ITC available

with XYZ Ltd. for the month of October, 2018 from the following particulars:-

S. No. Inward supplies GST (`) Remarks

(i) Inputs ‘A’ 1,00,000 One invoice on which GST payable was ` 10,000, is missing

(ii) Inputs ‘B’ 50,000 Inputs are to be received in two

installments. First installment has

been received in October, 2018.

(iii) Capital goods 1,20,000 XYZ Ltd. has capitalized the capital

goods at full invoice value inclusive

of GST as it will avail depreciation

on the full invoice value.

(iv) Input services 2,25,000 One invoice dated 20.01.2018 on

which GST payable was ` 50,000

has been received in October, 2018.

Note:

(i) All the conditions necessary for availing the ITC have been fulfilled.
(ii) XYZ Ltd. is not eligible for any threshold exemption.

(iii) The annual return for the financial year 2017-18 was filed on 15th September, 2018.
 Auditing & Assurance

Time – 30 Minutes

Full Marks – 20

Answer any two questions from the following:- (10x2=20)

(I) Define an Audit report & an Audit certificate. Write the differences between an Audit report
& an Audit certificate. (4+6)
(II) What do you mean by Management Audit. Explain its advantages & limitations.
(2+5+3)
(III) Define Tax audit. Does Tax audit is compulsory for all organizations? If required, then what is
the due date for submit ion of audit report to CBDT. Explain the advantages of Tax audit.
(2+3+1+4)