Professional Documents
Culture Documents
Module 1: CS Executive
Note: All questions in Part-I relate to the Income Tax Act, 1961 and
(a) India
2. The Apex Court in the case of CIT-Gujarat Vs. Saurashtra Cements Ltd.
(2010) 233 CTR 209 has held that liquidated damages received from the
(c) Not a receipt but to be reduced from the cost of Plant & Machinery
(d) Compensation
declared in the return of income to be filed for the previous year 2018-
INR 17,000 p.m. in XYZ Ltd. on 1st April, 2016 in the grade of 15,000 –
4. House owned by Suresh was sold on 1st January, 2019 and till the date of
sale, the house was on rent of INR 7,000 p.m. The other relevant details
of this house are (i) municipal value INR 72,000 p.a. (ii) fair rent INR
INR 60,000 p.a. The income chargeable under the head House Property
5. A machine owned by AB & Co. was transferred to XYZ & Co. on 1st
January, 2019 for INR 5 lakh of which actual cost and WDV was of INR 3
lakh and 2 lakh respectively. However, the fair market value on the date
of transfer of machine was of INR 4 lakh. XYZ & Co. will be allowed
(a) 5 lakh
(b) 2 lakh
(c) 3 lakh
(d) 4 lakh ✓
lakh in June, 1998 and was sold in December, 2018 will be of INR (worked
out by taking the CII of 1998-99 as 351; of the year 2001-02 as 100; of the
year 2018-19 as 280) and FMV of the house property as on 1st April,
(d) 71,79,487
of labour of its members are exempt from tax as per section 80P up-to:
filed an application for grant of registration u/s 12AA of the Act to the CIT
(Exemption) on 13th May, 2018. The CIT (Exemption) did not pass any order
as to Registration of the Trust, till 31st March, 2019. The trust shall be
Reason: Both options B/D are correct. Option B: As per section 12AA(2),
Option D: in the case of CIT v/s Society for the Promotion of Education,
it has been held that If no order has been passed, then it is considered
11. Total income of XYZ Limited includes the income of dividend of INR 10
lakh paid by a U.K. base foreign company in which XYZ Limited holds 30%
company from the U.K. base foreign company in A.Y. 2019-20 shall be :
account of the company in any of the three previous years preceding the
previous year in which the conversion took place does not exceed
................ .
TDS and the amount of TDS on the sale consideration will be @ ...............
14. Where the advance tax paid on or before March, 2019 is less than 100%
of the tax due on the total income declared in the return as reduced by
payment of interest on the amount of shortfall for the tax due on the
(a) 2%
(b) 1% ✓
(c) Nil
(d) 1.5%
15. The Commissioner of Income Tax can call for the records of an assessee
and by virtue of powers conferred under the Act can make the revision
of being heard to the assessee. Such powers can be invoked by the CIT,
when:
(c) When the return has not been filed by the assessee
16. Which of the following income is not chargeable to tax in the case of
(d) Income from business outside India but controlled from India
17. Income Computation and Disclosure Standards (ICDS) are applicable for
(a) Salaries
19. MNO Ltd. was incorporated in April, 2018 and its aggregate turnover for
father (Page 61) who suffered from advanced stage of cancer. The
would be:
allowance of INR 2,000 per month from April, 2018 to September, 2018.
She was paid INR 3,000 as transport allowance from October, 2018 to
23. Ghosh having 25% of the share capital in Ghosh Mfg. Industries (P) Ltd.
would be:
(d) NIL ✓
exempt u/s 10(34) of the Income Tax Act, 1961. Dividend includes
deemed dividend u/s 2(22) (e) also as per section 115-O. Though the
wants to treat the new construction as deemed let out property. The
(iii) standard rent INR 2,80,000. The gross annual value of the property
would be:
25. Manoj & Co. (partnership firm) paid monthly rent of INR 30,000 for its
source for the rent paid up to 31-3-2019. Total Tax was deducted tax at
the firm for the assessment year 2019-20 was filed on 31-08-2019, the
(a) NIL
27. Richard acquired 1,000 preference shares of INR 100 each in Terry Ltd.
Market Value (FMV) of equity shares on the date of such conversion was
INR 2,20,000.
(a) NIL ✓
28. Chandni (age 14) received INR 70,000 as cash gift on her birthday from
her parents’ friends. How much of her income would be liable for
gold chain from his father’s friend whose fair market value on the date
of gift was INR 45,000. The amount of income of minor Ravi taxable
30. Rahul & Co. Ltd. paid INR 1,10,000 towards printing of pamphlets of a
31. Alternate Minimum Tax (AMT) under chapter XII-BA will not apply if the
32. When a domestic company has paid tax on book profit which is higher
than the normal tax payable on the total income, such excess tax so paid
33. Anyway (P) Ltd. paid sitting fees to directors, who attended the Board
Meeting. S was paid INR 5,000 per meeting and he attended 7 meetings
during the year. The amount of tax deductible at source on the sitting
(d) NIL
34. Srikant filed his return of income for the assessment year 2019-20 on 5-
assessee?
(a) 31-12-2019
(b) 31-3-2020
(c) 30-9-2020 ✓
(d) 31-12-2020
35. Ganesh Traders (partnership firm) reported a turnover of INR 250 lakh
for the assessment year 2019-20. It has not filed the tax audit report
company has to pay equalization levy when the amount paid to the
37. When the Advance Pricing Agreement (APA) has been entered into, it is
(a) 7
(b) 5 ✓
(c) 3
(d) 1
38. Income tax assessment of Kuber was completed on 15-12-2018 for the
order.
The time limit for rectification of mistake in the assessment order under
(a) 31-3-2020
(b) 31-3-2021
(c) 31-3-2022
(d) 31-3-2023 ✓
39. Nair, a retired person of 68 years of age obtained INR 10,000 per month
from 1st April, 2018 on reverse mortgage of his self- occupied residential
property from a bank. The fair rent of the property is INR 15,000 per
reverse mortgage for his self-occupied house property for the F.Y. 2018-
19 would be:
(c) NIL ✓
40. Revision order of the Commissioner of Income Tax passed under section
264 of the Income Tax Act, 1961 can be challenged by the assessee by
filing an appeal to :
for setting up a project costing INR 100 lakh during financial year 2018-
vehicles were sold on 10th May, 2019 and 2 heavy vehicles were
43. Durafon (P) Ltd.. engaged in steel industry, acquired a vacant piece of
land on 15th May, 2016. The company sold the said land in December,
2018. The profit earned on sale of vacant land of INR 10 lakh shall be
taxable as :
44. The total income of Mrs. Rose for the financial year 2018-19 is INR
3,40,000. Her tax liability for A.Y. 2019-20 on the income of INR 3,40,000
shall be:
(b) NIL
(a) 9 months from the end of the financial year in which notice for
re-assessment is served ✓
(b) 6 months from the end of the financial year in which notice for re-
assessment is served
(c) 12 months from the end of the financial year in which notice
(d) 15 months from the end of the financial year in which notice for re-
assessment is served
Reason: The question does not mention the date of serving of notice. If
46. An advance ruling can be sought from the Authority for Advance Ruling
(AAR) by:
47. M Ltd. has Minimum Alternative Tax (MAT) credit of INR 5,20,000 of the
assessment year 2018-19. It can carry forward this MAT credit upto
year 2018-19.
(a) 5
(b) 10
(c) 15 ✓
(d) 20
48. The secondary adjustment in certain international transaction is
person other than a company on the adjusted total income at the rate
of:
51. When a domestic company has paid tax on book profit which is higher
than the normal tax payable on the total income, such excess tax so paid
long-term capital gain is chargeable to tax at .... when the asset was
(a) 5%
(b) 10% ✓
(c) 15%
(d) 20%
53. Kayal engaged in trading activity reported turnover of INR 210 lakh for the
previous year 2017-18 and INR 190 lakh for the previous year 2018-19.
She paid brokerage of INR 40,000 to Padmaja in October, 2018. Both the
party are resident for tax purpose. The amount of tax deductible by
(a) NIL
54. Anyway (P) Ltd. paid sitting fees to directors, who attended the Board
Meeting. S was paid INR 5,000 per meeting and he attended 7 meetings
during the year. The amount of tax deductible at source on the sitting
(d) NIL
Number is mandatory?
single day ✓
total income is INR 4,10,000. The amount of fee payable by her under
(d) NIL
57. Wherever any tax, interest, penalty or other sum under the I.T. Act is
payable, the Assessing Officer has to serve upon the assessee a notice
Act, 1961.
(a) 156 ✓
(b) 143(3)
(c)153
(d) 220
58. When the taxpayer files application for settlement of the case the
return of the assessment year 2019-20. When he failed to file the return
within the time specified in the notice, the amount of penalty leviable
would be:
60. The Assessing Officer while scrutinizing the return of an assessee find
such income and thus levied penalty on such under reported income
income
(a) 50%
(b) 100%
(c) 200% ✓
(d) 300%
61. Natraj engaged in business repaid loan received from Narnia of INR
(c) NIL
accommodation?
(a) Company
(c) Individual ✓
Indian company has to pay equalization levy when the amount paid to
(a) One enterprise giving loan equal to 10% of the total assets of the
other enterprise.
(b) 25% of the directors of both the enterprises being same persons.
(c) One enterprise guaranteeing not less than 10% of the total
(d) One enterprise supplying more than 26% of the raw materials
Pricing Officer?
66. When the Advance Pricing Agreement (APA) has been entered into, it is
(a) 7
(b) 5 ✓
(c) 3
(d) 1
67. A resident having transaction with a non-resident who has filed form
(a) 15 days
(b) 30 days ✓
(c) 45 days
(d) 60 days
68. Income tax assessment of Ajay was completed determining the income
would be:
order. The time limit for rectification of mistake in the assessment order
(a) 31-3-2020
(b) 31-3-2021
(c) 31-3-2022
(d) 31-3-2023 ✓
upon him. There is no health insurance policy to cover the parent. The
PART—II
71. Every decision of the Goods and Service Tax Council shall be taken at a
meeting, by majority of not less than .......... of the weighted votes of the
members present and voting. The vote of the Central Government shall
have the weightage of . of the total votes cast and the votes of all the State
and be collected on value added at each stage of the supply chain. GST
turnover in the preceding Financial Year did not exceed One Crore and
any other manner whatsoever of goods being food or any other article
for human consumption or any drink (other than Alcoholic Liquor for
(a) 0.5%
(b) 1%
(c) 2.5%
(d) 5% ✓
75. The supply of Goods/Services/both, where location of supplier and the
place of supply are in the same State or same Union Territory under
76. ABC Ltd., supplied goods to XYZ Ltd. under a contract for the goods to
be delivered to the factory of XYZ Ltd. The goods were removed from the
factory of ABC Ltd. on 9th September, 2018 and the goods were delivered
The invoice was issued on 18th September, 2018 and the payment was
credited to ABC’s account on 20th Oct., 2018 although the entry in the
books was made on 19th Sept., 2018 when the cheque was received. The
77. Babbur Automobiles of Jaipur has supplied the goods of INR 2,66,090 to
made was inclusive of tax charged as CGST and SGST which on the
products so sold as per rates prescribed under CGST Act, 2017 is @ 18%
The value of supply as per Rule 35 of the CGST Rule, 2017 of such supply
shall be .............. .
(a) INR 2,66,090
78. Availability of Input Tax Credit in special cases as per section 18(1) of the
invoice relating to such supply issued not after expiry of .. from the date
(a) 3 months
(b) 6 months
(c) 1 year ✓
(d) 9 months
79. Zebra, a supplier of goods located at Jaipur paid GST under regular
GST @ 18% The outward taxable supply in the month of February, 2019
made by him of Intra- state INR 12,00,000 and Inter-state INR 5,00,000.
The total tax liability under GST Act on both these supplies shall be, if he
is having the Opening Balance of ITC available of INR 45,000 each under
Reason: Both option A and C are correct as the question says total tax
(a) 7, 2
(b) 7, 4
(c) 11, 4 ✓
(d) 11, 7
81. Any person required to deduct tax or required to collect tax at source
application the proper officer may grant the registration and issue the
pay tax under Reverse Charge Mechanism (RCM) under GST is known as
.....................
(b) GSTR1 ✓
(d) GSTR 3B
83. Every registered person as per section 68 of CCST Act, 2017 who causes
84. Tax on inter-state supplies, import into India, supplies made outside
(d) IGST ✓
applicant on the matter or a question specify u/s 97(2) and 100(1) of the
86. Section 110 of Finance Act, 2018 w.e.f. 2nd February, 2018 have
the purpose of the union on the goods specified in the first schedule
with the Customs Performing Act, 1975 being goods imported into India.
duty and after final assessment of duty if any, amount refundable is not
Government.
(a) 1 month
(b) 2 months
(c) 6 months
(d) 3 months ✓
88. Which Article was inserted in the Indian Constitution for levy of tax on
89. When goods are sold from one place to another place, the tax liability
(a) 1 month
(b) 3 months ✓
(c) 6 months
(d) 12 months
92. Which of the following is neither supply of goods nor supply of services?
Reason: Option A and C both are the correct answer as Tax payer
making interstate supplies can not avail composition scheme and for
95. A dealer wishing to opt for composition scheme, must convey his option:
year
year
year
96. The aggregate turnover of Turner & Co. exceeded the limit prescribed
(a) Intimate within 7 days to the GST authority and pay GST as
(d) Since the period is less than 30 days for the end of the financial
(a) 30-12-2018.
(b) 31-12-2018
(c) 20-12-2018
(d) 25-11-2018 ✓
98. Saran (P) Ltd. supplied goods to Ashwini (P) Ltd. The list price of goods
was INR 3,60,000 excluding packing charges of INR 15,000. The supplier
of goods i.e. Saran (P) Ltd. allowed discount of INR 20,000 for prompt
payment made by the recipient of supply i.e. Ashwini (P) Ltd. The value
(c) Generators
100. Lamb Ltd. received goods from Gower & Co. on 23-4-2018 along with
invoice issued by Lamb Ltd. dated 27-4-2018 was lost and input tax
credit was omitted to be claimed. The maximum time within which the