Mock Test Paper

Module 1: CS Executive (Old)

Paper 4 – Tax Laws and Practice

Roll No………………………………. Total No. of Printed Pages-32

Total No. of Questions- 100 Maximum Marks-100

Time Allowed- 3 Hours

Note: All questions in Part-I relate to the Income Tax Act, 1961 and

Assessment Year 2020-21, unless stated otherwise.

1. A person is deemed to be of Indian origin if he, or either of his parents or

any of his grandparents, was born in ................. .

(a) India

(b) India other than J & K

(c) Undivided India

(d) Greater 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

supplier on account of delay in the supply of plant and machinery shall

be treated in the nature of :

(a) Capital Receipt

(b) Revenue Receipt

(c) Not a receipt but to be reduced from the cost of Plant & Machinery

(d) Compensation
3. What will be the amount of gross salary which shall be required to be

declared in the return of income to be filed for the previous year 2018-

19 by Harun, who joined services as Manager Accounts on the salary of

INR 17,000 p.m. in XYZ Ltd. on 1st April, 2016 in the grade of 15,000 –

2000 — 19,000 – 3000 — 28,000 ?

(a) INR 3,00,000

(b) INR 2,28,000

(c) INR 2,64,000

(d) INR 2,52,000

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

66,000 p.a. and standard rent

INR 60,000 p.a. The income chargeable under the head House Property

in A.Y. 2019-20 of this house shall be :

(a) INR 63,000

(b) INR 50,400

(c) INR 46,200

(d) INR 44,100

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

depreciation on such machine by taking value thereof at INR ..................

(a) 5 lakh

(b) 2 lakh

(c) 3 lakh

(d) 4 lakh
6. XAB Ltd. has incurred amount of INR 4,00,000 towards capital

expenditure and INR 1,50,000 towards bona fide revenue expenditure

for the purpose of promoting family planning amongst its employees

during the year 2018-19. Company can claim deduction of an amount of

INR for such expenses in the return to be filed for A.Y. 2019-20.

(a) 50% of INR 5,50,000

(b) INR 2,30,000

(c) Such expenses are not allowed

(d) 20% of INR 5,50,000

7. Indexed cost of acquisition of the house property purchased for INR 80

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,

2001 of INR 90 lakh.

(a) INR 63,81,766

(b) INR 90 lakh

(c) INR 252 lakh

(d) 71,79,487

8. Transfer of income is revocable in the following cases :

(a) Sale with a condition of re-purchase

(b) Power to change beneficiary or trustees

(c) Both (A) and (B)

(d) Neither (A) nor (B)

9. The profits of a Co-operative Society engaged in (i) Carrying out the

business of banking, (ii) A cottage industry and (iii) Collective disposal

of labour of its members are exempt from tax as per section 80P up-to:
 (a) 75% of the profits

(b) 100% of the profits

(c) 50% of the profits

(d) 40% of the profits

10. Samode Charitable Trust formed under the Trust Deed on 1st May, 2018

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

deemed to have the registration as per provisions of Act under section

12AA effective from ....................... .

(a) 1st May, 2018

(b) 1st December, 2018

(c) 13th May, 2018

(d) 13th November, 2018

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%

of the equity share capital. The dividend income so received by the

company from the U.K. base foreign company in A.Y. 2019-20 shall be :

(a) Taxable @ 15% of such income

(b) Not taxable being exempt u/s 10(34)

(c) Taxable at the normal rate applicable on domestic company

(d) Taxable @ 10% of such income

12. A transfer of capital asset by a private company or unlisted public

company shall not be treated as transfer u/s 47 (xiiib) of the Act on

Conversion into LLP on fulfillment of the conditions which inter-alia

include that the total value of assets as appearing in the books of

 account of the company in any of the three previous years preceding the

previous year in which the conversion took place does not exceed

................ .

(a) INR 5,00,00,000

(b) INR 10,00,00,000

(c) INR 20,00,00,000

(d) INR 1,00,00,000

13. A house property owned by Nitin, a non-resident, at Delhi was agreed to

be sold to Ramesh for a consideration of INR 70,00,000. Ramesh has

stated to Nitin that the payment of sale consideration shall be subject to

TDS and the amount of TDS on the sale consideration will be @ ...............

as per section ...................... of the Income Tax Act, 1961.

(a) 34.32%, 195

(b) 10%, 194-IC

(c) 5.72%, 194-LBA

(d) 1%, 194-IA

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

the amount of tax deducted at source, the assessee shall be making

payment of interest on the amount of shortfall for the tax due on the

returned income so declared per month at the rate of ......... .

(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 the order passed by the Assessing Officer after giving an opportunity

of being heard to the assessee. Such powers can be invoked by the CIT,

when :

(a) The order is erroneous

(b) The order is prejudicial to the interest of revenue

(c) When the return has not been filed by the assessee

(d) When both the conditions of (A) and (B) exist.

16. Which of the following income is not chargeable to tax in the case of

Suresh who is resident but not ordinarily resident ?

(a) Income accruing outside India but received in India

(b) Income earned in India

(c) Past untaxed profit

(d) Income from business outside India but controlled from India

17. Income Computation and Disclosure Standards (ICDS) are applicable for

transactions under the head of income:

(a) Salaries

(b) Income from house property

(c) Profits and gains of business or profession

(d) Capital gains

18. Philip who retired from Central Government service on 28-2-2018,

received monthly pension of INR 42,000 up to 30-9-2018 and INR 44,100

thereafter. His income from salary after standard deduction would be :

(a) INR 5,16,600

(b) INR 5,01,600

 (c) INR 4,76,600

(d) INR 4,61,600

19. MNO Ltd. was incorporated in April, 2018 and its aggregate turnover for

the previous year 2018-19 must not exceed ................. in order to be

eligible for deduction under section 80-IAC of the Act.

(a) INR 2 crores

(b) INR 5 crores

(c) INR 10 crores

(d) INR 25 crores

20. M incurred INR 2 lakh as expenditure towards medical treatment of his

father P(age 61) who suffered from advanced stage of cancer. The

amount of expenditure eligible for deduction under section 80DDB

would be :

(a) INR 30,000

(b) INR 60,000

(c) INR 80,000

(d) INR 1,00,000

21. Which of the following activity is an agricultural activity ?

(a) Supply of water for irrigation purposes

(b) Production of salt from seawater

(c) Spontaneous growth of grass

(d) Cultivation of flowers

22. Ms. Bhavani, a blind employee, working in Beta Ltd. was paid transport

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
 March, 2019. The amount of transport allowance eligible for exemption

u/s 10(14) would be:

(a) INR 7,200

(b) INR 9,600

(c) INR 38,400

(d) INR 30,000

23. Ghosh having 25% of the share capital in Ghosh Mfg. Industries (P) Ltd.

Took loan of INR 3,50,000 on 15-9-2018 from the company. He repaid

INR 1 lakh on 20-3-2019. The company has accumulated profit of INR 8

lakh as on 1-4-2018. It earned profit in the previous year 2018-19 also.

The amount assessable as deemed dividend in the hands of Ghosh

would be:

(a) INR 1,50,000

(b) INR 2,50,000

(c) INR 3,50,000

(d) NIL

24. Goel completed the construction of a residential house property on 30-

6-2018. He already owns another property in the same town which is

self-occupied. The new construction is also self-occupied by him. He

wants to treat the new construction as deemed let out property. The

relevant details of the new property are:

(i) municipal value INR 3,00,000;

(ii) fair rent INR 3,60,000; and

(iii) standard rent INR 2,80,000. The gross annual value of the property

would be:

(a) INR 2,80,000

(b) INR 2,10,000

 (c) INR 3,00,000

(d) INR 3,60,000

25. Manoj & Co. (partnership firm) paid monthly rent of INR 30,000 for its

premises during the previous year 2018-19. No tax was deducted at

source for the rent paid up to 31-3-2019. Total Tax was deducted tax at

source on 5-5-2019 and remitted on 10-9-2019. The return of income of

the firm for the assessment year 2019-20 was filed on 31-08-2019, the

due date. The amount of expenditure liable for disallowance under

section 40(a)(ia) for the assessment year 2019-20 would be:

(a) NIL

(b) INR 3,60,000

(c) INR 1,08,000

(d) INR 30,000

26. Ravinder has aggregate receipt from profession of INR 45 lakhs for the

previous year 2018-19. His income as per books of account is INR

20,50,000. He wants to declare income as per the presumptive

provisions contained in section 44ADA.

The amount of income liable to tax would be :

(a) INR 22,50,000

(b) INR 20,50,000

(c) INR 1,64,000

(d) INR 3,60,000

27. Richard acquired 1,000 preference shares of INR 100 each in Terry Ltd.

on 10-4-2016 for INR 1,32,000. He received 10,000 equity shares of INR

10 each on conversion of preference shares into equity shares. The Fair

 Market Value (FMV) of equity shares on the date of such conversion was

INR 2,20,000.

Cost Inflation Index F.Y. 2016-17 = 264; F.Y. 2018-19 = 280.

The taxable long-term capital gain would be:

(a) NIL

(b) INR 70,000

(c) INR 10,000

(d) INR 15,000

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

clubbing in the hands of her parent?

(a) INR 70,000

(b) INR 40,000

(c) INR 20,000

(d) INR 1,08,500

29. Minor Ravi received INR 60,000 by way of gift on his birthday from

grandparents and INR 10,000 from non-relatives. He also received a

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

(after exemption) in the hands of parents would be:

(a) INR 1,15,000

(b) INR 1,13,500

(c) INR 53,500

(d) Not Taxable/Exempt

30. Rahul & Co. Ltd. paid INR 1,10,000 towards printing of pamphlets of a

registered political party in connection with state assembly elections.

The expenditure incurred is:

(a) Inadmissible expenditure

(b) Deductible U/s 80GGB

(c) Deductible @50%

(d) Both (a) & (b)

31. Alternate Minimum Tax (AMT) under chapter XII-BA will not apply if the

adjusted total income of an individual does not exceeds :

(a) INR 5,00,000

(b) INR 10,00,000

(c) INR 20,00,000

(d) INR 25,00,000

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

is eligible for carry forward up to :

(a) 5 succeeding assessment years

(b) 8 succeeding assessment years

(c) 10 succeeding assessment years

(d) 15 succeeding assessment years

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

fees would be ....................... if S has not furnished his PAN.

(a) INR 7,000

(b) INR 3,500

 (c) INR 1,750

(d) NIL

34. Srikant filed his return of income for the assessment year 2019-20 on 5-

6-2019 declaring total income of INR 7,40,000. What is the maximum

time within which notice under section 143(2) is to be served on the

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

under section 44AB before specified date. The amount of penalty

leviable for such failure would be :

(a) INR 25,000

(b) INR 1,00,000

(c) INR 1,25,000

(d) INR 1,50,000

36. An Indian resident availed services by way of online advertisement space

provided by a foreign company located in UK. The foreign company

does not have a PE (Permanent Establishment) in India. The Indian

company has to pay equalization levy when the amount paid to the

foreign company exceeds :

(a) INR 50,000 in previous year

(b) INR 1,00,000 in previous year

(c) INR 5,00,000 in previous year

(d) INR 10,00,000 in previous year

37. When the Advance Pricing Agreement (APA) has been entered into, it is

valid for not more than ................ consecutive previous years.

(a) 7

(b) 5

(c) 3

(d) 1

38. Income tax assessment of Kuber was completed on 15-12-2018 for the

assessment year 2016-17. There is an error apparent in the assessment

order.

The time limit for rectification of mistake in the assessment order under

section 154 is available up to:

(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

month. The income chargeable to tax in respect of amount received on

reverse mortgage for his self-occupied house property for the F.Y. 2018-

19 would be:

(a) INR 1,20,000

(b) INR 1,26,000

(c) NIL

(d) (15000 - 10000) x 12 = 60000

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 :

(a) Income Tax Appellate Tribunal (ITAT)

(b) High Court

(c) Commissioner Appeals

(d) None of these

41. Deccan Ltd. incurred an amount of INR 16 lakh as preliminary expenses

for setting up a project costing INR 100 lakh during financial year 2018-

19. The amount of amortization available as deduction during the A.Y.

2019-20 for the preliminary expenses would be :

(a) INR 1,60,000

(b) INR 3,20,000

(c) INR 16,00,000

(d) INR 1,00,000

42. 'A' Transport company engaged in the business of plying goods carriage

with 4 heavy vehicles and 3 non-heavy vehicles. All the non-heavy

vehicles were sold on 10th May, 2019 and 2 heavy vehicles were

acquired on the same date.

Transporter wants to declare its income for A.Y. 2020-21 as per

provisions of section 44AE and the same would be :

(a) INR 5,70,000

(b) INR 5,47,500

(c) INR 5,55,000

(d) None of These

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 :

(a) Business income

(b) Income from other sources

(c) Short term capital gain

(d) Long term capital gain

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:

(a) INR 2,080

(b) NIL

(c) INR 2,500

(d) INR 4,700

45. Time limit for completion of Assessment/ Re-assessment under section

147 of the Income Tax Act, 1961 is:

(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 for re-

assessment is served

(d) 15 months from the end of the financial year in which notice for re-

assessment is served
46. An advance ruling can be sought from the Authority for Advance Ruling

(AAR) by:

(a) Non-resident having transaction with resident

(b) Resident having transaction with another resident

(c) Foreign Government

(d) A Listed Company

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

____________ assessment years immediately succeeding the assessment

year 2018-19.

(a) 5

(b) 10

(c) 15

(d) 20

48. The secondary adjustment in certain international transaction is

required to be made when the amount of primary adjustment exceeds:

(a) INR 10 Crore

(b) INR 5 Crore

(c) INR 3 Crore

(d) INR 1 Crore

49. Any payment in commutation of pension received from a pension fund

setup by the Life Insurance Corporation of India in terms of section

10(23AAB) of the Income Tax Act, 1961, is :

(a) Liable for tax

(b) Fully exempt from tax

(c) Partly liable for tax

(d) Taxable @ 10%

50. Alternate Minimum Tax (AMT) under section 115JC is payable by a

person other than a company on the adjusted total income at the rate

of:

(a) 20% plus cess

(b) 18% plus cess

(c) 18.5% plus cess

(d) 20.5% plus cess

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

is eligible for carry forward up to :

(a) 5 succeeding assessment years

(b) 8 succeeding assessment years

(c) 10 succeeding assessment years

(d) 15 succeeding assessment years

52. In the case of non-resident Indian (not being a company) income from

long-term capital gain is chargeable to tax at .... when the asset was

originally acquired by remitting convertible foreign exchange into India.

(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

Kayal on the brokerage paid would be:

 (a) NIL

(b) INR 800

(c) INR 2,000

(d) INR 4,000

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

fees would be ....................... if S has not furnished his PAN.

(a) INR 7,000

(b) INR 3,500

(c) INR 1,750

(d) NIL

55. For which of the following transactions, quoting of Permanent Account

Number is mandatory?

(a) Payment to hotel INR 22,000 on any single day

(b) Deposit of cash in saving bank account of INR 55,000 on any single

day

(c) Purchase of property valued at INR 3 lakh

(d) Payment of life insurance premium of INR 25,000

56. Kayalvizhi employed in a private company, having only salary income,

filed her return of income of assessment year 2019-20 on 10-9-2019. Her

total income is INR 4,10,000. The amount of fee payable by her under

section 234F would be :

(a) INR 10,000

(b) INR 5,000

(c) INR 1,000

(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

of demand as per Rule 15 and 38 under section .................... of the I.T.

Act, 1961.

(a) 156

(b) 143(3)

(c)153

(d) 220

58. When the taxpayer files application for settlement of the case the

additional amount of income-tax payable, as a result of search, on the

income disclosed in the application must exceed :

(a) INR 10,00,000

(b) INR 25,00,000

(c) INR 50,00,000

(d) INR 1,00,00,000

59. A notice under section 142(1) was issued to Ashok Ghosh for filing 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 :

(a) INR 10,000

(b) INR 20,000

(c) INR 50,000

(d) INR 1,00,000

60. The Assessing Officer while scrutinizing the return of an assessee find

under reporting of income for the reason of misreporting of facts of

such income and thus levied penalty on such under reported income
 resulting from misreporting of income. The penalty to be imposed by

the A.O. shall be at the rate of ..............tax payable on such misreported

income

(a) 50%

(b) 100%

(c) 200%

(d) 300%

61. Natraj engaged in business repaid loan received from Narain of INR

50,000 by cash on 16-3-2019 (Sunday). He also repaid the balance of INR

15,000 by cheque on 20-3-2019. The amount of penalty leviable for

repayment of loan would be :

(a) INR 15,000

(b) INR 50,000

(c) NIL

(d) INR 65,000

62. Who can claim deduction under section 80GG in respect of rent paid for

accommodation?

(a) Company

(b) Partnership firm

(c) Individual

(d) Co-operative society

63. An Indian resident availed services by way of online advertisement

space provided by a foreign company located in UK. The foreign

company does not have a PE (Permanent Establishment) in India. The

Indian company has to pay equalization levy when the amount paid to

the foreign company exceeds :

 (a) INR 50,000 in previous year

(b) INR 1,00,000 in previous year

(c) INR 5,00,000 in previous year

(d) INR 10,00,000 in previous year

64. Which of the following relationships between two enterprises would

result in them being deemed associated enterprises?

(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

borrowings of other enterprise.

(d) One enterprise supplying more than 26% of the raw materials

consumed by another enterprise.

65. Which of the following powers cannot be exercised by the Transfer

Pricing Officer?

(a) Power to call evidence/information from the assessee

(b) Power to amend the order to rectify arm’s length price

(c) Power of survey under section 133A

(d) Power to conduct search under section 132

66. When the Advance Pricing Agreement (APA) has been entered into, it is

valid for not more than .................consecutive previous years.

(a) 7

(b) 5

(c) 3

(d) 1
67. A resident having transaction with a non-resident who has filed form

35D for advance ruling, can withdraw the application within :

(a) 15 days

(b) 30 days

(c) 45 days

(d) 60 days

68. Income tax assessment of Ajay was completed determining the income

at INR 8,40,000 as against the returned income of INR 5,40,000. The

amount payable as fee for appeal before Commissioner (Appeals)by him,

would be:

(a) INR 250

(b) INR 500

(c) INR 1,000

(d) INR 5,000

69. Income tax assessment of Kuber was completed on 15-12-2018 for the

assessment year 2016-17. There is an error apparent in the assessment

order. The time limit for rectification of mistake in the assessment order

under section 154 is available up to :

(a) 31-3-2020

(b) 31-3-2021

(c) 31-3-2022

(d) 31-3-2023

70. Senthil employed in a nationalized bank incurred INR 60,000 towards

medical expenditure of his parent who is a senior citizen and dependent

upon him. There is no health insurance policy to cover the parent. The

amount eligible for deduction under section 80D would be:

 (a) INR 10,000

(b) INR 25,000

(c) INR 35,000

(d) INR 50,000

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

Government taken together shall have a weightage of the total votes

cast in that meeting.

(a) 2/3, 1/3, 3/4

(b) 3/4, 1/3, 2/3

(c) 2/3, 2/3, 1/3

(d) 3/4, 1/2, 2/3

72. GST is a comprehensive tax regime covering both Goods and Services

and be collected on value added at each stage of the supply chain. GST

is thus levied on the basis of .......................... .

(a) Consumption principle

(b) Destination principle

(c) Set-off against that payable principle

(d) Both consumption and destination base principle

73. Permanent transfer or disposal of goods forming part of business asset

by or under the directions of the person carrying on the business

whether or not for consideration as well as transfer of title in goods

under an agreement where property in goods passes at a future date

 on payment of full consideration as per Schedule - II of the CGST Act,

2017 to be treated as ........ .

(a) Supply of Goods

(b) Supply of Services

(c) Deemed supply

(d) Both, supply and deemed supply

74. The composition levy payable by a registered person whose aggregate

turnover in the preceding Financial Year did not exceed One Crore and

fifty lakh rupees making supply by way of or as part of any services or in

any other manner whatsoever of goods being food or any other article

for human consumption or any drink (other than Alcoholic Liquor for

human consumption) where such supply or service is for cash or defer

payment or other valuable consideration shall be at of the turnover.

(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

CGST Act, 2017 and UTGST Act, 2017 is known as a ....................... .

(a) Inter-state supply

(b) Export supply

(c) Intra-state supply

(d) Not Intra-state supply

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

to the factory of XYZ Ltd. on 15th September, 2018.

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

time of supply in this case will be :

(a) 18th September, 2018

(b) 9th September, 2018

(c) 15th September, 2018

(d) 20th October, 2018

77. Babbur Automobiles of Jaipur has supplied the goods of INR 2,66,090 to

Goel Automobiles of Ajmer in the month of March, 2019. The supply so

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

(b) INR 2,25,000

(c) INR 3,13,986

(d) INR 2,25,500

78. Availability of Input Tax Credit in special cases as per section 18(1) of the

CGST Act, 2017 is available where a registered person is having tax

invoice relating to such supply issued not after expiry of .. from the date

of issue of tax invoice.

 (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

scheme both Interstate and Intra-state. The supplies are chargeable to

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

CGST and SGST and of INR 55,000 under IGST.

(a) INR 3,06,000

(b) INR 2,16,000

(c) INR 1,61,000

(d) INR 1,71,000

80. Section 22 of the CGST Act, 2017 refers to the expression “Special

Category States” and there are total.............. special category States as

per sub-clause (2) of Clause (4) of Article 279A of the Constitution.

However, special category States for the purpose of registration under

the CGST Act, 2017 out of which are ........ .

(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

under GST as per Rule 12 shall electronically submit an application for

the grant of registration in Form........... and after verification of the

application the proper officer may grant the registration and issue the

certificate of registration in Form ....................... .

(a) GST REG-5, GST REG-4

(b) GST REG-8, GST REG-7

(c) GST REG-7, GST REG-6

(d) GST REG-10, GST REG-9

82. A draft template of invoice to be raised by a registered person liable to

pay tax under Reverse Charge Mechanism (RCM) under GST is known as

.....................

(a) GST INV-1

(b) GSTR1

(c) GST INV-3

(d) GSTR 3B

83. Every registered person as per section 68 of CCST Act, 2017 who causes

movement of goods of consignment value greater than whether for

supply or otherwise or due to the inward supply from an unregistered

person, shall before commencement of such movement, furnish the

necessary information electronically on the portal in the prescribed form.

(a) INR 50,000

(b) INR 25,000

(c) INR 1,00,000

(d) INR 5,000

84. Tax on inter-state supplies, import into India, supplies made outside

India and supplies made in SEZ shall be charged under ......................... .

(a) CGST & SGST

(b) CGST & UTGST

(c) CGST & IGST

(d) IGST

85. Advance ruling means a decision provided by the .................... to an

applicant on the matter or a question specify u/s 97(2) and 100(1) of the

CGST Act, in relation of the supply of goods or services or both being

undertaken by the applicant.

(a) Commissioner (Appeals)

(b) Authority or Appellate Authority

(c) Appellate Tribunal

(d) Adjudicating Authority

86. Section 110 of Finance Act, 2018 w.e.f. 2nd February, 2018 have

levied ................. on imported goods which is a duty of customs levied for

the purpose of the union on the goods specified in the first schedule

with the Customs Performing Act, 1975 being goods imported into India.

(a) Anti Dumping Duty

(b) Paid Command Duty

(c) IGST and GST Compensation Cess

(d) Social Welfare Surcharge

87. Self-assessment of duty as per section 17 of the Customs Act, 1962 is

being done by Importer and Exporter relating to the goods subject to

duty and after final assessment of duty if any, amount refundable is not

refunded within ..................... from the date of assessment of duty finally

 there shall be paid an interest on such un-refunded amount by Central

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

goods and services by Centre and State/Union territories?

(a) Article 246A

(b) Article 286

(c) Article 366

(d) Article 368

89. When goods are sold from one place to another place, the tax liability

would accrue under GST law, at:

(a) Place of dispatch

(b) Place of raising the bill

(c) Place of consumption/destination

(d) Routes in which the goods travel

90. GST laws are implemented on the recommendations of:

(a) GST council

(b) Central Government

(c) President of India

(d) GST Network (GSTN)

91. XYZ & Associates is a firm of Company Secretaries at Delhi. It agreed to

provide continuous services to members of FICCI by entering into an

 agreement. In order to consider the service as continuous service, the

period of service must exceed :

(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?

(a) Services of Member of Parliament

(b) Branch transfer

(c) Goods sent to agent by principal

(d) Import of services

93. Which of the following is a composite supply under GST?

(a) Sale of jewellery by goldsmith

(b) Readymade garments sold by showroom

(c) Works contract services

(d) Sweets packed in carton boxes

94. Out of the following manufacturer/producer/service provider, who can

not avail composition scheme?

(a) Tax payer making interstate supplies

(b) Manufacturer

(c) Beauty Parlour

(d) Both (a) & (c)

95. A dealer wishing to opt for composition scheme, must convey his option:

(a) Within a period of 60 days from the commencement of the relevant

financial year
 (b) Within 90 days from the commencement of the relevant financial

year

(c) Within 30 days from the commencement of the relevant financial

year

(d) Within 10 days from the commencement of the relevant financial

year

96. The aggregate turnover of Turner & Co. exceeded the limit prescribed

for composition scheme on 7-3-2019. What is the course of action to be

adopted by Turner & Co. for rest of the financial year?

(a) Intimate within 7 days to the GST authority and pay GST as normal

supplier of goods.

(b) Suspend business till 31-3-2019.

(c) Compute and pay tax as normal supplier w.e.f. 1-4-2018.

(d) Since the period is less than 30 days for the end of the financial

year, continue the business as composition dealer.

97. What is the time of supply of service in the following case:

Date of issue of invoice 31-12-2018; Date of receipt of payment by

supplier of service 20-12-2018; Date of provision of service 25-11-2018;

and date of order-

(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

of supply would be:

(a) INR 3,40,000

(b) INR 3,60,000

(c) INR 3,95,000

(d) INR 3,55,000

99. Which of the following is an exempted good under GST?

(a) Fresh Milk

(b) Motor Car

(c) Generators

(d) Branded Atta

100. Lamb Ltd. received goods from Gower & Co. on 23-4-2018 along with

delivery challan. It paid the amount to the supplier on 2-5-2018. The

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

input tax credit could be claimed by Lamb Ltd. is available up to:

(a) Within 6 month from the date of invoice

(b) Within 1 year from the date of invoice

(c) Within 3 month from the date of invoice

(d) Within 1 month from the date of invoice