MITTAL COMMERCE CLASSES CA INTERMEDIATE – MOCK TEST

(GI-7, VDI-3)
DATE: 27.01.2023 MAXIMUM MARKS: 100 TIMING: 3¼ Hours

TAXATION

GENERAL INSTRUCTIONS TO CANDIDATES

1. The question paper comprises two parts, Part I and Part II.
2. Part I comprises Multiple Choice Questions (MCQs).
3. Part II comprises questions which require descriptive type answers.
4. Ensure that you receive the question paper relating to both the parts. If you have
not received both, bring it to the notice of the invigilator.
5. Answers to Questions in Part I are to be marked on the OMR answer sheet only.
Answers to questions in Part II are to be written on the descriptive type answer
book. Answers to MCQs, if written in the descriptive type answer book, will not be
evaluated.
6. OMR answer sheet will be in English only for all candidates, including for Hindi
medium candidates.
7. The bar coded sticker provided in the attendance register, is to be affixed only on the
descriptive type answer book. No bar code sticker is to be affixed on the OMR answer
sheet.
8. You will be allowed to leave the examination hall only after the conclusion of the
exam. If you have completed the paper before time, remain in your seat till the
conclusion of the exam.
9. Duration of the examination is 3 hours. You will be required to submit (a) Part I of
the question paper containing MCQs, (b) OMR answer sheet thereon and (c) the
answer book in respect of descriptive type answer book to the invigilator before
leaving the exam hall, after the conclusion of the exam.
10. The invigilator will give you acknowledgement on Page 2 of the admit card, upon
receipt of the above-mentioned items.
11. Candidate found copying or receiving or giving any help or defying instructions of the
invigilators will be expelled from the examination and will also be liable for further
punitive action.
_________________________________________________________________________

PART — II

1. Section-A comprises questions 1-4. In Section-A, answer Question No. 1 which is

compulsory and any 2 questions from question No. 2-4. All questions in Section-A
relate to assessment year 2019-20, unless otherwise stated.
Section-B comprises questions 5-8. In Section-B, answer Question No. 5 which is
compulsory and any 2 questions from question No. 6-8.
2. Working notes should form part of the answer.
3. Answers to the questions are to be given only in English except in the case of
candidates who have opted for Hindi Medium. If a candidate has not opted for Hindi
Medium, his/her answers in Hindi will not be evaluated.
4. All questions in Section B should be answered on the basis of position of GST law as
amended by significant notifications / circulars issued upto 30th April, 2019.

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MITTAL COMMERCE CLASSES CA INTERMEDIATE – MOCK TEST
SECTION – A
PART – I – MULTIPLE CHOICE QUESTIONS
TOTAL MARKS: 30 MARKS

Write the most appropriate answer to each of the following multiple choice questions by
choosing one of the four options given, All questions are compulsory.

1. Sajan, a resident Indian, has incurred Rs. 15,000 for medical treatment of his dependent
brother, who is a person with severe disability and has deposited Rs. 20,000 with LIC for
his maintenance. For A.Y. 2023-24, Sajan would be eligible for deduction under section
80DD of an amount equal to –
(a) Rs. 15,000
(b) Rs. 35,000
(c) Rs. 75,000
(d) Rs. 1,25,000 (1 Mark)

2. Mr. Shiv made a donation of Rs. 50,000 to PM Cares Fund and Rs. 20,000 to Rajiv
Gandhi Foundation by cheque. He made a cash donation of Rs. 10,000 to a public
charitable trust. The deduction allowable to him under section 80G for A.Y. 2023-24 is -
(a) Rs. 80,000
(b) Rs. 70,000
(c) Rs. 60,000
(d) Rs. 35,000 (1 Mark)

3. Mr. Ritik has purchased his first house in Gwalior for self-occupation on 5.4.2022 for Rs.
45 lakhs (stamp duty value being the same) with bank loan sanctioned on 30.3.2022 and
disbursed on 3.4.2022. He paid interest of Rs. 3.8 lakhs during the P.Y. 2022-23. What
is the tax treatment of interest paid by him?
(a) Interest of Rs. 2 lakhs allowable u/s 24
(b) Interest of Rs. 2 lakhs allowable u/s 24 and Rs. 1.8 lakhs allowable u/s 80EEA
(c) Interest of Rs. 2 lakhs allowable u/s 24 and Rs. 1.5 lakhs allowable u/s 80EEA
(d) Interest of Rs. 1.5 lakhs allowable u/s 24 and Rs. 1.5 lakhs allowable u/s 80EEA
(1 Mark)

4. Mr. Ansh is a businessman whose total income (after allowing deduction under Chapter
VI-A except under section 80GG) for A.Y. 2023-24 is Rs. 5,95,000. He does not own any
house property and is staying in a rented accommodation in Patna for a monthly rent of
Rs. 9,000. Deduction under section 80GG for A.Y. 2023-24 is -
(a) Rs. 48,500
(b) Rs. 1,48,750
(c) Rs. 60,000
(d) Rs. 1,08,000
(1 Mark)

5. If Mr. X’s total income for A.Y. 2023-24 is Rs. 52 Lakhs, surcharge is payable at the rate of -
(a) 15%
(b) 12%
(c) 10%
(d) 2%
(1 Mark)

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MITTAL COMMERCE CLASSES CA INTERMEDIATE – MOCK TEST

6. Unexhausted basic exemption limit of a resident individual can be adjusted against–

(a) only LTCG taxable @20% u/s 112
(b) only STCG taxable @15% u/s 111A
(c) both (a) and (b)
(d) casual income taxable @30% u/s 115BB
(1 Mark)

7. Unexhausted basic exemption limit of a non-resident individual can be adjusted against–

(a) only LTCG taxable @20% u/s 112
(b) only STCG taxable @15% u/s 111A
(c) both (a) and (b)
(d) neither (a) nor (b)
(1 Mark)

8. During the P.Y. 2022-23, Mr. Manjit has short-term capital gains of Rs. 95 lakhs taxable
under section 111A, long-term capital gains of Rs. 110 lakhs taxable under section 112A
and business income of Rs. 90 lakhs. Which of the following statements is correct?
(a) Surcharge @25% is leviable on income-tax computed on total income of Rs. 2.95
crore, since total income exceeds Rs. 2 crore.
(b) Surcharge @15% is leviable on income-tax computed on total income of Rs. 2.95
crore.
(c) Surcharge @15% is leviable in respect of income-tax computed on capital gains
of Rs. 2.05 crore; in respect of business income, surcharge is leviable@25% on
income-tax, since total income exceeds Rs. 2 crore.
(d) Surcharge@15% is leviable in respect of income-tax computed on capital gains
of Rs. 2.05 crore; surcharge@10% is leviable on income-tax computed on
business income, since the same exceeds Rs. 50 lakhs but is less than Rs. 1
crore.
(1 Mark)

9. Mr. Mayank has received a sum of Rs. 75,000 on 24.10.2022 from his friend on the
occasion of his marriage anniversary. What would be the taxability of the said sum in the
hands of Mr. Mayank?
(a) Entire Rs. 75,000 is chargeable to tax
(b) Entire Rs. 75,000 is exempt from tax
(c) Only Rs. 25,000 is chargeable to tax
(d) Only 50% i.e., Rs. 37,500 is chargeable to tax
(1 Mark)

10. If the converted property is subsequently partitioned among the members of the family,
the income derived from such converted property as is received by the spouse of the
transferor will be taxable -
(a) as the income of the karta of the HUF
(b) as the income of the spouse of the transferor
(c) as the income of the HUF.
(d) as the income of the transferor-member
(1 Mark)

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MITTAL COMMERCE CLASSES CA INTERMEDIATE – MOCK TEST
11. Mr. Aarav gifted a house property valued at Rs. 50 lakhs to his wife, Geetha, who in turn
has gifted the same to her daughter-in-law Deepa. The house was let out at Rs. 25,000
per month throughout the P.Y. 2022-23. Compute income from house property for A.Y.
2023-24. In whose hands is the income from house property chargeable to tax?
(a) Rs. 3,00,000 in the hands of Mr. Aarav
(b) Rs. 2,10,000 in the hands of Mr. Aarav
(c) Rs. 2,10,000 in the hands of Geetha
(d) Rs. 2,10,000 in the hands of Deepa
(1 Mark)

12. Ram owns 500, 15% debentures of Reliance Industries Ltd. of Rs. 500 each. Annual
interest of Rs. 37,500 was declared on these debentures for P.Y. 2022-23. He transfers
interest income to his friend Shyam, without transferring the ownership of these
debentures. While filing return of income for A.Y. 2023-24, Shyam showed Rs. 37,500
as his income from debentures. As tax advisor of Shyam, do you agree with the tax
treatment done by Shyam in his return of income?
(a) Yes, since interest income was transferred to Shyam therefore, after transfer it
becomes his income.
(b) No, since Ram has not transferred debentures to Shyam, interest income on the
debentures is not taxable income of Shyam.
(c) Yes, if debentures are not transferred, interest income on debentures can be
declared by anyone, Ram or Shyam, as taxable income depending upon their
discretion.
(d) No, since Shyam should have shown the income as interest income received
from Mr. Ram and not as interest income earned on debentures.
(1 Mark)

13. Mrs. Shivani, wife of Mr. Anurag, is a partner in a firm. Her capital contribution is Rs. 5
lakhs to the firm as on 01.04.2022 which includes Rs. 3.5 lakhs contributed out of gift
received from Anurag. The firm paid interest on capital of Rs. 50,000 and share of profit
of Rs. 60,000 during the F.Y. 2022-23. The entire interest has been allowed as
deduction in the hands of the firm. Which of the following statements is correct?
(a) Share of profit is exempt but interest on capital is taxable in the hands of Mrs.
Shivani.
(b) Share of profit is exempt but interest of Rs. 39,286 is includible in the income of
Mr. Anurag and interest of Rs. 10,714 is includible in the income of Mrs. Shivani.
(c) Share of profit is exempt but interest of Rs. 35,000 is includible in the income of
Mr. Anurag and interest of Rs. 15,000 is includible in the income of Mrs. Shivani.
(d) Share of profit to the extent of Rs. 42,000 and interest on capital to the extent of
Rs. 35,000 is includible in the hands of Mr. Anurag.
(1 Mark)

14. Mr. Arvind gifted a house property to his wife, Ms. Meena and a flat to his daughter-in
law, Ms. Seetha. Both the properties were let out. Which of the following statements is
correct?
(a) Income from both properties is to be included in the hands of Mr. Arvind by virtue
of section 64.
(b) Income from property gifted to wife alone is to be included in Mr. Arvind’s hands
by virtue of section 64.

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MITTAL COMMERCE CLASSES CA INTERMEDIATE – MOCK TEST
(c) Mr. Arvind is the deemed owner of house property gifted to Ms. Meena and Ms.
Seetha.
(d) Mr. Arvind is the deemed owner of property gifted to Ms. Meena. Income
from property gifted to Ms. Seetha would be included in his hands by virtue of
section 64.
(1 Mark)

15. On 20.10.2022, Pihu (minor child) gets a gift of Rs. 20,00,000 from her father’s friend.
On the same day, the amount is deposited as fixed deposit in Pihu’s bank account. On
the said deposit, interest of Rs. 13,000 was earned during the P.Y. 2022-23. In whose
hands the income of Pihu shall be taxable? Also, compute the amount of income that
shall be taxable.
(a) Income of Rs. 20,11,500 shall be taxable in the hands of Pihu’s father.
(b) Income of Rs. 20,13,000 shall be taxable in the hands of Pihu’s father.
(c) Income of Rs. 20,11,500 shall be taxable in the hands of Pihu’s father or mother,
whose income before this clubbing is higher.
(d) Income of Rs. 20,13,000 shall be taxable in the hands of Pihu’s father or mother,
whose income before this clubbing is higher.
(1 Mark)

16. Mr. A incurred short-term capital loss of Rs. 10,000 on sale of shares through the
National Stock Exchange. Such loss -
(a) can be set-off only against short-term capital gains
(b) can be set-off against both short-term capital gains and long- term capital gains.
(c) can be set-off against any head of income.
(d) not allowed to be set-off.
(1 Mark)

17. According to section 80, no loss which has not been determined in pursuance of a return
filed in accordance with the provisions of section 139(3), shall be carried forward. The
exceptions to this are -
(a) Loss from specified business under section 73A
(b) Loss under the head “Capital Gains” and unabsorbed depreciation carried
forward under section 32(2)
(c) Loss from house property and unabsorbed depreciation carried forward under
section 32(2)
(d) Loss from speculation business under section 73
(1 Mark)

18. Brought forward loss from house property of Rs. 3,10,000 of A.Y. 2022-23 is allowed to
be set-off against income from house property of A.Y. 2023-24 of Rs. 5,00,000 to the
extent of –
(a) Rs. 2,00,000
(b) Rs. 3,10,000
(c) Rs. 2,50,000
(d) Rs. 1,00,000
(1 Mark)

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MITTAL COMMERCE CLASSES CA INTERMEDIATE – MOCK TEST
19. Ms. Riya is a multi-faceted business personality. She is registered under GST from April,
this year.
She supplied a package consisting of stapler, calculator and charger at a single price of Rs.
300. Rate of GST for stapler, calculator and charger is 5%, 12% and 18% respectively.
She wants to opt for composition levy.
She received following payments during the month of May:
- earned Rs. 160,000 by performing a western music in a cultural event at a Resort
- earned Rs. 50,000 by providing services by way of renting of residential dwelling
for use as a boutique.
- received Rs. 70,000 by way of rent for letting of agro machinery
Ms. Riya made a supply during June, details of which are as follows-
- Basic price of the product before TCS under Income Tax Act, 1961– Rs. 45,000
- Tax collected at source under Income-tax Act, 1961 – Rs. 2,500
- She received a subsidy of Rs. 3,500 from Green Foundation Pvt. Ltd for usage of
green energy and the subsidy was linked to saving energy
Ms. Riya provides the following information regarding receipt of inward supply during July-
- received invoice for goods having GST component of Rs. 30,000. Goods were to
be delivered in 5 lots, out of which three lots were received in the current month.
- purchased a car having GST component of Rs. 1,50,000 for the usage in a driving
school owned by her for imparting training
- availed health insurance service for her employees on her own voluntarily and paid
GST of Rs. 7,000 thereon
All the amounts given above are exclusive of taxes, wherever applicable. All the supplies
referred above are intra-State unless specified otherwise. Conditions necessary for
claiming input tax credit (ITC) have been fulfilled subject to the information given above.
From the information given above, choose the most appropriate answer for the following
questions:-
1. What would be the nature of supply and the applicable rate of GST for the supply
of package made by Ms. Riya (when not registered under composition scheme):-
(a) composite Supply & applicable rate 12%
(b) mixed Supply & applicable rate 18%
(c) composite Supply & applicable rate 18%
(d) mixed Supply & applicable rate 12%
(2 Marks)

2. Out of payments received by Ms. Riya in month of May, exempt Supply amounts
to___________________
(a) Rs. 50,000
(b) Rs. 70,000
(c) Rs. 1,20,000
(d) Rs. 1,60,000
(2 Marks)

3. Compute the value of supply under section 15 of CGST Act, 2017 made by Ms.
Riya?
(a) Rs. 45,000
(b) Rs. 47,500
(c) Rs. 48,500
(d) Rs. 51,000
(2 Marks)

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MITTAL COMMERCE CLASSES CA INTERMEDIATE – MOCK TEST

4. Compute the amount of input tax credit that can be claimed by Ms. Riya?
(a) Rs. 30,000
(b) Rs. 37,000
(c) Rs. 1,50,000
(d) Rs. 1,57,000
(2 Marks)

20. A supplier takes deduction of depreciation on the GST component of the cost of capital
goods as per Income- tax Act, 1961. The supplier can-
(a) avail only 50% of the said tax component as ITC
(b) not avail ITC on the said tax component
(c) avail 100% ITC of the said tax component
(d) avail only 25% of the said tax component as ITC
(1 Mark)

21. Warehousing services of__________is exempt from GST.

(i) Rice
(ii) Minor forest produce
(iii) Jaggery
(iv) Coffee
(a) i, ii, iii and iv
(b) i and iii
(c) ii, iii and iv
(d) iii
(1 Mark)

22. Which of the following services received, in the course or furtherance of business,
without consideration amount to supply?
(i) Import of services by a person in India from his son well-settled in USA
(ii) Import of services by a person in India from his brother well- settled in Germany
(iii) Import of services by a person in India from his brother (wholly dependent on such
person in India) in France
(iv) Import of services by a person in India from his daughter (wholly dependent on such
person in India) in Russia
(a) i, iii and iv
(b) ii, iii and iv
(c) ii and iii
(d) i and ii
(1 Mark)

23. Which of the following persons engaged in making intra-state supplies from Uttar
Pradesh, as prescribed below, is not eligible for composition levy under sub-sections (1)
and (2) of the CGST Act, 2017 even though their aggregate turnover does not exceed
Rs. 1.5 crore in preceding FY?
(a) A person supplying restaurant services
(b) A person supplying restaurant services and earning bank interest
(c) A person trading in ice cream
(d) A person supplying service of repairing of electronic item
(1 Mark)

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MITTAL COMMERCE CLASSES CA INTERMEDIATE – MOCK TEST

SECTION – A
PART – II - DESCRIPTIVE QUESTIONS
QUESTIONS NO. 1 IS COMPULSORY
ATTEMPT ANY TWO QUESTIONS THE REMAINING THREE QUESTIONS
TOTAL MARKS: 42 MARKS

Question 1:
Mr. Rajesh Kumar resident aged 62 furnishes the following information pertaining to the year
ended 31.03.2023:
Rs.
(i) Pension received (Net of TDS) 6,27,000
(ii) Short-term capital gains (from sale of listed shares) 65,000
(iii) Long-term capital gains (from sale of listed shares) 1,24,000
(iv) Interest on fixed deposit from bank 1,60,000
(v) Pertaining to consultancy services provided by him :
Gross receipts 12,60,000
Expenses :
Rent for premises 1,44,000
Salary of P.A. 1,20,000
Stenographer's salary 1,00,000
Business Development expenditure 91,000
Conveyance 3,00,000
(vi) Contribution to PPF 1,10,000
(vii) Premium on life insurance policy taken on 10.01.2023 (sum assured Rs. 60,000
5,00,000)
(viii) Medi-claim Insurance Premium for self (paid otherwise than by cash) 47,000
Preventive health checkup expenses (in cash) 6,000
(ix) Donation given in cash to a charitable trust registered under section 14,000
12AA (eligible for deduction u/s 80G) of the Income-tax Act, 1961
(x) Interest received from Post Office Saving A/c 18,000
Additional information :
 TDS from pension 25,000
th
 1/4 of conveyance expenses is estimated for personal use.
Compute the total income of the assessee for the assessment year 2023-24 under property
heads of income listed share were sold in recognized stock exchange. Ignore the provisions of
Section 44ADA.
(14 Marks)

Question 2:
(a) Sabu joined a Company on 01.06.2022 and was paid the following emoluments and
allowed perquisites as under –
Emoluments : Basic pay Rs. 25,000 per month; DA Rs. 10,000 per month, Bonus Rs.
50,000 per month.
Perquisites :
(a) Furnished accommodation owned by the employer and provided free of cost.
Value of furniture therein Rs. 3,00,000.

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MITTAL COMMERCE CLASSES CA INTERMEDIATE – MOCK TEST

(b) Motorcar owned by the Company (with engine cubic capacity less than 1.6 litres)
along with chauffeur for official and personal use.
(c) Sweeper salary paid by Company Rs. 1,500 per month.
(d) Watchman salary paid by Company Rs. 1,500 per month.
(e) Educational facility for 2 children provided free of cost. School is owned and
maintained by company.
(f) Interest free loan of Rs. 5,00,000 given on 01.10.2022 for purchase of a house,
No repayment was made during the year. (SBI Rate 12.25%)
(g) Interest free loan for purchase of computer Rs. 50,000 given on 01.01.2023. No
repayment was made during the year. (SBI Rate 15.25%)
(h) Corporate membership of a club. The initial fee of Rs. 1,00,000 was paid by the
Company. Sabu paid the bills for his use of club facilities.
You are required to compute the income of Sabu under the Head “Salaries”. Suitable
assumptions may be made, wherever necessary.
(7 Marks)

(b) Mr. Sohan commenced a proprietary business in the year 2002. His capital as on
01.04.2021 was Rs. 6,00,000. On 10.04.2021 his wife gifted Rs. 2,00,000 which he
invested in he business of the same date. Mr. Sohan earned profit from his proprietary
business as given below.
Previous year 2021-22 = Profit Rs. 3,00,000
Previous year 2022-23 = Profit Rs. 4,40,000
Compute the income from business chargeable to tax in the hands of Mr. Sohan for the
assessment year 2023-24. During the financial year 2022-23, he sold a vacant site
which resulted in chargeable long-term capital gain of Rs. 5,00,000 (computed). The
vacant site was sold on 20.12.2022.

Compute the total income and tax liability of Mr. Sohan and the installments of advance
tax payable for the financial year 2022-23.
(7 Marks)

Question 3:
(a) Mr. Y has let out one House property and rent received is Rs. 90,000 p.m. after TDS. He
paid Municipal Tax Rs. 1,00,000 and Interest u/s 24 (b) is Rs. 2,00,000. He has received
Rs. 9,00,000 in connection with professional services after TDS. The Assessee made
the payment of tax on 10.05.2023. Compute Total Income and Tax Payable and also
Compute Interest u/s 234A, 234B & 234C.
(7 Marks)

(b) Mr. C has one big house. 25% of it is being used by the assessee in his own
business/profession and 50% of the house is let out @ Rs. 10,000 p.m. However, it
remained vacant for one month and there is unrealised rent for 1½ month.
Remaining 25% is self occupied throughout the year. Fair rent of the entire house
is Rs. 25,000 p.m., municipal valuation Rs. 22,000 p.m. and municipal tax paid
is Rs. 22,000. Insurance premium paid is Rs. 6,000, repair charges Rs. 8,000, land
revenue paid Rs. 4,000, ground rent is Rs. 3,000 and depreciation of the house is
Rs. 12,000. Assessee’s income under the head business/profession before charging
expenditure relating to house property is Rs. 2,00,000.
Compute his total income and tax liability for assessment year 2023-24.
(7 Marks)

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MITTAL COMMERCE CLASSES CA INTERMEDIATE – MOCK TEST
Question 4:
(a) Mahesh (aged 55 years) owned a residential house at Nagpur. It was acquired by
Mahesh on 10.10.2004 for Rs. 14,50,000. It was sold for Rs. 55,00,000 on 04.11.2022.
The State stamp valuation authority fixed the value of the property at Rs. 75,00,000. The
assessee paid 2% of the sale consideration as brokerage for the sale of said property.
Mahesh acquired a residential house at Chennai on 10.12.2022 for Rs. 10,00,000 and
deposited Rs. 10,00,000 on 10.04.2023 in the capital gain bond of Rural Electrification
Corporation Ltd. (REC). He deposited Rs. 5,00,000 on 06.07.2023 in the Capital Gain
Deposit Scheme in a nationalised bank for construction of additional floor on the
residential house property acquired at Chennai.
Compute the capital gain chargeable to tax in the hands of Mr. Mahesh. Calculate the
income-tax payable on the assumption that he has no other income chargeable to tax.
Cost inflation index for various financial year are as under : 2004-05 : 113 and
2022-23 : 331.
(6 Marks)

(b) State with reasons whether you agree or disagree with the following statements.
(a) Return of income of Limited Liability Partnership (LLP) could be verified by any
partner.
(b) Time limit for filing return u/s 139(1) in the case of Mr. A having total turnover Rs.
160 lakhs for the year ended 31.03.2023, whether or not opting to offer
presumptive income u/s 44AD, is 30th September 2023.
(4 Marks)

(c) Mr. Jeet submits his return of income on 12.09.2023 for AY 2023-24 consisting of
income under the head house property and other source. On 21.01.2024, he realized
that he had not claimed deduction under section 80 TTA in respect of his interest
income on the Savings Bank Account. He wants to revise his return of income, since
the assessment year has not elapsed. Discuss. Would you answer be different if he
discovered this omission on 21.04.2024?
(4 Marks)

SECTION – B - DESCRIPTIVE QUESTIONS

QUESTION NO. 5 IS COMPULSORY
ATTEMPT ANY TWO QUESTIONS OUT OF REMAINING THREE QUESTIONS.
TOTAL MARKS: 28 MARKS

Question 5:
Mr. J has started rendering taxable services w.e.f. 01-07-2021 and has submitted information as
given below:
Rendered Services on 10-07-2021 and issued bill Rs. 18,00,000 and received payment on
01-09-2021. He has taken registration on 18-07-2021 u/s 25(3) on voluntary basis. At the time
of registration he has inputs on which input tax paid in CGST Rs. 10,000 SGST Rs. 10,000 and
also had capital goods on which input tax paid is IGST Rs. 30,000.
He rendered service on 27-08-2021 and issued bill on 03-09-2021 Rs. 11,00,000 + CGST @
9% + SGST @ 9% and received payment on 10-10-2021.
He rendered services on 01-01-2021 and issued invoice on 01-03-2021 Rs. 20,00,000 + CGST
@ 10% +SGST @ 10% but payment was recovered in advance on 01-12-2021.
Compute his GST Liability for each month and the last date upto which GST should be paid.
(8 Marks)

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MITTAL COMMERCE CLASSES CA INTERMEDIATE – MOCK TEST
Question 6:
(a) Divya Ltd. a registered manufacturer engaged in taxable supply of goods procured the
following goods during the month of October. The same has been capitalized in the
books of account of Divya Ltd. Determine the amount of Input tax credit available by
giving necessary explanations for treatment of various ii ems.
Inward supplies GST (Rs.)
(1) Electrical transformers used in the factory 2,16,000
(2) Moulds and dies used in the factory 26,000
(3) Pollution control equipment used in the factory 2,34,000
(4) Capital goods purchased on which depreciation has been taken 1,35,000
on full value including input tax thereon
(5) Capital goods used as parts purchased from supplier who paid 10,000
tax of under composition scheme and the composite tax has not
been collected from Divya Ltd.
(6 Marks)

(b) Ajit is a supplier of taxable goods in Karnataka. He got registered under GST in the
month of September, 2022 and wishes to pay his IGST liability for the month. Since he's
making the GST payment for the first time, he is of the view that he needs to mandatorily
have the online banking facility to make payment of GST; offline payment is not
permitted under GST. You are required to apprise Ajit regarding the various modes of
deposit in the electronic cash ledger. Further, advise him with regard to following issues:
(a) Are manual challans allowed under GST?
(b) What is the validity period of the challan?
(c) Is cross utilization among Major and Minor heads of the electronic cash ledger
permitted?
(4 Marks)
Question 7:
(a) Goyal Fashions, a registered supplier of designer outfits in Delhi, decides to exhibit its
products in a Fashion Show being organised at Hotel Park Goyal, Delhi on 4th January,
2023. For the occasion, it gets the makeover of its models done by Jara Beauty Services
Ltd., Ashok Vihar, for which a consideration is Rs. 5,00,000 (excluding GST) has been
charged. Jara Beauty Services Ltd. issued a duly signed tax invoice on 10th February,
2023 showing the lumpsum amount of Rs. 5,90,000 inclusive of CGST and SGST @ 9%
each. Goyal Fashions made the payment the very next day. Answer the following
questions:
(i) Examine whether the tax invoice has been issued within the time limit prescribed
under law?
(ii) Tax consultant of Goyal Fashions objected to the invoice raised suggesting that
the amount of tax charged in respect of the taxable supply should be shown
separately in the invoice raised by Jara Beauty Services Ltd. However, Jara
Beauty Services Ltd. contended that there is no mandatory requirement of
showing tax component separately in the invoice. You are required to examine
the validity of the objection raised by tax consultant of Goyal Fashions?
(4 Marks)

(b) "Jagro Care Limited" registered under GST furnishes the following details with respect to
the activities undertaken by them in the month of March, 2023 :
Particulars Rs.
1. Receipts from Supply of farm labour 85,000

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MITTAL COMMERCE CLASSES CA INTERMEDIATE – MOCK TEST
2. Charges for seed testing 65,000
3. Charges for soil testing of farm land 35,000
4. Charges for warehousing of potato chips 85,000
5. Commission received on sale of wheat 75,000
6. Charges for training of farmers on use of new pesticides and 10,000
fertilizers developed through scientific research
7. Renting of vacant land to a stud farm 1,85,000
8. Leasing of vacant land to a cattle farm 83,500
9. Charges for warehousing of rice 1,50,000
10. Charges for warehousing of cotton fabrics 2,00,000
11. Retail packing and labelling of fruits and vegetables 5,00,000
12. Charges for warehousing of minor forest produce 8,00,000
13. Charges for warehousing of spices 2,20,000
Compute the value of taxable supply of 'Jagro Care Limited' for the month of March,
2023 if all the above amounts are exclusive of GST.
(6 Marks)

Question 8:
(a) Mr. Anish, a retailer who keeps no inventories, presents the following estimated
information for the year -
(1) Purchases of goods : 50 lakhs (GST @ 5%)
(2) Sales (at fixed selling price inclusive of all taxes) : Rs. 60 lakhs (GST on sales @
5%)
Discuss whether he should opt for composition scheme if composite tax is 1% of
turnover.
Expenses of keeping detailed statutory records required under the GST Laws will be
1,20,000 p.a., which shall get reduced to 50,000 if composition scheme is opted for.
Other expenses are Rs. 3,00,000 p.a.
(5 Marks)

(b) From the following information determine the nature of supply and tax liability.
Raj Ltd. a manufacturer of cosmetic products supplied a package consisting of hair oil
(GST Rate - 18%), sun screen cream (GST Rate - 28%), shampoo (GST Rate - 28%)
and hair comb (GST Rate - 12%). The price per package is 500 (exclusive of taxes).
10,000 packages were supplied by the company to its dealers. Determine the nature of
supply and its tax liability.
(5 Marks)

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