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CS Executive Guideline Answers for Tax Laws

CS Executive Guideline Answers for Tax Laws

CS Executive Guideline Answers: This excellent blog gives you complete knowledge, improve your skills in preparing and answering for Tax laws in CS Executive.

This blog contains model answers for Tax laws given by expert faculty of CS Executive.

We hope that these CS Executive guideline answers will assist the students in preparing for the Institute’s examinations.

cs executive guideline answers for Tax laws

cs executive guideline answers for Tax laws

CS Executive Guideline Answers for Tax Laws- PART I

  1. The Central Board of Direct Taxes (CBDT) is headed by Chairman and also comprises of six The Chairman and all the Members of the CBDT are being selected :
    1. By Finance Minister
    2. From IRS
    3. By Prime Minister
    4. By Chief Justice of India
  2. The Central Board of Direct Taxes (CBDT) provides essential inputs for policy and planning of direct taxes in India and is a……………………………………………….. functioning under the Central Board of Revenue Act, 1963.
  1. Constituted Authority
  2. Revenue Administration Authority
  3. Statutory Authority
  4. Central Authority
  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 …………….. .
    1. India
    2. India other than J & K
    3. Undivided India
    4. Greater India
  2. Central Board of Direct Taxes (CBDT) vide Circular No. 8 of 2017 dated 23rd February, 2017 has clarified that the Place of Effective Management (POEM) provisions shall not apply to a company having turnover or gross receipts in a financial year of …………… .
    1. `30 crore or less
    2. `10 crore or less
    3. `50 crore or less
    4. `5 crore or less
  1. Thomas, an Indian citizen is living in Kerala since birth in 1954 and left for UAE on 13th June, 2014 for a salaried employment contract for 4 years and came back on 7th July, 2018 to India and settled at Kerala. His residential status for the Assessment Year 2019-20 shall be :
  1. Resident
  2. Non-Resident
  3. Resident & Not Ordinary Resident
  4. Resident & Ordinary Resident
  1. The Apex Court in the case of CIT-Gujarat 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 :
    1. Capital Receipt
    2. Revenue Receipt
    3. Not a receipt but to be reduced from the cost of Plant & Machinery
    4. Compensation
  2. XYZ Pvt. Ltd. had distributed income of `6 lakh to Rajesh for the reason of buyback of its shares (Not being listed on a recognized stock exchange) from him on 1st February, 2019. The amount of `6 lakh received by Rajesh in the A.Y. 2019-20 shall be ……………………… .
    1. Taxable in full
    2. Exempt u/s 10(34A)
    3. Taxable @ 20%
    4. Taxable at normal rate of tax
  3. The maximum amount of any death-cumretirement gratuity received by an employee not covered under the payment of Gratuity Act, 1972 on Superannuation from the employer exempt from tax is of ………. .
    1. 20 Lakh
    2. 10 Lakh
    3. 5 Lakh
    4. 15 Lakh
  1. 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 `17,000 m. in XYZ Ltd. on 1st April, 2016 in the grade of 15,000 – 2000 — 19,000 – 3000 — 28,000 ?
  1.  `3,00,000
  2.   `2,28,000
  3.   `2,64,000
  4.   `2,52,000
  1. Total income of Nand Kishore under the head ‘Salary’ for the financial year 2018-19 of whose basic salary and DA per month was of `40,000 and `3,000 respectively and who was also paid leave salary of `6,000 and `1,000 of professional tax by the employer shall be ……………….. .
  1.   `4,82,000
  2.   `4,76,000
  3.   `5,23,000
  4.   `5,16,000
  1. A Central Government Officer received during the year 2018-19 salary excluding all allowances of `9,00,000 and amount of entertainment allowance of `12,000 @ `1,000 m. The maximum amount of entertainment allowance so received by him being exempt under section 16(ii) of the Act is …………………. .
    1. 1/5th of salary
    2. 1,000 p.m.
    3. 5,000
    4. 10,000
  1. Rajendra a non-resident Indian in the previous year 2018-19 was in receipt of rent of house property located in Dubai of `27,50,000. The amount of rent was transferred and credited in the bank account of Rajendra maintained with SBI, Vadodara by the tenant The Annual Letting Value (ALV) of the house located in Dubai subject to tax under the head Income from house property in A.Y. 2019-20 shall be ………………….. .
  1. 16,50,000
  2. 19,25,000
  3. 27,50,000
  4. Not taxable as property is in Dubai and he is non-resident
  1. What will be the Gross Annual Value (GAV) of a house owned by Ramesh covered by Rent Control Act remained let out during the year 2018-19 of which;
  • Municipal value is `3,50,000
  • Actual (De Facto) Rent is `3,20,000
  • Fair Rent is `3,00,000, and
  • Standard Rent is`3,60,000
  1. 3,60,000
  2. 3,20,000
  3. 3,50,000
  4. 3,00,000
  1. Santhnam purchased in October, 2017 with the financial assistance by way of housing loan provided by PNB Housing Finance a flat in Chennai to be used exclusively for his own residential purposes. Interest on the housing loan till March, 2019 paid by him was of `2,18,780. He wants to know the amount of deduction to be available to him in respect of interest so paid on the housing loan while computing his income for A.Y. 2019-20.
  1. 30,000
  2. 2,18,780
  3. 1,50,000
  4. 2,00,000
  1. House owned by Suresh was sold on 1st January, 2019 and till the date of sale, the house was on rent of `7,000 p.m. The other relevant details of this house are (i) municipal value `72,000 p.a. (ii) fair rent `66,000 a. and standard rent`60,000 p.a. The income chargeable under the head House Property in A.Y. 2019-20 of this house shall be :
  1. 63,000
  2. 50,400
  3. 46,200
  4. 44,100
  1. Assets put to use in business for more than 180 days during the previous year consisting (i) Factory Building, (ii) Computers, (iii) Motor Vehicles used for Commercial Purposes and (iv) Intangible Assets shall be depreciated at the rate of —–respectively.
  1. 5%, 15%, 30%, 25%
  2. 10%, 40%, 30%, 25%
  3. 10%, 15%, 25%, 25%
  4. 5%, 40%, 15%, 25%
  1. The WDV of the block of asset of plant & machinery depreciated @ 15% as on 1st April, 2018 was of `13,50,000. Out of this block, one machine was sold 1st July, 2018 for `4,50,000 and a new machine of `7,50,000 was purchased on 1st August, 2018 which could be put to use from 1st March, 2019. The amount of depreciation to be claimed on the block of plant & machinery in the computation of income for Y. 2019-20 shall be :
  1. 1,35,000
  2. 2,47,500
  3. 1,91,250
  4. 2,53,125
  1. A machine owned by AB & Co. was transferred to XYZ & Co. on 1st January, 2019 for `5 lakh of which actual cost and WDV was of `3 lakh and 2 lakh respectively. However, the fair market value on the date of transfer of machine was of `4 lakh. XYZ & Co. will be allowed depreciation on such machine by taking value thereof at `……………….. .
    1. 5 lakh
    2. 2 lakh
    3. 3 lakh
    4. 4 lakh
  2. Any asset, on which depreciation is claimed on the basis of Straight Line Method (SLM) is sold and the amount by which money payable together with scrap value, fall short of the Written Down Value (WDV) of such asset, the amount of such deficiency in value of asset is allowed to be written off in the year of sale as ……………………. .
    1. Balancing charge
    2. Terminal depreciation
    3. Loss on sale of asset
    4. Residual value of asset
  3. Anirudh had made payment of (i) `30,000 to IIT, Kanpur for an approved scientific research programme (ii) `45,000 revenue expenditure on in house R&D facility as approved by prescribed authority and (iii) `1,00,000 to Indian Institute of Science, Bengaluru for scientific research, wants to know about the deduction available while computing the income under “Profits and gains from business” in the Assessment Year 2019-20.
  1. 2,40,000
  2. 1,75,000
  3. 2,62,500
  4. 2,65,000
  1. XAB has incurred amount of `4,00,000 towards capital expenditure and`1,50,000 towards bonafide 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 `……………………………………………… for such expenses in the return to be filed for A.Y. 2019-20.
  1. 50% of `5,50,000
  2. 2,30,000
  3. Such expenses are not allowed
  4. 20% of `5,50,000
  1. Ping Pong is a Proprietorship firm of Pinga, resident in India having turnover from manufacturing and sale of Steel balls for the year 2018-19 of `148 lakh which is inclusive of amount of `42 lakh received through electronic clearing system/RTGS/NEFT. The accounts are not properly maintained by Pinga and therefore he wants to pay tax on the income computed under section 44AD of Act. Advise Pinga, how much income he will be required to pay tax for A.Y. 2019-20 as per section 44AD :
  1. 11,84,000
  2. Not allowed to opt 44AD being turnover above `100 lakh
  3. 11,00,000
  4. 8,88,000
  1. Ramanad, engaged in the business of plying, hiring or leasing of goods carriers as on 1st April, 2018 was having 3 trucks of gross vehicles weight of less than 12,000 kgs each. One truck out of these 3 trucks was sold by him on 23rd July, 2018 and after its sale, 2 more trucks (1 of less than 12,000 kgs. and 1 of 16,900 kgs) were purchased on 5th September, 2018. He wants to declare the income of trucks as per provisions of section 44AE of the Act and be required to declare such income at `…………………. in the return for A.Y. 2019- 20 from plying of these vehicles during theprevious year ended on 31st March, 2019.
  1. 3,54,500
  2. 3,81,500
  3. 3,15,000
  4. 3,74,000
  1. Indexed cost of acquisition of the house property purchased for `80 lakh in June, 1998 and was sold in December, 2018 will be of `………………………………… (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 `90 lakh.
  1. 63,81,766
  2. 90 lakh
  3. 252 lakh
  4. 71,79,487
  1. Chirag entered into an agreement for sale of his house property located at Jaipur to Yash on 1st August, 2017 for a total sale consideration of `95 lakh. Yash paid an amount of `20 lakh by account payee cheque to Chirag on 1st August, 2017 and balance was agreed to be paid at the time of registration of the Conveyance Deed which could only be executed by Chirag on 1st September 2018. The Stamp Valuation Authority determined the value of the house property on the date of registration of deed at `140 lakh. However, the value determined by the Stamp Valuation Authority of the house on the date of agreement (1st August, 2017) was `110 lakh. The sale value for the purpose of computing the capital gain of the property in A.Y. 2019-20 to be taken by Chirag shall be :
  1. 95 lakh
  2. 110 lakh
  3. 140 lakh
  4. 120 lakh
  1. Rohit is working as Company Secretary in Raj Chem Ltd. on a salary of`20,000 p.m. He got married to Pooja who holds 25% shares of this Company. What will be the impact of salary paid to Rohit by the company in the hands of Pooja ?
  1. No amount to be clubbed
  2. Club 50% salary
  3. Club 100% salary
  4. 25% salary be clubbed

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

  1. Sale with a condition of re-purchase
  2. Power to change beneficiary or trustees
  3. Both (A) and (B)
  4. Neither (A) nor (B)

28. Ram has gifted on 11th May, 2018 an amount of `10,00,000 to his wife Sita without consideration and also for not to live apart. The gifted amount was invested by his wife in interest bearing security on which she earned interest of`1,00,000 on 1st January, 2019. The amount of interest of `1,00,000 was further invested by her in the business from which she earned a profit of `15,000 for the period ended on 31st March, 2019. Specify the income which is to be included in the hands of Ram in A.Y. 2019-20.

  1. 1,15,000
  2. 1,00,000
  3. 15,000
  4. Nil

29.ABC Limited fulfilling all the conditions of operating different infrastructure facilities for claiming deduction u/s 80-IA. Find which are being not covered under infrastructure facility out of the following :

  1. Developing of Toll-Road
  2. Operating and maintaining of Highway Project
  3. Operating and maintaining of an Airport
  4. Developing of industrial park

30.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 p0P up-to :

  1. 75% of the profits
  2. 100% of the profits
  3. 50% of the profits
  4. 40% of the profits

31.Ram & , a partnership firm worked out total book profits for the year ended 31st March, 2019 of `6,00,000 and has made payment of salary of `4,60,000 authorized by the partnership deed to the working partners. Firm wants to know that how much amount of salary paid to partners be allowable as deduction in A.Y. 2019-20.

(A)  `4,60,000

(B)  `3,90,000

(C)  `2,70,000

(D)  `4,50,000

  1. A charitable trust registered as per section 12AA of Income Tax Act, having capital asset purchased in June, 2015 for `1,00,000 and used for the charitable purposes till the same was sold in December, 2018 for `1,50,000. The Trust, after sale of capital asset purchased a new capital asset for `1,20,000 which was also used for charitable purposes of the The amount of capital gain utilized in purchase of new capital asset by Trust shall be ………….. .




(D) Nil

  1. 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, 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………………….. .
  1. 1st May, 2018
  2. 1st December, 2018
  3. 13th May, 2018
  4. 13th November, 2018
  1. ABC , a domestic company having a turnover of `350 crore has computed its total income for the year 2018-19 of `102 lakh. The tax payable by the company on such income in A.Y. 2019-20 shall be :

(A)  `34,05,168

(B)  `29,70,240

(C)  `33,28,000

(D)  `33,30,968

  1. Provisions of Minimum Alternate Tax (MAT) are applicable to the companies which are;
  • Indian companies
  • Foreign companies
  • LLP
    1. (i) & (iii)
    2. (i) & (ii)
    3. All the three
    4. None of the above
  1. Total income of XYZ Limited includes the income of dividend of `10 lakh paid by a 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 :
    1. Taxable @ 15% of such income
    2. Not taxable being exempt u/s 10(34)
    3. Taxable at the normal rate applicable on domestic company
    4. Taxable @ 10% of such income
  1. RAJA has earned income of `150 lakh inclusive of income of `50 lakh from the transfer of Carbon Credit during the year 2018-19. The company had incurred an amount of `5 lakh as transfer expenses on transfer of Carbon Credit. The income received from transfer of Carbon Credit in the A.Y. 2019-20 shall be taxed as per section 115BBG of the Act and the amount of tax on such income payable shall be :

(A)  `5,82,400

(B)  `5,56,400

(C) `13,00,000

(D) `5,00,000

  1. Every person being resident Indian who carries-out the business/profession or a non-resident who has a permanent establishment in India shall deduct equalization levy from the amount paid/payable to a non-resident in respect of specified services @ whereas the aggregate amount of consideration for specified services in the previous year exceeds `………….. .

(A) 8%, `10,00,000

(B)  8%, `1,00,000

(C)  6%, `1,00,000

(D) 10%, `1,00,000

  1. 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) `5,00,00,000

(B)  `10,00,00,000

(C)  `20,00,00,000

(D) `1,00,00,000

  1. Rakesh entered into a Joint Development Agreement with Reality Builders Ltd. for developing a project on the land owned by him during the previous year 2018-19 and the builder who agreed to make the payment of `50 lakh to Rakesh paid the same to him on execution of the Joint Development Agreement. The amount of TDS u/s 194-IC required to be deducted on the amount of `50 lakh shall be ……………… .


(B) `2,50,000

(C)  `5,00,000

(D) `10,00,000


  1. Wealth Maximization Fund Limited had paid an amount of interest of `20 lakh in respect of money borrowed outside India on rupee denominated bonds to a foreign Institutional Investor. Wealth Maximization Fund Limited is required to deduct tax at source out of such payment of interest on these bonds at the rate of ………………….. .
  1. 10%
  2. 15%
  3. No TDS
  4. 5%
  1. A house property owned by Nitin, a nonresident, at Delhi was agreed to be sold to Ramesh for a consideration of `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

  1. The quarterly return of TDS relating to payments made to non-resident and the foreign company being a unit holder of mutual funds is to be filed in return form number :
    1. 24Q
    2. 27Q
    3. 26Q
    4. 22Q
  2. Wherever any tax, interest, penalty or other sum under the 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.
  1. 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 ……… .
    1. 2%
    2. 1%
    3. Nil
    4. 5%

46. The premises of an assessee within the jurisdiction of an Assessing Officer can be surveyed during business hours by such Income -Tax ……………..

  1. After sunset and before sunrise
  2. After sunrise but before sunset
  3. Any time during 24 hours
  4. After 11 A.M.

47. The Assessing Officer can complete the assessment under section 144 of the Act even though there is no failure on the part of assessee under section 139(1), 139(4), 139(5), 142(1), 142(2A) or 143(2) of the Such powers by the A.O. may be exercised in which of the following situations :

  1. Where the A.O. is not satisfied about the correctness or completeness of the accounts of the assessee
  2. Where the method of accounting has not been regularly followed by the assessee
  3. Where the income has not been computed in accordance with “ICDS” notified by the Central Government u/s 145(2)
  4. Any of above three or in all the three above situations

48. 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 Such powers can be invoked by the CIT, when :

  1. The order is erroneous
  2. The order is prejudicial to the interest of revenue
  3. When the return has not been filed by the assessee
  4. When both the conditions of (A) and (B)

49. As per section 9A, an eligible off-shore investment fund shall furnish within 90 days from the end of the financial year, a statement containing information relating to fulfillment of specified conditions and such other information or documents as may be prescribed. Penalty of ………………. to be levied, if investment fund failed to comply with the requirements as per section

(A) `1,00,000

(B) `500 per day

(C)   `5,00,000

(D) `10,00,000

  1. 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 The penalty to be imposed by the A.O. shall be at the rate of ………… payable on such misreported income.

CS Executive Guideline Answers for Tax Laws PART—II

  1. 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…………… 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

52.The Goods and Service Tax Council shall establish a mechanism to adjudicate any dispute …………………. .

  1. Relating to any defect in the appointment of a person as a Member
  2. Relating to any procedural irregularity of the Council
  3. Between the Government of India and one or more States
  4. Relating to weightage of vote for taking decision

53. Administration and procedural aspects of Goods and Service Tax are to be administered by the which is under the control of the Department of Revenue, Ministry of Finance, Government of India.

  1. Central Board of Indirect Taxes and Customs
  2. Central Board of Indirect Taxes
  3. Central Board of Direct Taxes
  4. GST Council
  1. 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 …………………….. .
  1. Consumption principle
  2. Destination principle
  3. Set-off against that payable principle
  4. Both consumption and destination base principle


55. Most of the countries in the world follow a uniform GST System whereas considering to the federal nature of Indian Constitution, Model of GST proposed and implemented in India from 1st July, 2017 is ………….. .

  1. Unilateral Model
  2. Bilateral Model
  3. Dual Model
  4. None of the above

56. Section 7 of the CGST Act, 2017 defines the term ‘supply’ which are further being enumerated in the various schedules as specified in that section. The section includes certain transactions which are even without consideration but being construed as supply and also known as deemed Such transactions are being specified in ………. .

  1. Schedule – II
  2. Schedule – I
  3. Schedule – III
  4. Schedule – IV

57. 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 …….. .

  1. Supply of Goods
  2. Supply of Services
  3. Deemed supply
  4. Both, supply and deemed supply

58. Construction of a complex, building, civil structure or the part thereof including a complex or building intended for sale to a buyer, wholly or partly except where the entire consideration has been received after issuance of completion certificate, where required, by a competent authority or after its first occupation, whichever is earlier as per section – 7 of the CGST Act, 2017 read with item specified in schedule is known as …………………… .

  1. Goods
  2. Both Goods and Services
  3. Services
  4. Contract work

59. Which of the categories of registered persons who are being eligible for the composition scheme under the CGST Act, 2017 :

  1. Supplier of the Restaurant Services
  2. Manufacturer of notified goods
  3. Non-resident taxable persons
  4. Casual taxable person

60. 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

(A)  0.5%

(B) 1%

(C)  2.5%

(D) 5%

  1. The liability to pay GST would depend on the mechanism the transaction aligns to the supplier who is registered with GST, issues a tax invoice, collects the GST and pays it to the Government. This mechanism under GST is known ………………… .
    1. Forward charge mechanism
    2. Reverse charge mechanism
    3. Composition levy mechanism
    4. Taxable supply mechanism
  2. The exempt supply has been defined as supply of any goods/services/both, which attract a Nil rate of tax, or which may be wholly exempt from tax, and therefore, includes non-taxable supplies. Which of the following is covered as an exempt supply under GST ?
    1. Branded Aata/Basin/Maida
    2. Services by IRDA, SEBI, RBI, EPFO
    3. Services by Post Office
    4. Services by the Government for transportation of passenger

63. 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 ………………….. .

  1. Inter-state supply
  2. Export supply
  3. Intra-state supply
  4. Not Intra-state supply

64. Ram & Company of Delhi has taken a contract to supply of food in New Delhi- Mumbai Rajdhani Express and the supplies of food in the train are being taken on board at Kota in Rajasthan from Agarwal Food & Caterers. The place of supply in such case shall be ………………………. .

  1. Delhi
  2. Kota
  3. Mumbai
  4. None of the above

65. Ravi Raj a registered person based in Ahmedabad solicits the services of an Event Management Company based in Mumbai for his daughter’s marriage planned as a destination wedding at a Palace located in Udaipur. The place of supply in this case shall be ………………….. and tax to be charged under…………………. .

  1. Ahmedabad, IGST
  2. Mumbai, IGST
  3. Udaipur, IGST
  4. Ahmedabad, SGST

66. ABC Ltd., supplied goods to XYZ Ltd. under a contract for the goods to be delivered to the factory of XYZ 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 :

  1. 18th September, 2018
  2. 9th September, 2018
  3. 15th September, 2018
  4. 20th October, 2018
  1. What will the value of supply of the mobile phone sold by Micromax to Anil Kumar for `35,000 in exchange with of his old mobile The sale price of the new mobile phone without exchange is `40,000. The value of old mobile phone so exchanged was of `7,000.

(A) `35,000 (B) `40,000 (C) `42,000 (D) `33,000

  1. Mishra Enterprises had made supplies of `5,50,000 to Bee Kay Enterprises. Municipal Authorities of Jaipur on such supplies levied the tax @ 10% of `55,000. CGST and SGST chargeable on the supply was of `66,000. Packing charges not included in the price of `5,50,000 amounted to `15,000. Subsidy of `25,000 was received from an NGO on the sale of such goods and the price of `5,50,000 is after taking in to account the amount of subsidy so Discount offered is @ 1% which was mentioned on the invoice. The value of supply in this case shall be ………………. .

(A)  `6,45,000

(B)  `6,39,500

(C)  `6,20,000

(D)  `6,38,550

  1. Babbur Automobiles of Jaipur has supplied the goods of `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)  `2,66,090

(B)  `2,25,000

(C)  `3,13,986

(D)  `2,25,500

  1. Section 2(62) of CGST Act, 2017 specify input tax in relation to a registered person, means the Central Tax, State Tax, Integrated Tax or Union Territory Tax charged on any supply of goods or services or both made to him but does not include :
    1. Integrated goods and service tax charged on import of goods
    2. Tax under the provisions of section 9(3) and 9(4)
    3. Tax paid under composition levy
    4. Tax under Union Territory Goods & Service Tax Act
  1. A registered taxable person is eligible to obtain Input Tax Credit (ITC) as per section 16 of the CGST Act, on fulfilling of certain conditions which consist of that such person should :
  • Be in possession of tax invoice
  • Have received the goods
  • Supplier have not paid the tax charged
  • Supplier have furnished the return u/s 39
  1.  (i), (ii) & (iv)
  2. (i), (iii) & (iv)
  3. (i), (ii) & (iii)
  4. (i), (ii), (iii) & (iv)
  1. 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 dateof issue of tax invoice.
  1. 3 months
  2. 6 months
  3. 1 year
  4. 9 months
  1. ABC Ltd. is engaged in manufacture of electrical appliances supply following details relating to GST paid on various items by them :

   Item                                                                                                         GST Paid (`)

Electrical Transformers utilized in the manufacturing process                             1,20,000

Trucks used for transporting materials                                                                   80,000

Cakes and Pastries for consumption within factory                                                  12,500

The amount of Input Tax Credit (ITC) available to ABC Ltd. shall be ………….. .

(A)  `2,00,000

(B) `2,12,500

(C) `52,500

(D)  `1,00,000

  1. The Input Tax  Credit (ITC)  is being credited to……………………. of a person

which may be used by the person to pay his out-put tax liability.

  1. Electronic Cash Ledger
  2. Electronic Credit Ledger
  3. Electronic Tax Ledger
  4. Electronic Tax Credit Ledger
  1. 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 `12,00,000 and Inter-state `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 `45,000 each under CGST and SGST and of `55,000 under IGST.

(A)  `3,06,000

(B)  `2,16,000

(C)  `1,61,000

(D)  `1,71,000

  1. The registration under GST is……………….. based with State specific number and is known as GST Identification Number (GSTIN) which is a …………………. digit number under the CGST Act, 2017.
  1. TAN, 12
  2. PAN, 15
  3. TAN, 15
  4. PAN, 12
  1. Every supplier as per section 22 of the CGST Act, 2017 shall be liable to be registered under this Act in the State where he makes taxable supplies of goods or services or both, if his aggregate turnover in the Financial Year ……………….. .

(A)  `20,00,000

(B)  `40,00,000

(C)  `30,00,000

(D)  `60,00,000

  1. 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

  1. Section 2(77) of CGST Act, 2017 defines “non-resident taxable person” who has the business outside India, comes to India for a temporary business purpose. Such person would need to register as a non-resident taxable person in the State and he will be granted registration for a maximum period of …………………..under the Act.
  1. 90 days
  2. 45 days
  3. 60 days
  4. 30 days
  1. The application for registration filed as per Rule 8, prior to grant of registration be examined and if found to be deficient, a notice to the applicant in Form……………… be issued within a period of days from the date of submission of application.
  1. GST REG-03, 7
  2. GST REG-03, 3
  3. GST REG-05, 7
  4. GST REG-01, 3
  1. 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 ………………….. .
  1. GST REG-5, GST REG-4
  2. GST REG-8, GST REG-7
  3. GST REG-7, GST REG-6
  4. GST REG-10, GST REG-9
  1. The proper officer, if has reasons to believe that the registration of a person is liable to be cancelled under section 29 of CGST Act, then he shall issue a notice to such person in Form and after considering the reply furnished by such person shall pass on order to drop proceedings in Form…………………… .
  1. GST REG-16, GST REG-17
  2. GST REG-17, GST REG-18
  3. GST REG-17, GST REG-19
  4. GST REG-17, GST REG-20
  1. Mundra Manufacturing Company of Jaipur on the order placed by Dheeraj Enterprises of Noida for supply of goods despatched the goods from the factory located at Jaipur on lst March, The tax invoice for such supply by Mundra Manufacturing Company must be issued on Dheeraj Enterprises on or before………………….. .
  1. 30th March, 2019
  2. 1st March, 2019
  3. 15th March, 2019
  4. 7th March, 2019

84. 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 …………………

  1. GST INV-1
  2. GST INV-2
  3. GST INV-3
  4. GST INV-4

85. Tax invoice referred to in Rule 46 of CGST Rules 2017, in case of taxable supply of services shall be issued under Rule-47 of CGST Rules 2017, within a period of from the date of supply of

  1. 7 days
  2. 15 days
  3. 30 days
  4. on the same day

86. Section 35(5) of Central Goods & Services Tax (CGST) Act, 2017 mandates that every registered person must get his accounts audited by a ………………….if his aggregated turnover during a financial year exceeds ` ……………….. .

  1. Chartered Accountant or Company Secretary, 2 Crore
  2. Chartered Accountant or Cost Accountant, 2 Crore
  3. Chartered Accountant or Company Secretary or Cost Accountant, 3 Crore
  4. Chartered Accountant, 3 Crore

87. 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) `50,000

(B) `25,000

(C) `1,00,000

(D) `5,000

  1. The Electronic Liability Register specified under section 49(7) of the CGST Act, 2017 as per Rule 85 of the CGST Rules 2017 shall be maintained in  Form      for each person liable to pay tax, penalty, late fees or any other amounts payable by him on the common portal which shall be debited to the said register.
  1. GST PMT-10
  2. GST PMT-01
  3. GST PMT-05
  4. GST PMT-02
  1. Section 56 of the CGST Act, 2017 states that claim of refund arising from an order passed by an adjudicating authority or Appellate Authority or an Appellate Tribunal or Court which is not being refunded within…………………………………………………………………. days from the date of receipt of application filed consequent to such order, interest at such rate not exceeding……………………………………… per annum, shall be payable in respect of such refund.
  1. 30 days, 6%
  2. 30 days, 9%
  3. 60 days, 9%
  4. 60 days, 6%

90. Tax on inter-state supplies, import into India, supplies made outside India and supplies made in SEZ shall be charged under ……………………. .

  1. CGST & SGST
  3. CGST & IGST
  4. IGST

91. Provision for levy and collection of tax on intra-state supply of goods or services or both by the Union Territory and for matters connected therewith or incidental thereto are being enumerated in :

  1. CGST Act, 2017
  2. IGST Act, 2017
  3. UTGST Act, 2017
  4. None of the above
  1. Integrated tax credit as per section 9A of UTGST Act, 2017 on account of Union Territory Tax shall be utilized towards payrnent of……………………………………………. only after the input tax credit available on account of…………………. has first been utilized towards such payment.
  1. Integrated Tax and Union Territory Tax, Integrated Tax
  2. Union Territory Tax, Input Tax
  3. Integrated Tax or Union Territory Tax, Union Territory Tax
  4. Integrated Tax or Union Territory Tax, Integrated Tax
  1. 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.
  1. Commissioner (Appeals)
  2. Authority or Appellate Authority
  3. Appellate Tribunal
  4. Adjudicating Authority
  1. Section 22 of the UTGST Act, 2017 lays down the power of Central Government to make rules on the recommendation of the Any rule made under sub- section-1 of section 22 may provide that a contravention thereof shall be liable to a maximum penalty of ………………. .

(A) `10,000

(B) `1,000

(C)  `5,000

(D)  `2,500

  1. Total proceeds of the cess levied under section 8 of GST (Compensation to States) Act, 2017 as per section 10 shall be credited to a fund which is known as and shall form part of the public account of India to be utilized for the purposes specified and shall be a non-lapsable Fund.
  1. GST Cess Fund
  2. GST Cess Compensation Fund
  3. GST Compensation Fund
  4. GST Fund
  1. Section 110 of Finance Act, 2018 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.
  1. Anti Dumping Duty
  2. Paid Command Duty
  3. IGST and GST Compensation Cess
  4. Social Welfare Surcharge
  5. Find from the following list which are treated as Port under the provisions of the Customs Act, 1962 :
    1. Land Station
    2. Land Customs Stations (LCS)
    3. Container Freight Stations (CFS) not attached to Port
    4. None of the above
  6. Duty Drawback under the Customs Act, 1962 shall be allowed on the imported goods, where such imported goods are being used for a period of eight months before the same were re-exported @ ……………….. .
  1. 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.
  1. 1 month
  2. 2 months
  3. 6 months
  4. 3 months
  1. The offences committed under the Customs Act, 1962 are having the criminal liability as well as civil However, the offences involving duty evasion of more than `…………… or/and of …………..are non bail able offences under criminal liabilities.
  1. 50 lakh, Prohibited goods
  2. 50 lakh, Smuggled goods
  3. 100 lakh, Smuggled goods
  4. 100 lakh, Prohibited goods


CS Executive Guideline Answers for Tax Laws – ANSWER KEY

Q.noAns Ans Ans
 1 B 40 C 78 C
2 C41D79A
3 C42A80B
4 C43B81C
5 D44A82D
6 A45B83B
7 B46B84*
8 A47D85C
9 C48D 86B
10 A49C87A
11 C50C88B
12 B/C*  Part-II89C
13 C 51 B90D
14 *52C91C
15 D53A92D
16 B54B93B
 17 C55C94A
18 D56B95C
19 B57A96D
 20 A 58C97B
21 B59A98B
22 C60D99D
23 B61 A100A
24 C62 B
25 B63C
26 A64B
27 C65A
28 B66B
29 D67B
30 B68B
31 D69D
 32 A70C
33 B/D*71A
34 C72C
35 B73A
36 A74B
37 B75A/C*
38 C76B
39 A77A



cs executive guideline answers Notes*

Q .No. 12 Both options B/C are correct. The question is not clear as to compute the net annual value of the house property or the Income chargeable to tax under the head house property. Option B is correct (Income taxable under the head house property) . Options C is correct (Net Annual Value).

  1. No. 14 As per section 24(b) of the Income Tax Act, 1961, the deduction in case of self occupied property is Rs. 200000 or interest during the current financial year whichever is lower. The bifurcation of the interest payment on housing loan during the current year is not mentioned separately in the question.
  2. No. 33 Both options B/D are correct. Option B: As per section 12AA(2), Every order granting or refusing registration shall be passed before the expiry of six months from the end of the month in which the application was received. If no order has been passed, then it is considered as deemed registration has been granted. 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 as deemed registration has been granted after the expiry of 6 months from the date of application.
  3. 75 Both option A and C are correct as the question says total tax liability which can be interpreted differently by different people.
  4. 84 None of the options are correct as correct answer is self invoicing or GSTR – 1.


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