MCQOPTIONS
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MCQOPTIONS
This section includes 1133 Mcqs, each offering curated multiple-choice questions to sharpen your Commerce knowledge and support exam preparation. Choose a topic below to get started.
| 101. |
What if an e-commerce operator having no physical presence in the taxable territory, does nothave a representative in the taxable territory? |
| A. | His will have to discharge his tax liability in foreign currency |
| B. | He will not be liable to tax |
| C. | He has to appoint a person in the taxable territory for the purpose of paying tax on his behalf |
| D. | None of the above |
| Answer» D. None of the above | |
| 102. |
Unless and until notified, IGST shall not be levied on the inter-State supply of which of thefollowing. |
| A. | Industrial alcohol |
| B. | Works contract |
| C. | Petroleum |
| D. | None of the above |
| Answer» D. None of the above | |
| 103. |
Who is authorised under Integrated Goods and Service Tax (IGST) Act, to levy tax ? |
| A. | State |
| B. | Centre |
| C. | Union Territory |
| D. | Both (a) and (b) |
| Answer» C. Union Territory | |
| 104. |
Discount given after the supply is deducted from the value of taxable supply, if – |
| A. | such discount is given as per the agreement entered into at/or before the supply |
| B. | such discount is linked to the relevant invoices |
| C. | proportionate input tax credit is reversed by the recipient of supply |
| D. | all of the above |
| Answer» E. | |
| 105. |
A supply made by a taxable person to a recipient consisting of two or more taxable supply of goods or services of both or any combination thereof which are only bundled and supplied in conjunction with each other in the ordinarily course of business out of which one is a principal supply has been defined u/s 2(3) of CGST Act, 2017 to mean |
| A. | Mixed supply |
| B. | Composite supply |
| C. | Bundled supply |
| D. | Both (A) and (B) |
| Answer» C. Bundled supply | |
| 106. |
The time of supply "where goods or services or both have been supplied in a situation where the invoice issued before the change in the rate of tax but payment received after the change in rate of tax" as per section 14 of the CGST Act, 2017 shall be |
| A. | Date of issue of invoice |
| B. | Date of receipt of payment or the date of issue of invoice whichever is earlier |
| C. | Date of receipt of payment |
| D. | None of the above |
| Answer» B. Date of receipt of payment or the date of issue of invoice whichever is earlier | |
| 107. |
Services by educational institution is exempted if the services are to - |
| A. | Any common man |
| B. | Its own students, faculty / staff |
| C. | Both a & b |
| D. | None of the above |
| Answer» C. Both a & b | |
| 108. |
If XYZ Ltd a company based out of Bangalore, awards online maintenance contract of its servers located in Mumbai office to Y INC, a company based out of USA, and as per the terms of the online maintenance Y INC shall be required to perform regular maintenance from USA using Internet, then the place of supply is |
| A. | Bangalore |
| B. | Mumbai |
| C. | USA |
| D. | None of the above |
| Answer» C. USA | |
| 109. |
What is the threshold limit for applying the provisions of Section 52 for collecting tax at source ? |
| A. | If net value of taxable supplies exceeds ` 2,50,000 |
| B. | If net value of taxable supplies exceeds ` 5,00,000 |
| C. | If net value of taxable supplies exceeds ` 10,00,000 |
| D. | No such limit prescribed |
| Answer» E. | |
| 110. |
Value of services rendered is ` 1,18,000. Date of issue of invoice is 5th Sept. 2019. Advance received is ` 20,000 on 20th August 2018. Balance amount received on 7th Sept. 2019. What is the TOS of service? |
| A. | 5th Sept. 2019 - ` 1,18,000 |
| B. | 20th August 2019 - ` 1,18,000 |
| C. | 20th August 2019 - ` 20,000 and 5th Sept. 2019 - ` 98,000 |
| D. | 20th August 2019 - ` 20,000 and 7th Sept. 2019 - ` 98,000 |
| Answer» D. 20th August 2019 - ` 20,000 and 7th Sept. 2019 - ` 98,000 | |
| 111. |
Which of the following is not a feature of indirect taxes ? |
| A. | Regressive nature |
| B. | Supply based taxes |
| C. | Rate of taxes are different from person to person |
| D. | No previous year and assessment year concept |
| Answer» D. No previous year and assessment year concept | |
| 112. |
Which law will govern the inter-state supply of goods or services? |
| A. | CGST |
| B. | SGST |
| C. | UTGST |
| D. | IGST |
| Answer» E. | |
| 113. |
ABC Ltd. of Mumbai supplied goods to XYZ Ltd. of Delhi under a contract for the goods to be delivered at the factory of the buyers. Goods removed from the factory of ABC Ltd. on 9-8-2019 and were delivered in the factory of XYZ Ltd. of Delhi on 16-8-2019. Invoice for the suppliers was raised by ABC Ltd. on 18-8-2019. Payment of the bill was received on 20-9-2019. The time of supply in this case under GST be taken as |
| A. | 9-8-2019 |
| B. | 16-8-2019 |
| C. | 18-8-2019 |
| D. | 20-9-2019 |
| Answer» B. 16-8-2019 | |
| 114. |
Where will be the place of supply when the goods are supplied on the direction of the thirdparty? |
| A. | Location of the supplier |
| B. | Location of the recipient |
| C. | Location of the third party |
| D. | Any of the above |
| Answer» D. Any of the above | |
| 115. |
Whether depreciation on tax component of capital goods and Plant and Machinery and whetherinput tax credit is Permissible? |
| A. | Yes |
| B. | No |
| C. | Input tax credit is eligible if depreciation on tax component is not availed |
| D. | None of the above |
| Answer» D. None of the above | |
| 116. |
Is it mandatory to capitalize the capital goods in books of Accounts? |
| A. | Ye |
| B. | No |
| C. | Optional |
| D. | None of the above |
| Answer» B. No | |
| 117. |
Who will notify the rate of tax to be levied under CGST Act? |
| A. | Central Government suo moto |
| B. | State Government suo moto |
| C. | GST Council suo moto |
| D. | Central Government as per the recommendations of the GST Council |
| Answer» E. | |
| 118. |
In cases of change in rate of tax and amount is credited to the bank account after 4 working days from the date of change in rate of tax, the date of receipt of payment will be |
| A. | Date of book entry or date of bank entry, whichever is earlier |
| B. | Date of bank entry |
| C. | Date of book entry |
| D. | Date of book entry or date of bank entry, whichever is later |
| Answer» C. Date of book entry | |
| 119. |
The scope of supply of goods or services or both includes |
| A. | Sale |
| B. | Exchange |
| C. | Lease |
| D. | All of the above |
| Answer» E. | |
| 120. |
Goods and Services Tax is a tax levied on goods and services imposed at each point of . |
| A. | Sale |
| B. | Service |
| C. | Supply |
| D. | Manufacturing |
| Answer» D. Manufacturing | |
| 121. |
Which of the following central taxes has been subsumed in the ambit of GST ? |
| A. | Central Excise duty |
| B. | Service Tax |
| C. | CVD on import |
| D. | All of the above |
| Answer» E. | |
| 122. |
Section 2(6) of the CGST / SGST Act, 2017 defines aggregate turnover which is being computed on all India basis excluding the taxes charged under CGST Act, SGST Act, UTGST Act and IGST Act. Aggregate turnover shall include all supplies made by a taxable person comprising of(i) Taxable supply (ii) Exempt supply (iii) Export of goods and services (iv)All inter-state supply of person having same PAN (v) Supply on which tax is levied on reverse charge basis (vi)Value of all inward supply |
| A. | (i), (iii), (iv) and (v) |
| B. | (i), (iii), (iv) and (vi) |
| C. | All the above in (i) to (vi) |
| D. | (i), (ii), (iii) and (iv) |
| Answer» E. | |
| 123. |
Mr. Dev Anand is engaged in providing services of facilitating sale and purchase of securities to various clients. He is also engaged in trading of securities. His turnover details are as follows : Trading of securities - ` 40,00,000 Brokerage on account of facilitating transactions in securities - ` 30,00,000 You are required to ascertain aggregate turnover of Mr. Dev Anand under GST : |
| A. | 30,00,000 |
| B. | 40,00,000 |
| C. | 70,00,000 |
| D. | Nil |
| Answer» B. 40,00,000 | |
| 124. |
Agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an actis . |
| A. | Supply of goods |
| B. | Supply of services |
| C. | Neither as a supply of goods nor a supply of services |
| D. | Either as a supply of goods or a supply of services |
| Answer» C. Neither as a supply of goods nor a supply of services | |
| 125. |
Which of the following is exempted – |
| A. | Services by way of loading, unloading, packing, storage or warehousing of rice |
| B. | Services by way of loading and unloading of jute |
| C. | Services by way of packing and storage or warehousing of rubber |
| D. | None of the above |
| Answer» B. Services by way of loading and unloading of jute | |
| 126. |
What is the rate applicable under CGST to a registered person being a manufacturer opting topay taxes under composition scheme? |
| A. | 2.5% |
| B. | 1% |
| C. | 0.5% |
| D. | No composition for manufacturer |
| Answer» D. No composition for manufacturer | |
| 127. |
The main objective of GST implementation is . |
| A. | To consolidate multiple indirect tax levies into single tax |
| B. | Overcoming limitation of existing indirect tax structure |
| C. | Creating efficiencies in tax administration |
| D. | All of above |
| Answer» E. | |
| 128. |
Core services of which organization is not exempted - |
| A. | Services provided by the Insurance Regulatory and Development Authority of India to insurers |
| B. | Services provided by the Securities and Exchange Board of India set up under the Securities and Exchange Board of India Act, 1992 (15 of 1992) by way of protecting the interests of investors |
| C. | Services by Port Trusts |
| D. | Services by the Reserve Bank of India |
| Answer» D. Services by the Reserve Bank of India | |
| 129. |
Which of the following tax is not subsumed in GST ? |
| A. | VAT |
| B. | Stamp Duty |
| C. | Entry Tax |
| D. | Entertainment Tax |
| Answer» C. Entry Tax | |
| 130. |
Transfer of the title in goods shall be considered as . |
| A. | Supply of good |
| B. | Supply of services |
| C. | Neither as a supply of goods nor a supply of services |
| D. | Either as a supply of goods or a supply of services |
| Answer» B. Supply of services | |
| 131. |
The place of supply of passenger transportation services to a person other than a registered person, shall be the |
| A. | Location of the supplier of service |
| B. | Place where the passenger embarks on the conveyance for a continuous journey |
| C. | Place of destination of the journey |
| D. | Any of the above |
| Answer» C. Place of destination of the journey | |
| 132. |
One of the following is exempted from GST - |
| A. | Any business exhibition |
| B. | A business exhibition in India |
| C. | A business exhibition outside India |
| D. | None of the above |
| Answer» D. None of the above | |
| 133. |
Which of the following is exempted? |
| A. | All kinds of long term (30 or more years) leases of industrial plots |
| B. | Long term (30 or more years) leases of industrial plots or plots for development of infrastructure for financial business by State Government Industrial Development Corporations or Undertakings to industrial units |
| C. | Short term (up to 30 years) leases of industrial plots by State Government Industrial Development Corporations or Undertakings to industrial units |
| D. | All kinds of short term (up to 30 years) lease of industrial plots |
| Answer» C. Short term (up to 30 years) leases of industrial plots by State Government Industrial Development Corporations or Undertakings to industrial units | |
| 134. |
Which of the following services are covered under Reverse Charge Mechanism of CGST Act, 2017? (i) Legal Consultancy (ii) Goods Transport Agency (iii) Manpower Supply (iv) Rent-a-Cab |
| A. | i & iii |
| B. | i & iv |
| C. | i & ii |
| D. | All the above |
| Answer» D. All the above | |
| 135. |
What are different types of supplies covered under the scope of supply? |
| A. | Supplies made with consideration |
| B. | Supplies made without consideration |
| C. | Both of the above |
| D. | None of the above |
| Answer» D. None of the above | |
| 136. |
Mr. C of Chennai supplied goods to M/s Smart Jet Airlines of Chennai flying between DelhiMumbai. The goods are loaded in the aircraft in Delhi. The place of supply of goods will be |
| A. | Chennai |
| B. | Delhi |
| C. | Mumbai |
| D. | None of the above |
| Answer» C. Mumbai | |
| 137. |
Place of supply of a transaction in territorial waters is |
| A. | Location of the supplier |
| B. | Location of the recipient |
| C. | Coastal state where the nearest point of the appropriate baseline is located |
| D. | None of the above |
| Answer» D. None of the above | |
| 138. |
When deductions are allowed from the Transaction Value? |
| A. | Discount offered to customers subject to conditions |
| B. | Freight charges |
| C. | Incidental expenses |
| D. | Amount paid by customer on behalf of the supplier. |
| Answer» B. Freight charges | |
| 139. |
Construction of a complex, building, civil structure or a 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 the competent authority or after its first occupation, whichever is earlier, shall be treated as . |
| A. | Supply of goods |
| B. | Supply of services |
| C. | Neither as a supply of goods nor a supply of services |
| D. | Either as a supply of goods or a supply of services |
| Answer» C. Neither as a supply of goods nor a supply of services | |
| 140. |
Which of the following services are notified under section 9(3) of CGST Act, 2017 or section 5(3) of IGST Act, 2017 the tax on which shall be paid on reverse charge basis by the recipient of such supply ?(i) Supply of security services provided by a person other than a body corporate to a composition tax payer (ii) Services supplied by an insurance agent to insurance company located in taxable territory (iii) Supply of services by way of renting of hotel accommodation through e-commerce operator. (iv)Supply of notified categories of goods or services or both by a supplier, who is not registered, to specified class of registered persons. Choose from the following options : |
| A. | (i) and (ii) |
| B. | Only (ii) |
| C. | (i), (ii), (iii) |
| D. | (i) and (iv) |
| Answer» C. (i), (ii), (iii) | |
| 141. |
In case of sponsorship services provided by Mr. A to M/s AB Ltd., liability to pay GST is on: |
| A. | Mr. A |
| B. | M/s AB Ltd. |
| C. | Both |
| D. | None of the above |
| Answer» C. Both | |
| 142. |
The amount deducted as tax (TDS) shall be paid to the credit of the Government by the deductorwithin . |
| A. | Last day of the month to which payment relates |
| B. | 10 days from the relevant period |
| C. | 15 days from the relevant period |
| D. | 20 days from the relevant period |
| Answer» C. 15 days from the relevant period | |
| 143. |
Import of services by a taxable person from a related person or from any of his other establishmentsoutside India, in the course or furtherance of business shall . |
| A. | Supply of services |
| B. | Not to be treated as supply of service |
| C. | Be treated as supply even when made without consideration |
| D. | None of the above |
| Answer» D. None of the above | |
| 144. |
What of the following services provided to an educational institution – Debo Public School- areexempt from GST? |
| A. | Transportation of staff of the school |
| B. | Cleaning of the school |
| C. | Services relating to conduct of higher secondary exams |
| D. | All of the above |
| Answer» E. | |
| 145. |
Are all suppliers mandatorily required to obtain registration? |
| A. | Yes |
| B. | Not required if he is an agriculturist or person exclusively engaged in supplying exempt goods or services |
| C. | Not required if he is an agriculturist or person exclusively engaged in supplying exempt goods or services and for others if the specified threshold exceeds in any financial year |
| D. | No only if the specified threshold exceeds in any financial year |
| Answer» D. No only if the specified threshold exceeds in any financial year | |
| 146. |
Mr. Pappu Singh, commenced his business in Feb. 2019. He has established following units : (i) Unit A (in SEZ) and Unit B (non-SEZ) in the State of Maharashtra (ii) Unit C in Delhi (iii) Unit D and E in the State of Goa Mr. Pappu Singh has approached you to help him in determining the states and number registrations he is required to take under GST (presuming the fact that he is making taxable supply from each state and his aggregate turnover exceeds the threshold limit) : |
| A. | Maharashtra - 2 : Delhi - 1, Goa - Optional 1 or 2 |
| B. | Maharashtra - Optional 1 or 2 : Delhi - 1, Goa - Optional 1 or 2 |
| C. | Maharashtra - 1 : Delhi - 1, Goa - 1 |
| D. | Maharashtra - 2 : Delhi - 1, Goa - 2 |
| Answer» B. Maharashtra - Optional 1 or 2 : Delhi - 1, Goa - Optional 1 or 2 | |
| 147. |
If a person, opting for composition scheme is liable to be registered on 1st October, 2019 and he has applied for registration on 17th November, 2019 and registration granted on 20th November, 2019 then the effective date of registration will be |
| A. | 20th November, 2019 |
| B. | 1st October, 2019 |
| C. | 17th November, 2019 |
| D. | 1st April, 2020 |
| Answer» B. 1st October, 2019 | |
| 148. |
Transfer of right in goods or of undivided share in goods without the transfer of title thereof shallbe considered as . |
| A. | Supply of goods |
| B. | Supply of services |
| C. | Neither as a supply of goods nor a supply of services |
| D. | Either as a supply of goods or a supply of services |
| Answer» C. Neither as a supply of goods nor a supply of services | |
| 149. |
Which of the following shall not be included in value of supply? |
| A. | GST |
| B. | Interest |
| C. | Late fee |
| D. | Commission |
| Answer» B. Interest | |
| 150. |
As per the CGST Act, 2017, "business" includes :(i) Adventure not for a pecuniary benefit (ii) Any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities. |
| A. | (ii) only |
| B. | Both (i) and (ii) |
| C. | Neither (i) nor (ii) |
| D. | (i) only |
| Answer» C. Neither (i) nor (ii) | |