Question Paper with Model Answers for Online Examination – Inter/P11-ITX/S1

INTERMEDIATE EXAMINATION

Paper 11: INDIRECT TAXATION (ITX)

Time Allowed: 3 Hours Full Marks: 100

There are Sections A, B, C and D to be answered subject to instructions given against each.

Section A 20 X 1 =
You are required to answer all the questions. Each question carries 1 mark. 20 Marks
Instructions: Each question is followed by 4 Answer choices and only one is correct. You are required to
select the choice which according to you represents the correct answer.

1. a. GST rate for the restaurant within hotel room tariff more than Rs. 7,500 is __________.
(i) 5%
(ii) 12%
(iii) 18%
(iv) 28%

b. IGST levied and collected is _________________.

(i) Allotted to Centre only
(ii) Allotted to State only
(iii) Allotted to UT’s only
(iv) Apportioned between Centre and States

c. Under the GST law, the word ‘agent’ includes _____________.

(i) Factor
(ii) Broker
(iii) Commission Agent
(iv) All of the above

d. ‘Person’ under the GST law includes __________.

(i) an individual, an Hindu Undivided Family, a company
(ii) a firm, a Limited Liability Partnership
(iii) an association of person or body of individual, whether incorporated or not , in
India or outside India
(iv) All of the above

e. Under GST law the phrase ‘Goods’ does not include which of the following?
(i) Actionable claim
(ii) Growing crops on the land agreed to be severed before supply
(iii) Money and Securities
(iv) Furniture

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 Question Paper with Model Answers for Online Examination – Inter/P11-ITX/S1

f. In which Form acknowledgement of application for registration under section 25 of GST Act is
received?
(i) GST REG 01
(ii) GST REG 02
(iii) GST REG 03
(iv) GST REG 04

g. Where the entire consideration has been received after issuance of completion certificate or after
its first occupation is ________________.
(i) transfer of goods
(ii) transfer of immovable property
(iii) transfer of services
(iv) None of the above

h. Construction of a complex, building, civil structure intended for sale to a buyer, wholly or
partly is supply of ______________.
(i) goods
(ii) services
(iii) Both (i) and (ii)
(iv) None of the above

i. Gifts not exceeding _______ in a year by an employer to employee shall not be treated as supply .
(i) Rs.5,000
(ii) Rs.10,000
(iii) Rs.50,000
(iv) Rs.1,00,000

j. A registered person making zero rated supply shall be ______________.

(i) eligible to claim refund
(ii) not eligible for refund
(iii) subject to reverse charge
(iv) none of the above

k. In case of mobile connection for telecommunication and internet services provided on postpaid
basis, the place of supply is the __________
(i) place of office of the service provider
(ii) place of payment
(iii) billing address of the recipient of services
(iv) place of supply not relevant

l. If the proper officer does not take any action within a period of three working days from the date
of submission of the application for GST registration then ______________.
(i) fresh application shall be submitted
(ii) implies rejection of registration

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 Question Paper with Model Answers for Online Examination – Inter/P11-ITX/S1

(iii) deemed registration

(iv) implies registration not required

m. Refund of GST is not applicable in the case of __________.

(i) Imports
(ii) Notified Multilateral Financial Institution
(iii) Embassy of foreign countries
(iv) Zero rated supplies

n. The period prescribed for issuance of tax invoice in the case of provision of services is _________.
(i) generally 15 days from the date of the supply of service (in case of banking
companies - 30 days from the date of supply)
(ii) generally 30 days from the date of the supply of service (in case of banking
companies -45 days from the date of supply)
(iii) generally 45 days from the date of supply of service (in case of banking companies
– 60 days from the date of supply)
(iv) generally 60 days from the date of supply of service (in case of banking companies
– 75 days from the date of supply)

o. Which of the following is the meaning to ‘Zero rated Supply’?

(i) Export of goods or services or both
(ii) Import of goods or services or both
(iii) Supply of goods or services or both to a Special Economic Zone Developer
(iv) Supply of goods or services or both to a Special Economic Zone Unit

p. A Debit note is issued to the recipient of goods or services if _______________.

(i) taxable value is found to be excess
(ii) the goods are returned by the recipient
(iii) goods supplied are found to be deficient
(iv) tax charged is found to be lesser

q. No duty shall be collected if the amount of duty leviable is equal to or less than ____________.
(i) Rs.50
(ii) Rs.100
(iii) Rs.150
(iv) Rs.200

r. When the goods are removed from the custom station of import for warehousing, the Proper
Officer affix _________ on the container or means of transport.
(i) details of stock
(ii) details of duty paid
(iii) one time lock
(iv) destination of goods

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 Question Paper with Model Answers for Online Examination – Inter/P11-ITX/S1

s. An area beyond 200 nautical miles from the base line called __________.
(i) import zone
(ii) export zone
(iii) free zone
(iv) high zone

t. Interest for late payment of duty for goods cleared for home consumption is ______________.
(i) 5%
(ii) 10%
(iii) 15%
(iv) 20%
SECTION B 10 X 2 =
You are required to answer all the questions. Each question carries 2 marks. 20 Marks
Instructions: Each question is followed by a space where you are required to type your answer.

2. a. X, director of A2Z Pvt. Ltd., has received sitting fee amounting to 1 lakh from A2Z Pvt. Ltd for
attending the Board meetings. Who is the person liable to pay tax in this case?
Type your Answer here

b. State the person liable to pay GST provided in recipient is located in the taxable territory
Services provided by an arbitral tribunal to any business entity.
Type your Answer here

c. Import (Downloading) of a song for consideration for personal use by Mr. Sen. Is it supply of
service?
Type your Answer here

d. In which section under GST Act, 2017, ‘Taxable Person’ is defined?

Type your Answer here

e. In which sections Levy and Collection of CGST and IGST are contained?
Type your Answer here

f. As per Schedule II of the CGST Act, renting of immovable property would be treated as supply
of ________ .
Type your Answer here

g. Whether goods supplied on hire purchase basis will be treated as supply of goods or supply of
services? Give reason.
Type your Answer here

h. Mr. A has opened up a new branch office. In this office is he required to display his GSTIN?
What shall be the penalty in case he doesn’t display the same?
Type your Answer here

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i. What is Protective Duties as per customs law?

Type your Answer here

j. What is Bill of Entry for Home Consumption?

Type your Answer here

Section C 12 X 4 =
You are required to answer any 4 out of 6 questions in this section Instructions: Each question is 48 Marks
followed by a space where you are required to type your answer.
3. a. What are the activities to be treated as supply even if made without consideration as per 4
Schedule I?
Type your Answer here

b. Explain the concept of “Dual GST” 2

Type your Answer here

c. M/s S.A Ltd furnishes the following details of various services provided for the month of April 6
2021.
i. Plantation of tea and coffee 260000

ii. Processing of tomato ketchup 210000

iii. Sale of rice on commission basis 250000

iv. Rearing of silkworm and horticulture 330000

v. Rent of vacant land for various ceremony 540000

vi. Rent of agro machinery 325000

Determine the tax liability of each transaction
Type your Answer here
4. a. Find the time of supplies in case of following details provided by Mr. G, a registered dealer 6
and manufacturer:
(i) Sold goods to A Ltd for Rs. 25,000/- and issued invoice for sale on 06.09.2020 A Ltd collect
the goods from warehouse of Mr. Gupta on 14.09.2020.
(ii) A Ltd made the full payment on 26.09.2020
(iii) Received goods from Mr. S an unregistered person for Rs. 2,20,000/- on 12.05.2020 who
issued the invoice on 02.05.2020.
Mr. G made payment for the Sale on 19.05.2020.
Type your Answer here
b. M Ltd., registered in Delhi dealing in supply of electronic items transferred some of its 6
stock to its unit located in Haryana (inter-state transfer). Whether such self-supplies are
taxable under GST?
Type your Answer here

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 Question Paper with Model Answers for Online Examination – Inter/P11-ITX/S1

5. a. The following are details of purchases and sales etc., effected in S Pvt. Ltd. a registered 8
manufacturer under CGST Act, 2017;
1) Purchased fabric material from Local dealer Rs. 47040 (including GST @ 12%)
2) Purchased textile material from local dealer Rs. 94500 (including GST @ 5%)
3) Purchased machinery for manufacture of taxable goods Rs. 318600 (including GST
@ 18%) depreciation @ 15% is charged.
4) Other direct and indirect expenses Rs. 44570
5) Profit margin on total cost @ 10%
6) For the month November, 2017 only 80% production is sold within the state and
applicable GST rate being 18%.
Calculate the amount of CGST and SGST payable after utilizing input tax credit for the
month of November, 2021 and no opening balance of input tax credit is available.
Type your Answer here
b. State the necessary elements for a supply to be chargeable to GST. 4
Type your Answer here
6. a. In accordance with the provisions of GST Act, Give answers to the following pertaining to 4
Reverse Charge:
1. Is GST payable for both the components – CGST and SGST (or UTGST)?
2. Is GST on reverse charge basis payable on inter – State supply also?
3. Is reverse charge applicable on supply of goods also or is it only on supply of services?
4. In case supplier eligible to threshold exemption, is reverse charge applicable?
Type your Answer here

b. Determine the value of supply and the GST liability, to be collected and paid by the owner, 6
with the following particulars:
Particulars Amount
Rent of the commercial building 1800000
Maintenance charges collected by local society from the
owner and reimbursed by the tenant 250000
Owner intends to charge GST on refundable advance, as
GST is applicable on advance 600000
Municipal taxes paid by the owner 300000
Rent and maintenance charges are exclusive of GST.
GST rates applicable on renting of business premises is as follows:
CGST 9%
SGST 9%
Provide suitable explanations where required.
Type your Answer here
c. What is the tax implication of supply of capital goods by a registered person who had taken 2
ITC on such capital goods?
Type your Answer here

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 Question Paper with Model Answers for Online Examination – Inter/P11-ITX/S1

7. a. M/S L K Agency imported a machine from China, furnishes the following information for the
month of July 2022:
Particulars Chinese Yuan

Cost of Machine at China (factory of exporter) 80000

transport charges from the factory of exporter to 3200

the port of shipment

Handling charges paid for loading the machine in 200

the ship

Buying commission paid by M/s lion King Agency 400

Lighterage charges paid by importer 800

Freight incurred from port of entry to Inland 4000

Container Depot

Ship demurrage charges 1600

freight charges from China to India 20000

Date of Bill of Entry is 28.07.2022 (rate of BCD is

20% and exchange rate as notified by CBIC is Rs.
10.10 per China Yuan)

Date of Entry Inward is 22.07.2022 (rate of BCD is

12% and exchange rate as notified by CBIC is Rs.
10.50 per China Yuan)

IGST payable @12%

Social welfare Charges at applicable rate

i. What is the Assessable Value? 5
Type your Answer

ii. What is the total customs duty applicable to M/S L K Agency? 4

Type your Answer

b. Mr. RGP has imported goods from England and finally re-assessed under section 18(2) of the 3
Custom Act, 1962 for such consignment.
Details are as follows –
(a) Date of provisional assessment 19.06.2021
(b) Date of final Assessment 06.08.2021
(c) Duty Demand for consignment Rs. 2,90,000.00

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(d) Date of payment of duty demanded 11.08.2021

Determine whether any Interest payable or receivable by Mr.RGK on the final reassessment
of two consignment.
Type your Answer here

8. 4x3=12
Write a short note on any 4 out of 5 questions.

a. Period of Retention of Accounts under GST 3

Type your Answer here

b. Advantages of GST registration (any 3) 3

Type your Answer here

c. Cancellation of registration 3
Type your Answer here

d. Exempted supply 3
Type your Answer here

e. Deemed Export 3
Type your Answer here
Section D 1 X12
You are required to answer all the questions in this section. 12 Marks
Instructions: Each question is followed by a space where you are required to type your answer.
9. PJ Ltd., registered supplier of Mumbai is a manufacturer of heavy machines. Its outward
supplies (exclusive of GST) for the month of January,2021 are as follows:

Sl. No. Particulars Amount (₹)

(i) Inter-state 85,00,000
(ii) Intra-state 15,00,000

Applicable rate of CGST, SGST and IGST on outward supply are 9%,9% & 18% respectively.
Details of GST paid on inward supply during the month of January, 2021 are as follows:

Sl. No. Particulars CGST SGST

PAID (₹) PAID (₹)
(i) Raw materials A 60,000 60,000
(of which 70% of inputs procured were used and 30%
were in stock at the end of the Jnauary,2021)

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(ii) Raw materials B 50,000 50,000

(of which 90% of materials received in the factory and
remaining completely damaged due to a road accident
on the way to factory. There was no negligence on the
part of the PJ Ltd.)
(iii) Construction of Pipelines laid outside the factory 30,000 30,000
premises
(iv) Insurance Charges paid for trucks used for 55,000 55,000
transportation of goods

Additional Information:

(i) There is no opening balance of any input tax credit and all the conditions necessary for
availing the Input Tax Credit (ITC) have been fulfilled.
(ii) Details of GST paid on inward supplies are available in GSTR-2A except for item (i) I.e.
Raw Material A, which supplier has not filed its GSTR-1 for the month of January 2021,
hence Corresponding Input Tax Credit (ITC) is not reflecting in GSTR-2A of PJ Ltd. In
January, 2021.

a. What is the amount of eligible Input Tax Credit (ITC) available for the month of January, 4
2020?
Type your Answer here

b. What is the GST implication when the supplier has not filed its GSTR-1 in respect of Raw 2
Material A?
Type your Answer here

c. Is every inward supplies eligible for ITC credit? If not, why? 2

Type your Answer here

d. Determine the Net minimum GST payable in Cash, for the month of January,2021 after using 4
available Input Tax Credit (ITC).

Type your Answer here

END

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