CA FINAL NEW COURSE
INDIRECT TAX LAWS
TOP 50 Questions
Online Test Series for CA, CS & CMA Exams
Served more than 2 Lakh Students since 2014
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, CA FINAL NEW COURSE
INDIRECT TAX LAWS
TOP 50 QUESTIONS
Q1: Discuss the leviability of GST or otherwise on the following:(a) Alcoholic liquor for human
consumption(b) Petroleum crude, diesel, petrol, ATF and natural gas(c) Tobacco (d) Opium,
Indian hemp and other narcotic drugs and narcotics
Q2: Discuss Article 269A pertaining to levy and collection of GST on inter-State supply.
Q3: Ajatasatru Industries enters into a contract with an actor – Chandragupta - to act as a brand
ambassador of products manufactured by Ajatasatru Industries. The duration of the contract is
5 years and the contract fee payable to Chandragupta for being a brand ambassador is Rs. 50
lakh per annum. As per the terms of the contract, in case the contract is terminated by
Chandragupta before the end of the contract period, Chandragupta will have to repay to
Ajatasatru Industries, 50% of the contract fee received by him till the time of termination of
contract.
At the end of 3rd year, Chandragupta terminates the contract with Ajatasatru Industries. He has
received the contract fee for 3 years at the time of termination of contract.
You are required to determine whether the given transaction(s) qualifies(y) as supply (ies).
Q4: Mr. Happy has a huge residential property located at a prime location in Mumbai,
Maharashtra. He has let out the 1st and 2nd floor to Mr. Peace for residential purposes in April.
Mr. Peace surrenders his tenancy rights to Mr. Serene for a tenancy premium of Rs. 10,00,000
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,on 1st June. Mr. Serene has also paid the applicable stamp duty and registration charges on
transfer of tenancy rights. Moreover, Mr. Serene has agreed to pay a monthly rent of Rs.
1,00,000 to Mr. Happy from June. Determine the taxability of the transaction(s) involved in the
given case, for the month of June.
Q5. Varun &Arun Associates started a partnership firm of architects in Bhopal (Madhya
Pradesh) on 1st April, The firm provides architecture services, in Madhya Pradesh. It provided
the following details of its turnover:
April – June Rs. 20 lakh
July – Sep Rs. 30 lakh
Oct - De Rs. 20 lakh
The firm has obtained the registration under section 22 and pays tax under composition
scheme. Determine the tax liability of Varun &Arun Associates for the quarters: Apr-Jun, Jul-
Sept and Oct-Dec.
Note: The rates of tax on architectural services are CGST- 9% and SGST-9%.
Q6: SarvaSugam Charitable Trust, a trust registered under section 12AA of the Income – tax Act,
1961, provides the following information relating to supply of its services for the month of
August:
Amount (Rs.)
Renting of residential dwelling for use as a residence 18,00,000
Renting of rooms for devotees (Charges per day Rs. 750) 6,00,000
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, Renting of kalyanamandapam (Charges per day Rs. 15,000) 12,00,000
Renting of halls and open space (Charges per day Rs. 7,500) 10,75,000
Renting of shops for business (Charges per month Rs. 9,500) 4,75,000
Renting of shops for business (Charges per month Rs. 12,000) 7,50,000
Compute the GST liability of SarvaSugam Charitable Trust for the month of August assuming
that the above amounts are exclusive of GST and rate of GST, wherever applicable, is 18%.
Note: The rooms/ Kalyanamandapam/ halls/ open space/ shops owned by the trust are located
within the precincts of a religious place, meant for general public, owned by the trust.
Q7. What will be the place of supply of passenger transportation service, if a person travels
from Mumbai to Delhi and back to Mumbai?
Q8. Trust Industries Ltd. has entered into a contract with VST Ltd. to supply gas by a pipeline to
VST Ltd. for a period of one year. As per the terms of the contract-
(i) VST Ltd. shall make monthly payments [Payment for a month shall be made by 7th
day of the next month]
(ii) Every quarter, Trust Industries Ltd. shall issue a statement of account showing the
quantity and value of goods dispatched, payments received and payment due.
(iii) The differential amount, if any, as mentioned in the statement of account shall be
paid by VST Ltd.
The details of the various events are
GMTESTSERIES.COM®
INDIRECT TAX LAWS
TOP 50 Questions
Online Test Series for CA, CS & CMA Exams
Served more than 2 Lakh Students since 2014
GMTESTSERIES.COM®
, CA FINAL NEW COURSE
INDIRECT TAX LAWS
TOP 50 QUESTIONS
Q1: Discuss the leviability of GST or otherwise on the following:(a) Alcoholic liquor for human
consumption(b) Petroleum crude, diesel, petrol, ATF and natural gas(c) Tobacco (d) Opium,
Indian hemp and other narcotic drugs and narcotics
Q2: Discuss Article 269A pertaining to levy and collection of GST on inter-State supply.
Q3: Ajatasatru Industries enters into a contract with an actor – Chandragupta - to act as a brand
ambassador of products manufactured by Ajatasatru Industries. The duration of the contract is
5 years and the contract fee payable to Chandragupta for being a brand ambassador is Rs. 50
lakh per annum. As per the terms of the contract, in case the contract is terminated by
Chandragupta before the end of the contract period, Chandragupta will have to repay to
Ajatasatru Industries, 50% of the contract fee received by him till the time of termination of
contract.
At the end of 3rd year, Chandragupta terminates the contract with Ajatasatru Industries. He has
received the contract fee for 3 years at the time of termination of contract.
You are required to determine whether the given transaction(s) qualifies(y) as supply (ies).
Q4: Mr. Happy has a huge residential property located at a prime location in Mumbai,
Maharashtra. He has let out the 1st and 2nd floor to Mr. Peace for residential purposes in April.
Mr. Peace surrenders his tenancy rights to Mr. Serene for a tenancy premium of Rs. 10,00,000
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,on 1st June. Mr. Serene has also paid the applicable stamp duty and registration charges on
transfer of tenancy rights. Moreover, Mr. Serene has agreed to pay a monthly rent of Rs.
1,00,000 to Mr. Happy from June. Determine the taxability of the transaction(s) involved in the
given case, for the month of June.
Q5. Varun &Arun Associates started a partnership firm of architects in Bhopal (Madhya
Pradesh) on 1st April, The firm provides architecture services, in Madhya Pradesh. It provided
the following details of its turnover:
April – June Rs. 20 lakh
July – Sep Rs. 30 lakh
Oct - De Rs. 20 lakh
The firm has obtained the registration under section 22 and pays tax under composition
scheme. Determine the tax liability of Varun &Arun Associates for the quarters: Apr-Jun, Jul-
Sept and Oct-Dec.
Note: The rates of tax on architectural services are CGST- 9% and SGST-9%.
Q6: SarvaSugam Charitable Trust, a trust registered under section 12AA of the Income – tax Act,
1961, provides the following information relating to supply of its services for the month of
August:
Amount (Rs.)
Renting of residential dwelling for use as a residence 18,00,000
Renting of rooms for devotees (Charges per day Rs. 750) 6,00,000
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, Renting of kalyanamandapam (Charges per day Rs. 15,000) 12,00,000
Renting of halls and open space (Charges per day Rs. 7,500) 10,75,000
Renting of shops for business (Charges per month Rs. 9,500) 4,75,000
Renting of shops for business (Charges per month Rs. 12,000) 7,50,000
Compute the GST liability of SarvaSugam Charitable Trust for the month of August assuming
that the above amounts are exclusive of GST and rate of GST, wherever applicable, is 18%.
Note: The rooms/ Kalyanamandapam/ halls/ open space/ shops owned by the trust are located
within the precincts of a religious place, meant for general public, owned by the trust.
Q7. What will be the place of supply of passenger transportation service, if a person travels
from Mumbai to Delhi and back to Mumbai?
Q8. Trust Industries Ltd. has entered into a contract with VST Ltd. to supply gas by a pipeline to
VST Ltd. for a period of one year. As per the terms of the contract-
(i) VST Ltd. shall make monthly payments [Payment for a month shall be made by 7th
day of the next month]
(ii) Every quarter, Trust Industries Ltd. shall issue a statement of account showing the
quantity and value of goods dispatched, payments received and payment due.
(iii) The differential amount, if any, as mentioned in the statement of account shall be
paid by VST Ltd.
The details of the various events are
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