McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
Chapters
| 1. |
Which of the following persons can opt for composition scheme? |
| A. | Person making any supply of goods which are not leviable to tax under this Act |
| B. | Person making any inter-State outward supplies of goods and services (except restaurant services) |
| C. | Person effecting supply of goods through an e-commerce operator liable to collect tax at source |
| D. | Person providing restaurant services |
| Answer» D. Person providing restaurant services | |
| 2. |
What is the threshold limit of turnover in the preceding financial year for opting to pay tax under composition scheme for States other than special category States? |
| A. | 20 lac |
| B. | 10 lacs |
| C. | 50 lacs |
| D. | 1.5 crore |
| Answer» D. 1.5 crore | |
| 3. |
What is the threshold limit of turnover in the preceding financial year for opting to pay tax under composition scheme for special category states? |
| A. | 25 lac |
| B. | 50 lacs |
| C. | 75 lacs |
| D. | 1 crore |
| Answer» C. 75 lacs | |
| 4. |
What is the rate applicable under CGST to a registered person being a manufacturer opting to pay taxes under composition scheme? |
| A. | 2.5% |
| B. | 1% |
| C. | 0.5% |
| D. | No composition for manufacturer |
| Answer» C. 0.5% | |
| 5. |
What is the rate applicable under CGST to a registered person being a hotelier (providing restaurant and accommodation services) opting to pay taxes under composition scheme? |
| A. | 1% |
| B. | 0.5% |
| C. | 2.5% |
| D. | Not eligible for composition scheme thus liable to pay normal tax |
| Answer» D. Not eligible for composition scheme thus liable to pay normal tax | |
| 6. |
Mr. Richard, a trader in Delhi has opted for composition scheme of taxation under GST. Determine the rate of total GST payable by him under composition scheme: |
| A. | 0.5% CGST & 0.5% SGST |
| B. | 2.5% CGST & 2.5% UTGST |
| C. | 5% IGST |
| D. | 5% UTGST |
| Answer» A. 0.5% CGST & 0.5% SGST | |
| 7. |
Can a registered person opt for composition scheme only for one out of his 3 business places having same Permanent Account Number? |
| A. | Yes |
| B. | No |
| C. | Yes, subject to prior approval of the Central Government |
| D. | Yes, subject to prior approval of the concerned State Government |
| Answer» B. No | |
| 8. |
Can composition scheme be availed if the registered person effects inter-State supplies? |
| A. | Yes |
| B. | No |
| C. | Yes, subject to prior approval of the Central Government |
| D. | Yes, subject to prior approval of the concerned State Government |
| Answer» B. No | |
| 9. |
Can a registered person under composition scheme claim input tax credit? |
| A. | Yes |
| B. | No |
| C. | Input tax credit on inward supply of goods only can be claimed |
| D. | Input tax credit on inward supply of services only can be claimed |
| Answer» B. No | |
| 10. |
Can a registered person opting for composition scheme collect tax on his outward supplies? |
| A. | Yes |
| B. | No |
| C. | Yes, if the amount of tax is prominently indicated in the invoice issued by him |
| D. | Yes, only on such goods as may be notified by the Central Government Manan Prakashan 15 |
| Answer» B. No | |
| 11. |
Which of the following will be excluded from the computation of ‘aggregate turnover’? |
| A. | Value of taxable supplies |
| B. | Value of exempt Supplies |
| C. | Non-taxable supplies |
| D. | Value of inward supplies on which tax is paid on reverse charge basis |
| Answer» D. Value of inward supplies on which tax is paid on reverse charge basis | |
| 12. |
What will happen if the turnover of a registered person opting to pay taxes under composition scheme during the year 2019-20 crosses threshold limit? |
| A. | He can continue under composition scheme till the end of the financial year |
| B. | He will be liable to pay tax at normal rates of GST on the entire turnover for the financial year 2019-20 |
| C. | He will cease to remain under the composition scheme with immediate effect |
| D. | He will cease to remain under the composition scheme from the quarter following the quarter in which the aggregate turnover exceeds threshold limit |
| Answer» C. He will cease to remain under the composition scheme with immediate effect | |
| 13. |
What is the threshold limit of turnover in the preceding financial year for opting to pay tax under composition scheme for a trader in Mumbai? |
| A. | 30 lac |
| B. | 10 lacs |
| C. | 150 lacs |
| D. | 75 lacs |
| Answer» C. 150 lacs | |
| 14. |
For certain Special category States, the reduced limit of ` 75 lakhs for opting composition scheme is available. The reduced limit of ` 75 Lakhs is not available for? |
| A. | Manipur |
| B. | Meghalaya |
| C. | Himachal Pradesh |
| D. | Jammu & Kashmir |
| Answer» D. Jammu & Kashmir | |
| 15. |
ABC Ltd is manufacturer of goods opting for Composition Scheme has effected turnover of ` 60 Lakhs during the financial year 2019-20. The CGST portion for composition tax payable by ABC Ltd is |
| A. | 30,000 |
| B. | 60,000 |
| C. | 30,000 |
| D. | 1,50,000 |
| Answer» A. 30,000 | |
| 16. |
GST Ltd. has business places at Lucknow, UP and Kanpur, UP having the same PAN; and Aggregate Turnover in the financial year not exceeding ` 75 lakhs. Can it opt composition levy for Lucknow and normal levy at Kanpur? |
| A. | No |
| B. | Yes |
| C. | Up-to an Aggregate Turnover of ` 75 lakhs at Lucknow only |
| D. | Subject to the approval of GST Council |
| Answer» A. No | |
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