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. |
Whether definition of Inputs includes capital goods. |
| A. | Ye |
| B. | No |
| C. | Certain capital goods only |
| D. | None of the above |
| Answer» B. No | |
| 2. |
Is it mandatory to capitalize the capital goods in books of Accounts? |
| A. | Ye |
| B. | No |
| C. | Optional |
| D. | None of the above |
| Answer» A. Ye | |
| 3. |
Whether credit on capital goods can be taken immediately on receipt of the goods? |
| A. | Ye |
| B. | No |
| C. | After usage of such capital goods |
| D. | After capitalizing in books of Accounts |
| Answer» A. Ye | |
| 4. |
The term “used in the course or furtherance of business” means? |
| A. | It should be directly co-related to output supply |
| B. | It is planned to use in the course of business |
| C. | It is used or intended to be used in the course of business |
| D. | It is used in the course of business for making outward supply |
| Answer» C. It is used or intended to be used in the course of business | |
| 5. |
Under section 16(2) of CGST Act how many conditions are to be fulfilled for the entitlement of credit? |
| A. | All four condition |
| B. | Any two conditions |
| C. | Conditions not specified |
| D. | None of the above |
| Answer» A. All four condition | |
| 6. |
Whether credit on inputs should be availed based on receipt of documents or receipt of goods |
| A. | Receipt of good |
| B. | Receipt of Documents |
| C. | Both |
| D. | Either receipt of documents or Receipt of goods |
| Answer» C. Both | |
| 7. |
In case supplier has deposited the taxes but the receiver has not received the documents, is receiver entitled to avail credit? |
| A. | Yes, it will be auto populated in recipient monthly returns |
| B. | No as one of the conditions of 16(2) is not fulfilled |
| C. | Yes, if the receiver can prove later that documents are received subsequently |
| D. | None of the above |
| Answer» B. No as one of the conditions of 16(2) is not fulfilled | |
| 8. |
Input tax credit on capital goods and Inputs can be availed in one installment or in multiple installments? |
| A. | In thirty-six installment |
| B. | In twelve installments |
| C. | In one installment |
| D. | In six installments |
| Answer» C. In one installment | |
| 9. |
The tax paying documents in section 16(2) is |
| A. | Bill of entry, Invoice raised on RCM supplies, etc. |
| B. | Acknowledged copy of tax paid to department |
| C. | Supply invoice by the recipient |
| D. | Any of the above |
| Answer» A. Bill of entry, Invoice raised on RCM supplies, etc. | |
| 10. |
The time limit to pay the value of supply with taxes to avail the input tax credit? |
| A. | Three month |
| B. | Six Months |
| C. | One hundred and eighty days |
| D. | Till the date of filing of Annual Return |
| Answer» C. One hundred and eighty days | |
| 11. |
What is the time limit for taking input tax credit by a registered taxable person? |
| A. | No time limit |
| B. | 1 year from the date of invoice |
| C. | Due date of furnishing of the return under section 39 for the month of September following the end of financial year to which such invoice or invoice relating to such debit note pertains |
| D. | Due date of furnishing of the return under section 39 for the month of September following the end of financial year to which such invoice or invoice relating to such debit note pertains or furnishing of the relevant annual return, whichever is earlier Manan Prakashan 35 |
| Answer» D. Due date of furnishing of the return under section 39 for the month of September following the end of financial year to which such invoice or invoice relating to such debit note pertains or furnishing of the relevant annual return, whichever is earlier Manan Prakashan 35 | |
| 12. |
Can the recipient avail the Input tax credit for the part payment of the amount to the supplier within one hundred and eighty days? |
| A. | Yes, on full tax amount and partly value amount |
| B. | No, he can’t until full amount is paid to supplier |
| C. | Yes, but proportionately to the extent of value and tax paid |
| D. | None of the above |
| Answer» C. Yes, but proportionately to the extent of value and tax paid | |
| 13. |
Whether credit can be availed without actual receipt of goods where goods are transferred through transfer of document of title before or during the movement of goods? |
| A. | Yes |
| B. | No |
| C. | Yes, in specific instances |
| D. | Can be availed only after transfer of document of title after movement of goods |
| Answer» C. Yes, in specific instances | |
| 14. |
Whether depreciation on tax component of capital goods and Plant and Machinery and whether input 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» C. Input tax credit is eligible if depreciation on tax component is not availed | |
| 15. |
What is the maximum time limit to claim the Input tax credit? |
| A. | Till the date of filing annual return |
| B. | Due date of September month which is following the financial year |
| C. | Earliest of (a) or (b) |
| D. | Later of (a) or (b) |
| Answer» C. Earliest of (a) or (b) | |
| 16. |
An assessee obtains new registration, voluntary registration, change of scheme from composition to regular scheme and from exempted goods/ services to taxable goods/services. It can avail credit on inputs lying in stock. What is the time limit for taking said credit? |
| A. | 1 year from the date of invoice |
| B. | 3 years from the date of invoice |
| C. | 5 years from the date of invoice |
| D. | None of the above |
| Answer» A. 1 year from the date of invoice | |
| 17. |
Credit on Input services or capital goods held in stock can be availed in case of new Registration/ Voluntary Registration |
| A. | Ye |
| B. | No |
| C. | Yes, on Input services only |
| D. | Yes, on capital goods only |
| Answer» B. No | |
| 18. |
In case of Compulsory registration, input tax credit can be availed on |
| A. | stocks held on the day immediately preceding the date from which he becomes liable to pay tax under the provisions of this Act, provided application for registration is filed within 30 days from the due date |
| B. | stocks held on the day immediately preceding the date of grant of registration under the provisions of this Act |
| C. | stocks held on the day immediately preceding the date of application of registration under the provisions of this Act |
| D. | None of the above |
| Answer» A. stocks held on the day immediately preceding the date from which he becomes liable to pay tax under the provisions of this Act, provided application for registration is filed within 30 days from the due date | |
| 19. |
In case of Voluntary registration input tax credit can be availed |
| A. | on stocks held on the day immediately preceding the date from which he becomes liable to pay tax under the provisions of this Act |
| B. | on stocks held on the day immediately preceding the date of grant of registration under the provisions of this Act |
| C. | on stocks held on the day immediately preceding the date of application of registration under the provisions of this Act |
| D. | None of the above |
| Answer» B. on stocks held on the day immediately preceding the date of grant of registration under the provisions of this Act | |
| 20. |
Eligibility of credit on capital goods in case of change of scheme from Composition scheme to Regular scheme |
| A. | Eligible during application for Regular scheme |
| B. | Not eligible |
| C. | Yes, immediately before the date from which he becomes liable to pay tax under the Regular scheme |
| D. | None of the above |
| Answer» C. Yes, immediately before the date from which he becomes liable to pay tax under the Regular scheme | |
| 21. |
Can the unutilized input tax credit be transferred in case of change in constitution of business? |
| A. | Not possible |
| B. | No, it will be exhausted |
| C. | Yes, it will be transferred only if there is provision for transfer of liabilities |
| D. | It will be transferred only if it is shown in books of Accounts of transferror |
| Answer» C. Yes, it will be transferred only if there is provision for transfer of liabilities | |
| 22. |
Is Input tax fully restricted in case of switchover from taxable to exempt supplies |
| A. | Ye |
| B. | No |
| C. | Proportionately restricted |
| D. | Not restricted |
| Answer» A. Ye | |
| 23. |
Is Input tax to be paid in case of switchover from taxable to exempt supplies |
| A. | Yes, equivalent to the credit in respect of inputs held in stock (including semi- finished and finished goods) and on capital goods held in stock |
| B. | No |
| C. | Yes, full credit |
| D. | No, should be debited to electronic credit ledger |
| Answer» A. Yes, equivalent to the credit in respect of inputs held in stock (including semi- finished and finished goods) and on capital goods held in stock | |
| 24. |
Is Input tax to be reversed in case of supply of capital goods |
| A. | Yes fully |
| B. | No |
| C. | Yes, to extent of credit taken as reduced by prescribed percentage or tax on transaction value whichever is higher |
| D. | Yes, to the extent of transaction value of such goods |
| Answer» C. Yes, to extent of credit taken as reduced by prescribed percentage or tax on transaction value whichever is higher | |
| 25. |
ITC can be taken on goods if goods not received by registered person but |
| A. | By his agent on his direction |
| B. | By the job worker on his instruction |
| C. | By any other person on his direction |
| D. | Any of above |
| Answer» D. Any of above | |
| 26. |
ITC can be availed on |
| A. | Possession of prescribed invoice/ debit note |
| B. | Receipt of goods/services |
| C. | Tax on such supply has been paid to government and return being furnished by the supplier |
| D. | Fulfilling all the above conditions |
| Answer» D. Fulfilling all the above conditions | |
| 27. |
Maximum time limit for availing ITC is |
| A. | The date of filing of annual return |
| B. | Due date of filing return u/s 39 for the month of September |
| C. | Earliest of above two |
| D. | Later of above two |
| Answer» C. Earliest of above two | |
| 28. |
ITC can be claimed by a registered person for |
| A. | Taxable supplies for business purpose |
| B. | Taxable supplies for non-business purpose |
| C. | Exempted supplies |
| D. | Non-taxable supplies |
| Answer» A. Taxable supplies for business purpose | |
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