Scribd
Upload
1K views3 pages

MCQ On VAT Audit Guidelines

The document contains 20 multiple choice questions related to VAT auditing. The questions cover topics like the constitutional basis for CAG audits of receipts, relevant sections of acts that guide audits, guidelines issued by CAG, definitions of key VAT terms, criteria for dealer assessments and audits, conditions for input tax credits, composition scheme rules, refund eligibility, use of technology systems like TINXSYS, and preparation of audit plans and use of CAATs (Computer Aided Audit Techniques). The correct answers are highlighted in red font.

Uploaded by

Vikash Kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
1K views3 pages

MCQ On VAT Audit Guidelines

The document contains 20 multiple choice questions related to VAT auditing. The questions cover topics like the constitutional basis for CAG audits of receipts, relevant sections of acts that guide audits, guidelines issued by CAG, definitions of key VAT terms, criteria for dealer assessments and audits, conditions for input tax credits, composition scheme rules, refund eligibility, use of technology systems like TINXSYS, and preparation of audit plans and use of CAATs (Computer Aided Audit Techniques). The correct answers are highlighted in red font.

Uploaded by

Vikash Kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Multiple Choice Questions:

(Correct answers are in RED FONT)


1. The C& AG derives the mandate to audit the receipts flowing into the Consolidated
Fund of India, State and Union Territories under the following articles of the
Constitution of India:

(a) 149 to 151


(b) 148 to 150
(c) 147 to 149
(d) 150 to 152

2. Section -------- of the C & AG’s (DPC )Act 1971 guides the audit of receipts

(a) 15 (b) 16 (c) 17 (d) None of above

3. The Auditing guidelines for VAT was issued by C & AG in

(a) 2005 (b) 2008 (c) 2007 (d) None of the above

4. VAT is payable on

(a) Sale of taxable goods only within the State


(b) All inter and intra state sales
(c) All sales and purchases made during the year
(d) All of the above

5. VAT charged or collected should form a part of turnover of the dealer

(a) True (b) False

6. Under the VAT regime, assessment criteria is

(a) When refund was claimed or when discrepancies noticed in the returns and in
direction, the dealer didn’t comply or when adverse report received.
(b) Every dealer should be assessed
(c) Dealers having annual traction more than 50 lakh should be assessed.
(d) None of the above

7. Adherence to internal control measures is not overridden by collusion is one of the


criteria an audit team should look into while

(a) Auditing internal control system of the audited entity


(b) Auditing assessments records of dealers
(c) None of the above
(d) Only (b)
8. Registration of a dealer can be cancelled by

(a) The dealer


(b) The Tax Authority
(c) The Judiciary
(d) Both (a) & (b)

9. It is the duty of the VAT auditor to see

(a) The internal procedure adequately secures correct and regular accounting of
demands, collections and refunds
(b) Claims are pursued with due diligence
(c) Claims are not abandoned/reduced without sufficient reasons and without
proper authority
(d) All of the above

10. Under composition scheme, the dealers had to pay tax at a nominal rate provided that

(a) They are not entitled to issue tax invoices


(b) They cannot make inter-state transactions
(c) They cannot avail the benefit of ITC
(d) All of the above

11.Refunds are allowable to a dealer only on

(a) VAT receipts


(b) On both VAT and CS receipts
(c) Only (a)
(d) Both (a) & (b)

12. For availing ITC, taxable goods should be purchased from within the state for

(a) Sale/resale within the State


(b) Sale to other parts of India in the course of inter-state trade or commerce
(c) For being used in execution of works contract
(d) All of above.

13. Where inputs are used to make both taxable and non-taxable goods, ITC to be allowed

(a) On the entire input value.


(b) On the entire input value which was purchased from within the state.
(c) Proportionately according to the value of taxable and non-taxable goods
produced.
(d) None of the above.

14. Zero rated sales is

(a) Item specific


(b) Transaction specific
(c) Rate specific
(d) None of the above.
15. Impact of Information Technology on assessment risk should be considered on

(a) On entity level only


(b) On each accounting area
(c) Both (a) & (b)
(d) None of the above.

16. Quantum of audit should be determined

(a) On the basis of risk assessment


(b) On the basis of value of assessed tax only
(c) On the basis of the goods dealt with by the dealers only
(d) All of above.
17. Full form of TINXSYS is
(a) Tax Index Exchange System
(b) Tax Information Exchange System
(c) Technological Innovation and Exchange System
(d) None of the above.

18. Tax Information Exchange System (TINXSYS) can be used

(a) By any dealer to cross verify his counterpart dealer in other state
(b) By the Commercial Tax Department officials to verify central statutory forms
(c) For generation of reports for the Commercial Tax Department ith a view to
monitor inter-state dealers
(d) All of the above.

19. Audit plan should be prepared as per HQs circular of June 2003 in

(a) Annual format


(b) Biennial format
(c) Quarterly format
(d) None of the above.

20. Full form of CAATs is


(a) Computer and audit Techniques
(b) Computer Aided Audit Techniques
(c) Common Audit and Accounts Terminology
(d) None of the above.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy