THE INSTITUTE OF COST ACCOUNTANTS OF INDIA

DIRECT AND INDIRECT TAXATION (PAPER - 7)

MCQ BANK
SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4
Charging of income of the previous year in the same year is not Shipping business of Persons leaving Association formed Discontinuation of
1 mandatory for: non-resident India for a particular event business

AB was born in England, his parents were born in India in 1952. Person of Indian Foreign National Artificial Person Citizen of India
2 His grand parents were born in South Africa. AB shall be a: origin

Income accruing in Japan and received there is taxable in India in Resident and Both Resident and Both Resident and Non-resident
the case of: Ordinarily Resident Ordinarily Resident Non-resident
only and Resident but not
3 Ordinarily Resident

Out of the following which one is not a capital receipt? Dividend on Bonus Shares Sale of know-how Compensation
investment received for vacating
4
business place

Which of the following is Casual Income? Dividend income Winning from Interest received Pension received
5
lotteries
Which of the following receipt is not included in the term ‘Income’ Profits and gains of Profit in lieu of Dividend Reimbursement of
6 under the Income-tax Act, 1961? Business or salary travelling expenses
Profession
A person is said to be a person of Indian origin if – He or either of his He or either of his He or either of his He was born in India
parents were born in siblings were born parents or either of
7 undivided India in undivided India his grandparents were
born in undivided
India
Income received in India in the previous year is taxable in the Resident Non-Resident All assessee Not Ordinarily
8 hands of – irrespective of resident
residential status
An individual is said to be resident in India if – He has a house in He is in India in the He is in India for a His parents are
India previous year for a period of 30 days or Indian citizen
period of 182 days more during the
or more previous year and for
365 or more days
9 during 4 previous
years immediately
preceding the relevant
previous year
 THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
DIRECT AND INDIRECT TAXATION (PAPER - 7)
MCQ BANK
SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4
The incidence of taxation depends on the – Residential status of Accommodation of Citizenship of the as Marital status of the
10
the assessee the assessee assessee assessee
Which of the following is an agriculture income? Dividend paid by a Share of Profit of a Income from supply Interest received by a
company to its Partner from a firm of water by an money lender in the
11 shareholders out of engaged in an assessee from a tank form of agricultural
agricultural income agriculture operation in agriculture land produce

In case of an assessee engaged in the business of manufacturing of 60% of total receipt of 60% of income of Nil 40% of income of
12
tea, his agricultural income is – the business the business the business
Income from saplings shall be considered as __________ . Agricultural Income Business Income Partly agricultural Income from other
13 income and partly sources
business income
An individual (aged 28 Years) born in India left for first time for Resident and Resident but not Non-resident Residential Status is
employment in France on 30.10.2023. His visit outside India is for ordinarily resident ordinarily resident not applicable
14
the first time. His residential status for the assessment year 2024-25
will be –
Income of ₹ 3,00,000 is received in Sri Lanka by an ordinarily ₹ 3,00,000 will be ₹ 3,50,000 will be It is not taxable at all ₹ 50,000 will be
15 resident of India. But later on ₹ 50,000 is remitted to India – taxable taxable taxable

An individual is said to be a resident in India in the previous year 182 days or more 183 days or more 70 days or more 150 days or more
16 (in which the Feb month has 29 days) if he is in India in that year
for a period of _____________.
Mr. X is engaged in growing and manufacturing tea in India. His ₹ 70,000 ₹ 84,000 ₹ 1,40,000 ₹ 56,000
17 income from this activity is ₹ 1,40,000. His agriculture income will
be –
Which of the following is not taxable under head ‘Salaries’? Remuneration paid to Salary received by a Commission received Both (1) and (2)
the lecturer of a member of the by an employee above
18 college for setting a Parliament. director of a
question paper by a company.
university.
If a domestic servant is engaged by the employer and salary is paid Taxable in the hands Not taxable in the Taxable in the hands Taxable to the extent
by him, the perquisite is: of all employees hands of both of specified of ₹ 120 per person
19 specified and non- employees only in the hands of all
specified employers employees.

Which of the following is taxable under the head ‘salaries’? Salary received by a Commission Family pension Both (1) and (2)
Member of State received by an received above
20
Legislature. employee director of
a company.
 THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
DIRECT AND INDIRECT TAXATION (PAPER - 7)
MCQ BANK
SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4
Who among the following is a specified employee? A director of a An employee A person who is an Both (1) and (2)
company drawing a salary of owner of equity above
₹ 15,000 p.m. shares carrying 10%
21 voting power in the
employer company.

Net Annual Value of a self-occupied property treated as such is: Fair Rent Nil Reasonable Expected None of the Above
Rent as reduced by
municipal tax paid
22 during the previous
year.

A house property located outside India is: Taxable in hands of Taxable in hands of Taxable in hands of Exempted from tax
all assessee non resident resident and in India.
23
assessee ordinarily resident
assessee
Following assessee(s) can considered a house property as self Individual & HUF All assessee All assessee other All assessee other
24
occupied: than company than firm
Which of the following deductions is /are not allowed in case of a New construction Repairs Vacancy allowance All of the above
25
deemed to be let-out house? allowance
Which of the following is not allowed as a deduction for Loss incurred due to Anticipated future Loss caused by white Loss due to
26 computation of business Income? theft in factory after losses ants accidental fire in
working hours stock-in-trade
The preliminary expenses that can be amortized under the Income 3% 5% 8% 20%
27 Tax Act, 1961 has to be restricted to _________ of the cost of
project.
Expenditure on promotion of family planning is an allowance as Individual Firm HUF Company
28 deduction u/s. 36(1)(ix) of the Income Tax Act, 1961 in case of:

In case of loss, a partnership firm may claim deduction in respect ₹ 1,50,000/- ₹ 1,50,000/- or ₹ 1,50,000/- or 90% Nil
of remuneration to partner to the extent of: actual remuneration, of book profit,
29 whichever is lower whichever is lower

U/s 54, capital gain will be allowed as exemption if the house Less than 12 months More than 12 Less than 36 months More than 24
property under transfer is held for: preceding the date of months preceding preceding the date of months preceding
30
transfer the date of transfer transfer the date of transfer

31 Personal effect do not cover the followings: Immovable property Drawings Jewellery All of the above
 THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
DIRECT AND INDIRECT TAXATION (PAPER - 7)
MCQ BANK
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Profit on sale of rural agricultural land is: Not taxable as it is Not taxable under Not taxable as rural Taxable if it is
agricultural income the head ‘Capital agricultural land is compulsorily
gains’ but under the not considered as a acquired.
32 head ‘Income from capital asset
Other Sources’

Cost of acquisition of self-generated asset is nil, the exception is: Goodwill Route permit Bonus shares Loom hours
33 acquired before 01-04-
2001
While computing taxable interest on delayed compensation, a 50% 30% 15% Nil
34
standard deduction is allowed @:
The provision of sec.56(2)(x) is applicable on: All assessee Only on corporate On an individual only On an individual and
35
assessee HUF only
While computing income from other sources, deduction is not Personal expenditure Direct tax Interest payable All of the above
36 allowed to the assessee for: outside India without
TDS
Gift received by an individual in certain circumstances is not Any gift received Any gift received on Any gift received on All of the above
taxable, one of them is: from family friend the occasion of any the occasion of the
37
marriage in the marriage of the
family individual-assessee
An individual purchased a painting on 01-11-2023 for ₹ 5,00,000 ₹ 25,000 i.e., Nil as this is not gift Nil as difference The provision of sec.
though fair market value of the asset is ₹ 5,25,000. Income taxable difference between between market value 56(2)(x) is not
u/s 56(2)(x) is: market value and and actual applicable for any
38 actual consideration consideration does transaction entered
not exceed ₹ 50,000 during P.Y. 2023-24

Uncommuted Pension received by a Government Employee is- Exempt Taxable Partially Taxable None of the above
39
Salary received by the Partner of a Firm is charged under the head Salaries Business Income Other Sources Its exempt from tax
40
Interest credited to Statutory Provident Fund shall be- Fully Exempt Exempt upto 12% Fully Taxable Exempt upto 9.5%
41
p.a. p.a
Interest credited to Recognized Provident Fund is – Fully Taxable Fully Exempt Exempt upto 12% of Exempt upto 9.5%
42
Salary p.a.
The basis of chargeability of income under the head income from Rental value Annual value Value fixed by the None of the above
43
house property is: government
 THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
DIRECT AND INDIRECT TAXATION (PAPER - 7)
MCQ BANK
SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4
` 60,000 ` 96,000 ` 1,80,000 ` 2,40,000
“A” borrowed ` 5,00,000 at 12% p.a on 01-04-2015 for
44 construction of house property which was completed on 15-03-
2024 and let out. The amount is still unpaid. The deduction on
account of interest for the previous year 2023-24 shall be-
Exempt Taxable under the Taxable under the Taxable in the hand
45 Sums received by an employer from Keyman Insurance Policy head Business and head Other Sources of the employee
taken on the life of the employee shall be- Profession
Fair Market Value of Fair Market Value Fair Market Value of Price at which it was
Shares on the date of of the shares on the share on the date of offered to the
46
The cost of acquisition of shares under Employees Stock Option offer date of exercise of vesting of option. employee.
Scheme shall be- option
Taxable Exempt Exempt if acquired None of the above
47 Capital Gain, arising from compulsory acquisition of urban by RBI or Central
agricultural land, is: Government
Short-Term CapitalLong-Term Capital Short- Term Capital Long- Term Capital
48 Where the entire block of the depreciable assets is transferred after Gain Gain Gain or Loss Gain or Loss
36 months, there will be-
Exemption under Section 54F shall not be allowed if the assessee, any Residential House a Residential House a Hose which is self more than one
49 on the date of transfer, owns- which is let out occupied Residential House

Income under the head “Income from Other Sources” is taxable on Due Basis Receipt Basis On the basis of None of the above.
– method of accounting
50 regularly employed
by the Assessee

Winning from Lotteries, Crossword Puzzles, Horse Races & Other fully exempt exempt upto ` 5,000 fully taxable None of above
51
Races, Card Game, etc. are casual income & hence-
Adi received ` 70,000 from his friend on the occasion of his Entire amount of ` ` 25,000 is taxable The entire amount is None of the above
52
birthday: 70, 000 is taxable exempt
Commission received by a Director of the Company is charged Salaries Business Income Other Sources Its exempt from tax
53
under the head:
Casual Income received by the Assessee is – Fully Exempt Exempt upto ` Fully Taxable None of the above.
54
5,000
Mr. X’s minor daughter earned ₹ 50,000 from his special talent. The income of Mr. X The income of Mrs. Mr. X or Mrs. X, It will not be clubbed
55 This income will be clubbed with – X whoever’s income is
higher
 THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
DIRECT AND INDIRECT TAXATION (PAPER - 7)
MCQ BANK
SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4
Income arising to a minor married daughter shall be – assessed in the hands clubbed with the Exempt from tax clubbed with the
of minor married income of that income of her spouse
56
daughter parent whose total
income is higher
Unabsorbed business losses cannot be carried for more than - 7 assessment years 8 assessment years 10 assessment years 12 assessment years
57
Deduction u/s. 80JJA is available if the assessee: Is engaged in Sets up an industrial Is engaged in Is engaged in the
scientific research unit in a backward agriculture business business of
area collecting and
58 processing
biodegradable waste.

59 Maximum limit for deduction u/s 80TTA is: ₹ 50,000 ₹ 10,000 ₹ 40,000 ₹ 25,000
Advance tax is required to be paid by all assessee only if estimated ₹ 5,000 or more ₹ 10,000 or more More than zero ₹ 50,000 or more
60
advance tax liability is:
TDS is not required to be deducted u/s 194A if the amount of ₹ 5,000 ₹ 2,500 ₹ 7,500 ₹ 20,000
61
interest on loan does not exceed:
Payment or crediting Crediting the Payment Retirement of
the employee, employee employee
62
whichever is earlier
On salary, tax is required to be deducted at the time of:
Where assessment has not been completed, belated income tax 31.12.2024 31.01.2025 31.03.2025 31.12.2025
63
return for assessment year 2024-25 can be filed upto:
9 months 6 months 12 months 2 years
64 When assessment has not been completed, revised return can be
filed within ______ from the end of the relevant previous year.
Clubbing provisions under Sec. 64(1)(vi) are applicable where the Daughter’s Husband Son’s Wife Major Son Major Daughter
65 asset is transferred by an individual for inadequate consideration to
–
As per Sec. 64(1A), income accruing to a minor shall be clubbed in Father Mother Father or Mother at Parent whose income
66 the income of – their option before this clubbing
is greater
67 for 8 years for 4 years indefinitely None of the above
The maximum period for which Speculation Loss can be carried 4 Years 8 Years Nil Any number of years
68
forward is:
Deduction u/s 80C in respect of LIP, contribution to provident fund any assessee an individual an individual or HUF an individual of
69 etc., is allowed to – HUF who is resident
in India
 THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
DIRECT AND INDIRECT TAXATION (PAPER - 7)
MCQ BANK
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Deduction u/s 80D is allowed if the premium is paid to – Life Insurance General Insurance Life Insurance or None of above.
Corporation Corporation or any General Insurance
70 other Insurer Corporation
approved by the
IRDA
71 Rebate in Tax u/s 87A, is applicable to: Companies Individuals HUF Resident Individual
Deduction u/s 80JJAA in respect of employment of new workers any assessee to who an Indian company an Indian Company None of above
shall be allowed to- Sec.44AB applies or a person other than
72
Company resident in
India
The maximum amount which can be donated in cash for claiming ` 5,000 ` 10,000 ` 15,000 ` 2,000
73 deduction under section 80G for the P.Y. 2023-24 is –

Where a member of a HUF has converted or transferred his self- As the income of the In the hand of the In the hands of Karta Completely exempt
74 acquired property for inadequate consideration into joint family Transferor Member HUF of HUF from tax
property, income arising there from is taxable.
Advance Tax shall be payable by any person in respect of current ` 50,000 or more ` 10,000 or more ` 1,00,000 or more None of the above
75
income is
Liability to deduct tax at source in case on income from interest on Payment of interest Accrual of interest Credit of interest to None of the above
securities arises at the time of – the account of the
payee / interest
76 payable account or
payment thereof
whichever is earlier
Who is empowered to make law for matters containing in List II of State Government Central Government Both Central and None of the above
77
Schedule VII of the Constitution of India? State Government
Power to make laws with respect to goods and services tax has 279A 246A 246 365
78
been given by the Constitution vide Article:
Indirect tax is : Regressive in nature Progressive in Both (1) & (2) None of these
79
nature
Which one of the following is not an example of indirect tax types? GST Customs Duty Income tax None of these
80
81 In case of indirect tax, impact and incidence of tax fall on: One person Different persons State Government None of these
82 Levy of indirect tax on goods and services may leads to: Inflation Deflation Reflection None of the above
83 Levy and collection of Central indirect tax are dealt by: CBIC CBDT NIC UGS
In pre-GST regime, excise duty has been levied by ……….. Central, State State, Central Central, Central State, State
84 Government whereas VAT has been levied by …….. State
Government on goods.
85 Cascading effect of tax means: Tax on goods Tax on services Tax on Tax None of these
 THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
DIRECT AND INDIRECT TAXATION (PAPER - 7)
MCQ BANK
SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4
Who is empowered to make law for matters containing in List I of State Government Central Government Both Central and None of the above
86
Schedule VII of the Constitution of India? State Government
The items which will be taxable both under current central excise Motor Spirit Alchoholic Liquor Tobacco and Tobacco Natural Gas
87 law and new GST even after the implementation of the GST Act: for Human products
Consumption
Who is the chairman & Head of the GST Council Meeting? Prime minister President Union Finance State Finance
88 Minister Minister nomited by
GST Council
The IGST Act,2017 extends to the: Whole of India except Whole of India Whole of India None of the above
the state of Jammu & except the state of
89
Kashmir Jammu & Kashmir &
Pondicherry
Which of the following is the benefits of GST? Creation of unified Boost to ‘Make in Reduction of Buoyancy to the
90 national market India' initiative compliance burden Government
on taxpayers Revenue
Which of the following taxes have been subsumed in GST? Central sales tax Central excise duty VAT All of the above
91
92 India has chosen__________ model of dual GST. USA UK Canadian Japan
93 Constitution Amendment Act, 2016 for GST was 80th 101st 122nd None of these
94 The incidence of tax on tax is called Tax Cascading Tax Pyramidding Tax evasion Indirect tax
UTGST is applicable when: Sold from Union Goods are Sold from one union There is interstate
territory purchased by territory to another supply
95
Central Government union territory

Under which article of the Constitution of India, GST council has 246 246A 279A 265
96
been constituted?
GSTN is: 51% government 50% government 100% government None of the above
owned company with owned company owned company with
97 paid up capital of ₹ 10 with paid up capital paid up capital of ₹
crore of ₹ 10 crore 10 crore

98 The term supply includes: Sale Transfer Barter All of the above
Which of the following activities or transactions shall be treated Sale of land and Lease of land Rent of building All of the above
99
neither as supply of goods nor a supply of services? building
Gifts not exceeding ………… in value in a financial year by an ₹ 50,000 ₹ 25,000 ₹ 30,000 None of the above
100 employer to an employee shall not be treated as supply of goods or
services or both.
A hotel provides a 4-D/3-N package with the facility of breakfast. Mixed supply Composite supply Both mixed and None of the above
101
This is a …….. composite supply
 THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
DIRECT AND INDIRECT TAXATION (PAPER - 7)
MCQ BANK
SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4
Which of the following is / are the essential elements of a mixed Supply is made by Supply consists of Supply is made for a All of the above
supply? taxable person to a two or more single price
recipient individual supplies
of goods or services
102 or both or any
combination thereof
but it is not naturally
bundled
In case of import of goods, which type(s) of GST is applicable? CGST SGST Both CGST and IGST
103
SGST
Reverse charge means the liability to pay tax by the …… of supply recipient supplier partly by the recipient None of the above
104 of goods or services or both. and partly by the
supplier
Which of the following can be issued by Government to exempt Exemption Special order Other notifications None of the above
105 goods and/or services on which tax is leviable in exceptional cases? Notification

Renting of precincts of a religious place meant for general public Renting of rooms Renting of shops or Renting of premises, All of the above
owned or managed by a charitable or religious trust u/s 12AA of where per day charges other spaces for community halls or
the Income Tax Act 1961 shall be exempt if: are less then ₹ 1,000 business or open area, where
commerce where charges per day are
106 charges per month less than
are less than ₹ 10,000
₹10,000

For which of the following goods, the manufacturer is not allowed Pan masala Ice cream Topical and All of the above
107 to opt for composition scheme: manufactured
tobacco substitutes
The time of supply of goods, where supplier is liable to pay tax The date of actual The last date on The date on which (a) or (b), whichever
under forward charge shall be: issue of invoice by the which he is required the supplier receives is earlier
supplier u/s 31(1) to issue the payment with
108 the invoice with respect to the supply
respect to the supply

The transaction value for computation of value of supply can be The buyer and seller Products are sold at Maximum retail All of the above
rejected if - are related and price is very low margins price is greater than
109
not the sole the transaction value
consideration
 THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
DIRECT AND INDIRECT TAXATION (PAPER - 7)
MCQ BANK
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In case goods disposed off by way of free sample recipient can claim supplier can claim supplier can not claim ITC can be claimed
110 ITC ITC ITC if value is more than
₹ 1,000
If the goods are received in installment then ITC can be availed Proportionately on 100% ITC can be ITC can be taken on 50% ITC can be
receipt of each taken on receipt of receipt of last taken on receipt of
installment first installment installment first installment and
111 balance 50% on
receipt of last
installment
Person who is liable to be registered u/s 22 or 24 shall apply for 30 days from the date 15 days from the 7 days from the date None of the above
registration in every such State or Union Territory in which he is so on which he becomes date on which he on which he becomes
112
liable within: liable to registration becomes liable to liable to registration
registration
Tax invoice shall be prepared in _________ in case of supply of Duplicate, Duplicate Duplicate, Triplicate, Duplicate Triplicate, Triplicate
113 goods and in ________ in case of supply of services Triplicate

114 Annual return is summary of: GSTR 1 GSTR 3B GSTR 4 All of the above
Payment of tax is required _____ filing return. Before After Before or after Before or at the time
115
of
Aggregate turnover Limit for Opting Compounding Scheme is: ₹ 50 Lakh ₹ 60 Lakh ₹ 1 Crore ₹ 1.5 Crore
116
The calculation of the aggregate turnover to decide the Taxable State wise Turnover All India Turnover State wise Turnover All India Turnover
117 Minimum Turnover will be based on: Basis basis Excluding Export Excluding Export

118 Certificate of registration is issued in which form? GST REG-06 GST REG-02 9 GST REG-01 GST REG-10
Dealers who are not eligible for Compounding Scheme: Exporters Importers Interstate Suppliers Manufacturing
and those liable to dealers
119
remit tax on Rverse
Charge basis
Various taxes have been subsumed in GST to make one nation one (ii) (ii) and (iii) (iii) (i),(ii) and (iii)
market for consumers . Out of following , determine which taxes
120 have been subsumed in GST (i) basic customs duty levied under
Customs Act, 1962, (ii) Taxes on lotteries ,(iii) Taxes on
advertisements
Which of the following is not considered as 'goods' under the (i) (ii) (ii) and (iii) (i),(ii) and (iii)
121 CGST Act, 2017 (i)Ten-paisa coin having sale value of Rs 100 ,
(ii) Shares of unlisted Company, (iii) Lottery Tickets
 THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
DIRECT AND INDIRECT TAXATION (PAPER - 7)
MCQ BANK
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If tobacco leaves procured from Agriculturist by a registered Reverse charge is Reverse charge is Joint charge is None of the above
person , the applicability of RCM will be: applicable as this is a applicable if ABC applicable
122
notified service Travels is not
registered
For a registered person threshold limits of turnover in the preceding ₹ 20 lakh ₹ 1.5 crore ₹ 75 lakh None of the above
123 financial year for opting composition scheme shall not exceeds:

A supply that consists of two or even more services would be Composite Mixed Both (a) and (b) None of the above
124 classified as the provision that describes the variables that are
subject to a higher rate of taxation, is called:
GST stands for Goods and Services Tax, and it is a tax system that Goods Services Goods, companies Products, systems,
125
covers a wide range of: and imports and exports
Which of the following is the exclusions from the computation of Value of taxable value of exempt Exports of goods or Value of inward
aggregate turnover? supplies supplies services or both supplies on which
126 tax is paid on reverse
charge basis

In case of Manufacturer (except Ice cream , pan masala, tobacco) 2.50% 0.50% 1% No composition for
127 for whom concessional rate applicable under composition scheme, manufacturer
the rate of tax is:
Whether a registered person under composition scheme shall claim yes no Input tax credit on Input tax credit on
input tax credit? inward supply of inward supply of
128
goods only can be service only can be
claimed claimed
What is time of supply of goods, in case of forward charge? Date of issue of Due date of issue of Date of receipt of Earlier of (a) & (b)
129 invoice invoice consideration by the
supplier
What is the time of supply of vouchers when the supply with Date of issue of Date of redemption Earlier of (a) & (b) (a) & (b) whichever
130 respect to the voucher is voucher of voucher is later
identifiable?
Which of the following shall not be included in value of supply? GST Interest Late fee Commission
131
The value of supply should include: Any non-GST taxes, Interest, late fee or Subsidies directly All of the above
duties, cesses, fees penalty for delayed linked to the price
charged separately by payment of any except subsidies
132 supplier consideration for provided by the
any supply Central and State
Government
 THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
DIRECT AND INDIRECT TAXATION (PAPER - 7)
MCQ BANK
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When can the transaction value be rejected for computation of When the buyer and When the buyer and It can never be When the goods are
value of supply? seller are related and seller are unrelated rejected sold at very low
133 price is not the sole or price is not the margins
consideration sole consideration

What deductions are allowed from the transaction value? Discounts offered to Packing Charges, Amount paid by Freight charges
customers, subject to subject to conditions customer on behalf of incurred by the
conditions the supplier, subject supplier for CIF
134 to conditions terms of supply,
subject to conditions

Rule 30 of the CGST Rules inter alia provides value of supply of 100 10 110 120
goods or services or both based on cost shall be ...................% of
135 cost of production or manufacture or the cost of acquisition of such
goods or the cost of provision of such services

Where the goods being sent or taken on approval for sale or return before/at the time of 6 months from the Earlier of (a) or (b) None of the above
136 are removed before the supply takes place, the invoice shall be supply date of removal
issued:
Which of the following is not a supply under the CGST Act, 2017? . Goods supplied free Importation of An expensive watch A machinery
of cost by X & Sons accounting services gifted to an employee disposed off free of
to its agent for further (for business for ₹ 50,000. No cost on which input
supply to customer at purposes) free of other gifts provided tax credithas been
137 ₹ 5,000 for which cost from a to such employee availed
invoice will be dependent father during the entire
issuedby the agent in residing in US. financial year.
his own name.

The term ‘casual taxable person’ includes: A person occasionally A person Both (a) and (b) None of the above
supplying goods or occasionally
services or both in a supplying goods or
State or a Union services or both in a
138 territory where he has State or a Union
no fixed place of territory
business. where he has fixed
place of business
 THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
DIRECT AND INDIRECT TAXATION (PAPER - 7)
MCQ BANK
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Mr. X of Delhi is participating in Hitex Furniture Expo in Haryana Non–resident taxable Casual taxable Regular taxpayer No registration under
where he has no fixed place of business and exhibiting his person registration person registration registration GST required.
products. During the expo, the said products will be sold to the
139 people attending and intending to purchase such products. In such
scenario, Mr. X shall obtain which of the following registration
under the CGST Act, 2017?
An exempt supply includes: Supply of goods or Non- taxable supply Supply of goods or All of the above
services or both which services or both
attracts Nil rate of tax which are wholly
exempt from
140 tax under Section 11
of the CGST Act or
under Section 6 of
IGST
Act
Which of the following service is notified by Government for services by way of services by way of services by way of All of these
ECO? transportation of providing house-keeping,
passengers by a radio- accommodation in such as plumbing,
taxi, motor hotels, inns, guest carpentering
cab, maxi cab and houses, clubs, etc., except where the
motor cycle campsites or other person
commercial places supplying such
meant for residential service through
or lodging ECO is liable for
purposes, except registration under
141
where the person subsection 22(1) of
supplying such the CGST Act
service through
ECO is liable for
registration under
section 22(1) of the
CGST

A hotel owner provided accommodation in Haryana, through an Hotel Owner ECO Customer Both by Hotel owner
electronic commerce operator – Cool Trips. The hotel owner is not & ECO
142 liable to get registered as per the provisions of section 22(1) of the
CGST Act. Who is the person liable to pay GST in this case?
 THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
DIRECT AND INDIRECT TAXATION (PAPER - 7)
MCQ BANK
SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4
State the taxability of satellite launch services provided to both Taxable Not taxable Exempt None
international and domestic customers by ANTRIX Corporation
143 Limited (“ANTRIX”) which is a wholly owned Government of
India Company under the administrative control of Department of
Space (DOS).
Zero rated supply includes: Export of goods and Supply of goods and Supply of goods and Both (1) and (2)
services services to a SEZ services by a SEZ
144 developer or SEZ developer or SEZ
Unit Unit

A registered taxable person is eligible to claim refund in respect of Under bond, without On payment of None of the above Both (1) and (2)
export of goods and services in the following cases: payment of IGST and IGST and claim
claim refund of refund of
145 unutilized input tax IGST paid on such
credit. goods and services

If place of supply in Territorial water, then what will considered as Actual location Principal Any establishment of coastal State or
Place of supply? (territorial Water) Establishment of supplier of his choice Union Territory
Supplier where the
146 nearest point of the
appropriate baseline

What is the time of supply of service if the invoice is issued within Date of issue of Date on which the Date of provision of Earlier of (1) & (2)
147 30 days from the date of provision of service? invoice supplier receives service
payment
What is the time of supply of service in case of reverse charge Date of payment as Date immediately Date of invoice Earlier of (1) & (2)
mechanism? entered in the following 60 days
148
books of account of from the date of
the recipient issue of invoice
Value of services rendered is ` 1,00,000/. Date of issue of invoice 5th October 2023 for 20th September 20th September 2023- 20th September
is 5th October 2023. Advance Received is ` 25,000/- on 20th ` 1,00,000/- 2023 for ` 1,00,000/- ` 25,000/- and 5th 2023- ` 25,000/- and
September 2023. Balance amount received on 7th October 2023. October 2023 for ` 7th October 2023 for
149 What is the time of supply for ` 1,00,000? 75,000/- ` 75,000/-

Whether credit on inputs should be availed based on receipt of Receipt of goods Receipt of Both Either receipt of
documents or receipt of goods Documents documents or
150
Receipt of
goods
 THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
DIRECT AND INDIRECT TAXATION (PAPER - 7)
MCQ BANK
SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4
The supply of goods to SEZ unit is treated as_______ in the hands Exempt Supply – Deemed Taxable Zero Rated supply Non-Taxable Supply
of the supplier: Reversal of credit Supply – No – Outside the Scope
151
reversal of credit of GST

On supply of OIDAR Services by a person located in taxable Recipient Supplier Both None
152 territory to a non-taxable online recipient. Who is liable to pay GST
in this case?
If location of supplier in Territorial water, then what will be Actual location Principal Any establishment of Coastal State or
considered as location of supplier? (territorial Water) Establishment of supplier of his choice Union Territory
Supplier where the
153 nearest point of the
appropriate baseline

The limit of exclusive economic zone of India is _____ from the 200 nautical miles 12 nautical miles 24 nautical miles None of the above
154
nearest point of the baseline.
Which of the following is a taxable event for imported goods? Date on which the Date of presentation Date of entry into Unloading of
155 goods cross the of bill of entry Indian territorial imported goods at
customs barrier waters the customs port
Basic custom duty on imported goods is levied at the rates First Schedule of the Second Schedule of Customs Act Customs Manual
156 specified in the: Customs Tariff Act, the Customs Tariff
1975 Act, 1975
For the purpose of computing IGST on imported goods, one of the GST Compensation Social Welfare Anti-dumping diuty None of the above
157 following shall not be included in the value for computation: Cess Surcharge

Where the insurance amount is not available, for ascertaining the 1 1.125 1.5 None of the above
158 assessable value for customs duty, the percentage of FOB value to
be taken is:
Where the transport charges is not available, for ascertaining the 10% 20% 25% None of the above
159 assessable value for customs duty, the percentage of FOB value to
be taken is:
Transportation charges incurred by the importee for transporting Yes No Yes, if such charges None of the above
goods from factory of the exporter to the port of exportation shall has been paid in
160
be included in the assessable value. Is this statement correct? foreign currency

As per Section 2(31), person-in-charge means: Vessel - Master Train - Conductor Vehicle – Driver All of the above
161
(or) Guard
Goods which are same in all respects, including physical quantity Identical Goods Similar Goods Alike Goods None of the above
162
is known as:
 THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
DIRECT AND INDIRECT TAXATION (PAPER - 7)
MCQ BANK
SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4
Buying commission shall be included in the assessable value. Is No Yes Yes, if buying None of the above
163 this statement correct? commission is paid in
foreign currency
Any article which is imported into India shall, in addition, be liable 20 30 40 50
to integrated tax at such rate, not exceeding_____ % as is leviable
under section 5 of Integrated Goods and Services Tax Act, 2017 on
164 a like article on its supply in India, on the value of the imported
article as determined under subsection (8) or sub section 8(A).

Any article which is imported into India is also liable to a duty Additional duty Countervailing Duty Special duty None of the above
equal to the excise duty for the time being leviable on a like article
165
if produced or manufactured in India. This duty is called
as__________
166 The maximum rate of additional duty is @____ % 5 4 3 2
If which of the following conditions are satisfied, the Central The goods should be The Central Either 1 or 2 Both 1 & 2
Government may provide for the enhancement of the import duty ? specified in the First Government is
Schedule satisfied that
circumstances exist,
which render it
167 necessary
for the enhancement
of import duties

Central Government can impose the safeguard duty if it is satisfied Any article is Such increased Either 1 or 2 Both 1 & 2
that: imported into India in importation is
increased causing or
168 quantities threatening to cause
serious injury to
domestic
industry
The total period of levy of safeguard duty is restricted to years: 5 10 6 7
169
An appeal filed under section 9B shall be accompanied by a fee of 10,000 15,000 50,000 25,000
170
`_____
As per section 14 of customs act, 1962, transaction value shall also commissions and engineering royalties and licence all of the above
171 include in addition to the price, anyamount paid or payable for brokerage fees
costs and services, including ______
 THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
DIRECT AND INDIRECT TAXATION (PAPER - 7)
MCQ BANK
SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4
As per section 14 of customs act, 1962, transaction value shall also costs of transportation insurance design work all of the above
172 include in addition to the price, any amount paid or payable for to the place of
costs and services, including______ importation
For imported goods, the conversion in value shall be done with bill of entry under shipping bill (vessel bill of export either 2 or 3
173 reference to the rate of exchange prevalent on the date of filing section 46 or aircraft) under (vehicle) under
of________. section 50 section 50.
For the purpose of customs valuation, “rate of exchange” means the Foreign Exchange CBIC the Reserve Bank of none of the above
174 the rate of exchange notified by_______ shall be taken into Dealers’ Association India
account. of India
Sub-section (2) of section 14 provides that the Board may fix for market value MRP transaction value tariff value
any class of imported
175 goodsor export goods, having regard to the trend of value of such
or like goods by notification in the Official Gazette if it is satisfied
that it is necessary to do so. It is:
The term “similar goods” means imported goods: which although not produced in the produced by the same all of the above
alike in all respects, country in which the person who produced
have like goods being valued the
characteristics and were produced goods being valued
176 like component
materials which
enable them to
perform the same
functions
The loading, unloading and handling charges associated with the 1% of customs FOB cost of transport cost of insurance 0
delivery of the imported goods at the place of importation shall value
177
be_______

Where the goods are sent back as such to the foreign country owing Goods not conforming Goods not permitted Goods after being All the above
to which of the following reasonsit is considered as re-exportation? to the specification of to be imported imported are
the into the country on temporarily retained
order account of in the country and
traderestriction later taken out of the
country. In
178 other words, the very
objective of the
importation was
limited to temporary
retention in India
 THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
DIRECT AND INDIRECT TAXATION (PAPER - 7)
MCQ BANK
SL NO QUESTIONS OPTION 1 OPTION 2 OPTION 3 OPTION 4
Under Section 74(1) when goods capable of being easily identified, 50 100 98 48
which have been imported into India and upon which any duty has
179 been paid on importation_______ % of duty be paid back.

As per notification, no drawback of import duty will be allowed in Wearing Apparel Tea Chests Exposed All the above
respect of which of the following goods, if they have been used cinematograph films
180 after their importation in India? passed by Board of
Film Censors in India

CBIC has clarified that safeguard duties, anti-dumping duties and 74 75 76 77

countervailing duties are rebatable as drawback in terms of section
181
__________ of the Customs Act
 THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
DIRECT AND INDIRECT TAXATION (PAPER - 7)
ANSWERS TO MCQ BANK
ANSWER
SL NO QUESTIONS CORRECT ANSWER
CODE
Charging of income of the previous year in the same year is not Discontinuation of business
1 4
mandatory for:
AB was born in England, his parents were born in India in 1952. Foreign National
2 His grand parents were born in South Africa. AB shall be a: 2

Income accruing in Japan and received there is taxable in India in Resident and Ordinarily Resident only
3 1
the case of:
4 Out of the following which one is not a capital receipt? Dividend on investment 1
5 Which of the following is Casual Income? Winning from lotteries 2
Which of the following receipt is not included in the term ‘Income’ Reimbursement of travelling expenses
6 4
under the Income-tax Act, 1961?
A person is said to be a person of Indian origin if – He or either of his parents or either of his
7 3
grandparents were born in undivided India
Income received in India in the previous year is taxable in the All assessee irrespective of residential status
8 3
hands of –
An individual is said to be resident in India if – He is in India in the previous year for a period of
9 2
182 days or more
10 The incidence of taxation depends on the – Residential status of the assessee 1
Which of the following is an agriculture income? Share of Profit of a Partner from a firm engaged in
11 2
an agriculture operation
In case of an assessee engaged in the business of manufacturing of Nil
12 3
tea, his agricultural income is –
13 Income from saplings shall be considered as __________ . Agricultural Income 1
An individual (aged 28 Years) born in India left for first time for Resident and ordinarily resident
employment in France on 30.10.2023. His visit outside India is for
14 1
the first time. His residential status for the assessment year 2024-25
will be –
Income of ₹ 3,00,000 is received in Sri Lanka by an ordinarily ₹ 3,00,000 will be taxable
15 resident of India. But later on ₹ 50,000 is remitted to India – 1

An individual is said to be a resident in India in the previous year 182 days or more
16 (in which the Feb month has 29 days) if he is in India in that year 1
for a period of _____________.
Mr. X is engaged in growing and manufacturing tea in India. His ₹ 84,000
17 income from this activity is ₹ 1,40,000. His agriculture income will 2
be –
18 Which of the following is not taxable under head ‘Salaries’? Both (1) and (2) above 4
If a domestic servant is engaged by the employer and salary is paid Taxable in the hands of specified employees only
19 3
by him, the perquisite is:
Which of the following is taxable under the head ‘salaries’? Commission received by an employee director of a
20 2
company.
21 Who among the following is a specified employee? Both (1) and (2) above 4
Net Annual Value of a self-occupied property treated as such is: Nil
22 2
A house property located outside India is: Taxable in hands of resident and ordinarily resident
23 3
assessee
Following assessee(s) can considered a house property as self Individual & HUF
24 1
occupied:
Which of the following deductions is /are not allowed in case of a All of the above
25 4
deemed to be let-out house?
Which of the following is not allowed as a deduction for Anticipated future losses
26 2
computation of business Income?
The preliminary expenses that can be amortized under the Income 5%
27 Tax Act, 1961 has to be restricted to _________ of the cost of 2
project.
Expenditure on promotion of family planning is an allowance as Company
28 deduction u/s. 36(1)(ix) of the Income Tax Act, 1961 in case of: 4

In case of loss, a partnership firm may claim deduction in respect of ₹ 1,50,000/- or actual remuneration, whichever is
29 2
remuneration to partner to the extent of: lower
U/s 54, capital gain will be allowed as exemption if the house More than 24 months preceding the date of transfer
30 4
property under transfer is held for:
 THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
DIRECT AND INDIRECT TAXATION (PAPER - 7)
ANSWERS TO MCQ BANK
31 Personal effect do not cover the followings: All of the above 4
Profit on sale of rural agricultural land is: Not taxable as rural agricultural land is not
32 3
considered as a capital asset
Cost of acquisition of self-generated asset is nil, the exception is: Bonus shares acquired before 01-04-2001
33 3
While computing taxable interest on delayed compensation, a 50%
34 1
standard deduction is allowed @:
35 The provision of sec.56(2)(x) is applicable on: All assessee 1
While computing income from other sources, deduction is not All of the above
36 4
allowed to the assessee for:
Gift received by an individual in certain circumstances is not Any gift received on the occasion of the marriage of
37 3
taxable, one of them is: the individual-assessee
An individual purchased a painting on 01-11-2023 for ₹ 5,00,000 Nil as difference between market value and actual
38 though fair market value of the asset is ₹ 5,25,000. Income taxable consideration does not exceed ₹ 50,000 3
u/s 56(2)(x) is:
Uncommuted Pension received by a Government Employee is- Taxable
39 2
Salary received by the Partner of a Firm is charged under the head Business Income
40 2
41 Interest credited to Statutory Provident Fund shall be- Fully Exempt 1
42 Interest credited to Recognized Provident Fund is – Exempt upto 9.5% p.a. 4
The basis of chargeability of income under the head income from Annual value
43 2
house property is:
` 96,000
“A” borrowed ` 5,00,000 at 12% p.a on 01-04-2015 for
44 construction of house property which was completed on 15-03- 2
2024 and let out. The amount is still unpaid. The deduction on
account of interest for the previous year 2023-24 shall be-
Sums received by an employer from Keyman Insurance Policy Taxable under the head Business and Profession
45 2
taken on the life of the employee shall be-
The cost of acquisition of shares under Employees Stock Option Fair Market Value of the shares on the date of
46 2
Scheme shall be- exercise of option
Capital Gain, arising from compulsory acquisition of urban Exempt
47 2
agricultural land, is:
Where the entire block of the depreciable assets is transferred after Short- Term Capital Gain or Loss
48 3
36 months, there will be-
Exemption under Section 54F shall not be allowed if the assessee, more than one Residential House
49 4
on the date of transfer, owns-
Income under the head “Income from Other Sources” is taxable on On the basis of method of accounting regularly
50 3
– employed by the Assessee
Winning from Lotteries, Crossword Puzzles, Horse Races & Other fully taxable
51 3
Races, Card Game, etc. are casual income & hence-
Adi received ` 70,000 from his friend on the occasion of his Entire amount of ` 70, 000 is taxable
52 1
birthday:
Commission received by a Director of the Company is charged Salaries
53 1
under the head:
54 Casual Income received by the Assessee is – Fully Taxable 3
Mr. X’s minor daughter earned ₹ 50,000 from his special talent. It will not be clubbed
55 4
This income will be clubbed with –
Income arising to a minor married daughter shall be – clubbed with the income of that parent whose total
56 2
income is higher
Unabsorbed business losses cannot be carried for more than - 8 assessment years
57 2
Deduction u/s. 80JJA is available if the assessee: Is engaged in the business of collecting and
58 4
processing biodegradable waste.
59 Maximum limit for deduction u/s 80TTA is: ₹ 10,000 2
Advance tax is required to be paid by all assessee only if estimated ₹ 10,000 or more
60 2
advance tax liability is:
TDS is not required to be deducted u/s 194A if the amount of ₹ 5,000
61 1
interest on loan does not exceed:
62 On salary, tax is required to be deducted at the time of: Payment 3
Where assessment has not been completed, belated income tax 31.12.2024
63 1
return for assessment year 2024-25 can be filed upto:
 THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
DIRECT AND INDIRECT TAXATION (PAPER - 7)
ANSWERS TO MCQ BANK
9 months
64 When assessment has not been completed, revised return can be 1
filed within ______ from the end of the relevant previous year.
Clubbing provisions under Sec. 64(1)(vi) are applicable where the Son’s Wife
65 asset is transferred by an individual for inadequate consideration to 2
–
As per Sec. 64(1A), income accruing to a minor shall be clubbed in Parent whose income before this clubbing is greater
66 4
the income of –
Loss on account of owing & maintaining the race horses can be for 4 years
67 2
carried forward
The maximum period for which Speculation Loss can be carried 4 Years
68 1
forward is:
Deduction u/s 80C in respect of LIP, contribution to provident fund an individual or HUF
69 3
etc., is allowed to –
Deduction u/s 80D is allowed if the premium is paid to – General Insurance Corporation or any other Insurer
70 2
approved by the IRDA
71 Rebate in Tax u/s 87A, is applicable to: Resident Individual 4
Deduction u/s 80JJAA in respect of employment of new workers any assessee to who Sec.44AB applies
72 1
shall be allowed to-
The maximum amount which can be donated in cash for claiming ` 2,000
73 deduction under section 80G for the P.Y. 2023-24 is – 4

Where a member of a HUF has converted or transferred his self- As the income of the Transferor Member
74 acquired property for inadequate consideration into joint family 1
property, income arising there from is taxable.
Advance Tax shall be payable by any person in respect of current ` 10,000 or more
75 2
income is
Liability to deduct tax at source in case on income from interest onCredit of interest to the account of the payee /
76 securities arises at the time of – interest payable account or payment thereof 3
whichever is earlier
Who is empowered to make law for matters containing in List II of State Government
77 1
Schedule VII of the Constitution of India?
Power to make laws with respect to goods and services tax has 246A
78 2
been given by the Constitution vide Article:
79 Indirect tax is : Regressive in nature 1
Which one of the following is not an example of indirect tax types? Income tax
80 3
81 In case of indirect tax, impact and incidence of tax fall on: Different persons 2
82 Levy of indirect tax on goods and services may leads to: Inflation 1
83 Levy and collection of Central indirect tax are dealt by: CBIC 1
In pre-GST regime, excise duty has been levied by ……….. Central, State
84 Government whereas VAT has been levied by …….. State 1
Government on goods.
85 Cascading effect of tax means: Tax on Tax 3
Who is empowered to make law for matters containing in List I of Central Government
86 2
Schedule VII of the Constitution of India?
The items which will be taxable both under current central excise Tobacco and Tobacco products
87 law and new GST even after the implementation of the GST Act: 3

88 Who is the chairman & Head of the GST Council Meeting? Union Finance Minister 3
89 The IGST Act,2017 extends to the: Whole of India 2
90 Which of the following is the benefits of GST? Reduction of compliance burden on taxpayers 3
91 Which of the following taxes have been subsumed in GST? All of the above 4
92 India has chosen__________ model of dual GST. Canadian 3
93 Constitution Amendment Act, 2016 for GST was 101st 2
94 The incidence of tax on tax is called Tax Cascading 1
95 UTGST is applicable when: There is interstate supply 4
Under which article of the Constitution of India, GST council has 279A
96 3
been constituted?
GSTN is: 51% government owned company with paid up
97 1
capital of ₹ 10 crore
98 The term supply includes: All of the above 4
Which of the following activities or transactions shall be treated Sale of land and building
99 1
neither as supply of goods nor a supply of services?
 THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
DIRECT AND INDIRECT TAXATION (PAPER - 7)
ANSWERS TO MCQ BANK
Gifts not exceeding ………… in value in a financial year by an ₹ 50,000
100 employer to an employee shall not be treated as supply of goods or 1
services or both.
A hotel provides a 4-D/3-N package with the facility of breakfast. Composite supply
101 2
This is a ……..
Which of the following is / are the essential elements of a mixed All of the above
102 4
supply?
In case of import of goods, which type(s) of GST is applicable? IGST
103 4
Reverse charge means the liability to pay tax by the …… of supply recipient
104 1
of goods or services or both.
Which of the following can be issued by Government to exempt Special order
105 goods and/or services on which tax is leviable in exceptional cases? 2

Renting of precincts of a religious place meant for general public All of the above
106 owned or managed by a charitable or religious trust u/s 12AA of 4
the Income Tax Act 1961 shall be exempt if:
For which of the following goods, the manufacturer is not allowed All of the above
107 4
to opt for composition scheme:
The time of supply of goods, where supplier is liable to pay tax (a) or (b), whichever is earlier
108 4
under forward charge shall be:
The transaction value for computation of value of supply can be The buyer and seller are related and price is not the
109 1
rejected if - sole consideration
110 In case goods disposed off by way of free sample supplier can not claim ITC 3
If the goods are received in installment then ITC can be availed ITC can be taken on receipt of last installment
111 3
Person who is liable to be registered u/s 22 or 24 shall apply for 30 days from the date on which he becomes liable to
112 registration in every such State or Union Territory in which he is so registration 1
liable within:
Tax invoice shall be prepared in _________ in case of supply of Triplicate, Duplicate
113 goods and in ________ in case of supply of services 3

114 Annual return is summary of: All of the above 4

115 Payment of tax is required _____ filing return. Before or at the time of 4
Aggregate turnover Limit for Opting Compounding Scheme is: ₹ 1.5 Crore
116 4
The calculation of the aggregate turnover to decide the Taxable All India Turnover basis
117 2
Minimum Turnover will be based on:
118 Certificate of registration is issued in which form? GST REG-06 1
Dealers who are not eligible for Compounding Scheme: Interstate Suppliers and those liable to remit tax on
119 3
Rverse Charge basis
Various taxes have been subsumed in GST to make one nation one (ii) and (iii)
market for consumers . Out of following , determine which taxes
120 have been subsumed in GST (i) basic customs duty levied under 2
Customs Act, 1962, (ii) Taxes on lotteries ,(iii) Environment tax

Which of the following is not considered as 'goods' under the (ii)

121 CGST Act, 2017 (i)Ten-paisa coin having sale value of Rs 100 , 2
(ii) Shares of unlisted Company, (iii) Lottery Tickets
If tobacco leaves procured from Agriculturist by a registered Reverse charge is applicable as this is a notified
122 1
person , the applicability of RCM will be: service
For a registered person threshold limits of turnover in the ₹ 1.5 crore
123 preceding financial year for opting composition scheme shall not 2
exceeds:
A supply that consists of two or even more services would be Mixed
124 classified as the provision that describes the variables that are 2
subject to a higher rate of taxation, is called:
GST stands for Goods and Services Tax, and it is a tax system that Goods, companies and imports
125 3
covers a wide range of:
Which of the following is the exclusions from the computation of Value of inward supplies on which tax is paid on
126 4
aggregate turnover? reverse charge basis
In case of Manufacturer (except Ice cream , pan masala, tobacco) 1%
127 for whom concessional rate applicable under composition scheme, 3
the rate of tax is:
 THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
DIRECT AND INDIRECT TAXATION (PAPER - 7)
ANSWERS TO MCQ BANK
Whether a registered person under composition scheme shall claim no
128 2
input tax credit?
129 What is time of supply of goods, in case of forward charge? Earlier of (a) & (b) 4
What is the time of supply of vouchers when the supply with Date of issue of voucher
130 respect to the voucher is 1
identifiable?
Which of the following shall not be included in value of supply? GST
131 1
132 The value of supply should include: All of the above 4
When can the transaction value be rejected for computation of When the buyer and seller are related and price is
133 1
value of supply? not the sole consideration
What deductions are allowed from the transaction value? Discounts offered to customers, subject to
134 1
conditions
Rule 30 of the CGST Rules inter alia provides value of supply of 110
goods or services or both
based on cost shall be ...................% of cost of production or
135 manufacture or the cost of 3
acquisition of such goods or the cost of provision of such services

Where the goods being sent or taken on approval for sale or return Earlier of (a) or (b)
136 are removed before the supply takes place, the invoice shall be 3
issued:
Which of the following is not a supply under the CGST Act, 2017? An expensive watch gifted to an employee for ₹
137 50,000. No other gifts provided to 3
such employee during the entire financial year.
The term ‘casual taxable person’ includes: A person occasionally supplying goods or
services or both in a State or a Union
138 1
territory where he has no fixed place of
business.
Mr. X of Delhi is participating in Hitex Furniture Expo in Haryana Casual taxable person registration
where he has no fixed place of business and exhibiting his
products. During the expo, the said products will be sold to the
139 people attending and intending to purchase such products. In such 2
scenario, Mr. X shall obtain which of the following registration
under the CGST Act, 2017?
140 An exempt supply includes: All of the above 4
Which of the following service is notified by Government for All of these
141 4
ECO?
A hotel owner provided accommodation in Haryana, through an ECO
electronic commerce operator – Cool Trips. The hotel owner is not
142 liable to get registered as per the provisions of section 22(1) of the 2
CGST Act. Who is the person liable to pay GST in this case?

State the taxability of satellite launch services provided to both Taxable

international and domestic customers by ANTRIX Corporation
143 Limited (“ANTRIX”) which is a wholly owned Government of 1
India Company under the administrative control of Department of
Space (DOS).
Zero rated supply includes: Both (1) and (2)
144 4
A registered taxable person is eligible to claim refund in respect of Both (1) and (2)
145 export of goods and services in the following cases: 4

If place of supply in Territorial water, then what will considered as coastal State or Union Territory where the
146 4
Place of supply? nearest point of the appropriate baseline
What is the time of supply of service if the invoice is issued within Earlier of (1) & (2)
147 4
30 days from the date of provision of service?
What is the time of supply of service in case of reverse charge Earlier of (1) & (2)
148 4
mechanism?
Value of services rendered is ` 1,00,000/. Date of issue of invoice 20th September 2023- ` 25,000/- and 5th
is 5th October 2023. Advance Received is ` 25,000/- on 20th October 2023 for ` 75,000/-
149 3
September 2023. Balance amount received on 7th October 2023.
What is the time of supply for ` 1,00,000?
 THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
DIRECT AND INDIRECT TAXATION (PAPER - 7)
ANSWERS TO MCQ BANK
Whether credit on inputs should be availed based on receipt of Both
150 3
documents or receipt of goods
The supply of goods to SEZ unit is treated as_______ in the hands Zero Rated supply
151 3
of the supplier:
On supply of OIDAR Services by a person located in taxable Supplier
152 territory to a non-taxable online recipient. Who is liable to pay GST 2
in this case?
If location of supplier in Territorial water, then what will be Coastal State or Union Territory where the
153 4
considered as location of supplier? nearest point of the appropriate baseline
The limit of exclusive economic zone of India is _____ from the 200 nautical miles
154 1
nearest point of the baseline.
Which of the following is a taxable event for imported goods? Date on which the goods cross the customs barrier
155 1
Basic custom duty on imported goods is levied at the rates First Schedule of the Customs Tariff Act, 1975
156 1
specified in the:
For the purpose of computing IGST on imported goods, one of the GST Compensation Cess
157 following shall not be included in the value for computation: 1

Where the insurance amount is not available, for ascertaining the 1.125
158 assessable value for customs duty, the percentage of FOB value to 2
be taken is:
Where the transport charges is not available, for ascertaining the 20%
159 assessable value for customs duty, the percentage of FOB value to 2
be taken is:
Transportation charges incurred by the importee for transporting Yes
goods from factory of the exporter to the port of exportation shall
160 1
be included in the assessable value. Is this statement correct?

161 As per Section 2(31), person-in-charge means: All of the above 4

Goods which are same in all respects, including physical quantity Identical Goods
162 1
is known as:
Buying commission shall be included in the assessable value. Is No
163 1
this statement correct?
Any article which is imported into India shall, in addition, be liable 40
to integrated tax at such rate, not exceeding_____ % as is leviable
under section 5 of Integrated Goods and Services Tax Act, 2017 on
164 a like article on its supply in India, on the value of the imported 3
article as determined under subsection (8) or sub section 8(A).

Any article which is imported into India is also liable to a duty Additional duty
equal to the excise duty for the time being leviable on a like article
165 1
if produced or manufactured in India. This duty is called
as__________
166 The maximum rate of additional duty is @____ % 4 2
If which of the following conditions are satisfied, the Central Both 1 & 2
167 Government may provide for the enhancement of the import duty ? 4

Central Government can impose the safeguard duty if it is satisfied Both 1 & 2
168 4
that:
The total period of levy of safeguard duty is restricted to years: 10
169 2
An appeal filed under section 9B shall be accompanied by a fee of 15,000
170 2
`_____
As per section 14 of customs act, 1962, transaction value shall also all of the above
171 include in addition to the price, anyamount paid or payable for 4
costs and services, including ______
As per section 14 of customs act, 1962, transaction value shall also all of the above
172 include in addition to the price, any amount paid or payable for 4
costs and services, including______
For imported goods, the conversion in value shall be done with bill of entry under section 46
173 reference to the rate of exchange prevalent on the date of filing 1
of________.
 THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
DIRECT AND INDIRECT TAXATION (PAPER - 7)
ANSWERS TO MCQ BANK
For the purpose of customs valuation, “rate of exchange” means CBIC
174 the rate of exchange notified by_______ shall be taken into 2
account.
Sub-section (2) of section 14 provides that the Board may fix for tariff value
any class of imported
175 goodsor export goods, having regard to the trend of value of such 4
or like goods by notification in the Official Gazette if it is satisfied
that it is necessary to do so. It is:
176 The term “similar goods” means imported goods: all of the above 4
The loading, unloading and handling charges associated with the 0
delivery of the imported goods at the place of importation shall
177 4
be_______

Where the goods are sent back as such to the foreign country All the above
owing to which of the following reasonsit is considered as re-
178 4
exportation?

Under Section 74(1) when goods capable of being easily identified, 98

which have been imported into India and upon which any duty has
179 been paid on importation_______ % of duty be paid back. 3

As per notification, no drawback of import duty will be allowed in All the above
180 respect of which of the following goods, if they have been used 4
after their importation in India?
CBIC has clarified that safeguard duties, anti-dumping duties and 75
countervailing duties are rebatable as drawback in terms of section
181 2
__________ of the Customs Act