Taxmann's Taxation (Tax) | CRACKER

Page 1




Contents PAGE

Chapter-wise Marks Distribution

I-5

Previous Exams Trend Analysis (May 2018 onwards) (New Syllabus) Chapter-wise Comparison with Study Material

I-7 I-13

SECTION A INCOME TAX LAW Chapter 1 Basic concepts

1.3

Chapter 2 Residence and scope of total income

2.1

Chapter 3 Incomes which do not form part of total income

3.1

Chapter 4 Income from salaries

4.1

Chapter 5 Income from house property

5.1

Chapter 6 3URÀWV DQG JDLQV IURP EXVLQHVV RU SURIHVVLRQ

6.1

I-15


3 4 . % 4 . / #

I-16

PAGE

Chapter 7 &DSLWDO JDLQV

7.1

Chapter 8 Income from other sources

8.1

Chapter 9 &OXEELQJ RI LQFRPH

9.1

Chapter 10 Set off and carry forward of losses

10.1

Chapter 11 'HGXFWLRQV IURP JURVV WRWDO LQFRPH

11.1

Chapter 12 $JULFXOWXUDO LQFRPH

12.1

Chapter 13 &RPSXWDWLRQ RI WRWDO LQFRPH DQG WD[ SD\DEOH

13.1

Chapter 14 Advance tax, TDS and TCS

14.1

Chapter 15 3URYLVLRQV IRU ÀOLQJ RI UHWXUQ RI LQFRPH DQG VHOI DVVHVVPHQW

15.1

SECTION B INDIRECT TAXES Chapter 16 GST in India

16.3

Chapter 17 Supply under GST

17.1


3 4 . % 4 . / #

I-17 PAGE

Chapter 18 &KDUJH RI *67

18.1

Chapter 19 Exemptions from GST

19.1

Chapter 20 Time of supply

20.1

Chapter 21 Value of supply

21.1

Chapter 22 Input tax credit

22.1

Chapter 23 5HJLVWUDWLRQ

23.1

Chapter 24 7D[ LQYRLFH FUHGLW DQG GHELW QRWHV

24.1

Chapter 25 Payment of tax

25.1

Chapter 26 Returns

26.1 SECTION C

MCQs & INTEGRATED CASE STUDIES (INCOME TAX) Chapter 27 Multiple Choice Questions (MCQs)

27.3

Chapter 28 Case studies

28.1


3 4 . % 4 . / #

I-18

PAGE

SECTION D MCQs & INTEGRATED CASE STUDIES (GST) Chapter 29 Multiple Choice Questions (MCQs)

29.3

Chapter 30 Case studies

30.1

SOLVED PAPER - DECEMBER 2021 SOLVED PAPER - MAY 2022

P.1 P.21


21

VALUE OF SUPPLY

CHAPTER

Q1. Surya Agencies has agreed to supply goods to customer’s premises. Goods valued, ` 80,000 are taxable at 5% IGST as it is an inter-State supply. It also pays freight and transit insurance of ` 12,000. GTA is a registered entity and has charged GST (6% CGST and 6% SGST) under forward charge. (i) Compute the Invoice value of supply including IGST. (ii) What will be the Invoice value of supply including IGST, if the supply was under ex-factory basis instead of door delivery basis? (i) Computation of Invoice value of supply including IGST in case of door delivery. Amount (`)

S D O O ' F O E U L A 6

E C N A R U S N ) T H G I E R F R O F S E G R A H #

Y L P P U S F O E U L A 6

Add

Particulars

TAXMANN®

Ans.:

F O

. 7

4 3 ' )

Y L P P U S F O E U L A V E C I O V N )

`

EE R U OL F A E V R E E HH 4T N S O DD OE OG 'R A NH I TC N E EB ML L I EW L E T LN A PE I M C E NL I E R PA L I P C YN L P I R PP UF SO EX T E A L 4 P F MO OE CT A AR SE I H TT )

Working Notes:

S E C I V R E S ! 4 ' N O D I A P 4 3 '

F O # 4 ) M I A L C N A CF SO E I C N E G A A Y R U 3 `

(ii) Supply at the Ex-factory price instead of door delivery basis Amount (`)

S D O O ' F O Y L P P U 3

Particulars

E U L A V F O

4 3 ' )

Y L P P U S F O E U L A V E C I O V N )

21.1


ii

Note:

= E T O . ; D E G R A H C 4 3 ' 3 D N A 4 3 ' #

= E T O . ; / ' . A M O R F D E V I E C E R Y D I S B U 3

= E T O . ; =

E C I R P T S I , F O ; D E R E F F O T N U O C S I $

F O T N EN I P O I I C T EC E R ES R HE T P OS T A RE E I U L L P A PV UE SH ET HN T I YL E BB I DD EU GL R C A HN CI E R SA E S S NE EG PR XAT EHC LC! A G4 T N3 N I ' EK DC # I AE C NPH I YT GL F NPO I P E U "S

EST Y CAI R R OEO U F H L T A NV U I A GEL NHA I T C E N O BI L E Y E MLB B ID I D T E I EUV HLE C T NL RI Y OET F RU WA$ A4 L 3 Y' N) A4 T R3 C E D'! N44 U53 ' D4 # E3 I F V 'O E3 L C 4 T 3 E S' # E I N T N O U AI DH T C TE SRS E E XH R AT E 4O P

a

= E T O . ; G N I K C A P L A I C E P 3

= E T O . ; S D O O G F O E L A S N O Y T I R O H T U A L A C O L Y B D E I V E L Y T U $

c

14,400 CGST and SGST charged in invoice.

76,000 List price of the goods (exclusive of Taxes and discounts).

87,720

Value of taxable supplies

Amount (`)

Particulars S D O O G E H T F O E C I R P T S I ,

i.e. `

Less:

Amount (`) Particulars

5,000 Subsidy received from a NGO (The price of ` 76,000 given above is after considering the subsidy)

Vayu Ltd. offers 3% discount of the list price of the goods which is recorded in the invoice for the goods. Determine the value of taxable supplies made by Vayu Ltd. TAXMANN®

T TRC SE NS H R OI R UA T I E T FSRY S T N G UN E N I UE BR O T H I I C QTS EE NEH ENA V I HTL HIR T E DTTED FE N B D O E DN LN H L I I I AW WR V O T TRHREE R PG V E C A I E V N E PNR O OA TOF S ER I A T UA HTFRS A O O H T NW MT-I WRN E T DE EO I I FMO NL V N AO Y T EIA TR YH HEP L T O H P G N G NTN I PE O A E R I S S D TFVE DU O R A EHA S NEHI S T H G A M ST L BDEE L TI E R SNROAW A I N P H ODT R R S S E I E E SL T E R WSS I E L E I E SAECL M S NCUNP E T Q O AN MDT EG I N EE S H!T AU VD I T A ON C Y FY BE Y T E O R I AP R L H I T EEHUOB HDP3TI O C S A N Y T 4I A R N BF S O NGEXP D AA O C R E S NS A O E SP G AI R I

Add:

3 % 8 ! 4 4 # % 2 ) $ . ) " # % 3

21.2

-

Q2. Vayu Ltd. provides you the following particulars relating to goods supplied by it to Agni Ltd.:

Special packing at the request of customer to be charged to the customer.

5,000 Duty levied by local authority on the sale of such goods.

4,000

Ans.: Computation of value of taxable supplies by Vayu Ltd.

Notes:


9 , 0 0 5 3 & / % 5 , ! 6 ( #

21.3

D T , I N G ! M O R F D E R E V O CS ED R O EO BG E OH T T DF EO ME UI C SR S P A T NI S EL EE BH ST A N HI SD DE OD U OL GC N FI O T EO L N A S D NN OA T4 N E3 M' N# RF E O V O ' N O N AN O MT I OC RE F S DF EO VS I E M CR EE R ET CI N I R PE U EL HA T V OE T DH ET KN NI I E L L B YI L T D C U EL R C I N D I YS DI I S Y BDT UOC 3B! e

M O R F E L B I T C U D E D S I T TC I ! Y4 L P P3 U' S# FO F O E M I T E H T N TO A I T NC E WS OF NO KS SM I R TE N T UN OI CE S I U D L EA CV NE I H 3 T a

Q3. Dushyant rents out a commercial building owned by him to Bharat for the month of December, for which he charges a rent of ` 19,50,000. Dushyant pays the maintenance charges of ` 1,00,000 (for the December month) as charged by the local society. These charges have been reimbursed to him by Bharat. Further, Bharat had given ` 2,50,000 to Dushyant as interest free refundable security deposit. Further, Dushyant has paid the municipal taxes of ` 2,85,000 which he has not charged from Bharat. You are required to determine the value of supply and the GST liability of Dushyant for the month of December, 2020 assuming CGST and SGST rates to be 9% each. Ans.: Computation of the value of supply and the GST liability of Dushyant for the month of December, 2020 Particulars

TAXMANN®

Note: All the amounts given above are exclusive of GST.

Amount

G N I D L I U B L A I C R E M M O C E H T F O T N E 2

(`)

Y B D E S R U B M I E R Y T E I C O S L A C O L E H T O T D I A P S E G R A H= C EE CT NO A. N; T EA T R N I A A H -" = E T O . ; T N A Y H S U $ Y B D I A P S E X A T L A P I C I N U -

L I L I . .

= E T O . ; T I S O P E D Y T I R U C E S E L B A D N U F E R E E R F T S E R E T N )

20,50,000

Value of supply

CGST @ 9% SGST @ 9%

TU A $ R A O HT "T A YR BA DH E" S R UY BB D MI IA E P R T YN T EE E R U I C L EA OH V ST LF E A H COT OTF R L EAO T HPR T MA OR P T O DF M I R A Y O L PE F ST L E L AI GMW R I A T S HL CUU H EST CED NGN ARA A NH EC T T N N HA I C Y A UH -S S

Notes:

-

ST E C O! D4 T3 I S O' P# EE DH T YF T I O R U C E S H CN O UT I E 3C U EA L TS I S V OFE POH EST M DR N YE I T TE I R L NB UI I CND EO U S IL C ETN A L R B I E AD T O DI NSN UNS O FC I E S R EU ETH EUT T R I F T D S TN N S OA E R C E T T O N N ) 31


3 % 8 ! 4 4 # % 2 ) $ . ) " # % 3

21.4

E H T N I E L B I D U L C T NN I E I TP O I NC E SR I E EH MT AO S T ED HE T G R TA N AH YC HT SO UN $E R YA BS E DX I A A PT H SC E XU AS T E LC A N PI I S C I E N U UA L -V Q4. Shri Krishna Pvt. Ltd., a registered dealer, furnishes the following information relating to goods sold by it to Shri Balram Pvt. Ltd. in the course of Intra State. Particulars Price of the goods

(i)

TAXMANN®

Amount (`) 1,00,000

(ii)

Municipal Tax

(iii)

Inspection charges

15,000

2,000

(iv)

Subsidies received from Shri Ram Trust (As the products is going to be used by blind association)

50,000

Late Fees for delayed payment. (Though Shri Balram Pvt. Ltd. made late payment but these charges are waived by Shri Krishna Pvt. Ltd.)

1,000

(v) (vi)

Shri Balram Pvt., Ltd. paid to Radhe Pvt. Ltd. (on behalf of Shri Krishna Pvt. Ltd.) weightment charges.

2,000

According to GST Law, determine the value of taxable, supply made by Shri Krishna Pvt. Ltd. It is given that the items given in Point (ii) to (vi) are not considered, while arriving at the price of the goods given in point no. (i). [May 2018 Old Course, 4 Marks] Ans.: Computation of value of taxable supply made by Shri Krishna Pvt. Ltd. S D O O G E H T F O E C I R 0 T N E M Y A P D E Y A L E D R O F S E E & E T A ,

(iv)

ID R HT 3, YT BV 0 D A T ,N H S T V I R 0+ EI HR DH A3 2F OO T F L DA I H A PE SB E N GO R A D HT C, TT N EV M0 TM H A G R IL E A 7"

(v) (vi)

Value of Taxable Supply

B C D E

L I .

T S U R 4 M A 2 I R H 3 M O R F D E V I E C E R S E I D I S B U 3

(iii)

A

S E G R A H C N O I T C E P S N )

(ii)

X A 4 L A P I C I N U -

(i)

Amount (`)

Note

Particulars

1,69,000

(B)

S I E M AT S EC H! T 4 Y3 D' O# BE TH N T EF MO N R E VN OI O 'T S CI NE OS NF O AS MM OR RT E F DN EI VE I U E L CA EV R E SH I YT DN I I S E BL UB SD I EU CL NC I N 3 I

(C)

R E P S A E U L A V E H T N I E L B I D U L C N I E R A E M A S E H T T C S! E S N4 E3 P X' E# LE A H T T N F EO D I C NN I O GI NT I C E E "S

(A)

T C ! 4 3 ' # E H T F O N O I T C E S R E P S A E U L A V E H T N I E L B I D U L C N )

Notes:

It has been assumed that the subsidy

directly linked to the price


9 , 0 0 5 3 & / % 5 , ! 6 ( #

E L B I D U L C N I S I T N E I P T I C C E! R E4 H3 T Y' B# E DH ET GF R O A H C S I N D O I GT NC I E E S BF RO E I S L P M PR UE ST EN HI T E FU O L A YV T I L E I H B AT I N , I

(E)

F F O D E V I A W E C N I S E L B I D U L C N I T O .

(D)

21.5

Q5. Worldwide Pvt. Ltd. (a registered Taxable Person) having the gross receipt of ` 50 Lakhs in the previous financial year provides the following information relating to their services for the month of July, 2020 Sr. No.

Amount (`)

Particulars

(1)

Running a boarding school

2,40,000

(2)

Fees from prospective employer for campus interview

1,70,000

(3)

Education Services for obtaining the qualification recognised by Law of Foreign Country

3,10,000

(4)

Renting of Furnished Flats for Temporary Stay to different persons (Rent per day is less than ` 1,000 per person)

(5)

Conducting Modular Employable Skill Course, Approved by National Council of Vocational Training

1,40,000

(6)

Conducting Private Tuitions

3,00,000

1,20,000

Ans.: Computation of value of taxable supply and amount of GST payable

B

G EN SI R N UI A OR #4 L LA L I N K O 3T I A EC L O B A6 F YO OL L I P C MN U %O # RL AA L U N O DI OT A -. GY NB I D T E C V UO DR NP OP #!

E

, ) .

D

C

O T Y A T 3 N YA R H A T R OS PS E ML ES 4I Y RA OD F SE R T A P L & T N DE E2 H SS I N N RO US &R E FP N O O TS GN R NEE I R P T E N F R F EI E 2D P

(4)

A

Amount (`)

, ) .

(3)

N O I T A C l I L A U Q Y ER HT T N GU NO I # N I N A G T I B E OR RO O& F F SO E W CA I V , R Y E 3B D NE OS I I T N A G CO UC DE %R

(2)

W E I V R E T N I S U P M A C R O F R E Y O L P M E E V I T C E P S O R P M O R F S E E &

(1)

Note

Particulars L O O H C S G N I D R A O B A G N I N N U 2

Sr. No.

`

Y L P P U S E L B A X A T F O E U L A 6

F

S N O I T I U 4 E T A V I R 0 G N I T C U D N O #

(6)

, ) .

(5)

E L B A Y A P 4 3 '

7,80,000 1,40,000

TAXMANN®

Compute the value of Taxable Supply and the amount of GST Payable. The above receipts doesn’t include the GST Amount and the rate of GST is 18%. [Nov. 2018 Old Course, 6 Marks]


3 % 8 ! 4 4 # % 2 ) $ . ) " # % 3

21.6

(A)

NT I OS I T N A I CA L I F N I L O A I UA T QC GU ND I E N I S A A T B Y OI F RL A OU F SQT E TP CO I M NE V R SX E E E S T NOO ODN Y I T R A T E CNR UUA DOS ECE C GNI NGV I I R E D E I R S V OOD RFI PAA NYS S OBU I D T EH U Z 4 T I I T N S N G NO O I I C T NE U !R T

(C)

T P M E X E T O N S I T )

(B)

Y T L U C A F S T N E D U T S S T I O T N O I T U T I T S N I L A N O I T A C U D E N A YT BP M DE EX DE I V E OR RA PF SF E A CS T I V D R E N 3A

Notes:

-

TTE Y AAAL FB FL DL A RX RE RE Y A L E E PPPTV FT I OC EE P US L A E SV R NND AAE S HHE U T T CH SX SS T S ED EY E L L SSAN I I DA FYR E F L D A I E B R N DP AA A R T X T E N A DP ET ET R R NLE A M A L ET C O R OC EL T DA E TB TA O T S H I T S N T T TD EA E A R L L B THEF T A MFA Y HDUO T A ESGP G S N NMA I 4 U I T SN 3 SI MS T E' I UA R F SN I FD S E ON A R E E SA TB VE P Y L MSECP I EAWVP H R O XT U E (S %) S

(D)

` ` `

(E)

TAXMANN®

T P M E X E T O N S I T )

(F)

`

SN A O I ST E U I F T I I L T A S N UI QL A EN S R O I UT OA #C LU L ID K E 3N EA L YT B ABP YDM E OE L X DE P I V MO E R %R A RPF A SF L E A U CT DI S V OR D -E N 3A G NN Y I T OL D I U I T V C U OT A I RT F PS S NT NI N OA L I E T N D U O U T I I T TT S S A S NC T I UI ND O !E T

`

Q6. Koli Ltd. supplies machinery to Ghisa Ltd. (Dealer in same State), provides following particulars regarding the same. Determine the value of taxable supply of machinery. Sl. No.

Particulars

Amount (`)

1

Price of Machinery (exclusive of taxes and discounts)

5,50,000

2

One part is directly fitted in machinery at place of Ghisa Ltd. (Amount paid by Ghisa Ltd. directly to supplier, as per contract this amount should be paid by Koli Ltd. and not included in price)

20,000

3

Installation and testing charges for machinery (not included in price.)

25,000

4

Discount 2% on machinery price (Recorded in the invoice)

5

Koli Ltd. provides additional 1% discount at year end, based on additional purchase of other machinery

[May 2019 Old Course, 5 Marks] Ans.: Computation of taxable value of supply of machinery Sl. No.

Particulars

1

Price of Machinery (exclusive of taxes and discounts)

2

Amount paid by Ghisa Ltd. directly to supplier, for a part directly fitted in machinery.

Note

Amount (`) 5,50,000

A

20,000


9 , 0 0 5 3 & / % 5 , ! 6 ( #

Sl. No.

Particulars

21.7 Note

Amount (`)

3

Installation and testing charges for machinery

B

25,000

4

Discount 2% on machinery price (` 5,00,000 × 2%)

C

(11,000)

5

Additional discount % at year end

D

Nil

(A)

5,84,000

TE YO L B P L PNL UDA SNH S AAS YD OL T P O PO NU G OS I T E EH A L HT E T R R FO NO F I T E YN L AE B IA PP Y IA OC T EP ER L R B EO AHD I TI L SYA I BPY R L Y D E P L I E L P L A R P U R U PU S T UC C F SN AO EIEE HNC U T EIL TERA A BPV HS EE T H H A T T TH N NI N UHI OI CDD MH E E D D AWU U Y L L T C C NU N NI !BI

Notes:

T C ! 4 3 ' # F O N O I T C E S R E P S !

Value of taxable supply

(B)

FL L O A TH C S ES PD SO E O R NG I F RO E Y I L R P E PV I UL SE ED HE T R YO BF EE NB OR DO GFY NOP L I EP H T MU Y TS NI F AEO RHE OTU F TL DAA ESV GDE R OH A OT HG CF N I TO D N YE UL D OP U MPL C AUN S YE I NH E !T B

(C)

D T EN DU RO OC CS I ED R DH NC AU YS R E E D NU I L H C CN AI T MO FN O L YA L L P H PS UY SL FP O P EU MS IE T H ET HF T O T E A U NL EA VV I G E SH I T T N E UI C OO CV S I N D I EE CH NT I N 3 I TAXMANN®

EED MHN ITA T N E EOC H O I Y T L V TP N A P RUI T OSN D EFAT O V R O E, E L F A E U E S R L I BA H DVE E H' HETY H O ST B I T L D B M E AOD ES T K R R S F E N E V I DL SE E I TR TDO N N UNE L UC SE OX I B CE ET S I EMO D B AN LT S S A A NOEH ONH I T LT# L I T 4 A D DHA) E ASHT T ETNA N HIO T YII O T HLTR P P GP O M UUU P OSS O HFS R 4O AP

(D)

Q7. Alfa Institute of Management (AIM), a private college, is registered under GST in the State of Punjab. AIM provides the following particulars for the month of April 2020 : Sl. Particulars No.

Amount (`)

i

Tuition Fee received from students pursuing management courses recognized by Punjab University, established by an 18,00,000 Act of State Legislature

ii

Tuition Fee received from students pursuing under-graduate courses recognized by Stan university, London under Dual Degree programmes.

8,50,000

iii

Fee received from students of Competitive Exam training academy run by a Department of AIM

5,40,000

iv

Mess fees received from students (Mess is run by AIM on its own)

3,20,000

v

Amount paid to Local Municipal Corporation for premises taken on rent for conducting coaching classes for Competitive exams.

50,000

vi

Legal services availed from Top Care and Co., a Partnership firm of advocates, for the Competitive Exam training academy (Intra-state transaction)

20,000


3 % 8 ! 4 4 # % 2 ) $ . ) " # % 3

21.8

Note:

Rate of CGST, SGST and IGST are 9%, 9% and 18% respectively for both outward and inward supplies.

All the amounts given above are exclusive of taxes wherever applicable.

All the conditions necessary for availing the ITC have been fulfilled wherever applicable.

No opening balance of ITC under any head of tax.

From the information given above, you are required to calculate the Value of taxable Supply and net GST liability (CGST, SGST or IGST as the case may be) to be paid in cash, if any, by AIM for the month of April, 2020. [Nov. 2019 Old Course, 8 Marks] Ans.: Computation of value of taxable supply by AIM for April, 2020

(2)

iii

G N I N I A R T M A X % E V I T I T E P M O # F O S T N E D U T S M O R F D E VY I E CM EE R D EA EC &A

(3)

L I .

S T N E D U T S M O R F D E V I E C E R S E E F S S E -

iv

L I .

ii

(1)

Amount (`)

i

R E D NY UT I S R GE NV I I U N SU R UN PG I SE T R N EO D& UY T B S D E MZ OI RN F G O DC EE VR I S E E CS ER R U EO EC &E T NA OU I D TA I U R 4G

TAXMANN®

Note

Particulars T N E M E G A N A M G N I U S R U P S T N E D U T S M O R F D E V I E C E R E E &S NE OR S I TU I U O 4C

Sl. No.

(4)

Total value of taxable supply

13,90,000

Liability under REVERSE Charge Mechanism Note

Particulars

(7)

SGST (`)

GST Liability under RCM payable in cash (A)

A O # F EO R A # P O 4 S E MT OA RC F O DV ED VA I F E CO EM R R Sl E CP I I V H R S E R S LE N A H T GR C EA A ,PE

(6)

N O I T A R O P R O # L A P I C I N U L A C OH ,C A OE T D I A P T N EF 2O

(5)

`

CGST (`)

`

Liability under FORWARD Charge Mechanism Particulars

Note (8)

SGST (`)

F O E V O B A D E T U P M O C Y L P P U S F O E U L A 6 F O `

CGST (`)


9 , 0 0 5 3 & / % 5 , ! 6 ( #

Less:

Notes

TAXMANN®

RNI S XNO O EOF I I N T ET I O U M U R I T W A UTT I T U A L SS ET L U T R I NC N N OT I S A EIR F NI E DNR I D R UE UAC LN A T ) H S A4NY S O T T FW B I I O D O TAAE C T L R UI S N A ND OSPI AE N I G N T A D NO U A N S T C AE EA ) I T N GR M S NA NN NNO I YIO I E O LI TB BT I A A D NTC A U Y E OT U C T S I I I I DN I TT F S I S A E R L G N CI A E FO UL V U O I CN DA Q YE EN R S NOA 5E D AIWNBI O T AV YAYI TJ A BCBC O NR SI U DUE F0P EDC I T L DEI YI A I V R BE U V R E C OH Q E DN S RT AEI PR VS GGI SUN NET & E I I CP D C N E I I T I M R V V A P R T E O EX MR E B EE 3 EPOF inter alia

D E T A L U C L A C v " h R E P S A # 4 ) F O F F O T E S R E T F A E L B A Y A P X A T T U E PV T O U B /A

1,18,800 1,18,800 Net GST liability payable in Cash

Particulars

1,18,800 1,18,800 Output tax payable after set off of ITC [B]

CGST (`) SGST (`) D E T A L U C L A C v ! h R E P S A H S A C N I E L B A Y A P # 2 R E D N U Y T I E L I V B O AB I , A

T YO T I N S R S E I VI T I N Y 5B ND AE T D 3 I EV CO R NP I S N EO L B I T AA XC AF I T I SA L I YU T Q I S S R A E VN I N O I 5T U NT I AT T SW 3 NA YIL BLN A A DN I EO D VT IN I ) E A CCY EU B R D D EE E EN S F I NAN OTG I O O T I NC U E SR 4I

SED I CE YN Z I I MS N E G DNO O AI C E CT U R AT I GT A NS F I NO N I I L A T A R N N T A OR MT I G AA XCO EUT EDD VEA I E TNL I A T E T TO PO MNN OSS E CI O F-D O ) S!G T N FI N EON DTA I NR UE T S MT MTM ORA RA X P F E DE N E$EI O VSVT I I A T A E I T C CL EE I EB F PI R L AMA EX EA OU &T CQ

(3)

L A G E L D N A Y T R E P O R P E L B A V O M M I G N I T N E R F O #S 4E )C I V R E S

(2)

-

(1)

1,25,100 1,25,100 Output tax payable against which ITC can be set off

SGST (`) CGST (`) Note Particulars

21.9

Computation of NET GST LIABILITY to be paid in cash by AIM for April, 2019

(4)

SD T E N EG DR A UH W T CL A S SNY T E I B E OB D T E SSS I NAN H OS G I T E O U EC T F I E T S R S S NE N I O LMT I A A E NH C OT I I F T I TL A CAA UHU T DDQ EE E H YMT BU G DSN ESI U DAS I NR V OEU REP PBS ST SA E N CHE I TD V ) U R T T E S P S E GMH NET I X R EM E T EO A R R #A F

(5)

EN L B O S AR VE OP MD MR E IE FT O S I GG NE I R T N A EO R T FY O T I ER S O A H CT NU I A EL GA R C A O HL CA EY S B R E D VE EI L R P RP E U DS NS UE C EI L V B R AE YS AY PT R SE I P 4O 3R 'P

(6)

D E I L P P U S S E C I V R E S L A G E L F O E S Y A T I CT N NE I ES S GE R A N I HS CU EB S R A E O VT ES R E RT E A DC NO UV D EA L B AF YO AM PR I SF I 4A 3Y 'B

(7)

RR OE F D DN EU S E UL EB A BY YA AP MX RA E T G R DE EV L TE I W D EO R ( C CX I A N OT RT T U C P ET L E U EO HS T D NR I A EW L O B AT L T I N A VE AM TY N UA OP G MN AI EK HA 4M


3 % 8 ! 4 4 # % 2 ) $ . ) " # % 3

21.10

RS E U DH NT UD N EA L B AT I YD E AR PC XX AA T T T EU R P ON F I E R E E H HT T 4S I N X AA T G TA U F PF O T T U E OS H S NEA ABC TTI N O O ND NN I SAA I CP EEE GG B R R A O A HH T CC E V EEA S S R R H E E L L VVI EW ER R

4 3 ' 3 D N A 4 3 ' # E T A T 3 A R T N I E R A D E D I V O R P S E C I V R E S E HD T E LG L A R EA CH NC I S 3 I

(8)

Q8. Candy Blue Ltd., Mumbai, a registered supplier, is manufacturing Chocolates and Biscuits. It provides the following details of taxable inter-state supply made by it for the month of October 2020: Particulars (i)

Amount in (`)

List price of goods supplied inter-state

12,40,000

Item already adjusted in the price give in (i) above: (1)

Subsidy from Central Government for supply of Biscuits to Government School.

1,20,000

(2)

Subsidy from Trade Association for supply of quality Biscuits.

30,000

TAXMANN®

Items not adjusted in the price given in (i) above: (3)

Tax levied by Municipal Authority

24,000

(4)

Packing Charges

12,000

(5)

Late fee paid by the recipient of supply for delayed Payment of invoice

5,000

Calculate the Value of taxable supply made by M/s Candy Blue Ltd. for the month of October 2020. [May 2018, 5 Marks] Ans.: Computation of value of taxable supply made by Candy Blue Ltd. (For the month of October, 2020) Note

E T A T S R E T N I D E I L P P U S S D O O G F O E C I R P T S I ,

Particulars

Amount (`)

(1)

Nil

F O Y L P P U S R O F N O I T A I C O S S ! E D A R 4 M O R F YT S DI I U S C BS UI 3"

(2)

30,000

(3)

24,000

(4)

12,000

(5)

5,000

Y T I L A U Q

S T I U C S I " F O Y L P P U S R O F T N E M N R E V O 'L LO A O R H T C N E3 #T N ME OM RN F R YE DV I O S B' UO 3T

12,40,000

Y T I R O H T U ! L A P I C I N U Y B D E I V E L X A 4 S E G R A H # G N I K C A 0 T N E M Y A 0 D E Y A L E D R O F Y L P P U S F O T N E I P I C E R E H T Y B D I A E PC EO I EV F EI N T A F ,O Value of taxable supply

13,11,000


9 , 0 0 5 3 & / % 5 , ! 6 ( #

21.11

(1)

E L B I D U L C N I T O N S I E T MC A! S E4 H3 T ' T# N EE MH T NF RO E V O 'N O MI T OC RE F DS EF VO I S E CM ER R E ST I N YI DE I S U BL UA SV EE CH NT I N 3 I

(2)

S I E M A S T EC H! T 4 Y D3 O' B# E TH N ET F MO N R E VN OO I 'T C NE OS NF AO S MM OR RE F T DN EI VE I U E L CA EV R SE I H YT DN I I S E BL UB SD I EU CL NC I N 3 I

Notes

T C ! 4 3 ' # E H T F O N O I T C E S R E P S A E U L A V E H T N I E L B I D U L C N )

(5)

R E P S A E U L A V E H T N I E L B I D U L C N I E R A E M A S E H T T C S! E S N4 E3 P X' E# LE A H T T N F EO D I C NN I O GI NT I C E E "S

(4)

T C ! 4 3 ' # E H T F O N O I T C E S R E P S A E U L A V E H T N I E L B I D U L C N )

(3)

Q9. Ms. Achintya a registered supplier in Kochi (Kerala State) has provided the following details in respect of her supplies made within Intra-State for the month of March 2020: Particulars

Amount `

List price of goods supplied intra-state (The items given below from (ii) to (v) have not been adjusted in the list price.)

(ii)

Taxes (other than GST)levied on sale of the goods

12,500

(iii) Packing expenses charged separately in the invoice

10,800

(iv)

Discount of 1% on list price of goods was provided (recorded in the invoice of goods)

(v)

Subsidy received from State Govt. for encouraging women entrepreneurs

3,30,000

5,000

Compute the value of taxable supply and the gross GST liability of Ms. Achintya for the month of March 2020 assuming rate of CGST to be 9% and SGST to be 9%. All the amounts given above are exclusive of GST. [Nov. 2018 Modified, 5 Marks] Ans.: Computation of value of taxable supply and gross GST liability of Ms. Achintya (for the month of March, 2020) Particulars

Note

S D O O G F O E C I R P T S I ,

Amount `

E C I R P T S I L N O F O T N U O C S I $

Value of taxable supply

(4)

T V O ' E T A T 3 M O R F D E V I E C E R Y D I S B U 3 `

(3)

S E S N E P X E G N I K C A 0

(2)

S D O O G E H T F O E L A S N O D E I V E L S E X A 4 4 3 ' N O .

(1)

3,45,000

TAXMANN®

(i)


3 % 8 ! 4 4 # % 2 ) $ . ) " # % 3

21.12

Particulars

Note

SGST

`

`

T C ! 4 3 ' # F O F F N O O O I T C E S R E P S ! CGST

Amount `

Notes

TAXMANN®

M O R F E L B I T C U D E D S I T I Y L P P U S F O E M I T E H T T A N W O N K S I T N U O CE S I U D L EA CV NE I H 3 T

(4)

TESM O A R O NA HR SSEF I E M I D ED E A I MS D S U ABEL S UHC ESTX HHEE C T CN E UI B TS SO N T EA RT MH E S HI NTT RDR E E U M VE& A OM S 'US SDE ESO H A T OT A N G T E 3 EEC EH I R MBT P OSFT RA OS F H L I D EE T C I E) R H P VE T I E UEN CL I H EA R VTD OT E SET I H S YTDU D EJE N D K I I C S A N I BEI R L L N UB P Y E SI T L ES DT EU I CBL CL E TE NC R O I I H ND 3 NT I

(3)

E U L A V E H T N I E L B I D U L C N I E R A S E S N E P X E L A T N E D I C N I G N I E B S E S N E P X E G N I K C A 0

(2)

4 3 ' # N A H T R E H T O W A L Y N A R E D N U D E I V E EU L L SA E V S S E E H CT DN NI E AL B SI E D I T U U L DC N SI E S XI A4 T 3 Y' -3

(1)

Q10. M/s Apna Bank Limited a Scheduled Commercial Bank has furnished the following details for the month of August, 2020 : Amount (` in Crores) (Excluding GST)

Particulars Extended Housing Loan to its customers

100

Processing fees collected from its customers on sanction of loan

20

Commission collected from its customers on bank guarantee

30

Interest income on credit card issued by the bank

40

Interest received on housing loan extended by the bank

25

Minimum balance charges collected from current account and saving account holder

01

Compute the Value of Taxable supply. Give reasons with suitable assumptions. [May 2019, 6 Marks] Ans.: Computation of value of taxable supply of M/s. Apna Bank Limited (for the month of August, 2020) Particulars Extended Housing Loan to its customers

Note (1)

Amount (` in Crores) Nil


9 , 0 0 5 3 & / % 5 , ! 6 ( #

Amount (` in Crores) Note Particulars

21.13

Processing fees collected from its customers on sanction of loan

(2)

20 Commission collected from its customers on bank guarantee

(3)

30 Interest income on credit card issued by the bank

(4)

40 Interest received on housing loan extended by the bank

(5)

Nil Minimum balance charges collected from current account and saving account holder

(6)

01

(2)

(3)

E C N A V D A N A O L N O T S E R E T N I E V O B A D N A R E V O DT EP T M C EE L X L O E CT NO ON I E S R S I A MI T S MO OP CE YD NR !O (4)

T SS I E NR OT E I T N A I R R E E DV I S NE OW CO ( E HX T A ST A MT ROP A RM F F O E STX P NM E I T SEO NXN AES OEI R L S A GT E NS C I I E V D R R NE E ETS N T I X D F EO R A FY C O AT I Y D W AYE WB R C YDN BEI T SND E E E S CE V I L V RO R PV E EN 3R I (5)

S I N O I T A R E D I S N O C X EA HT T SM A O R RF A T F P O SM NE I SX NE E AR OA L T GS NE I R D E NT N EI T X F EO FY O A YW AY WB YD E BT N SE E S CE I V R R P E E 3R

(6)

R O E C N A V D A N A O L N O T S E R E T N I E V O B A D N A R E V OT DP EM T E C X EE L L T O O CN SE E R GA R A T I HS CO P YE -D

TAXMANN®

(1)

E C N E ( N A O L E H T F O N O I T C N A S N O E E F G N I S S E C O R P E D U L C E NL I B T A O X NA ST E S OI DE TM S E A R S E E T N H ) T Notes

T O N S I N A O L G N I S U O H G N I D N E T X E S D O O G E T U T I T S N O C T O N S E O D Y E N OY MP L EP CU NS I 3 A

G N I D L I U B L A I C R E M M O C E H T F O T N E 2

Amount `

Particulars

91 Value of taxable supply

Q11. Determine the value of supply and the GST liability, to be collected and paid by the owner, with the following particulars:

D N A R E N W O E H T M O R F Y T E I C O S L A C O L Y B D E T C ET L LN O A CN SE E T GE R H A HT CY EB CD NE AS NR EU T B N M I A I E -R

S I 4 3 ' S A E C N A V D A E L B A D N U F E R N O 4 3 ' E G R E A C HN CA OV T D SA D NN EO T E N L I B A RC E I NP L WP /A

R E N W O E H T Y B D I A P S E X A T L A P I C I N U -


3 % 8 ! 4 4 # % 2 ) $ . ) " # % 3

21.14

Ans.: Computation of Value of Supply

Amount (`)

G N I D L I U B L A I C R E M M O C E H T F O T N E 2

Particulars

R E N W O E H T M O R F Y T E I C O S L A C O= L E E HT T O Y. B; DT EN T A C N EE L L T O CE H ST E GY R B A D HE CS ER CU NB AM NI EE T R N I D A N -A = E T O . ; R E N W O E H T Y B D I A P S E X A T L A P I C I N U -

L I L I . .

= E T O . ; E C N A V D A E L B A D N U F E 2 Value of supply

20,50,000

CGST @ 9%

1,84,500

SGST @ 9%

1,84,500

TR T R A A PP MM R RO OF F L YI L L E W T A S MU IH T L T U D SN E GA R R E A HN CW HO CE UH ST O TT N AT NN EA T N EE HT T E YH BT DY EB S D R I UA BPE MTL U N IE A E R V R E GEH H NT T I E FO F "O

Notes:-

ET E HU T T I ES T L B N AO DC NT UO FN E S R GEE NOL U D I E A H V "C I E H H WT TN I I S OL E PB EI DD U YL T C I R N UI CT EO S N FS O I ES R U UH T T A ND EN HA T N NO I I T SA I R EE CD NI AS VN DO AC

E UH L T C NO I T TD O E NG SR I A EH MC AO T S EN HE T R RA E S I E L P X PA UT SH EC HU T S YT BA H DT EG R R N UI CM NU I S ES R UA T E I D U NL EA PV XE EH T NTN ANE I GIP E NL I I C B E I E "D R

TAXMANN®

As per Section 2(31) of the CGST Act, 2017:-

-

Q12. Following are the particulars, relating to one of the machine sold by M/s SQM Ltd. to M/s ACD Ltd. In the month of February 2020 at list price of Rs. 9,50,000 (of exclusive of taxes and discount). Further, the following additional amounts have been charged from M/s ACD Ltd.: S. No. Particulars

Amount (Rs.)

(i)

Municipal charges charged on the machine

45,000

(ii)

Outward freight charges (contract was to deliver machine at ACD’s factory i.e. F.O.R contract)

65,000

Additional Information: (i)

M/s SQM Ltd. normally gives a interest free credit period of 30 days for payment, after that it charges interest at the rate of 1% per month or part thereof on list price. ACD Ltd. paid for the supply after 45 days but, M/s SQM Ltd. waived the interest payable.

(ii)

M/s SQM Ltd. received Rs. 50,000 as subsidy, from one non-government organisation (NGO) on sale of such machine. This subsidy was not linked to the price of the machine and also not considered in list price of Rs. 9,50,000


9 , 0 0 5 3 & / % 5 , ! 6 ( #

= D E D U L C N I E R A S E X A T H C U S S E N XO AT I T C LE A S PR I C E I P N US ! -;

(iii)

M/s ACD Ltd. deducted discount of Rs. 15,000 at the time of final payment, which was not as per agreement. (iv)

M/s SQM Ltd. collected Rs. 9,500 as TCS (tax collected at source) under the provisions of the Income-tax Act, 1961.

TAXMANN®

L I .

L L ED I CE I W R DT PU OLI C T O N DI 3 ES KI D NTE I NK L N YEI L ML T T C NO ER R EN I VI D S YOY D'D I YS I S BBB UDU SE S YDE NIH V AO RT PS E S A E C I D = ND I S NBEE V D I OUG I S U T L GEC C ENHN YSITI DRDNE U E I S PLIB C BS T T XU U! O E" 3; N

L I .

= D E V I A W S A H R E I L P P U S E H T S A D E D U L C SN E I GE R B A HT CO TN S L L E I R W E T T N ) ) ;

L I .

FM O I R #E T N I NN OA I T S I C EI T S S RA E DE NL = BX UI 3DA UT #L F 4C O ; NR RIE E TT I O L C P NA P R USA SIH E C H E T H Y T BTG N DCI E!V T X A C AH ET L T LEO O CMN OY 3C V #N E 4) L

L I .

T EO YR L P ON PF UEO SBS T FDN O EE R EE M MT E INE T R EEG T HN A T R REE M E T EP F E S A R A TG T N AO UF N OO CS S I S I T MI D R EE E S HT A T NC I I SN E T TV N I U FI ONIG MOEE I H L T T B AC E I L N ET TS B C)I N T URUY C OEDL U CPEPD P S SDU I E !SS $; D I

10,60,000

Taxable value of supply

= D E D U L C N I E R A S E G R A H C L A T N E D I C N SI E G R A H C T H N GO I E I T R C F E DS RR A E WP TS U ! /;

Add

Add

c

N O I T S E U Q E H T N I N E V I G S A E N I H C A M F O E C I R P T S I ,

e

Add

Add

a

Add

Add

Amount Particulars

21.15

Compute the taxable value of supply as per provisions of GST loss, considering that the price is the sole consideration for the supply and both parties are unrelated to each other. Note: Correct legal provision should form part of your answer.

[Nov. 2020 New Course, 6 Marks] Ans.

Determination of Taxable Value of Supply


Taxation (Tax) |CRACKER AUTHOR PUBLISHER DATE OF PUBLICATION EDITION ISBN NO NO. OF PAGES BINDING TYPE

: : : : : : :

K.M. Bansal, Sanjay Kumar Bansal TAXMANN June 2022 4th Edition 9789356222151 652 PAPERBACK

Rs. : 795 | USD : 44

Description This book is prepared exclusively for the Intermediate Level of Chartered Accountancy Examination requirement. It covers the questions & detailed answers strictly as per the new syllabus of ICAI. The Present Publication is the 4th Edition & updated till 30th April 2022 for CA-Inter | New Syllabus | Nov. 2022 exams. This book is authored by CA (Dr.) K.M. Bansal & Dr. Sanjay Kumar Bansal, with the following noteworthy features: · Strictly as per Revised Syllabus of ICAI · This book is divided into four sections: o

Income Tax Law

o

Indirect Taxes

o

MCQs & Integrated Case Studies | Income Tax

o

MCQs & Integrated Case Studies | GST

· Coverage of this book includes: o

Past Exam Questions 

Solved Paper of CA Intermediate December 2021 – Taxation

Solved Paper of CA Intermediate May 2022 – Taxation

o

Questions from RTPs and MTPs of ICAI

o

Application Based MCQs

o

Integrated Case Studies

· [Solutions] are provided as per the Previous Year 2021-22 (Assessment Year 2022-23) · [Marks Distribution] Chapter-wise marks distribution from May 2018 onwards · [Previous Exam Trend Analysis] from May 2018 Onwards for New Syllabus · [Comparison with ICAI Study Material] Chapter-wise comparison with ICAI Study Material from May 2018 onwards

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