IGP-CS CS EXECUTIVE TAX LAWS CA Vivek Gaba

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1 Mock Test 1 (Tax Laws & Practice) CS EXECUTIVE By CA Vivek Gaba Time : 3 Hour Marks: 100 Part A [ Direct tax] 1. HSK, an LLP had taken keyman insurance policy on the life of its managing partner. The policy got matured on 13th September, 2017 and an amount of `75 Lakh was paid by the insurers to the managing partner. The amount so received on maturity of the policy by the managing partner is - a) Fully exempt under section 10(10D) b) 50% of `75 lakh exempt c) `75 lakh taxable d) `25 lakh exempt and `50 lakh 2. Under the head 'profits and gains of business or profession', the method of accounting that should be followed by an assessee isa) Cash system only b) Mercantile system only c) Hybird system only d) Cash system or mercantile system only 3. If the Computer is purchased on 11th may, 2016 then at what rate depreciation will be provided on it? a) 40% b) 100% c) 60% d) 0% 4. Under the income-tax Act, 1961, depreciation on machinery is charged ona) Purchase price of the machinery b) Market price of the machinery c) Written down value of the machinery d) All of the above 5. If a block of assets ceases to exist on the last day of the previous year, depreciation admissible for the block of assets will be- a) Nil

2 b) 50% of the value of the block of assets on the first day opf the previous year c) The total value of the block of assets on the first day of the previous year d) 50% of the value of the block of assets on the last day of the previous year. 6. Adhu Ltd. owns machinery (rate of depreciation is 15%), the written down value of which as on 1st April, 2017 is `30,00,000. Due of fire, entire assets in the block were destroyed and the insurer paid `25,00,000. The eligible depreciation in respect of this machinery isa) `4,50,000 b) `75,000 c) `5,00,000 d) Nil 7. Vaibhav, deriving business income, owns a car whose WDV as on 1st April, 2016 was `3,00,000. This is the only assets in the block of assets with rate of 15%. It is estimated that one-third of the total usage of the car is for personal use in both years. The WDV of the block of assests as on 31st March, 2018 would bea) `2,16,750 b) `2,43,000 c) `2,55, Swan (Pvt.) Ltd. acquired machinery for `5,75,000 which included excise duty of `75,000 eligible for CENVAT credit. It borrowed `,3,00,000 from a bank for purchase of the said machine. Interest on the bank loan upto the date of usage of machine was ascertained as `25,000. The machine was put to use from 15th september, Assume the rate of depreciation at 15%. The eligible amount of depreciation will bea) `90,000 b) `78,750 c) `86,250 d) `75, Sunil acquired a building for `15 lakh in june, 2015 in addition to cost of land beneath the building of `3 lakh. It was used for personal purpose until he commenced business in June, 2017 and since the it was used for business purposes. The amount of depreciation eligible in his case for the assessment year would bea) `1,15,000

3 b) `75,000 c) `37,500 d) `1,21, XYZ Ltd is engaged in production of textile articles. Opening WDV of the block of assets was `15,00,000. During the year, second hand plant was acquired under this block on 5th December 2017 amounting to `10,00,000. One of the assets falling with in the block was sold for `5,50,000 on Rate of depreciation of the block is 15%. Calculate the amount of additional depreciation available during the previous year for the block. a) `2,92,500 b) `3,17,500 c) `4,92,000 d) Nil 11. A compnay incurred capital expenditure on scientific research viz., (i) land ` 5 lakh; (ii) building ` 10 lakh; and (iii) equipments ` 7 lakh. The amount of expenditure eligible for deduction under section 35 would bea) `22 lakh b) `17 lakh c) `15 lakh d) `5 lakh 12. Where an asset used for scientific research for more than three years is sold without having been used for other purpose, then the sale proceeds to the extent of the cost of the asset already allowed as deduction under section 35 in the past shall be treated asa) Business income b) Long-term capital gain c) Short-term capital gain d) Exempted income. 13. In the case of any new machinery or plant (other than ships and aircraft), acquired by an assessee on engaged in the businesss of manufacture or production of any article or thing in the backward areas of the State of Andhra Pradesh, how much

4 additional depreciation of actual cost of such plant and machinery is available in AY ? a) 17.5% b) 20% c) 10% d) 35% 14. Circulars and Notifications are binding on the (a) Central Board of Direct Taxes (CBDT) (c) Income Tax Appellate Tribunal (ITAT) (b) Assessee (d) Income Tax Authorities 15. Who amongst the following confers on the power to issue circulars and clarifications? (a) ITAT (c) CBDT (b) Central Government (d) State Government 16. Amendments by the finance act are made applicable from (a) First day of next financial year (c) Last day of same According year (b) First day of same financial year ( 17. A person includes: (a) Only Individual (c) Individuals, HUF, Firm, Company only (b) Only Individual and HUF (d) Individuals, HUF, Company, Firm, AOP, or BOI, Local Authority, Every Artificial Juridical Person 18. Assessment year can be a period of : (a) Only more than 12 months (b) 12 months and less than 12 months (c) Only 12 months (d) 12 months and more than The year in which the income is earned is known as months (a) Previous year (c) Both (A) or (B) (b) Financial year (.

5 20. Under the Income tax, 1961 the term Assessee means a person_ (a) Who is an assessee in default (c) Against whom any proceeding under the (b) From whom tax is due (d) All of the above Act has been taken. 21. A.O.P. should consist of: (a) Individual only (c) Both individuals and non-individuals persons (b) Persons other than individuals only (c) Non of these 22. Financial year means a year commencing on_ (a) 31 st March of the period (b) 1 st day of the April (c) Mid of the year (d) None of these 23. First previous year in case a business/profession newly set up on would. (a) Start from 1 st April, 2016 and (b) Start from 31 st March, 2018 and will end on 31 st March, 2018 end on 31 st March, 2017 (c) Start from 1 st January, 2018 and end on (d) Start from 1 st January, 2018 and will 31 st December, 2018 end on 31 st March, To claim the status of Not Ordinarily Resident for individual- (a) Only one basic condition needs to be (b) One basic and one additional condition are to be satisfied (c) Need not satisfy any of the conditions. (d) Only additional condition is to be satisfied. 25. To claim the status of Non-resident for individual- (a) Only one basic condition need to be to be satisfied (b) One basic and one additional condition is Satisfied.. (c) Need not satisfy any of the conditions. (d) Only additional conditions are to be Satisfied. 26. Atul is a foreign citizen. His father was born in delhi 1951 and mother was born in England in His grandfather was born in Delhi in Atul visited India to see Taj Mahal and visit other historical places. He came to India on 1 st November, 2017 for 200 days. He has never come to India before. His residential status for assessment year will be-

6 (a) Non residential in India (c) Resident in India (b) Not ordinarily resident in India (. 27. The following addition conditions are to satisfied by a person to be resident and ordinarily resident in India- (a) He is a resident in at least any two out of The ten previous years immediately Preceding the relevant previous year (c) Both (a) and (b) of above (b) he has been in India for 730 days or more during the seven previous years immediately preceding the relevant previous year. ( 28. Mr. A joins a job on at monthly salary of ` 25,000. His salary becomes due on last day of each month. His taxable salary for AY will be- (a) ` 3,00,000 (b) ` 2,25,000 (c) ` 2,50,000 (d) ` 2,00, Mr. A Joins a job on at monthly of ` 20,000 in A Ltd. He got an increment of ` 1,000 in the month of July His salary becomes due on first day of next month. His taxable salary for AY will be- (a) ` 2,49,000 (b) ` 2,48,000 (c) ` 2,40,000 (d) ` 2,52, Mr. A Joins a job in the grade of ` 20, ,000-1,000-40,000-1,500-60,000 on which becomes due on first day of next month. His taxable salary for AY will be- (a) ` 3,09,000 (b) ` 2,97,000 (c) ` 3,08,000 (d) ` 3,21, Pankaj joins service on 1 st April, 2013 in the grade of 15,000-18,000-(2,000)-26,000. He shall be paying tax for the year ended on 31 st March, 2018 on the total salary of- (a) ` 2,16,000 (b) ` 2,40,000 (c) ` 6,16,000 (c) ` 1,80, For an employee in receipt of hostel expenditure allowance for his three children, the maximum annual allowance exempt under Section 10(14) is- (a) ` 10,800 (b) ` 7,200

7 (c) ` 9,600 (d) ` 3, Murali employed in Megha Ltd., Delhi. He is paid house rent allowance of ` 9,000 per month in financial year His Salary for the purpose of computation of house rent allowance relief may be taken as ` 20,000 per month. Murali pays actual rent of `10,000 per month. How much of the house rent allowance is tax free- (a) ` 108,000 (b) ` 1,20,000 (c) ` 96,000 (d) ` 60, Children education allowance received by an employee from his employer is ` 80 per month per child for 3 children. Taxable education allowance will be- (a) ` 960 (b) ` 480 (c) ` Nil (d) ` 1, Chandan, a handicapped employee receives ` 1,500 per month as transport allowance from his employer. His actual expenditure on transport is `1,000 per month. The amount of transport allowance taxable under the head income from salaries will be- (a) ` 18,000 (b) Nil (c) ` 6,000 (d) ` 8, Y received children education allowance of ` 500 pm for 1 of his children. Calculate taxable amount of children education allowance for the assessment year if entire ` 500 is spent by Y. (a) Nil (b) ` 4,800 (c) ` 6,000 (d) ` 3, Composite rent of let-out house property is taxable as- (a) Profits and gains from business or profession (b) Income from other sources (c) Income from house property (d) Either (a) or (b) above depending upon certain conditions. 38. Sajal is the owner of a house property covered under the Rent Control Act. Municipal Value ` 30,000, actual rent ` 25,000 fair rent ` 36,000 and standard rent is ` 28,000. The gross annual value of the house property will be- (a) ` 30,000 (b) ` 25,000 (b) ` 36,000 (d) ` 28,000

8 39.. If actual rent received or receivable exceeds Expected Rent, the Gross Annual Value equals to- (a) Actual Rent received or receivable (c) Actual value (b) Expected Rent (d) None of these 40. The municipal value of a property to ` 2,10,000; fair rent is ` 1,90,000; standard rent is ` 1,80,000 and the actual rent is ` 2,40,000. The gross amount value of the property would be- (a) ` 1,80,000 (b) ` 1,90,000 (c) ` 2,40,000 (d) ` 2,10, Rohit owns a house property in Delhi which wants to give on rent. He seeks your help to determine the reasonable expected rent when monthly municipal value is ` 20,000, fair rent ` 25,000 and standard rent ` 22,000. The reasonable expected rent will be computed with reference to following amount per month- (a) ` 22,000 (b) ` 20,000 (c) ` 25,000 (. 42. Calculate the Gross Annual value from the following details: Municipal Value- ` 45,000; Fair rental value- ` 50,000; Standard rent - ` 48,000; Actual rent Receivable (11 months)- ` 46,000 vacancy : 1 month (a) ` 50,000 (b) ` 46,000 (c) ` 45,000 (d) ` 35, X is the owner of a house, the details of which are given below: (a) Municipal value : ` 30,000 (b) Actual rent : ` 32,000 (c) Fair rent : ` 36,000 (d) Standard rent : ` 40, The gross annual value would be- (a) ` 36,000 (b) ` 35,000 (c) ` 30,000 (d) ` 40, For the PY , the business income of the assessee, before providing current year depreciation of `300,000 was `2,40,000. His due date for furnishing the return of income was but he submitted the return on In this case, the assessee shall:

9 a) be allowed to carry forward unabsorbed depreciation of `60,000 b) not allowed to carry forward unabsorbed depreciation of `60,000 c) at the discretion of Assessee 48. The amendment of an order u/s 154 can be made: (A) within 4 years from the date when the order sought to be amended was passed (B) within 4 years from the date of receipt of such order by the assessee (C) within 4 years from the end of the FY in which the order sought to be amended was passed (D) None of the above 49. R, who submitted his return of income for the AY on , finds some mistake in the return submitted by him. The assessment orders u/s 143(3) for such return was passed on and were served to R on He could, in this case, revise the return till: (A) (B) (C) (D) None of the above 50. Mr. Vivek has non-agriculture income of 2,52,000. Net Agriculture income earned of 40,000. The tax liability of an individual assessee will be? a) Nil b) 200 c) 206 d) 4, When shall tax not be deducted in case of winning from race horses? a) When winning from race horses is upto ` 15,000 b) When winning from race horses is upto ` 10,000 c) When winning from race horses is upto ` 5,000 d) TDS shall always be deducted 52. What shall be the rate at which TDS on winnings from lotteries or crossword puzzles & Race horses be deducted under section 194B? a) 20 % b) 10 % c) 30 % d) 15 % 53. Total donation received by assessee is ` 60,00,000. Out of which anonymous donation is of `20,00,000. What amount of anonymous donation shall be chargeable to tax a) ` 20,00,000 b) ` 19,00,000 c) ` 17,00,000 d) Nil 54. According to Section 2(15), Charitable purpose includes a) Relief of poor b) Yoga c) Education & Medical Relief d) All of the above

10 55. Which is the relevant Form No. for filing application of AAR by a Resident having transition with Non-resident a) 34C b) 34D c) 34E d) 34EA 56. How much is the fee for filing an application for advance ruling (i.e. PSU) a) 2,500 b) 5,000 c) 10,000 d) 20, The first appeal to CIT (A) must be filed in Form No. a) 35 b) 36 c) The time limit for filing appeal to ITAT is a) 30 days from the receipt of the order to be appealed against b) 30 days from the passing of the order to be appealed against c) 60 days from the receipt of the order to be appealed against d) 30 days from the passing of the order to be appealed against 59. MAT credit can be carried forward for a) 15 previous years b) 15 assessment years c) indefinite d) no carry forward 60. When an order is passed by Commissioner of Income Tax, it shall be appealed in front of a) Income tax appellate authority b) Commissioner of Income Tax (Appeal) c) High Court d) Supreme Court 61. Within how many days should appeal be filed to High Court? (A) 45 (B) 60 (C) 180 d) Settlement commission shall pass final order within months from the end of the months in which application for settlement was made - a. 6 months (B) 12 months (C) 18 months (D) 24 Months 63. Who is an eligible to become Chairman of AAR? (A) retired judge of High Court (B) pass out of Indian legal service (ILS) exam (C) retired judge of Supreme Court (D) pass out of Indian Revenue service (IRS) exam 64. Revision is done by commissioner of income tax u/s? a) Section 263 & 264 b) Section 253 & 264 c) Section 253 & Appeal to CIT(A) shall be given in how many days? a) 30 days b) 60 Days c) 180 Days d) 120 Days 66. What shall be the rate of TDS under section 194I on payment of rent of plant and

11 machinery where rent is paid to any person other than individual or HUF? (A) 1 % (B) 2 % (C) 10 % (D) Nil 67. What is total amount during the previous year upto which TDS on rent under section 194I shall not be deducted? a) ` 30,000 b) ` 75,000 c) ` 2,00,000 d) ` 1,80, What shall be rate of TDS on fees for professional or technical service under section 194J? a) 20 % b) 10 % c) 30 % d) 15 % 69. Garima has won a horse race on and is entitled to a prize of ` 2,00,000. The Race Club should deduct the TDS amounting to: a) ` 66,000 b) ` 61,800 c) ` 60,435 d) ` 60, Most of the Indian treaties are based on which model? a) OECD model b) U.N. model c) mixture of two models d) either a) or c) Part B [ Goods and Services Tax] 71. GST was first levied by? a) France in 1954 b) USA in 1985 c) India in 2017 d) U.K in is the most recent country to join the bandwagon? a) Malaysia b) Pakistan c) USA d) France 73. GST is a based tax? a) Destination b) Origin c) Both A & B 74. Currently, also follow dual GST model? a) Brazil and Canada b) USA and Canada c) France & U.K d) Germany & France

12 75. Goods and Services Tax is a tax levied on goods and services imposed at each point of? a) Supply b) Manufacturing c) Sale d) Service 76. Which of the following Central Taxes have been subsumed under GST? i. Central Excise Duty ii. Duties of Excise (Medicinal and Toilet Preparations) iii. Additional Duties of Excise (Textiles and Textile Products) iv. Service Tax v. Income Tax vi. Basic Custom Duty a) i, ii, iii & iv b) vi, iii, ii, i & v c) Only i, ii & iii 77. Which of the following State Taxes have been subsumed under GST? i. State VAT ii. Central Sales Tax iii. Purchase Tax iv. Luxury Tax v. Entry Tax vi. All forms Entertainment Tax (except those levied by the local bodies) a) i, ii, iii, iv, v & vi. b) Only iii, iv & v. c) Only vi 78. Final assent of Hon ble President of India was given on? a) 8th September,2016 b) December 19, 2016 c) 8th September, Which of the following Bills passed by parliament? i. Central Goods and Services Tax (CGST)Bill ii. Integrated Goods and Services Tax(IGST) Bill iii. Union Territory Goods and Services Tax (UTGST)Bill

13 iv. Goods and Services Tax (Compensation to States) Bill v. State Goods and Services Tax (CGST)Bill a) i, ii, iii & iv b) Only i. c) Only i, ii & iii d) All the above 80. In India GST came effective from July 1st, India has chosen model of dual- GST. a) USA b) UK c) Canadian d) China e) Japan 81. Which of the following country has the maximum GST tax slab? a) Greece b) China c) USA d) Australia e) India 82. What does I stands for in IGST? a) International b) Internal c) Integrated d) Intra e) Innovation 83. GST council formation based on Article number. a) 279A b) 289A c) 266A d) 255A e) 286A 84. A special purpose vehicle has been launched to cater the needs of GST. a) GSTC b) GSTN

14 c) GSTM d) GSTR e) GSTS 85. Which article Introduce GST? a) 270 b) 246A c) 269A (1) d) 279A 86. What is Integrated Goods and Services Tax? a) Tax imposed on imported goods and services b) Tax imposed on value additions to exports c) Tax imposed on interstate trade d) Tax on international trade 87. Which of the following taxes leviable on an intra-state transaction? a)cgst b)sgst c)bothofabove d) IGST 88. What is the rate applicable for a composition dealer, being a manufacturer for CGST & SGST? a) Not exceeding 2% b) 5% c) 0% d) No composition for manufacturer 89. Which of the following are considered for calculating the aggregate turnover under Composition scheme a) Taxable supplies b) Exempt Supplies c) Both the above d) supplies covered under reverse charge 90. What is cut off turnover limit for compulsory registration under GST in J&K? a) Rs 9 lacs b) Exceeds Rs 20 lacs c) Rs 50 lacs d) No limit for registration 91. Can Composition tax be collected from Customers?

15 a) Yes b) No c) Central/State Government to decide d) none of the above 92. The details of outward supplies of goods or services shall be submitted by a) 10th of the succeeding month b) 18th of the succeeding month c) 15th of the succeeding month d) 20th of the succeeding month 93. Every registered taxable person shall be entitled to take credit of input tax in his return and such input tax credit shall be credited to a) Personal Ledger Account b) Refund account c) Electronic Cash Ledger d) Electronic Credit Ledger 94. The due date for furnishing the annual return for every financial year by registered taxable person a) 30th of September following the end of the financial year b) 20th of October following the end of the financial year c) 31st of December following the end of the financial year d) 31st of May following the end of the financial year 95. GST is levied on supply of all goods or services or both except a) supply of alcoholic liquor for human consumption b) Supply of petroleum crude, motor spirit (petrol), high speed diesel, natural gas and aviation turbine fuel c) Both of the above 96. On Inter-state Supply which of the following liability will arise? a) IGST b) CSGT + IGST c) SGST + IGST d) UTGST + IGST 97. Under the GST regime, liability to pay tax arises when a person crosses the turnover threshold of & for North Eastern & Special Category States? a) Rs.20 lakhs, Rs. 10 lakhs b) Rs.10 lakhs, Rs. 20 lakhs

16 c) Rs.20 lakhs, Rs. 20 lakhs d) Rs.10 lakhs, Rs. 10 lakhs 98. To be eligible for registration under Composition scheme it is required that the aggregate turnover of a registered tax payer should not exceed in the preceding financial year & the limit is for North Eastern & Special Category States) a) Rs. 75,00,000/-, Rs. 50,00,000/- b) Rs. 50,00,000/-, Rs. 25,00,000/- c) Rs. 100,00,000/-, Rs. 50,00,000/- d) Rs. 75,00,000/-, Rs. 20,00,000/- 99. Supply defined under which of the following section a) Section 7 of CGST Act, 2017 b) Section 11 of CGST Act, 2017 c) Section 9 of CGST Act, Definition of Supply given under Act is a) Inclusive definition b) Exhaustive definition c) Neither A Nor B d) Both A & B Love. CA Vivek Gaba (Tax Laws Faculty) For Any Doubt : (Whatsapp) All The Very Best for Exams..