Service Tax & VAT Mock Test IGP-CS CA Vivek Gaba

Transcription

1 1. As per the provision of service tax, service shall exclude a) A provision of service by an employee to the employer in the course of or in relation to his employment b) Fees taken in any Court or tribunal established under any law for the time being in force c) Any of the above 2. Advertisements broadcast by Radio or Television is mentioned in negative list and hence, service tax is not leviable on same. Is the statement valid? a) Valid b) Invalid c) Partly invalid d) cannot say 3. What amount of fees shall be charged when return is filed within a delay of 15 days from the date prescribed for submission of the return? a) ` 500 b) ` 1,000 c) ` 1,500 d) ` 100 of every delayed day 4. Which significant month wise details need to be furnished by assessee in Service tax return? a) Service tax payable, value of abatement claimed b) Amount billed for services on which tax is to be paid, service tax & education cess payable c) Value of abatement claimed, Notification number of abatement and exemption d) All of the above 5. Which notification provides that which services will be Partial exempt from service tax? a) Notification No. 26/2012 b) Notification No. 25/2012 c) Notification No. 30/2012 d) Notification No. 27/ In case of transport of passengers, with or without accompanied belongings by air (economy class), what percentage of gross value of services is chargeable to service tax a) 70 % b) 40 % c) 60 % d) 30 % 7. If the aggregate value of taxable service in preceding previous year in less than ` 10,00,000, service tax in the current financial year shall be payable: a) on entire aggregate value of all service b) on amount in excess of 10,00,000 c) on entire aggregate value of exempted service 8. Due date of payment of service tax in case of a company is a) 6 th day a of month immediately following each quarter except for the quarter ending March b) 6 th day of month immediately following the calendar month except for the month of March c) 25 th day of month immediately following the calendar month except for the month of March 9. Where Input is lost, credit on same a) may be allowed b) cannot be allowed c) shall be allowed 10. Credit of which of the following purchases cannot be claimed by the dealer? a) purchase from unregistered dealer b) purchase from registered dealer who opt for composition scheme c) any of the above d) none of the above

2 11. Tax invoice is admissible as supporting documents for taking credit. Is the statement valid? a) Valid b) Invalid c) Partly valid 12. In which of situation is registration compulsory? a) when the taxable annual turnover of a dealer does exceeds the threshold of ` 5 Lakh b) when dealer is an importer c) any of the above d) none of the above 13. A manufacturer purchased raw material for ` 1,12,500 (inclusive of 12.5% VAT) and capital equipment/ goods for ` 6,24,000 (inclusive of 4% VAT). Capital goods are depreciated over 3 years straight line. How much credit is available to manufacturer if Gross product Variant method followed. a) 12,500 b) 20,500 c) 36,500 d) Nil 14. Swachh bharat cess rate is? a) 0.5% on value of taxable service b) 2% on the value of taxable service c) 0.5% on the value of All services d) 2% on the value of All services 15. The Central Government issued list of exempted services under mega exemption notification dated 20 th june, 2012 which came into effect from a) 20 th June, 2012 b) 30 th June, 2012 c) 1 st July, 2012 d) 1 st April, The charge of service tax is on the a) Service provided b) Service provided or to be provided c) Service to be provided 17. All service provided by Employee to employer is outside the coverage of Service a) True b) False c) It is exempt from service tax 18. Sale price of goods returned is deducted if a) Goods are returned within 6 months b) Goods are returned within 9 months c) Goods are returned within 1 year d) Any time 19. As per Rule 7 of POT Rules, 2011, the Point of taxation in respect of person who are required to pay tax as receipt of service under reverse charge mechanism shall be the a) Date of invoice b) Date of receipt of invoice c) Date on which payment is made d) Invoice date or payment date whichever is earlier. 20. Where in an element of provision of one service is combined with an element of provision of other service or services it is known as a) Combined service b) Mega Service c) Bundle Service d) Big Service 21. Proviso to Rule 6 of service tax Rules, 1994 has provided that in case of the Individual and partnership firms having an aggregate value of taxable service provided from one or more premises

3 of or less in the previous financial year, shall have an option to pay service tax upon receipt basis a) 10 lakhs b) 9 lakhs c) 50 lakhs d) 60 lakhs 22. Who are required to registered under service tax a) Service provider b) Service receiver c) Both of the above 23. Every person liable to pay service tax to get registered with designated a) Superintendent of Service tax b) Income tax officer c) Superintendent of central excise d) Chief commissioner of central excise 24. of the Finance Tax, 1994 specifies the persons who are required to get themselves registered as service provider a) Section 68 b) Section 69 c) Section 70 d) Section 66B 25. Declared Services a) Are not chargeable to service tax b) Are chargeable to service tax c) Are exempted from service tax d) Are included in negative lis 26. Declared Services means in activity that have been specified in - a) Section 66B b) Section 66C c) Section 66E d) Section 66F 27. VAT is tax which is levied on a) Providing services b) Manufacturing of goods c) Value addition on goods d) Inter- state sale 28. Which of the following is/are not variants VAT? a) Net product variant b) Loss variant c) Neither (a) nor (b) d) Both (a) and (b) 29. What is the rate of VAT for precious and semiprecious metals? a) 0% b) 3%

4 c) 4% d) 1% 30. Which number is issued for registration under the VAT? a) PAN b) CIN c) TIN d) VIN For Any Doubt you can whatsapp or message at Love CA Vivek Gaba (CS Tax Faculty) Target 90+ in Tax Laws All The Very Best.

5 1. The aggregate value of taxable turnover of a partnership firm during financial year is ` 45 lakh. Partnership firm during the current financial year shall pay service tax on a) on receipt basis on all the taxable services provided b) on accrual basis on all the taxable services provided c) on receipt basis on taxable services upto ` 50 lakh d) none of the above 2. A motor cab designed to carry passengers has been given on rent for ` 3,00,000. On what amount service tax shall be levied? a) ` 3,00,000 b) ` 1,80,000 c) ` 1,20,000 d) ` 90, What is the maximum amount of penalty that shall be levied on assessee on non registration? a) ` 20,000 b) ` 10,000 c) ` 15,000 d) Nil 4. Which of the following documents need to be submitted by assessee being a partnership firm who has made an application for registration? a) Copy of Permanent Account Number, Proof of Address b) Identity Proof, copy of partnership deed and particulars of partners c) All of the above 5. Service provided by Mr. A was completed on 4 th April 2016, invoice was issued on 28 th April, The amount was paid by the service receiver on 30 th April, Service tax shall be paid on (i.e. due date): a) 4 th April 2016 b) 28 th April, 2016 c) 30 th April, 2016 d) 6 th July The aggregate value of taxable turnover of a partnership firm during financial year is ` 55 lakh. Partnership firm during the current financial year shall pay service tax on a) on receipt basis on all the taxable services provided b) on accrual basis (POT basis) on all the taxable services provided c) on receipt basis on taxable services upto ` 50 lakh d) none of the above 7. Which section decides the responsibility of payment of service tax? a) Section 68 b) Section 70 c) Section 69 d) Section An amount of ` 2,00,000 was paid to the service provider for service provided on 7 th September 2016, invoice was issued on 15 th September, 2016 and the service was completes on 10 th September, POT will be - a) 7 th September, 2016 b) 15 th September, 2016 c) 10 th September, 2016 d) 9 th September, Services are taxable only when defined under a) Section 65 (105) of Finance Act, 1994 b) Section 64 (105) of Finance Act, 1994 c) Service Tax Rules d) Section 4 of Central Excise Act, As per Gross Product Variant, tax credit on purchase of capital good a) in depreciation ratio b) over the period time as per state law c) is not allowed

6 11. Which of the following statement is false? a) ITC on purchase of goods for personal use is not allowed as credit b) Where there is evidence that purchase Invoice has not been issued by selling registered dealer from whom the goods have been purchased, ITC is allowed as credit c) Where goods have been used consumption or provided free of charge as gifts, ITC is not allowed as credit 12. A manufacturer purchased raw material for ` 1,12,500 (inclusive of 12.5% VAT) and capital equipment/ goods for ` 6,24,000 (inclusive of 4% VAT). Capital goods are depreciated over 3 years straight line. How much credit is available to the manufacturer if he follows Income Variant method. a) 12,500 b) 20,500 c) 36,500 d) Nil 13. was the first state to adopt VAT. a) Delhi b) Haryana c) Uttar Pradesh d) Goa 14. Which method is widely used and accepted? a) Addition Method b) Subtraction Method c) Input Tax Credit Method d) Any of the above 15. Under VAT the general rates are a) 0%, 1%, 2%, 3% plus surcharge b) 0%, 1%, 4%, 12.5% with no additional tax or surcharge c) 0%, 1%, 2%, 4% with no additional tax or surcharge d) 0%, 1%, 4%, 12.5% plus surcharge 16. Which of the following is not a rate of VAT as per white paper on VAT a) 0% b) 4% c) 10% d) 20% 17. VAT rate applicable on capital Goods is a) 12.5% b) 1% c) 4% d) 20% 18. VAT rate applicable on Luxury Goods is a) 12.5% b) 1% c) 4% d) 20% 19. Purchase & sale of goods is :- a) Trading of goods covered under negative list b) It is not a service c) Trading of goods covered under mega exemption 20. Any process amount to manufacture covered in negative list? a) Including alcoholic liquor for human consumption b) Excluding alcoholic liquor for human consumption c) At the option of assesse 21. For service tax law which of the following not cover in taxable territory a) Delhi b) Jammu and Kashmir c) outside India d) Both B & C 22. In which of the following cases service tax will not attracted? a) A person from Jammu provides service at Haryana b) A person having office in Katra provides service at new Delhi

7 c) A person from Delhi provides service at Jammu & Kashmir d) All the above 23. Which of the following service is not notified as continuous supply of service a) Telecommunication service b) Commercial or industrial construction service c) Construction of residential complex d) Aircraft carrier service 24. Which of the following service is notified as continuous supply of service a) Telecommunication service b) Educational service c) Renting of immovable property d) Aircraft carrier service 25. Which of the following service is not notified as continuous supply of service a) Telecommunication service b) Service portion in execution of work contracts c) Aircraft carrier service d) Both a & c 26. Continuous supply of service means any service provided continuously on recurrent basis, under a contract, for a period exceeding with obligation for periodic payment a) Three month b) One month c) Six Month d) One Year 27. Which of the following POT rule is applicable in case of reverse charge and associated enterprises a) Rule 3 of POT Rules, 2011 b) Rule 7 of POT Rules, 2011 c) Rule 5 of POT Rules, VG Ltd Manufacturing company have balance in the ITC account is 11,900. The selling price of goods is goods is 4,08,000 and cost to purchaser is 4,24,320. What is the amount of VAT payable in cash by the VG ltd. a) 16,320 b) 11,900 c) 4,420 d) Nil 29. VG Ltd Manufacturing company have balance in the ITC account is 12,000. The selling price of goods is goods is 4,08,000 and cost to purchaser is 4,20,00. What is the amount of VAT payable in cash by the VG ltd. a) 16,320 b) 11,900 c) 4,420 d) Nil 30. Which of the following is not method of VAT computation a) Subtraction method b) Tax credit method / Invoice Method c) Gross product method d) Addition method For Any Doubt you can whatsapp or message at Love CA Vivek Gaba (CS Tax Faculty) Target 90+ in Tax Laws All The Very Best.

8 1. Which of the following is not variant of VAT a) Gross product variant b) Income variant c) Invoice variant d) Consumption variant 2. A manufacturer VG of Delhi extracted raw produce X from mines at 25,000 and sold the same at 150% of cost of manufacturer SG of Delhi. Find out the amount of VAT payable by VG under invoice method of computation of VAT (Assume VAT rate is 4%) a) 1,500 b) 2,500 c) 1, Mr. Vivek purchases a product for 5,200 and sells the same for 16,640. The given prices are inclusive of VAT. The VAT rate is 4%. Compute VAT liability a) 440 b) 640 c) 849 d) VG Co. Furnishes you the following information Raw material purchased at 5,00,000 plus 4%. Manufacturing expenses (revenue nature) 2,00,000. Sale price 8,00,000 plus 4%. Plant and machinery acquired 2,50,000 plus 4%% eligible for ITC in the year acquisition itself. Compute Net VAT liability under consumption variant a) 12,000 b) 2,000 c) 32,000 d) 14, Ms. Nikita, a registered dealer in Tamil Nadu, bought 10 units raw material A from another registered dealer in the same state of 73,500 inclusive of 5% VAT. She sold the same to a customer in Tamil Nadu at a profit 30% on selling price. Net VAT liability payable to the State Government a) 4,550 b) 3,500 c) 5, The following is not an advantage of VAT a) Certainty b) Transparency c) Simplicity d) Regressive 7. Compute the VAT liability of Mr. Vivek Gaba for the month of October, using the Invoice method of computation of VAT Purchases from the local market (includes 4%) 65,000 Storage cost incurred 750 Transportation cost 1,750 Goods sold at a margin of 5% on the cost of such goods VAT Rate on sales is 12.5%. a) 8,531 b) 6,031 c) 76,781 d) 2, The white paper specifies that registration of VAT will not mandatory for dealer having annual turnover upto a) 5,00,000 b) 10,00,000 c) 20,00,000 d) 25,00, The dealer having turnover upto during the financial year have an option for composition schemea) 50,000,00 b) 10,00,000 c) 20,00,000 d) 25,00, If the aggregate value of taxable service in the preceding financial year exceeds ` 10,00,000, service tax shall be payable during the current financial year a) If the aggregate value of taxable service exceed, ` 10,00,000 during the current year. b) on the entire aggregate value of service, c) Service Tax Exempt on Entire Value of Taxable Servcie 11. The provisions relating to valuation of taxable services are contained in:

9 a) section 65 of the Finance Act, 1994 b) section 67 of the Finance Act, 1994 c) section 65A of the Finance Act, Gross amount charged for the taxable services includes: a) only that amount received towards the taxable service which is received before the provision of such services b) Only that amount received towards the taxable service which is received after the provision of such services. c) Any amount received towards the taxable services whether received before, during or after provision of such services. 13. Secondary and Higher Education Cess was levied by a) The Finance(2) Act, 2004 b) The Finance Act, 2006 c) The Finance Act, Ravi rents a residential house G who uses it for residential purpose. Service tax on such renting. a) will be charged b) not be levied since mentioned in negative list c) will be partially charged d) none of the above 15. Return of service tax is to be filed in: a) Form ST-I b) Form ST-3 c) Form ST-2 d) Form ST Return of service tax has to be filed: a) monthly b) quarterly c) half-yearly d) yearly 17. Due date of filing return is: a) 25th of the month following the particular half-year b) 5th of the month following the particular half-year c) 15th of the month following the particular half-year d) 30 days of the month following the particular half-year 18. What is the due date of return for the half year ended 30 th September? a) 5 th October b) 15 th October c) 25 th October d) 30 th October 19. What is the due date of return for the half year ended 31 st March? a) 5 th April b) 15 th April c) 25 th April d) 30 th April 20. A return can be revised within how many days? a) within a period of 90 days from the due date of return b) within a period of 90 days from the date of submission of the original return c) within a period of 60 days from the date of submission of the original return d) cannot be revised 21. Where an assessee provides more than one taxable service, how many return shall be filed by him? a) single return b) multiple return c) single return, details in each of the columns of Form have to be furnished separately for each of the taxable service rendered by him d) separate return for each taxable service

10 22. Where the gross amount charged is inclusive of service tax payable, how shall service tax be computed? a) Gross amount charged x 12% / 112% b) Gross amount charged x 12.36% / % c) Gross amount charged x 12.36% / 100% d) Gross amount charged x 15% / 115% 23. Application for registration is to be made in Form a) From ST 1 b) From ST 3A c) From ST 3 d) From ST Who is liable to make mandatory application for registration? a) Every person b) Every person liable to pay service tax c) Either of above 25. A registered dealer as compared to unregistered dealer has to pay a) Low rate of CST b) High rate of CST c) No effect 26. Central sales tax is levied on a) Gross turnover b) Net turnover c) Taxable turnover d) Any of the above 27. When goods have been sold from one state to another state, what shall be payable on such sale? a) Value added tax b) Central sales tax c) Input tax credit to the extent of 2% shall be disallowed 28. When goods have been transferred as stock transfer from one state to another state, what shall be payable on such sale? a) Value added tax b) Central sales tax c) Input tax credit to the extent of 2% shall be disallowed 29...is the first state and..is last state for adoption of VAT law? a) Uttar Pradesh, Haryana b) Haryana, Uttar Pradesh c) Jammu & Kashmir, Haryana d) Japan, China 30. TIN is a Numerical code which represent the registration number of a dealer- (A) 10 Digit (B) 11 Digit (C) 15 digit (D) 12 digit For Any Doubt you can whatsapp or message at Love CA Vivek Gaba (CS Tax Faculty) Target 90+ in Tax Laws All The Very Best.

11 1. Grant of certificate of registration is in form of (A) Form A (B) Form B (C) Form C (D) Form D 2. When the application of CST registration is rejected (A) Authority not satisfied with particulars (B) Non-payment of fees (C) Dealer fails to furnish the security (D) All the above 3. The place of provision of services provided in relation to goods that are required to be made physically available by service receiver to service provider shall be: (A) The location of service provider (B) The location of service receiver (C) The location where service performed (D) None of the above 4. The place of provision of services provided from a remote location by way of electronic means in relation to goods that are required made physically available by service receiver to service provider shall be: (A) The location of service receiver (B) The location of service provider (C) The location of goods situated at the time of provision of service (D) The location where service performed 5. Service tax provision contains which of the following ACT? (A) Service Tax Act, 1994 (B) Finance Act, 1994 (C) Service Tax Rules, 1994 (D) None of the above 6. Which of the following condition must be satisfied for levy of service Tax? (A) Activity must be Service as per section 65B(44) (B) Service not covered in Negative list define under section 66D (C) Service provided or agreed to be provided in taxable territory (D) All the above 7. XYZ Ltd. Head office located in Delhi service provided to Branch of XYZ Ltd. Located in Jammu & Kashmir such service (A) Chargeable to service tax since deemed to be distinct person (B) Not chargeable to service tax since it is a self-service (C) Not chargeable to service tax since covered in negative list (D) None of the above 8. As per makes the provision of service tax applicable to entire India except Jammu & Kashmir? (A) Section 64 of Finance Act, 1994 (B) Section 64 of Service Tax Act, 1994 (C) Section 66B of Finance Act, 1994 (D) None of the above 9. Which of the following service not covered in Negative list under section 66D? (A) Renting of immovable property (B) Service provided to RBI (C) Work contract service (D) All the above 10. In case of GTA service person liable to pay freight is an Individual in such case service tax paid to Government by (A) Service provider (B) Service receiver

12 (C) Partial reverse charge (D) None of the above 11. Health care service by a clinical establishment is (A) Exempt from service tax since covered in mega exemption (B) Service tax not levy since covered in negative list of service (C) Chargeable to service tax (D) None of the above 12. Service provided by a veterinary clinic in relation to health care of animals or birds is (A) Exempt from service tax since covered in mega exemption (B) Service tax not levy since covered in negative list of service (C) Taxable service (D) None of the above 13. Which approach to service tax is used in India? (A) Comprehensive (B) Selective (C) Partly a) and b) (D) None of the above 14. When is small service provider required to obtain registration? (A) when value of total services exceeds ` 10 lakh (B) when value of taxable services exceeds ` 10 lakh (C) when value of total services exceeds ` 9 lakh (D) when value of taxable services exceeds ` 9 lakh 15. A real estate agent who has his office in Chandigarh provided a service in relation to a property located in Mumbai. Which place is place of provision of service for purpose of levy of service tax? (A) Mumbai (B) Chandigarh (C) Both a) and b) partly (D) None of the above 16. Service tax is rounded off to nearest multiple of (A) 10 (B) 100 (C) 1 (D) None of the above 17. Service tax in India made a humble beginning from... with only 3 services (A) June 1, 1994 (B) July 1, 1994 (C) July 1, 1995 (D) July 1, The rate of service tax is (inclusive of education cess, SHEC, Swachh Bharat cess, if applicable) (A) 12% (B) 14% (C) 14.5% (D) 14.92% 19. Where service is rendered from outside India, such service shall be taxable in the hand of (A) Provider of service (B) Recipient of service (C) Partly in hands of both a) and b) (D) None of the above 20. Under VAT Exempted goods are same as (A) Zero rate goods (B) Declared Goods (C) Export Goods (D) None of the above 21. The registration obtained by a dealer can be cancelled in the following circumstances (A) Discontinuance of business (B) Disposal of business

13 (C) Transfer of business to a new location (D) Any of the above 22. Which of the following is true with regard to conducting VAT audit (A) Only PCS can do VAT audit (B) Only non-pcs can do VAT audit (C) PCS can also do VAT audit (D) Non PCS can also do VAT audit 23. The basic document on basis of which ITC can be taken under VAT is (A) Lorry receipt (B) Bill of entry (C) Shipping bill (D) Tax Invoice 24. X purchased goods worth 40,000 and paid 5%. Later on, after processing and incurring 5,000 further expenses, he sold the goods for 60,000. VAT collected by 4% and VAT Credit and Net VAT payable by him are (A) 2,250, 150 (B) 2,000, 400 (C) 2,000, 2,400 (D) 2,250, 2, The correctness of self-assessment under VAT is checked through a system of (A) Departmental audit (B) Internal audit (C) Secretarial audit (D) Statutory audit 26. Which of the following is a non specified service under Rule 9 of POPOS Rules, 2012 (A) Online information database access service (B) Banking service to account holders (C) Both (A) & (D) (D) Real estate agent service 27. Which of the following is a non specified service under Rule 9 of POPOS Rules, 2012 (A) Hiring of means of Transport (B) Banking service to account holders (C) Intermediary service (D) Renting of immovable property 28. Service consisting of hiring of means of transport other than upto a period of 1 month is covered by Rule, 9 of the POPOS Rules, (A) Vessels and aircrafts except yachts (B) Vessels and aircrafts including yachts (C) Vessels except aircrafts and yachts (D) None of the above 29. The place of provision of service of transportation of goods, other than by way of mail or courier (A) Starting point (B) Destination of the goods (C) The location of service provider (D) None of the above 30. Vivek, a Service provider located in TT, supplies service to a recipient Ram, located in NTT. Such service is taxable (A) In the hands of Vivek (B) In the hands of Ram (C) Both a & b (D) None of the above For Any Doubt you can whatsapp or message at Love CA Vivek Gaba (CS Tax Faculty)

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15 1. Service by way of loading, unloading, packing, storage or warehousing of rice are a) Liable to service tax b) Exempt from service tax c) Covered in negative list d) Is a declared service 2. Service provider claiming exemption of 10,00,000 shall have to apply for registration where aggregate value of service exceeds a) 10,00,000 b) 9,00,000 c) No limit d) 12,00, Which of the following service is not a declared service a) Renting of immovable property b) Construction of a complex c) Intellectual property right service d) Commission agent for sale of agriculture produce 4. Which of the following service is not a declared service a) Renting of immovable property b) Construction of a complex c) Intellectual property right service d) Service provided by reserve bank of India 5. Which of the following services are not exempt from service tax a) Service provided to a recognised sport body by an individual as a player, referee, umpire, coach of team manager for participation in a sporting event organised by a recognised sports body. b) Service by way of admission to museum, national park, wildlife sanctuary, tiger reserve or zoo c) Loading, unloading, and transportation of rice d) Service provided by an individual as a company secretary in practice 6. Which of the following is covered in negative list a) Selling of space for advertisement in print media b) Selling of space for advertisement on bill boards c) Selling of space for advertisement in ATM d) Aerial advertising 7. In case transportation of passengers, with of without accompanied belongings, by a contract carriage other than motor cab and a radio taxi the amount exempt from service tax a) 50% b) 60% c) 40% d) 70% 8. For certain services under service tax, a specified percentage of discount allowed is known as a) Rebate b) Abatement c) Exemption d) Deduction 9. Service tax was introduced since a) Government needs higher public revenue b) For bringing equity in taxation c) For checking evasion in tax d) All of the above 10. Service tax is leviable on a) Service provided by an unincorporated association to its member b) Service provided free of cost c) Consideration received without any activity d) Export of service 11. Export of service means a) Service is provided from India and used outside India b) Service is provided from outside India used in India c) Payment for service is received by the provider in convertible foreign exchange d) Both (a) & (c) 12. On which commodity CST is not levied

16 a) Cotton b) Electric energy c) Crude oil d) Sugar 13. Person effecting the subsequent sales under inter state trade or commerce fills a) Form E-I & Form E-II b) Form G c) Form C d) Form H 14. Which form has to be furnished for transfer of goods other than sales a) Form E-I b) Form F c) Form H 15. ITC allowed to a) Registered dealer b) Unregistered dealer c) Composite scheme dealer d) All the above 16. In which of the following cases,itc is available a) Inter-sate purchase b) Goods imported c) Goods lost by Fire d) Goods sold to unregistered dealer 17. Which of the following is a variant of VAT a) Addition variant b) Subtraction variant c) Consumption variant d) Tax credit variant 18. For the first time, VAT was proposed as turnover tax for in a) Japan ; 1921 b) Belgium ; 1919 c) Germany ; 1919 d) USA ; VAT was 1 st introduced at international level in a) India b) France c) U.K. d) Japan 20. In CST dealer includes a) A body corporate b) A factor c) A broker d) All of the above 21. (i) Input tax credit availed during the month of May, 2015 is 30,500 a) Output tax payable for May, 2015 is 26,000 b) CST payable on inter-state sale for May, 2015 is 3,800 From the above amount the VAT credit that can be carried forward for next month isa) 4,500 b) Nil c) 700 d) 30, Sale price under Central Sale Tax Act, 1956 does not includea) Excise duty b) Central Sales Tax c) Packing charges d) Trade Discount 23. Vivek of Chennai made sale of goods to B. Ltd. of Mumbai who bought the same meet preexisting export order. The sale by Vivek to B. Ltd. Isa) Taxable as Inter-state sale b) Exempt as deemed Export c) Intra-state sale d) Exempted sale 24. The revenue neutral rate of VAT means the rate of a) 1% b) 4% c) 12.5% d) 20% 25. Zero rated sale is advantageous then Exempted sale in VAT, since the Zero-Rated sale is a) Exempt from VAT levy b) Eligible for refund of VAT input used c) Export Sale d) Unsalable goods 26. Vivek brought raw material by paying VAT of 20,000. He from VAT. He is eligible to refund of VAT paid on raw material to the extent of a) 20,000 b) Nil c) 10,000 d) 5,000

17 27. Compute the purchase eligible for availing ITC from the following particulars: o Goods resale within state o Capital goods required for the purpose of manufacture of taxable goods o Goods purchased from unregistered dealer o Goods utilized for manufacture of exempted goods o High seas purchase a) Eligible purchase i & ii b) Eligible purchase i, ii & iii c) Eligible purchase i, ii, iii, iv & v d) Eligible purchase i only 28. In case of Inter-stock transfer ITC can be? a) Reversed 2% of purchase price b) Reversed 2% of sale price c) Retain 2% of purchase price d) Retain 2% of sale price 29. When a dealer sends goods in other states to its own branches, it is known as? a) Stock-transfer b) Inter-state sale c) Intra-state sale d) Export of goods 30. In which of the following transaction in not subject to CST? a) Stock-transfer of goods b) Intra-sate sale/purchase c) import from outside India d) Any of the above For Any Doubt you can whatsapp or message at Love CA Vivek Gaba (CS Tax Faculty) Target 90+ in Tax Laws All The Very Best.

18 1. empower to levy CST or inter-state sale & derived from entry no? a) Central government, 92A of list I b) Central government, 97 of list I c) State government, 54 of list II d) State government, 92A of list II 2. CST leviable by and collected by from the where movement of goods commenced and shall be retained by? a) Central government, state government, State Government b) State government, state government, State Government c) Central government, state government, Central Government d) Central government, Central government, State Government 3. Which of the following sale is not entitled to tax credit or refund of taxes paid on purchases on input purchased by him? a) Exempted sale b) Zero-rated sale / Export sales c) Intra-state sale 4. Which of the following method is workable under in a situation where rate of tax is different in respects of input and output? a) Invoice method / input tax credit method b) Subtraction method c) Addition method 5. Which of the following goods outside the VAT? a) Diesel b) ATF (aviation tribune fuel) c) Other motor spirit d) All the above 6. Activity by a performing artist in folk or classical art forms of music, dance, or theatre is a. Taxable service in all cases b. Exempt from service tax if the amount involved is upto 1.5 lakh c. Service tax not levy since it is not a service d. None of the above 7. Service provided by an artist as brand ambassador is a) Taxable service b) Exempted service b) Negative listed service d) Not a service 8. Health care service by a clinical establishment is a. Exempt from service tax since covered in mega exemption b. Service tax not levy since covered in negative list of service c. Chargeable to service tax d. None of the above 9. Which of the following service not covered in Negative list under section 66D? a) Service provided by RBI b) Service provided to RBI c) Service provided to International organisation d) Both B and C 10. Which of the following service not covered in Negative list under section 66D? a. Service provided by Local Authority b. Service provided by RBI c. Service provided to International Organisation d. Service provided by foreign diplomatic mission located in India 11. XYZ Ltd. Head office located in Delhi service provided to Branch of XYZ Ltd. Located in Jammu & Kashmir such service

19 a. Chargeable to service tax since deemed to be distinct person b. Not chargeable to service tax since it is a self-service c. Not chargeable to service tax since covered in negative list d. None of the above 12. Which of the following entry of union list (List I) not belong to service tax? a) 82 b) 92C c) Both of above d) Determine validity of given statement - VAT system is followed by all states in India a) Valid b) Invalid c) VAT levied only in Delhi 13. Which of the following is not true about CST Act, 1956 a) Extend to whole India b) Divided into 6 Chapters & 26 Sections c) Extend to whole India Except J & K d) Goods classified as declared goods 14. For service tax law which of the following cover in taxable territory a) Delhi b) Haryana c) Outside India d) Both a & c 15. M/s Yog Raj & Co. Has been appointed as distributors of lotteries oragnized by state of Haryana. The distributor has opted for composition scheme under Rule 6(7C) of STR, Determine its service tax liability from the following information for the month of January 2016 Particulars Diwali Bumper Total No. Of tickets printed 44,60,000 Face value of tickets (amount in Rs.) 10 Guaranteed prize payouts 60% Actual No. of ticket sold 44,00,000 a) 5,76,000 b) 5,96,571 c) 4,95,000 d) 5,09, which situation Subtraction Method is not workable? a) Where rate of tax is same in respects of Input and Output b) Where rate of tax is different in respects of Input and Output c) Transaction wise computations are difficult to make because certain expenditures are periodic/ fixed and thus, issues relating to allocation may arises 17. Which method is widely used and accepted? a) Addition Method b) Subtraction Method c) Input Tax Credit Method / Invoice Method d) Any of the above 18. Where a dealer purchased a good for `100 after payment of VAT of ` 12.50, the same is sold for ` 150, how much amount shall be payable by him at the time of same when the output tax rate is 12.50% where VAT is computed using Invoice credit method. a) ` 6.25 b) ` c) ` 12 d) Nil 19. Which of the following are variants of VAT? a) Gross Product Variant b) Consumption Variant c) Income Variant d) All of the above 20. As per Gross Product Variant, tax credit on purchase of capital good a) in depreciation ratio b) over the period time as per state law c) is not allowed 21. In which of situation is registration compulsory?

20 a) any dealer making purchases or sales in the course of interstate trade b) when dealer is registered under Central Sales Tax 1956 c) both of the above d) none of the above 22. Credit of which of the following purchases cannot be claimed by the dealer? a) purchase from unregistered dealer b) purchase from registered dealer who opt for composition scheme c) any of the above d) none of the above 23. Which of the following statement is true? a) ITC on purchase from unregistered dealer is not allowed as credit b) ITC on purchase from registered dealer who opts for composition scheme is allowed as credit c) ITC on goods purchased from outside India is allowed as credit 24. Which of the following statement is true? a) ITC on purchase of goods for personal use is allowed as credit b) Where the Invoice does not show the amt. of tax separately, ITC is allowed as credit c) ITC on purchase from registered dealer is allowed as credit 25. Which of the following statement is false? a) ITC on purchase of goods for personal use is not allowed as credit b) Where purchase Invoice is not available with the claimant, ITC is allowed as credit c) Where the Invoice does not show the amt. of tax separately, ITC is not allowed as credit 26. Which of the following statement is false? a) ITC on purchase of goods for personal use is not allowed as credit b) Where there is evidence that purchase Invoice has not been issued by selling registered dealer from whom the goods have been purchased, ITC is allowed as credit c) Where goods have been used consumption or provided free of charge as gifts, ITC is not allowed as credit 27. Which of the following not include in sale price under CST Act, a) Cash discount (Trade discounts are also excluded) b) Freight, delivery and installation cost, if charged separately (i.e. not included in sale price but indicated separately in the bill or i.e. freight merging with sale price is includible). c) Octroi/ Entry Tax. d) All the above 28. Which of the following not include in sale price under CST Act, a. Deposits taken for returnable containers. b. Insurance charges of goods insured at the request of the buyer. c. Sale price does not include Government subsidies on goods sold at controlled price. d. All the above 29. which of the following item include in sale price under CST Act,

21 a. Sums charged for anything done by the seller at the time of or before delivery of the goods to the buyer (E.g. Packing, labelling, designing etc). b. Excise duty, Customs duty, sales tax & CST. c. Royalty, warranty charges, etc. are also includable in sale price, whether charged separately or not and whether recovered along with sale price or not. d. All the above 30. which of the following item include in sale price under CST Act, a. Insurance charges if goods are insured by the seller. b. Charity or Dharmada collected by the dealer will form part of the sale price. c. Weightment charges. d. All the above For Any Doubt you can whatsapp or message at Love CA Vivek Gaba (CS Tax Faculty) Target 90+ in Tax Laws All The Very Best.

22 1. When final product is not sold but given as free sample, credit of input used for such goods a) may be allowed b) shall be allowed c) cannot be allowed 2. Where Input is lost, credit on same a) may be allowed b) cannot be allowed c) shall be allowed 3. Where Input is damaged, credit on same a) may be allowed b) cannot be allowed c) shall be allowed 4. VAT credit cannot be utilized for payment of CST. Is the statement valid? a) Valid b) Invalid c) Partly valid 5. If VAT credit is excess after adjusting VAT liability and CST, it a) shall not be carried forward to next financial year b) shall be carried forward to next financial year c) eligible for refund d) none of the above 6. Where the final product is exported, credit on purchase for manufacture of such good a) may be allowed b) shall be allowed c) cannot be allowed 7. In care of reverse charge exemption limit of service tax is a) 10,00,000 b) 9,00,000 c) No Limit d) 5,00, In case of whose value of taxable service is upto 60 lakh in last preceding financial year then such rate of interest shall be reduced by 3% p.a. a) Service provider b) Service receiver c) Both of above d) None of above 9. Scheme for submission of returns through Service tax return preparers define in a) Section 70 of Finance Act, 1994 b) Section 71 of Finance Act, 1994 c) Section 72A of Finance Act, Where service tax assessment is provisional which Form is required under service Tax? a) Form ST-3 b) Form ST -3A c) Any of the above 11. Activity by a performing artist in folk or classical art forms of music, dance, or theatre is a) Taxable service in all cases b) Exempt from service tax if the amount involved is upto 1.5 lakh c) Service tax not levy since it is not a service 12. Service provided by an artist as brand ambassador is a) Taxable service b) Exempted service c) Negative listed service d) Not a service 13. Hotel rooms are let out at a declared tariff of 1,200 per room day but actual room rent charged 900 per day & Number of days for which it is let out is 200 days calculate value of taxable service?

23 a) 1,80,000 b) 1,08,000 c) 2,40,000 d) 40, Guest House are let out at a declared tariff of 900 per room day but actual room rent charged 800 per day & Number of days for which it is let out is 250 days calculate value of taxable service? a) 1,80,000 b) 1,08,000 c) Nil d) 64, Which of the following Article define that NO TAX shall be levied or collected without authority of Law? a) Article 245 b) Article 265 c) Article 270 d) Article All service which are taxable after introduced negative list concept define in which of the following entry? a) Entry No. 120 b) Entry No. 119 c) Entry No Section of FA, 1994 empower to CG to make rules & Section of FA, 1994 empower to CG to grant exemption by issuing notification? a) Section 94, Section 93 b) Section 93, Section 94 c) Section 66B, Section 66C 18. Who is the Architect of Indian Constitution? a) Dr. B.R Ambedkar b) Dr. Man mohan Singh c) Dr. Raja. J. Challiah 19. Central level Laws made by & State level laws made by? a) Parliament, State Assembly b) Central Government, State Government c) Parliament, Parliament 20. Which of the following List is not covered in Indian Constitution? a) Union List b) State List c) Current List d) Concurrent List 21. Entry No. 82 of union list defined? a) Taxes on Income b) Taxes on Income other than Agriculture income c) Taxes on service 22. In which of the following taxes not eligible to book credit under VAT? a) Central Sales Taxes b) Import Duty c) Both of the above d) Local sale tax 23. In which of the following covered in the meaning of OUTPUT TAX? a) It is tax that dealer charges on his sales that are subject to tax b) It is calculated by multiplying sales turnover (sale price excluding VAT) by applicable Tax rate c) Both of the above 24. Which of the following statement is True? a) ITC will be admissible only if tax payable on OUTPUT b) NO ITC if goods are used for personal consumption by dealer c) NO ITC if goods are used for manufacture of goods which are exempted d) All the above 25. Which of the following is special transaction under VAT law? a) Lease transaction b) Hire purchase

24 c) Work contact d) All the above 26. Where the service is already taxable but assessee commences the business for the first time then the application for registration shall be made within following period? a) Within 30 days of commencement of such business b) Within 30 days from the date on which service tax under section 66B is levied c) Any of the above d) Earlier of A or B 27. Where the service provider is providing a service that has become taxable for the FIRST TIME then the application for registration shall be made within following period? a) Within 30 days of commencement of such business b) Within 30 days from the date on which service tax under section 66B is levied c) Any of the Above d) Earlier of A or B 28. In case of Shortage of ITC payment by through? a) VAT/CST challan b) GAR-7 Challan c) At the option of assessee d) At the option of department officer 29. Which of the following statement is True? a) For the payment of CST VAT credit can be used b) CST paid by purchaser not allowed credit to such purchaser c) In case of shortage of ITC payment by thorough VAT challan d) All the above 30. In case of Inter-stock transfer ITC can be? a) Reversed 2% of purchase price b) Reversed 2% of sale price c) Retain 2% of purchase price d) Retain 2% of sale price For Any Doubt you can whatsapp or message at Love CA Vivek Gaba (CS Tax Faculty) Target 90+ in Tax Laws All The Very Best.

25 1. Which of the following service are not covered in negative list (A) Service by a Foreign diplomatic mission located in India (B) Selling of space for advertisements in print media (C) Service provided by RBI (D) Admission to entertainments events of access to amusement activity 2. Time limit for voluntary registration in CST within a) 30 days (B) 15 days (C) No time limit (D) None of the above 3. E-payment of service tax is compulsory in the case of assessee who had paid service tax in the preceding financial year equal to at least (A) ` 10 lakh (B) ` 40 lakh (C) ` 50 lakh (D) No limit 4. What was the rate of service tax when it was introduced for the first time? (A) 10 % (B) 12 % (C) 5 % (D) Nil 5. Within how many days of change in any information shall be intimated by assessee to jurisdictional Assistant/Deputy Commissioner? (A) 7 days (B) 30 days (C) 15 days (D) 10 days 6. What is due date of payment of service tax on service which is provided by a person other than individual or proprietary firm or partnership firm where the payment is made through any mode other than internet banking? (A) 6th day of the following quarter (B) 6th day of the following month (C) 5th day of the following month (D) 5th day of the following quarter 7. Services provided to a recognized sports body by an individual as a player, referee, umpire, coach or team manager for participation in a sporting event organized by a recognized sports body is exempt from service tax by virtue of- (A) Negative list (B) Notification No. 25/2012 (C) Notification No. 26/2012 (D) None of the above and is taxable 8. Which rule prescribes the form, manner and frequency of furnishing the return? (A) Rule 7 of the Service Tax Rules, 1994 (B) Rule 9 of the Service Tax Rules, 1994 (C) Rule 7 of the Service Tax Rules, 2012 (D) None of the above 9. Definition of service is provided under section (A) Section 66B (B) Section 65B(45) (C) Section 65B(44) (D) none of the above 10. Which rule governs the provision of place of provision in relation to service given specifically for an immovable property? (A) Rule 8 of Place of provision of services rules, 2014 (B) Rule 6 of Place of provision of services rules, 2014 (C) Rule 3 of Place of provision of services rules, 2012 (D) Rule 5 of Place of provision of services rules, As per Rule 8 of Place of provision of service rules, 2012, when place of provision of service as per rule 4, 5 and 6 is outside, which place is taken as place of provision of service? (A) location of service receiver (B) location of service provider (C) location of performance of service (D) location of the event

26 12. Which rule of place of provision of service rule, 2012 provides that location of service receiver is place of provision of service where it was outside India as per rule 4, 5 and 6? (A) Rule 8 of Place of provision of services rules, 2012 (B) Rule 6 of Place of provision of services rules, 2014 (C) Rule 8 of Place of provision of services rules, 2014 (D) Rule 7 of Place of provision of services rules, Service tax return can be revised within a period of (A) 30 days (B) 60 days (C) 90 days (D) 120 days 14. How much service tax (including EC + SHEC) will be payable by an air travel agent who made booking for domestic travelling of `1,00,000 and booking for international travelling of ` 1,50,000. (A) 2,800 (B) 2,400 (C) 30,090 (D) 1, Service definition given under section 65B(44) is (A) Inclusive definition (B) Exhaustive definition (C) At the option of CEO (D) None of the above 16. In case of associated enterprises where the person providing the service is located outside India the POT shall be (A) The date of debit in the books of account of the person receiving the service (B) Date of making the payment (C) The date of debit in the books of account of the person receiving the service or date of making payment, whichever is earlier (D) The date of debit in the books of account of the person receiving the service or date of making payment, whichever is later 17. Vivek of Delhi received some taxable service from Unilever U.K. on for which an invoice was raised on Determine the POT in accordance with POT Rules if Ram makes payment for the said service on (A) (B) (C) (D) None of the above 18. Vivek of Delhi received some taxable service from Unilever U.K. on for which an invoice was raised on Determine the POT in accordance with POT Rules if Ram makes payment for the said service on (A) (B) (C) (D) None of the above 19. Under VAT levy, in respect of Local purchases of business inputs, a dealer pays (A) Output tax (B) Input Tax (C) Last Point Tax (D) First Point Tax 20. Under VAT Sale tax is charged at the time of (A) First sale (B) Last sale (C) Every sale (D) First subsequent sale 21. Under Gross product variant of VAT, VAT Credit /set off/deduction is allowed only of VAT paid on:

27 (A) Purchase of plant & Machinery (B) Raw material (C) Non-capital inputs (D) Both (b) & (c) 22. VAT Credit due to less payment of VAT on sales (A) Is not allowed (B) Reduces the working capital requirement (C) Increase the working capital requirement (D) None of the above 23. Which of the following is not method of VAT computation (A) Subtraction method (B) Tax credit method / Invoice Method (C) Output method (D) Addition method 24. Which of the following is a method of VAT computation (A) Gross product method (B) Consumption method (C) Output method (D) Addition method 25. Value added inclusive of VAT is 1,12,500 and VAT rate is 12.5%. Find out VAT liability under subtraction method (A) 12,500 (B) 1,00,000 (C) 8,000 (D) None of the above 26. Under VAT, ITC is allowed of the following (A) Custom duty (B) Central sales tax on inter state purchase (C) Service tax (D) VAT imposed on intra sate purchase 27. Transportation of which of the following goods is exempt from service tax a) Chemical fertilizer b) Oil cakes c) Rice d) All of the above 28. Transportation of which of the following goods is exempt from service tax a) Chemical fertilizer b) Oil cakes c) Cotton (ginned or baled) d) All of the above 29. Which of the following services are not exempt from service tax a) Service provided to recognised sport body by an individual as player, referee, umpire, coach of team manager for participation in a sporting event organised by a recognised sports body. b) Service by way of admission to museum, national park, wildlife sanctuary, tiger reserve or zoo c) Loading, unloading, and transportation of rice d) Service provide by Company Secretary 30. Which of the following services are not exempt from service tax a) Service provided to a recognised sport body by an individual as a player, referee, umpire, coach of team manager for participation in a sporting event organised by a recognised sports body. b) Service by way of admission to museum, national park, wildlife sanctuary, tiger reserve or zoo c) Loading, unloading, and transportation of rice