Paper11 Set1 MTP Dec 23
Paper11 Set1 MTP Dec 23
Dos, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 1
MTP_Intermediate_Syllabus 2016_Dec2023_Set1
PAPER 11 - INDIRECT TAXATION
The figures in the margin on the right side indicate full marks.
Section – A
Answer Question No. 1 which is compulsory and any four from the rest of this section.
(i) Which of the following taxes will be levied on Imports of goods and
services?
(a) CGST
(b) SGST
(c) IGST
(d) Exempt
(iv) When does liability to pay GST arise in case of supply of goods?
(a) On raising of invoice
(b) At the time of supply of goods
(c) On receipt of payment
(d) Earliest of any of above.
(v) Input tax credit on capital goods and inputs can be availed in:
(a) thirty six instalment
(b) twelve instalment
(c) one instalment
(d) six instalment.
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MTP_Intermediate_Syllabus 2016_Dec2023_Set1
(B) State whether the following statements are true or false. [5×1=5]
(i) A person can collect tax only he is registered.
(ii) Air Travel Agents are entitled for exemption under GST.
(iii) Mortgage, hypothecation, change or pledge is not supply and hence GST
will not be levied.
(iv) Goods sent for a demonstration on returnable basis, is considered as supply.
(v) Form GST CMP-01 for Intimation of willingness to opt for scheme by
registered person.
(i) Sec 2(52), Goods means every kind of movable property other than
______________.
(ii) Fringe benefits are supply of goods or services and are liable to tax if not,
______________.
(iii) No GST on Advance Payments received for Supply of Goods by Small
Taxpayers having aggregate annual turnover of upto________.
(iv) GST is ________________ (chargeable/not chargeable) if free replacement
is provided by a business to customers without consideration under
warranty.
(v) The certificate of registration shall be valid for the period specified in the
application for registration or ninety days from the effective date of
registration, whichever is__________.
2. (a) State the functions of GSTN (Goods and Services Tax Network).
(b) (i) Mr. A owns a residential building in a prime commercial locality. Basement
of the building is leased to Mr. B, a wholesaler. One-fourth of the basement
is used by Mr. B as his office and remaining portion is used as a godown for
storing his merchandise. Ground floor of the building is given on rent to Mr.
C who uses the same as a guest house for his business contacts. First floor
Dos, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 3
MTP_Intermediate_Syllabus 2016_Dec2023_Set1
of the building is occupied by Mr. A. and his family. Second floor is given
on rent to Mr. D who uses the same as his residence. There is a large vacant
land in the backyard of the building which is also given on rent to a parking
contractor, Mr. E who has set up a parking facility on the said land. Separate
rent/lease deeds have been executed in respect of each floor of the building
and vacant land given on rent/lease. Examine the GST liability of Mr. A
with respect to the residential building owned by him.
3. (a) Mr. A, a registered person received goods from Mr. B, an unregistered dealer. Mr.
B issues invoice on 1st July 20XX.
Find the time of supply of goods (with reasons) in following independent cases:
(i) Mr. A received goods on 15th July 20XX, payment of which is not made
yet.
(ii) Mr. A received goods on 3rd August 20XX & made payment for the same
on 4th August 20XX.
(iii) Mr. A made payment on 8th July and received goods on the same date.
(iv) Mr. A received goods on 10th July 20XX & made payment for the same on
9th July 20XX.
(b) Motor vehicle worth `20 lakh is sold by M/s Sundar Pvt. Ltd. to a customer in
retail market and for which ` 5 lakh has been paid in cash and balance amount by
way of cheque.
Find the following:
(1) TCS under section 206C of the Income Tax Act, 1961 is applicable in the
given case?
(2) who is required to collect TCS?
(3) value TCS if any?
Dos, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 4
MTP_Intermediate_Syllabus 2016_Dec2023_Set1
(4) value of taxable supply under section 15 of CGST Act, 2017?
(5) Invoice Price of M/s Sunder Pvt. Ltd.?
Note: Assume applicable TCS is @1% and GST 28%. [8+7=15]
4. (a) M/s C Ltd. of Chennai being a trader provided the following information relating
to the preceding financial year is as follows:
Particulars ₹ in Lakhs
Intra-State supply taxable goods 20
Intra-State supply of exempted goods 30
Intra-State supply of taxable services 5
Intra-State outward supply of services on which recipient is liable 4
to pay GST
Export of goods 35
Inter-State inward supply of goods 200
CGST & SGST paid 2
Discuss whether M/s C Ltd. is eligible for composition scheme in the current
financial year?
(b) Y Ltd. manufactures taxable and exempted goods. Y Ltd. also simultaneously
provides taxable as well as exempted output services. Raw material 10,000 units
were purchased @ ₹100 per unit used commonly during the month of January
2023 to produce all final products. GST paid on inputs 12%. Input services
commonly used for all goods and services in the month of January 2023. Total
ITC on inputs and input services taken into books of account in the relevant tax
period is 1,74,000.
You are required to compute the amount of reversal of input tax credit as per rule
42(1)(i) of the CGST Rules, 2017 of the month of January 2018.
Note: Each unit of exempted final product needs 2 units of raw materials.
Assumed that there is no process loss. [7+8=15]
5. (a) Write down the advantages of Voluntary Registration. State the cases where
persons are not liable for registration.
Dos, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 5
MTP_Intermediate_Syllabus 2016_Dec2023_Set1
(b) Raman Hotels supplying only accommodation services in Chennai. Turnover of
Raman Hotels is less than 20 Lakhs. Raman Hotels listed hotel on online platform
namely Makemytrip.
The following categories of rooms get booked by the Makemytrip company who
pay to Raman Hotels after deducting their commission.
(1) Declared value per room (category 1), Non AC Room ₹950 per Night.
(2) Declared value per room (category 2), AC Room ₹1,800 per Night.
(3) Declared value per room (category 3), AC Room ₹7,000 per Night, where
additional bed ₹1,800 per Night.
(4) Declare value per room (category 4), AC Room ₹10,000 per Night, but
amount charged is ₹7000.
You are required to answer:
(i) who is liable to pay GST and
(ii) Net GST liability? [(5+3)+7=15]
6. (a) M/s. X Ltd. of Chennai, engaged in various businesses has provided the following
services, whose values are listed below:
(1) Service of interior decoration in respect of immovable property located in
Jammu: ₹ 5 lakh;
(2) Service of renting of commercial buildings in Delhi: ₹ 15 lakh;
(3) Architectural services to an Indian Hotel Chain which has business
establishment in Mumbai for its newly acquired property in Sydney: ₹ 25
lakhs;
(4) Services provided as an Indian agent undertaking marketing in India of
goods of a foreign seller: ₹ 51 lakhs;
(5) Services provided as travel agent undertaking marketing in India of services
of a foreign seller: ₹ 1 lakhs.
Find the place of supply and compute its GST liability. Applicable rate of GST
18%.
6. (b) Mr. Param (register person under GST) being a dealer furnished the following
business transactions took place during the Feb 20XX. Find the GST liability.
(a) Sale of plastic bangles for ₹ 20,000.
(b) Supply of mobile phones for ₹3,20,120
(c) Sale of printed books and newspapers for ₹1,25,500 (d) Sale of Dates for
₹13,500
(e) Sale of Salt for ₹ 9,180
(f) Sale of Organic manure worth ₹ 2,00,000
(g) Sale of Chemical Fertilizers ₹ 5,75,000 (out of which 30% subsidy received
from Government of India).
Dos, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 6
MTP_Intermediate_Syllabus 2016_Dec2023_Set1
Note: Taxable supply attracts GST @5% (CGST 2.5% and SGST 2.5%). [8+7=13]
Section – B
Answer Question No. 8 which is compulsory and any one from the rest of this section
(i) Entry 83 of the Union List of the _________________ to the Constitution of India
is empowered to levy the customs duty by the Central Government of India
(a) Sixth Schedule
(b) Seventh Schedule
(c) Eighth Schedule
(d) Ninth Schedule.
(ii) An area beyond __________________ from the base line is called High Seas.
(a) 100 nautical miles
(b) 150 nautical miles
(c) 200 nautical miles
(d) None of the above
Dos, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 7
MTP_Intermediate_Syllabus 2016_Dec2023_Set1
(c) owner has no intention to abandon but float and drift to the shore.
(d) are abandoned by owner of goods without any hope of recovery.
(b) BSA & Company Ltd. has imported a machine from U.K. From the following
particulars furnished by them, arrive at the assessable value for the purpose of
customs duty payable:
(i) F.O.B. cost of the machine 10,000 U.K. Pounds
(ii) Freight (air) 3,000 U.K. Pounds
(iii) Engineering and design charges paid to a firm in 500 U.K. Pounds
U.K
(iv) License fee relating to imported goods payable by 20% of F.O.B. Cost
the buyer as a condition of sale
(v) Materials and components supplied by the buyer free ₹ 20,000
of cost
valued
(vi) Insurance paid to the insurer in India ₹ 6,000
(vii) Buying commission paid by the buyer to his agent in
U.K. 100 U.K. Pounds
Other Particulars:
(i) Inter-bank exchange rate as arrived by the authorized dealer: ₹88.50 per
U.K. Pound.
(ii) CBIC had notified for purpose of Section 14 of the Customs Act, 1944,
exchange rate of ₹ 86.25 per U.K. Pound.
Dos, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 8
MTP_Intermediate_Syllabus 2016_Dec2023_Set1
(iii) Importer paid ₹ 5,000 towards demurrage charges for delay in clearing the
machine from the Airport.
(Make suitable assumptions wherever required and show workings with
explanations) [7 + 8=15]
10. (a) What is meant by Duty Drawback? Discuss about the Negative List of Duty
Drawback (Section 76).
(b) (i) A exported a consignment under drawback claim consisting of the following
items—
Particulars Chapter FOB value Drawback rate
Heading ₹
200 pieces of pressure 74.04 16,000 4% of FOB
stores mainly made of
beans @ ` 80/piece
Dos, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 9