Paper: Taxation Marks: 100

Time Allowed: 3 Hours

Question Paper

SECTION – A: INCOME TAX (50 MARKS)

Working Notes should form part of the answer. Wherever necessary, suitable assumptions may be made by
the candidates and disclosed by way of a note. However, in answers to Question in Division A, working notes
are not required.
Your answers should be based on the provisions of Income-tax law as amended by the Finance Act, 2021.
The relevant assessment year is A.Y.2024-25.

Division A – Multiple Choice Questions.

Write the most appropriate answer to each of the following multiple choice questions by choosing one of
the four options given. All questions are compulsory.

1) Mr. Naveen, aged 40 years, is engaged in the manufacturing business. He follows mercantile system of
accounting. The details pertaining to his business for the year ending on 31.3.2024 is as under –
Particulars Amount (Rs.)
Capital receipts 1.20 crores
Turnover 2.80 crores
Amount received in cash [out of turnover] 8 lakhs
Amount received in cash [out of capital receipts] 2 lakhs
Amount received through account payee cheque/ NEFT and other 2.50 crores
prescribed mode on or before the specified date under section
139(1) [out of turnover]

Total payment 1.60 crores

Cash payment [out of total payments] 9 lakhs
Net profit as per books of account 10.50 lakhs
An analysis of profit and loss for the year ended on 31.3.2024 revealed the following information
1. Salary incudes wages of Rs. 15,000 p.m. each paid to 1 security guard, 2 housekeeping staff in cash.
2. Other administration expenses include Rs. 70,000 paid in cash (Payment in a day is less than Rs. 8,000).
3. Interest charges includes interest payable on loan to Kamal of Rs. 70,000 on which TDS has not been
deducted. Loan was taken for the business purpose.
On the basis of the facts given above, choose the most appropriate answer to Q.1 to Q.5 below –

1. Is Mr. Naveen eligible to declare income on presumptive basis under the provisions of the Income-tax Act,
1961 for A.Y. 2024-25?
(a) No, since turnover of Mr. Naveen exceeds the threshold limit of Rs. 2 crores.
(b) Yes, since aggregate cash receipts during the year do not exceed 5% of total amount received.
(c) Yes, since amount received in cash during the year do not exceed 5% of turnover.
(d) No, as cash payments during the year exceed 5% of aggregate payments.

2. What would be your answer to MCQ 1, assuming for the purpose of answering this MCQ and MCQ 3 that
Mr. Naveen has additionally received
Rs. 10 lakhs by way of crossed cheque [out of turnover] during the P.Y. 2023-24?
(a) No, since turnover of Mr. Naveen exceeds the threshold limit of Rs. 2 crore.
(b) No, since the aggregate cash receipts during the year exceed 5% of turnover.
(c) No, as cash payments during the year exceed 5% of aggregate payments.
(d) No, due to both (a) and (b)

3. Is Mr. Naveen required to get his books of account audited during the P.Y. 2023-24?
(a) No, since turnover of Mr. Naveen does not exceed the threshold limit of Rs. 10 crores.
(b) Yes, since amount received in cash during the year exceeds 5% of turnover.
(c) Yes, since cash payments during the year exceed 5% of aggregate payments.
(d) No, since the amount received in cash during the year does not exceed 5% of total amount received.

4. What is the amount of profits and gains of business chargeable to tax in the hands of Mr. Naveen as per
books of account?
(a) Rs. 10,50,000
(b) Rs. 16,11,000
(c) Rs. 16,81,000
(d) Rs. 16,60,000

5. What is the amount of profits and gains of business chargeable to tax in the hands of Mr. Naveen if he
does not want to get his books of account audited?
(a) Rs. 17,40,000
(b) Rs. 16,96,000
(c) Rs. 22,40,000
(d) Rs. 16,80,000 Marks 5

2) Mr. Virat has a house property in Chennai which he let out to Mr. Sumit. For acquisition of this house, Mr.
Virat has taken a loan of ₹ 30,00,000 @10% p.a. on 1-4-2017. He has further taken a loan of ₹ 5 lakhs @12%
p.a. on 1.7.2023 towards repairs of the house. He has not repaid any amount of loan so far. The amount of
interest deduction u/s 24(b) to Mr. Virat for A.Y. 2024-25 if he opted for the provisions of section 115BAC is
(a) ₹ 2,00,000
(b) ₹ 2,30,000
(c) ₹ 3,45,000
(d) ₹ 3,60,000 Marks 2

3) Mrs. Bhawna, wife of Mr. Sonu, is a partner in a firm. Her capital contribution of ₹ 10 lakhs to the firm as
on 31.3.2023 included ₹ 6 lakhs contributed out of gift received from Sonu. On 1.4.2023, she further
invested
₹ 2 lakh out of gift received from Sonu. The firm paid interest on capital of ₹ 1,20,000 and share of profit of
₹ 1,00,000 during the F.Y.2023-24. The entire interest has been allowed as deduction in the hands of the
firm. Which of the following statements is correct?
(a) Share of profit is exempt but interest on capital is taxable in the hands of M₹ Bhawna
(b) Share of profit is exempt but interest of ₹ 80,000 is includible in the income of Mr. Sonu and
interest of ₹ 40,000 is includible in the income of M₹ Bhawna
(c) Share of profit is exempt but interest of ₹ 72,000 is includible in the income of Mr. Sonu and
interest of ₹ 48,000 is includible in the income of M₹ Bhawna
(d) Share of profit to the extent of Rs 60,000 and interest on capital to the extent of ₹ 72,000 is
includible in the hands of Mr. Sonu Marks 2

4) A building was acquired on 1.4.1995 for ₹ 20,00,000 and sold for ₹ 80,00,000 on 01.06.2023. The stamp
duty value on the date of transfer was ₹ 85,00,000. The fair market value of the building on 1.4.2001 was ₹
25,00,000. Its stamp duty value on the same date was ₹ 22,00,000. Determine the capital gains on sale of
such building for the A.Y. 2024-25? Cost Inflation Index for F.Y. 2001-02: 100; F.Y. 2023-24: 348
(a) ₹ 3,44,000
(b) ₹ 18,78,000
(c) ₹ 9,75,000
(d) ₹ 4,75,000 Marks 1

5) At the time of deduction of tax at source, surcharge and cess, is added in which of the following cases ?
a) Where the resident assessee receives any income in the nature of salary
 b) Where the recipient is an Indian company
c) Both (A) and (B)
d) Neither (A) nor (B) Marks 1

6) Mr. Vishal started a proprietary business on 01.04.2022 with a capital of ₹5,00,000. He incurred a loss of
₹ ₹ 1,00,000 during the year 2022-23. To overcome the financial position, his wife Mrs Kamini, a Chartered
Accountant, gave a gift of ₹ 4,00,000 on 01.04.2023, which was immediately invested in the business by Mr.
Vishal. He earned a profit of ₹ 2,00,000 during the year 2023-24. What is the amount to be clubbed in the
hands of M₹ Kamini for the Assessment Year 2024-25?
(a) ₹ 88,888
(b) ₹ 1,00,000
(c) ₹ 2,00,000
(d) Nil Marks 1

7) Mr. A has two bank accounts maintained with ICICI Bank and HDFC Bank. From 01.09.2023 till
31.03.2024, Mr. A withdrew the following amounts as cash from both the said accounts; HDFC Bank: Rs.50
Lakh ICICI Bank: Rs.120 Lakh
Compute the amount of tax to be deducted at source u/s 194N by HDFC Bank and ICICI Bank, respectively,
while making payment in cash to Mr. A.
(a) Rs.1,00,000 and Rs.2,40,000
(b) Nil and Rs. 40,000
(c) Nil and Rs.2,40,000
(d) Rs. 50,000 and Rs.1,20,000 Marks 1

8) Mr. Sunil took an education loan of Rs. 8 lakhs on 1.7.2023 from State Bank of India, Mumbai, for his son’s
MBA from University of Oxford, UK and remitted the said amount through the same bank, which is an
authorised dealer, under the Liberalised Remittance Scheme of RBI (LRS). He, further, remitted Rs. 2 lakhs on
15.10.2023 to his son for his personal expenditure, out of his personal savings, through Bank of India, Mumbai
which is also an authorised dealer, under LRS. Mr. Sunil also remitted Rs. 6 lakhs on 28.3.2024, out of his
personal savings, under LRS through Union Bank of India, Mumbai, for his sister’s medical treatment in
London.
Mr. Sunil has furnished undertaking containing the details of earlier remittance to Bank of India and Union
Bank of India.
What is the amount of tax to be collected from Mr. Sunil in respect of the remittance of amounts to his son
and sister?
(a) [email protected]% of Rs. 1 lakh in respect of remittance for son’s education; @5% of Rs. 2 lakhs in respect of
remittance for son’s personal expenditure and 5% of Rs. 6 lakhs in respect of remittance for sister’s medical
treatment.
(b) [email protected]% of Rs. 1 lakh in respect of remittance for son’s education; @20% of Rs. 2 lakhs in respect of
remittance for son’s personal expenditure and 5% of Rs. 6 lakhs in respect of remittance for sister’s medical
treatment.
(c) [email protected]% of Rs. 1 lakh in respect of remittance for son’s education; no TCS in respect of remittance
for son’s personal expenditure and sister’s medical treatment since each transaction is of less than Rs. 7 lakhs.
(d) [email protected]% of Rs. 1 lakh in respect of remittance for son’s education; @5% of Rs. 1 lakh in respect of
remittance for sister’s medical treatment. Marks 2

Division B – Descriptive Questions

Question No. 1 is compulsory
Attempt any two questions from the remaining three questions

Q1) Answer the following:

Mr. Raman, a resident individual aged 62 years, is engaged in the business of manufacturing and sales of spare
parts for motor bikes, as a proprietor. He prepares his accounts on mercantile basis. This business is carried out
on the ground floor of a two storied commercial building owned by him, the written down value of which is Rs. 8
lakhs as on April 1, 2023. He prepares his accounts on accrual basis. The Statement of Profit and Loss for the
previous year ended on March 31, 2024 shows a net profit of Rs. 9.25 lakhs (before taxation and depreciation)
after debiting/crediting the following items:

(i)Travelling expenses includes Rs. 2,40,000 being expenditure incurred on a foreign tour to Taiwan for attending
a business exhibition and meeting with vendors, out of which Rs. 40,000 is incurred in Indian currency and Rs.
2,00,000 in foreign currency. Mr. Raman has spent 10 days in Taiwan, out of which 4 days were utilized by him
for attending marriage ceremony of a vendor's son.

(ii)Administrative expenses include Rs. 9,525 paid towards interest on delay in deposit of GST.

(iii)General expenses include a sum of Rs. 3,88,000 paid to a non-resident as fee for technical services without
deduction of tax at source.

(iv)Fire insurance premium of Rs. 66,000 for the entire building remained unpaid till 31st March, 2024.

(v)Expenditure of Rs. 75,000, was paid to a scientific research association approved under section 35. Out of Rs.
75,000, Rs. 50,000 was utilised towards the purchase of land by the research association.

(vi)He let out first floor of his commercial building to Mr. Aman on April 1, 2023 and received rent of Rs. 35,000
per month. Municipal taxes Rs. 20,000 relating to the building were paid equally by both Mr. Raman and Mr.
Aman. Rent received was credited and municipal taxes of Rs. 10,000 (relating to ground floor) was debited to the
statement of profit and loss.

(vii)He sold a piece of land for Rs. 44 lakhs on 12th April, 2023. He had acquired the land for 40 lakhs on
1stJanuary, 2022. The gain of 4,00,000 is credited to the statement of profit and loss.
(CII for F.Y. 2021-22-317; F.Y. 2023-24-348)

Additional Information:
(i)Mr. Raman purchased raw material from M/s. Paul Industries, a micro enterprise, for Rs. 49,000 on March 10,
2024. However, the payment to M/s. Paul Industries was made on April 5, 2024 by cheque. No written
agreement for payment existed between M/s. Paul Industries and Mr. Raman. Another supplier M/s. Kal
Industries, a small enterprise, with whom also no written agreement existed for payment, was paid Rs. 1,34,000
in cash on April 5, 2024 for purchase of raw material on March 31, 2024. Both M/s. Paul Industries and M/s. Kal
Industries follow mercantile system of accounting.

(ii)Mr. Raman acquired a registered trademark on July 15, 2023 for Rs. 2,00,000. Mr. Raman started using this
trademark for his business from January 15, 2024. Mr. Raman omitted to enter any transaction relating to this
trademark in his books of accounts.

(iii)Mr. Raman bought a car for personal use on 12th April, 2020 for Rs. 5,40,000. He started using this car for
business purposes from 01.04.2023. As on that day, the market value of the car was Rs. 2,10,000. Assume the
rate of depreciation to be 15%.

(iv)He incurred Rs. 2,50,000 on the purchase of a new machinery to be used in the production of spare parts for
motor bikes on May 15, 2023.
(v)He has paid tuition fees of Rs. 25,000 for the education of his daughter to a college.

(vi)During the year, Mr. Raman has incurred Rs. 9,500 in cash for preventive health check-up where Rs. 5,000
was for himself and Rs. 4,500 was for his parents who are super senior citizens.

(vii)Donation paid to a registered political party by way of cheque Rs. 20,000.

Compute the total income and tax payable for assessment year 2024-25 by Mr. Raman under default tax regime
and optional tax regime as per normal provisions of the Act. Which option is advantageous to Mr. Raman?
Marks 15
 Q2) Answer the following:
a) Mr. Roxx, a citizen of the Country Y, is a resident but not ordinarily resident in India during the financial year
2023-24. He owns two house properties in Country Y, one is used as his residence. Another house property is
rented for a monthly rent of $ 18,000. Fair rent of the house property is $ 20,000. The value of one CYD ($) may
be taken as ₹ 78.
He took ownership and possession of a flat in Delhi on 1.10.2023, which is used for self- occupation, while he is in
India. The flat was used by him for 3 months at the time when he visited India during the previous year 2023-24.
The municipal valuation is ₹ 4,58,000 p.a. and the fair rent is ₹ 3,60,000 p.a. He paid property tax of ₹ 13,800 and
₹ 2,800 as Sewerage tax to Municipal Corporation of Delhi.
He had taken a loan of ₹ 18,00,000 @9.5% from HDFC Bank on 1st August, 2022 for purchasing this flat. No
amount is repaid by him till 31.03.2024.
He also had a house property in Bangalore which is let out on a monthly rent of ₹ 40,000. The fair rent of which is
₹ 4,58,000 p.a. and Municipal value of ₹ 3,58,000 p.a. and Standard Rent of ₹ 4,20,000 p.a. He had taken a loan of
₹ 25,00,000 @ 10% from one of his friends, residing in Country Y for this house. Municipal tax of ₹ 5,400 is paid
by him in respect of this house during the previous year 2023-24.Compute the income chargeable from house
property of Mr. Roxx for the assessment year 2024-25. Marks 5

b) Mr. X a resident individual submits the following information, relevant to the previous year ending March
31, 2024:

S. No. Particulars Amount (₹)

(i) Income from Salary (Computed) 2,22,000
(ii) Income from House Property
- House in Delhi 22,000
- House in Chennai (-) 2,60,000
- House in Mumbai (self-occupied) (-) 20,000
(iii) Profit and gains from business or profession
- Textile business 18,000
- Cosmetics business (-) 22,000
- Speculative business- 1 (-) 74,000
- Speculative business-2 46,000
(iv) Capital gains
Short term capital loss from sale of property (-) 16,000
Long term capital gains from sale of property 15,400
(v) Income from other sources (Computed)
- Income from betting 34,000
- Income from card games 46,000
- Loss on maintenance of race horses (-)14,600

Determine the gross total income of Mr. X for the assessment year 2024-25 and the losses to be carried forward
assuming that he does not opt to be taxed under section 115BAC Marks 5

Q3) Answer the following:

a) Mr. Rohan retired from M/s. QRST Ltd. a private sector company, on 31st March, 2024 after completing
28 years and 3 months of service. He received the following sums/gifts on his retirement:
(i) Gratuity of ₹ 7,50,000. He was covered under the Payment of Gratuity Act, 1972.
(ii) Leave encashment of ₹ 3,25,000 for 210 days leave balance in his account. He was credited with 30
days leave for each completed year of service.
(iii) Crockery set worth ₹ 4,500 from his employer at the farewell party which was organized by the HR
department a day before his retirement.
He drew a basic salary of ₹ 25,000 per month along with 50% of basic salary as dearness allowance (not
forming part of retirement benefits) for the period from 1st April, 2023 to 31st March, 2024.
Further, during the year, his employer provided him a motor car of 1800 cc which was used by him and his
family solely for personal purposes. The cost of fuel and repairs were met by Mr. Rohan himself. The car was
purchased by the employer on 1st April, 2022 at a cost of ₹ 8,00,000. Salary of driver amounting to ₹
10,000 per month was met by the employer only. Upon retirement, he gave the car back to the employer.
You are required to compute the taxable salary of Mr. Rohan for A.Y.2024-25 assuming that he neither
claims any relief under section 89 nor does he opt to pay tax under section 115BAC. Marks 5

b) Mr. Ray, a resident individual, aged 37 years gives the following information with respect to various loans
taken by him from scheduled banks for various purposes-
(i) A housing loan of ₹ 36,00,000/- taken on 15th March, 2022 for the purchase of a house to be used
for self-residence at a cost of ₹ 47,00,000/-. The stamp duty value of the house was ₹ 42,00,000/- at the
time of purchase. Amount of re-payment of loan during P.Y.2023-24 was:
(A) towards principal - ₹ 1,25,000/-
(B) towards interest - ₹ 3,65,000/-
This is the first and only residential house owned by Mr. Ray.
(ii) A vehicle loan of ₹ 16,00,000/- taken on 31st October, 2021 for the purchase of electric vehicle for
personal use. Amount of re-payment of loan during P.Y.2023-24 was:
(A) towards principal - ₹ 75,000/-
(B) towards interest - ₹ 1,90,000/-
Besides these loans, he has also paid a sum of ₹ 15,000 to a political party as contribution. The entire
amount was paid in cash.
You are required to compute the amount of deduction(s) available to Mr. Ray under various provisions of
Income-tax Act for A.Y.2024-25 so that he gets the maximum benefits assuming that he does not opt to pay
tax under section 115BAC. Marks 5

Q4) Answer the following:

a) Mr. X would like to furnish his updated return for the A.Y. 2024-25. In case he furnished his updated
return of income, he would be liable to pay ₹ 2,50,000 towards tax and ₹ 35,000 towards interest after
adjusting tax and interest paid at the time filing earlier return. You are required to examine whether Mr. X
can furnish updated return
(i) as on 31.3.2026
(ii) as on 28.2.2027
(i) as on 31.5.2027
If yes, compute the amount of additional income-tax payable by Mr. X at the time of filing his updated
return. Marks 4

b) Mr. Kalyan has a residential house property which was acquired on 12-08-2005 for ₹ 2,00,000. The
property is sold for ₹ 22,00,000 in December 2023. The sub-registrar refused to register the documents for
the said value, as according to him, stamp duty value based on State Government guidelines was ₹
28,00,000. Mr. Kalyan preferred an appeal to the revenue divisional officer who fixed the value of the house
₹ 25,00,000. He acquired another residential house on 31 -03-2024 for ₹ 17,00;000 for self- occupation. On
01-03-2025, he sold such new residential house for ₹ 30,00,000.
Compute his capital gain for the A.Y. 2024-25 and 2025-26. (Cost Inflation Index: 2001-02; 2005- 06 and
2023-24 are, 100; 117 and 348) Marks 6
 SECTION B - INDIRECT TAXES (50 MARKS) QUESTIONS
Division A - Multiple Choice Questions
Write the most appropriate answer to each of the following multiple choice questions by choosing one of the
four options given. All questions are compulsory.

1) Bali Bells Ltd. (hereinafter referred as Bali Bells), a private limited company registered in Chennai, Tamil
Nadu, provides the following outward supplies in the month of September:
Particulars Amount
(₹)
Taxable Exempt
Intra-State outward supplies 40,00,000 15,00,000
Inter-State outward supplies 30,00,000 10,00,000
Bali Bells Ltd. sold land for ₹ 2,00,00,000 (excluding GST) in the month of September. Bali Bells purchased one
heavy steel machinery in the month of September for ₹ 1,00,000 (excluding GST @ 18%). Bali Bells capitalized
the value of machinery along with GST paid on the same in its books of accounts and claimed depreciation on
the full value of machinery as well as on GST amount.
Apart from this, Bali Bells has a tax invoice dated 25th July of last financial year with respect to an inward
supply of ₹ 50,000 (excluding GST @ 18%). The company has not availed ITC on said invoice yet.
Bali Bells distributed some free samples of goods in the month of October to its customers to promote its
sales.
Bali Bells made a supply during November, details of which are as follows-
- Basic price of the product before TCS under Income Tax Act, 1961 – ₹ 45,000
- Tax collected at source under Income-tax Act, 1961 – ₹ 2,500
- It received a subsidy of ₹ 3,500 from Bharat Foundation Pvt. Ltd. for usage of green energy and the
subsidy was linked to the units of energy saved and not aforesaid product.
Bali Bells has not furnished its annual return for the preceding financial year till the end of November and will
furnish it in the month of December of the current financial year.
Assume that there is no other outward or inward supply transaction apart from aforesaid transactions, in the
months of September, October and November. All the amounts given above are exclusive of taxes, unless
otherwise specified.

Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 1 to 5
below:-
i) Determine the aggregate turnover of Bali Bells for the month of September.
a) ₹ 2,70,00,000
(b) ₹ 95,00,000
(c) ₹ 2,95,00,000
(d) ₹ 70,00,000

ii) Bali Bells wants to avail ITC on GST paid on the heavy steel machinery purchased in September. Which of
the following statements is true in this regard?
(a) ITC on the machinery cannot be availed since depreciation has been claimed on the GST paid on the
machinery under Income-tax Act, 1961.
(b) ITC on the machinery shall be allowed to the extent of 50% in the current financial year and balance 50%
in the subsequent financial year.
(c) ITC on the machinery shall be allowed in the current financial year only to the extent of the depreciation
claimed on GST paid on machinery.
(d) Full ITC of GST paid on the machinery can be availed in the current year.

iii) Whether Bali Bells can avail ITC on the free samples of goods distributed in the month of October?
(a) Yes; ITC is available on outward supplies even if made without consideration in the course or furtherance
of business.
(b) No; ITC is not available since supply of samples is without consideration.
(c) No; ITC on free samples is blocked under section 17(5) of the CGST Act, 2017.
(d) No; ITC is not available since supply of free samples is not in course or furtherance of business.
 iv) Bali Bells can claim ITC on inputs received in July of preceding financial year upto of the current
financial year.
(a) 30th November
(b) 25th July
(c) 31st December
(d) 30th September

v) Compute the value of supply under section 15 of the CGST Act, 2017 made by Bali Bells in the month of
November?
(a) ₹ 45,000
(b) ₹ 47,500
(c) ₹ 48,500
(d) ₹ 51,000 (5 x 1 Mark)

2) TT Pvt. Ltd., registered in Rajasthan, furnished following information for the month of June:
Inter-State sale of goods for ₹ 1,25,000 to JJ Enterprises registered in Haryana
Inter-State purchases of goods from XYZ company, registered in Punjab, for ₹ 40,000
Intra-State purchases of goods from RR Traders, registered in Rajasthan, for ₹ 65,000
All the above amounts are exclusive of taxes. The applicable rates of CGST, SGST and IGST are 9%, 9% and
18% respectively on inward as well as outward supplies. There is no opening balance of ITC. GST liability
payable in cash is-
(a) CGST ₹ 1,800 & SGST ₹ 1,800
(b) SGST ₹ 3,600
(c) IGST ₹ 3,600
(d) CGST ₹ 3,600 Marks 2

3) Ganesh Traders, engaged in manufacturing of taxable as well as exempt goods, purchased a machinery worth
₹ 17,70,000 (₹ 15,00,000 plus ₹ 2,70,000 GST). It capitalized full amount including taxes in the books of
accounts and claimed depreciation on it as per provisions of the Income Tax Act, 1961. Compute the amount
of ITC that can be claimed by Ganesh Traders?
(a) ₹ 2,70,000
(b) Zero
(c) In proportion of taxable and exempt supply
(d)By decreasing percentage points as prescribed Marks 1

4) Pradeep Traders, registered in Haryana, sold goods for ₹ 2,05,000 to Balram Pvt. Ltd. registered in Uttar
Pradesh (GST is leviable @ 5% on said goods). As per the terms of sales contract, Pradeep Traders has to
deliver the goods at the factory of Balram Pvt. Ltd. For this purpose, Pradeep Traders has charged freight of
₹ 2,400 from Balram Pvt. Ltd. GST is leviable @ 12% on freight. What would be the net GST liability to be paid
in cash in this case assuming that the amounts given herein are exclusive of GST?
(a) IGST-₹ 37,332
(b) IGST-₹ 10,370
(c) CGST-₹ 18,666 and SGST-₹ 18,666
(d) CGST-₹ 5,185 and SGST-₹ 5,185 Marks 2

5) Ms. Pearl is a classical singer. She wants to organize a classical singing function, so she booked an auditorium
on 10th August for a total amount of ₹ 20,000. She paid ₹ 5,000 as advance on that day. The classical singing
function was organized on 10th October. The auditorium owner issued invoice to Ms. Pearl on 25 th
November amounting to ₹ 20,000. Pearl made balance payment of ₹ 15,000/- on 30th November. Determine
the time of supply in this case.
(a) Time of supply is 25th November for ₹ 20,000.
(b) Time of supply is 25th November for ₹ 5,000 & 30th November for ₹ 15,000.
(c) Time of supply is 10th August for ₹ 5,000 & 10th October for ₹ 15,000.
(d) Time of supply is 10th October for ₹ 20,000. Marks 2

6) Which of the following service is not exempt under GST?

(a) Loading and unloading of paddy
 (b) Loading and unloading of sugarcane
(c) Loading and unloading of tea bags
(d) Loading and unloading of potato. Marks 1

7) M/s Fair Engineering Consultants, located and registered under GST in Gurugram, Haryana, provided
architectural services to Mahal India Ltd., located and registered under GST in Mumbai, Maharashtra, for its
hotel to be constructed on land situated in Dubai. Determine the place of supply of architectural services
provided by M/s Fair Engineering Consultants to Mahal India Ltd.:
(a) Gurugram, Haryana
(b) Mumbai, Maharashtra
(c) Dubai
(d) Either Maharashtra or Dubai, at the option of the recipient Marks 1

8) Which of the following activity shall be treated neither as a supply of goods nor a supply of services?
(i)Permanent transfer of business assets where input tax credit has been availed on such assets
(ii)temporary transfer of intellectual property right
(iii)transportation of deceased
(iv)services by an employee to the employer in the course of employment
(a) (i) & (iii)
(b) (ii) & (iv)
(c) (i) & (ii)
(d) (iii) & (iv)
Marks 1

Division B – Descriptive Questions

Question No. 1 is compulsory
Attempt any two questions from the remaining three questions

Q1) Answer the following:

a) 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 :
SI. Particulars Amount
No. (₹)
i. Tuition fee received from students pursuing management courses recognised by 18,00,000
Punjab University, established by an Act of State Legislature
ii. Tuition fee received from students pursuing under- graduate courses recognisedby 8,50,000
Stan University, London under Dual Degree programmes
iii. Fee received from students of competitive exam training academy run by a 5,40,000
Department of AIM
iv. Mess fees received from students pursuing qualification recognized by Indian 3,20,000
law (Mess is run by AIM on its own)
v. Amount paid to Local Municipal Corporation for premises taken on rent for 50,000
conducting coaching classes for competitive exams
vi. Legal services availed from Top Care & Co., a Partnership firm of advocates, for 20,000
the competitive exam training academy (Intra-state transaction)
Note:
The aggregate turnover of AIM in the preceding financial year exceeds ₹ 20 lakh. 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. There is 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 minimum 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.
Marks 8

b) M/s. ABC & Co., a chartered accountancy firm, has its office in Bengaluru and is registered under GST in
the State of Karnataka. It submitted the following information for the month of April:
Sr. Particulars Amount of services
No. provided excluding
GST (₹)
1. Statutory audit services provided (intra-State supplies) 1,20,000
2. ITR filing services provided within Karnataka (intra-Statesupplies) 1,60,000

3. Internal audit services provided to Mumbai client (inter-State 1,80,000

supplies)
M/s ABC & Co had also incurred the following expenses in the month of April for the purpose of providing
the taxable services:
Sr. Particulars CGST (₹) SGST (₹)
No.
1. Car purchased by firm for the use of senior partner ofthe 42,000 42,000
firm for official use
2. Office rent paid to landlord who is registered in State of 450 450
Karnataka
3. Professional fee paid to Mr. Rajesh, a practicing 18,000 18,000
Chartered Accountant, for professional services availed
[TDS of ₹ 20,000 is deducted under section 194J of the
Income-tax Act, 1961]
4. Computer purchased for office purpose 3,000 3,000
Out of the above 4 suppliers/service providers, landlord of office to whom rent was paid did not upload his
GSTR-1 within the specified time allowed under GST resulting in the GST amount not being reflected in
GSTR-2B of M/s. ABC & Co.
Compute the net GST payable in cash by M/s. ABC & Co. for the month of April.
Rates of CGST, SGST and IGST are 9%, 9% and 18% respectively assuming that all the remaining conditions of
utilisation of ITC are fulfilled. Marks 7

Q2) Answer the following:

a) Examine whether the supplier of goods is liable to get registered in the following independent cases:
(i) Raghav of Assam is exclusively engaged in intra-State taxable supply of readymade garments. His
turnover in the current financial year (FY) from Assam showroom is ₹ 33 lakh. He has another showroom in
Tripura with a turnover of ₹ 11 lakh in the current FY.
(ii) Pulkit of Panjim, Goa is exclusively engaged in intra-State taxable supply of shoes. His aggregate
turnover in the current financial year is ₹ 22 lakh.
(iii) Harshit of Himachal Pradesh is exclusively engaged in intra-State supply of pan masala. His aggregate
turnover in the current financial year is ₹ 24 lakh. Marks 4

b) Narayan Singh, a registered supplier, has received advance payment with respect to services to be
supplied to Shelly. His accountant asked him to issue the receipt voucher with respect to such services to be
supplied. However, he is apprehensive as to what would happen in case a receipt voucher is issued, but
subsequently no services are supplied. You are required to advise Narayan Singh regarding the same.
Marks 3

c) Yash & Co., a manufacturer and supplier of plastic goods, is registered under GST in the State of
Maharashtra. Yash & Co. sold plastic goods to a retail seller in Punjab, at a value of ₹ 43,000 (excluding GST
leviable @ 18%). Now, it wants to send the consignment of such plastic goods to the retail seller in Punjab.
You are required to examine whether e-way bill is mandatorily required to be generated in respect of such
movement of goods as per the provisions of the GST law. Marks 3
Q3) Answer the following:
a) State the order in which every taxable person discharges his tax and other dues under GST law, as
provided under section 49 of the CGST Act, 2017. Marks 3

b) Ragini Traders, a registered supplier of Jaipur, is engaged in supply of various goods and services
exclusively to Government departments, agencies, local authority and persons notified under section 51 of
the CGST Act, 2017.
You are required to briefly explain the provisions relating to tax deduction at source under section 51
and also determine the amount of tax, if any, to be deducted from each of the receivables given below
(independent cases) assuming that the payments as per the contract values are made on 31st October. The
rates of CGST, SGST and IGST may be assumed to be 6%, 6% and 12% respectively.
(1) Supply of computer stationery to Public Sector Undertaking (PSU) located & registered in Mumbai.
Total contract value is ₹ 2,72,000 (inclusive of GST)
(2) Supply of air conditioner to GST department located & registered in Delhi. Total contract value is
₹ 2,55,000 (exclusive of GST)
(3) Supply of generator renting service to Municipal Corporation of Jaipur (not exempt under GST law).
Total contract value is ₹ 3,50,000 (inclusive of GST) Marks 4

c) Batra Ltd., a normal taxpayer, is winding up its business in Rajkot. The Tax Consultant of Batra Ltd. has
suggested that Batra Ltd. will have to file either the annual return or the final return at the time of voluntary
cancellation of registration in the State of Rajkot.
Do you agree with the stand taken by Tax Consultant of Batra Ltd.? Offer your comments. Ignore the
aggregate turnover of Batra Ltd. Marks 3

Q4) Answer the following:

a) Determine whether the suppliers in the following cases are eligible for composition levy, under section
10(1) & 10(2) of the CGST Act, 2017, provided their turnover in preceding year does not exceed Rs. 1.5
crore:
(i) Mohan Enterprises is engaged only in trading of pan masala in Rajasthan and is registered in the
same State.
(ii) Sugam Manufacturers has registered offices in Punjab and Haryana and sells goods manufactured
by it in the neighbouring States. Marks 4

b) Dhun Pvt. Ltd. owned by Jairaj - a famous classical singer - wishes to organise a ‘Jairaj Music Concert’ in
Gurugram (Haryana). Dhun Pvt. Ltd. (registered in Ludhiana, Punjab) enters into a contract with an event
management company, Dhanraj (P) Ltd. (registered in Delhi) for organising the said music concert at an
agreed consideration of Rs. 10,00,000.
Dhanraj (P) Ltd. books the lawns of Hotel Dumdum, Gurugram (registered in Haryana) for holding the music
concert, for a lump sum consideration of Rs. 4,00,000. Dhun Pvt. Ltd. fixes the entry fee to the music
concert at Rs. 5,000.
You are required to determine the place of supply in respect of the supply(ies) involved in the given
scenario. Marks 4

c) What are the accounts and records required to be maintained by an Agent? Marks 2