Levy and Collection of Taxes MCQ | 20 Free MCQs
Levy and Collection of Taxes MCQ
1. What are the taxes levied on an intra-state supply?
(a) CGST
(b) SGST
(c) CGST and SGST
(d) IGST
2. What is the maximum rate prescribed under CGST Act?
(a) 12%
(b) 28%
(c) 20%
(d) 18%
3. Who will notify the rate of tax to be levied under CGST Act?
(a) Central Government suo moto
(b) State Government suo moto
(c) GST Council suo moto
(d) Central Government as per the recommendations of the GST Council
4. Which of the following taxes will be levied on imports?
(a) CGST
(b) SGST
(c) IGST
(d) CGST and SGST
5. What is the maximum rate prescribed under UTGST Act?
(a) 14%
(b) 28%
(c) 20%
(d) 30%
6. Supply shall attract IGST?
(a) Intra-State
(b) Inter-State
(c) Both
7. Is there any ceiling limit prescribed on the rate under IGST?
(a) 14%
(b) 40%
(c) 26%
(d) 30%
8. What if an e-commerce operator having no physical presence in the taxable territory, does not have a representative in the taxable territory?
(a) His will have to discharge his tax liability in foreign currency
(b) He will not be liable to tax
(c) He has to appoint a person in the taxable territory for the purpose of paying tax on his behalf
(d) None of the above
9. Unless and until notified, IGST shall not be levied on the inter-State supply of which of the following:
(a) Industrial alcohol
(b) Works contract
(c) Petroleum
(d) None of the above
10. What are the supplies on which reverse charge mechanism would apply at present?
(a) Notified categories of goods or services or both under section 9(3)
(b) Inward supply of goods or services or both from an unregistered dealer under section 9(4)
(c) Both the above
(d) None of the above
| Answers: 1)CGST and SGST 2)20% 3)Central Government as per the recommendations of the GST Council 4)IGST 5)20% 6)Inter-State 7)40% 8)He has to appoint a person in the taxable territory for the purpose of paying tax on his behalf 9)Petroleum 10)Notified categories of goods or services or both under section 9(3) |
11. Which of the following services are covered under Reverse Charge Mechanism of CGST Act,2017?
(i) Legal Consultancy
(ii) Goods Transport Agency
(iii) Manpower Supply
(iv) Rent-a-Cab
(a) i & iii
(b) i & iv
(c) i & ii
(d) All the above
12. In case of sponsorship services provided by Mr. A to M/s AB Ltd., liability to pay GST is on:
(a) Mr. A
(b) M/s AB Ltd.
(c) Both
(d) None of the above
13. In case of renting of land, inside an Industrial estate, by State Government to a registered manufacturing company, GST is:
(a) Exempted
(b) Applicable under Normal Charge
(c) Applicable under Reverse Charge
(d) None of the above
14. In case of services by an insurance agent to Ms. ABC Insurance Co. Ltd., GST is to be paid by:
(a) Insurance Agent
(b) ABC Insurance Co. Ltd.
(c) Both
(d) None of the above
15. Sitting fees received by director of XYZ Ltd., is liable for GST in the hands of the
(a) Director
(b) XYZ Ltd.
(c) Both of above
(d) None of the above
16. Services by a recovery agent to M/s ZZZ Bank Ltd., are liable for GST in the hands of:
(a) M/s ZZZ Bank Ltd.
(b) Recovery agent
(c) Both the above
(d) None of the above
17. In case of lottery procured from State Government by a lottery distributor, GST is payable by:
(a) Lottery distributor
(b) State Government
(c) Both the above
(d) None of the above
18. Reverse charge under section 9(3) of the CGST Act is applicable:
(a) Only on notified services
(b) Only on notified goods
(c) On Notified goods & services
(d) On None of the above
19. If Tobacco leaves procured from an Agriculturist by a registered person, then:
(a) Reverse charge is applicable
(b) Normal charge is applicable
(c) Joint charge is applicable
(d) None of the above
20. In case M/s. PQR Ltd., a registered person, has availed rent-a-cab service from M/s ABC Travels (Proprietor) service then which one of the following is true:
(a) Reverse charge is applicable as this is a notified service
(b) Reverse charge is applicable if ABC Travels is not registered
(c) Joint charge is applicable
(d) None of the above
| Answers: 11)i & ii 12)M/s AB Ltd. 13)Applicable under Reverse Charge 14)Supply of services 15)Supply of services 16)Supply of services 17)Lottery distributor 18)On Notified goods & services 19)Reverse charge is applicable 20)Reverse charge is applicable if ABC Travels is not registered |
21. Reverse charge is applicable:
(a) Only on intra-State supplies
(b) Only on inter-State supplies
(c) Both intra-State and inter-State supplies
(d) None of the above
| Answers: 21)Both intra-State and inter-State supplies |
