Scope of Supply MCQ | 50 Free MCQs

31. The duties performed by any person who holds any post in pursuance of the provisions of the Constitution in that capacity shall be considered as ________ .
(a) Supply of goods
(b) Supply of services
(c) Neither as a supply of goods nor a supply of services
(d) Either as a supply of goods or a supply of services

32. The duties performed by any person as a Chairperson or a Member or a Director in a body established by the Central Government or a State Government or local authority and who is not deemed as an employee before the commencement of this clause shall be considered as ________ .
(a) Supply of goods
(b) Supply of services
(c) Neither as a supply of goods nor a supply of services
(d) Either as a supply of goods or a supply of services

33. Services of funeral, burial, crematorium or mortuary including transportation of the deceased shall be treated as _______ .
(a) Supply of goods
(b) Supply of services
(c) Neither as a supply of goods nor a supply of services
(d) Either as a supply of goods or a supply of services

34. Actionable claims, other than lottery, betting and gambling shall be treated as _______ .
(a) Supply of goods
(b) Supply of services
(c) Neither as a supply of goods nor a supply of services
(d) Either as a supply of goods or a supply of services

35. Gifts not exceeding _______ in value in a financial year by an employer to an employee shall not be treated as supply of goods or services or both.
(a) 50,000
(b) 1,00,000
(c) 2,00,000
(d) 2,50,000

36. The _______ shall be treated as supply even if made without consideration
(a) Permanent transfer or disposal of business assets where input tax credit has been availed on such assets.
(b) Permanent transfer or disposal of business assets where input tax credit has NOT been availed on such assets.
(c) Both of the above
(d) None of the above

37. The ______ shall be treated as supply even if made without consideration
(a) Supply of goods by a principal to his agent where the agent undertakes to supply such goodson behalf of the principal;
(b) Supply of goods by an agent to his principal where the agent undertakes to receive suchgoods on behalf of the principal.
(c) Both of the above
(d) None of the above

38. The _______ shall be treated as supply even if made without consideration.
(a) Supply of goods by a principal to his agent where the agent undertakes to supply such goodson behalf of the principal;
(b) Supply of goods by an agent to his principal where the agent undertakes to receive suchgoods on behalf of the principal.
(c) Permanent transfer or disposal of business assets where input tax credit has been availedon such assets
(d) All of the above

39. Import of services by a taxable person from a related person or from any of his other establishments outside India, in the course or furtherance of business shall ______ .
(a) Supply of services
(b) Not to be treated as supply of service
(c) Be treated as supply even when made without consideration
(d) None of the above

40. Which of the following is – the supply in which possession of the goods are transferred but the title on the same will be transferred at the future date?
(a) Rent a car
(b) Hire Purchase
(c) Normal sale of goods
(d) None of the above

Answer: 31)Neither as a supply of goods nor a supply of services 32)Neither as a supply of goods nor a supply of services 33)Neither as a supply of goods nor a supply of services 34)Neither as a supply of goods nor a supply of services 35)50,000 36)Permanent transfer or disposal of business assets where input tax credit has been availed on such assets 37)Both of the above 38)All of the above 39)Be treated as supply even when made without consideration 40)Hire Purchase

41. Which of the following is – the supply in which possession of the goods are transferred but the title of the goods is not transferred at all and thereby attains the character of the supply of service?
(a) Rent a car
(b) Hire Purchase
(c) Normal sale of goods
(d) None of the above

42. Suppose XYZ Ltd has a license to operate a particular business venture but he refrains from operating such business venture after an agreement with other business houses in the same line of business against receiving certain amount. Is this a supply of service?
(a) Yes
(b) No
(c) Exempted
(d) None of the above

43. Which of the following is the supply even if made without consideration?
(a) Stock transfer out to another state
(b) Temporary application of business asset for a non-business needs
(c) Free transfer of business asset
(d) All of the above

44. What are the factors differentiating composite supply & mixed supply?
(a) Nature of bundling i.e. artificial or natural
(b) Existence of principal supply
(c) Both of the above
(d) None of the above

45. What would be the tax rate applicable in case of composite supply?
(a) Tax rate as applicable on principal supply
(b) Tax rate as applicable on ancillary supply
(c) Tax rate as applicable on respective supply
(d) None of the above

46. What would be the tax rate applicable in case of mixed supply?
(a) Tax rate as applicable on supply attracting the lowest rate of tax
(b) Tax rate as applicable on supply attracting the highest rate of tax
(c) Tax @ 28%
(d) None of the above

47. Which of the following supplies are naturally bundled?
(a) Rent deed executed for renting of two different floors of a building-one for residential andanother for commercial purpose to same person
(b) Pack of watch, tie and belt
(c) Package of canned food such as burger, chocolates, sweets, cake etc.
(d) None of the above

48. A _______ supply comprising of two or more supplies shall be treated as the supply of thatparticular supply that attracts highest rate of tax.
(a) Composite
(b) Mixed
(c) Both (a) and (b)
(d) None of the above

49. ________ means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply.
(a) Composite Supply
(b) Principal Supply
(c) Mixed Supply
(d) Inward Supply

50. ________ means two or more individual supplies of goods or services, or any combination thereof,made in conjunction with each other by a taxable person for a single price where such supplydoes not constitute a composite supply.
(a) Mixed Supply
(b) Principal Supply
(c) Inward Supply
(d) Exempt Supply

Answer: 41)Rent a car 42)Yes 43)All of the above 44)Both of the above 45)Tax rate as applicable on principal supply 46)Tax rate as applicable on supply attracting the highest rate of tax 47)None of the above 48)Mixed 49)Composite Supply 50)Mixed Supply