Time of Supply MCQ | 50 Free MCQs on GST

41. What is the time of supply of service in case of reverse charge mechanism?
(a) Date of payment as entered in the books of account of the recipient
(b) Date immediately following 60 days from the date of issue of invoice
(c) Date of invoice
(d) Earlier of (a) and (b)

42. From the following information determine the TOS of goods where goods are taxed on reverse charge basis
Date of issue of invoice by the supplier – 30th Nov. 2019
Date of receipt of goods – 30th Nov. 2019
Date of payment by the recipient – 10th Dec. 2019
Entry of receipt of services in the recipient’s BOA – 12th Dec. 2019
(a) 30th Nov. 2019
(b) 10th Dec. 2019
(c) 12th Dec. 2019
(d) 30th Dec. 2019

43. From the following information determine the reverse charge basis.
Date of Invoice : 30-1-2019
Date of completion of service : 30-1-2019
Date of payment by recipient : 15-1-2019
Entry for receipt of service in recipient’s books : 30-1-2019
(a) Date of Invoice : 30-1-2019
(b) Date of payment by recipient : 15-1-2019
(c) Either of the above
(d) None of the above

44. What is the time of supply of service in case an associated enterprise receives services from the service provider located outside India?
(a) Date of entry in the books of account of associated enterprise (recipient)
(b) Date of payment
(c) Earlier of (a) and (b)
(d) Date of entry in the books of the supplier of service

45. A Ltd. is located in India and W Ltd. located in USA are associated enterprises (as A Ltd. holds 51% of the shares of W Ltd.). W Ltd. provides some technical services to A Ltd. in India.
From the following details, determine the TOS for A Ltd. (as importation of services is the case of RCM) Agreed Consideration – $ 10,000.
Date on which services are supplied on W Ltd. – 16th Dec. 2019
Date on which invoice is sent by W Ltd. – 19th Dec. 2019
Date of entry in the Books of Account of A Ltd. – 30th Dec. 2019
Date on which payment is made by A Ltd. – 23rd March 2020
(a) 16th Dec. 2019
(b) 19th Dec. 2019
(c) 30th Dec. 2019
(d) 23rd March 2020

46. What is the time of supply of vouchers in respect of services when the supply with respect to the voucher is identifiable?
(a) Date of issue of voucher
(b) Date of redemption of voucher
(c) Earlier of (a) and (b)
(d) (a) and (b) whichever is later

47. What is the time of supply of vouchers when the supply with respect to the voucher is not identifiable?
(a) Date of issue of voucher
(b) Date of redemption of voucher
(c) Earlier of (a) and (b)
(d) (a) and (b) whichever is later

48. There was increase in tax rate from 20% to 24% w.e.f. 1.09.2019. Which of the following rate is applicable when services are provided after change in rate of tax in September 2019, but invoice issued and payment received, both in August, 2019 :
(a) 20% as it is lower of the two
(b) 24% as it is higher of the two
(c) 20% as invoice and payment were received prior to rate change
(d) 24% as the supply was completed after rate change

49. There was increase in tax rate from 20% to 24% w.e.f. 1.09.2019. Which of the following rate is applicable when services provided, and invoice raised after change in rate of tax in September,2019, but payment received in August 2019 :
(a) 20% as it is lower of the two
(b) 24% as it is higher of the two
(c) 20% as payment (being one of the factors) was prior to rate change
(d) 24% as invoice was issued in the period during which supply is completed

50. There was increase in tax rate from 20% to 24% w.e.f. 1.9.2019. Which of the following rate is applicable if the supplier has opted for composition levy and invoice was issued after change in rate of tax in September, 2019 but payment received, and goods supplied in August, 2019 :
(a) 20% as it is lower of the two
(b) 24% as it is higher of the two
(c) 20% as payment was received in the period during which the supply was effected
(d) 24% as invoice being one of the factors was issued after rate change

Answer: 41)Earlier of (a) and (b) 42)30th Nov. 2019 43)Date of payment by recipient : 15-1-2019 44)Earlier of (a) and (b) 45)30th Dec. 2019 46)Date of issue of voucher 47)Date of redemption of voucher 48)20% as invoice and payment were received prior to rate change 49)24% as invoice was issued in the period during which supply is completed 50)20% as payment was received in the period during which the supply was effected