Value of Supply MCQ | 50 Free MCQs on GST

Value of Supply MCQ

Value of Supply MCQ
Place of Supply MCQ

1. The value of supply of goods and services shall be the
(a) Transaction value
(b) MRP
(c) Market Value
(d) None of above

2. The value of supply of goods and services shall be the
(a) Transaction value
(b) Retail sale price
(c) Wholesale price
(d) None of above

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3. When can the transaction value be rejected for computation of value of supply
(a) When the buyer and seller are related and price is not the sole consideration
(b) When the buyer and seller are related or price is not the sole consideration
(c) It can never be rejected
(d) When the goods are sold at very low margins

4. If the goods are supplied to related persons then how should the taxable person ascertain the value of supplies?
(a) Seek the help of the GST officer
(b) Use the arm’s length price as required under the Income Tax law
(c) Refer the Rules which prescribed for this purpose
(d) None of the above

5. Persons shall be deemed to be “related persons” if any person directly or indirectly owns, controls or holds or more of the outstanding voting stock or shares of both of them;
(a) 25%
(b) 26%
(c) 51%
(d) 0%

6. Persons shall be deemed to be “related persons” if
(a) such persons are officers or directors of one another’s businesses
(b) such persons are legally recognised partners in business
(c) such persons are employer and employee;
(d) All of the above

7. The value of supply should include
(a) Any non-GST taxes, duties, cesses, fees charged by supplier separately
(b) Interest, late fee or penalty for delayed payment of any consideration for any supply of goodsor services
(c) Subsidies directly linked to the price except subsidies provided by the Central and State Government
(d) All of the above

8. Which of the following shall not be included in value of supply?
(a) GST
(b) Interest
(c) Late fee
(d) Commission

9. The value of taxable supply should not include –
(a) Taxes levied under SGST Act, 2017
(b) Taxes levied under CGST Act, 2017
(c) Taxes levied under GST Compensation Cess Act, 2017
(d) All of the above

10. Interest or late fee or penalty for delayed payment of any consideration for any supply
(a) Shall be excluded from the value of taxable supply
(b) Shall be included from the value of taxable supply
(c) Shall require no adjustment
(d) Can be included or excluded from the value of the taxable supply

Answers: 1)Transaction value 2)Transaction value 3)When the buyer and seller are related or price is not the sole consideration 4)Refer the Rules which prescribed for this purpose 5)25% 6)All of the above 7)All of the above 8)GST 9)All of the above 10)Shall be included from the value of taxable supply

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