CS Executive Tax Laws and Practice PYQ June 2018: Question Paper and Available Answers

CS Executive Tax Laws and Practice PYQS Series June 2018 100 Questions Indexed

ICSI Examination Archive & Suggested Answers: This directory contains indexed questions from the paper for CS Executive Tax Laws and Practice PYQS (June 2018). Open the source paper and available answers. Older sessions follow the syllabus and statutory provisions applicable to their examination year.

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Indexed questions

Income chargeable to tax under the Income Tax Act, 1961 in the Assessment Year has been defined in section 2(24) to include: (i) Voluntary contribution received by an electoral tru
Amount of ₹5,00,000 received by Ram & Co., as a compensation for premature termination of contract of agency in the month of April, 2017 is to be treated as:
John is a foreign citizen born in USA. His father was born in Delhi in 1960 and his grand-father was born in Lahore in 1935 but his mother was born in UK in 1963. John came to Indi
In the case of a co-operative society, surcharge is levied, where its total income exceeds ₹__________ crore.
The following income of Ms. Nargis who is a non-resident shall be included in her total income: (i) Salary for 2 months received in Delhi ₹40,000. (ii) Interest on Savings Bank Acc
The income earned during the previous year is subject to tax under the Act on the basis of residential status of an assessee. However, the residential status of an assessee _______
The income derived from growing, manufacturing and sale of Centrifuged latex or Cenex or Latex based cops as per Rule 7A of the Income-tax Rules, 1962 shall be taken as agricultura
The following incomes derived, received and earned during the previous year are not subject to tax being exempt under the Act: (i) Money received by an individual as a member of HU
Ram Kripa Charitable Trust owns a capital asset of ₹2,00,000 and half of the income from such asset is utilized for charitable purposes. The asset was sold for ₹3,50,000 and from t
The maximum amount of gratuity exempt and the maximum amount of leave encashment exempt under the Act respectively are :
HSP, a LLP had taken Key Men insurance policy on the life of its Managing Partner. The policy got matured on 13th September, 2017 and amount of ₹75 lakh was paid by the insurers to
In a scheme of buy back of shares, XYZ Ltd., a listed company, paid ₹6 lakh to a shareholder X on 12-3-2018. The buy back was through recognized stock exchange. The sum of ₹6 lakh
The loss derived from a house property can be set off during the year against :
The WDV of a block of asset depreciated @ 15% as on 1st April, 2017 was of ₹3,00,000. Out of this block, one machine was sold for ₹2,00,000 on 1st July, 2017 and a new machine of ₹
Zing Zang is an individual, manufacturing a product. He has turnover of ₹98,50,000 which is inclusive of amount of ₹25 lakh received through electronic clearing system. The account
XYZ Ltd., engaged in manufacture of a product, has incurred an expenditure of ₹3 lakh on notified skill development project u/s 35CCD. The deduction available for such expenditure
Mr. Zen owns a flat in Mumbai which was let out by him in the previous year 2017-18 on a rent of ₹20,000 p.m. upto December, 2017 and for ₹30,000 p.m. thereafter. The annual munici
Santhnam purchased in October, 2017, a flat in Chennai, to be used for his own residential purposes with the financial assistance of housing loan taken from PNB Housing Finance Ltd
SH made three different cash payments of ₹10,000, ₹10,000 and of ₹11,500 to a supplier for purchase of goods and material on 11th Sept., 2017. The payments were made during differe
Radhey has sold his house on 11th August, 2017 for ₹80 lakh. The value applied by Stamp Valuation Authority is ₹100 lakh. He disputed this valuation and the departmental valuation
Which out of the following elements you find are sufficient for bringing to tax as income from business or profession : (i) Ownership of the business is not necessary (ii) Business
Sakshita Pvt. Ltd., has spent a sum of ₹30 lakh towards meeting its Corporate Social Responsibility (CSR) obligation. The amount of deduction available while computing the business
Expenses not specifically being allowed under any of sections 30 to 36 and incurred for the purpose of business or profession are allowable as per section 37(1) of the Act. The fol
John Miller & Co. of UK is maintaining and operating a branch in India for sale of its garment products. The adjusted total income of the branch for the year prior to charge of
The additional depreciation on the factory building constructed during the P.Y. 2017-18 and put to use for manufacturing of garments on 1st Feb., 2018 having cost of ₹100 lakh shal
Out of the following, which income is chargeable as capital gain : (i) from transfer of self generated goodwill of profession (ii) from transfer of personal jewellery (iii) from tr
Land or building, or both, if transferred on or after 1st April, 2017 shall be treated as a long term capital asset, if it is being held immediately prior to the date of its transf
Base year for the purpose of calculation of indexed cost of acquisition or the cost of improvement in respect of long term capital asset acquired prior to 1st April, 2001 shall be
X entered into an agreement for sale of his house located at Jaipur to Y on 1st April, 2016 for a total sale consideration of ₹90 lakh. Y paid an amount of ₹20 lakh by account paye
The cost of improvement in relation to the capital asset being goodwill of the business shall be taken to be as :
In the hands of Mr. Sarath, a salaried employee, the following income shall be chargeable to tax as income under the head "Income from other sources": (i) Dividend (ii) Income from
Babu Lal won a prize of ₹1,00,000 in Rajasthan State Lottery and Lottery Department paid him an amount of ₹70,000 after deduction of tax at source of ₹30,000. He had purchased lott
Mr. Pankaj, a salaried employee, has taken a house on rent of ₹12,000 p.m. which was sub-let by him for ₹15,000 p.m. He has incurred miscellaneous expenses in relation to sub-let o
Ram has gifted an amount of ₹10,00,000 to his wife Sita without consideration (but not to live apart), which was invested by his wife in interest bearing security. She earned inter
In which case a partnership firm is not entitled to carry forward and set off so much of the losses proportionate to the share of a retired or deceased person exceeding his/her sha
Deduction u/s 80C from the gross total income of an amount equal to the eligible investment made subject to a maximum amount of ₹1,50,000 is allowed to the assessee who is :
50% deduction of the eligible amount is allowed u/s 80CCG, provided some of the conditions out of the following are to be fulfilled: (i) The assessee is a resident Individual (ii)
An assessee can avail the deduction in respect of rent paid u/s 80GG of the Act subject to a maximum amount of:
The profits of a co-operative society engaged in (i) Carrying out the business of banking, (ii) A cottage industry and (iii) Collective disposal of labours of its member are eligib
Maximum amount of deduction (in terms of ₹) in the case of an individual who is resident in India, a patentee and in receipt of income by way of royalty in respect of a patent regi
Ram & Co., a partnership firm, worked out total book profits for the year ended 31st March, 2018 at ₹5,00,000. The firm has made payment of salary of ₹4,60,000 authorized by th
The provisions of AMT under Chapter XII-BA shall not apply to an individual, a HUF, etc., if the adjusted total income of such person does not exceed :
RS HUF consists of R Karta, Y and S co-parceners, D, the daughter of a co-parcener and W, the wife of Karta as members. The following can demand the partition of RS HUF:
Total income of XYZ Limited includes the income of dividend of ₹10 lakh paid by a U.K.-based foreign company in which XYZ Limited holds 30% of the equity share capital. ₹50,000 has
MAT credit can be carried forward for a period of following number of assessment years:
A non-resident (other than company) and a foreign company will pay tax on the income of interest received from an infrastructure debt fund referred to in section 10(47) at the rate
ABC Limited has paid amount of royalty of ₹30 lakh in September, 2017 to John Miller Company of USA in pursuance of an agreement approved by the Central Government in the previous
LM, a co-operative society, has paid interest of ₹1,05,000 to PQ, another co-operative society. The tax to be deducted at source u/s 194A is:
Mr. Rajesh had a turnover of ₹3 crore during the year ended 31st March, 2017. During the F.Y. 2017-18, he paid a sum of ₹10 lakh to E, an Engineer for construction of his self-occu
Where the advance tax paid on or before March, 2018 is less than 100% of the tax due on the total income declared in the return of income, as reduced by tax deducted at source, the
Finance Act, 2017 has inserted the provision for charging of fees for delay in furnishing the return of income and as per this section, be the amount of fee payable for the return
ABC Limited has filed its return of income for A.Y. 2018-19 as per section 139(1) but had failed to make the payment of tax on the returned income as per section 140A. The return s
The time limit prescribed u/s 153 for completion of the regular assessment u/s 143(3) and a best judgment assessment u/s 144 is of ............ months from the end of the assessmen
An appeal against the order passed by the Assessing Officer u/s 143(3) read with section 148 can be filed by an aggrieved assessee before the:
The Assessing Officer, while scrutinizing the return of an assessee, finds under-reporting of income for the reason of misreporting of facts of such income. He can levy penalty on
Avinash Enterprises sold a machine to Bimlesh LLP (Associated Enterprises) at sale margin of 25% for ₹ 4,00,000 which was actually to be sold to Chetan Enterprises. Bimlesh LLP, af
ABC Pvt. Ltd. has a business loss of ₹ 10 lakh. There is unexplained share application money to the tune of ₹ 25 lakh. The total income of the company will be:
Provisions of Minimum Alternate Tax (MAT) are applicable to the companies which are: (i) Indian companies (ii) Foreign companies in certain situations (iii) LLP
Mr. Soloman, a resident in India, aged 70 and has the following income for the previous year 2017-18. (All the incomes given below are the computed income): (i) Pension from employ
The Principal Commissioner of Income-tax is empowered to revise the assessment order of the Assessing Officer when the same is found to be erroneous and pre-judicial to the interes
First appeal can be filed by:
The A.O. can complete the assessment u/s 144 of the Act even though there is no failure on the part of assessee u/s 139(1), 139(4), 139(5), 142(1), 142(2A) or 143(2) of the Act. Su
The respondent is having right to file Memorandum of Cross Objections before the ITAT after receipt of the Memorandum of Appeal filed by the appellant. Such Memorandum of Cross Obj
Income-tax Appellate Tribunal cannot grant stay either under the original order or any other subsequent order in aggregate beyond the period of :
Rahim has shown an air-conditioner installed at his residence as having been installed at his factory, and claimed depreciation thereon. This is an act of :
An appeal from the order of ITAT lies before the High Court and the same is to be filed within the period of __________ days from the date on which the order appealed against is re
Tax planning is honest and right approach to attain the maximum benefit of taxation laws within its framework only. Objectives of tax planning are : (i) Productive investment (ii)
The factor/factors to be considered in taking the decision or deciding whether a country is being tax haven or not is/are: (i) Nil rate of tax (ii) Lack of transparency (iii) Limit
The provisions of transfer pricing are applicable relating to specified domestic transactions entered into by the assessee in the previous year when the aggregate amount of such tr
The advance ruling pronounced by the Authority for Advance Ruling as per section 245 is binding : (i) in respect of transaction for which ruling has been sought (ii) on Income-tax
Goods and Service Tax (GST) noted to be a greatest tax reform in India and therefore was rolled-out with effect from 1st July, 2017. It transforms a system of taxation and administ
Special purpose vehicle to cater the IT needs of GST is called :
GST in India is levied on the basis of :
The tax under GST legislation in India is being levied :
Inter-State supply of service is primarily covered in section __________ of the IGST Act, 2017.
GST Council comprises of various persons from Union and States and is being headed by a Chair Person who is :
XYZ Limited engaged in various activities, is having a garment show-room in Allahabad and a leather processing unit in Kanpur. Both these units of XYZ Limited under section 2 of th
Construction of a complex, building, civil structure or the part thereof including a complex or building intended for sale to a buyer, wholly or partly except where the entire cons
The following categories of registered persons are not being eligible for the Composition Scheme under the CGST Act, 2017: (i) Supplier of the Restaurant Services (ii) Manufacturer
Section 2(62) of the CGST Act, 2017 specifies input tax in relation to a registered person to mean Central Tax, State Tax, Integrated Tax or Union Territory Tax charged on any supp
Mr. Pankaj of Delhi supplied goods to Mr. Krishna of Delhi for ₹1 lakh, on which total GST was charged @ 12%. Mr. Krishna, after purchase of goods, added 20% margin of profit (on c
Raj & Co., applied for voluntary registration under CGST Act, 2017 on 5th July, 2017 and the registration was granted on 15th July, 2017. Raj & Co., was having the stock av
A registered person as per section 35 of the GST Act, 2017 is required to maintain proper accounts and records, and keep at his registered, principal place of business. Following a
Time duration as per section 36 of the CGST Act, 2017 for retention of accounts and records under GST is until expiry of __________ months from the due date of furnishing of annual
A casual taxable person or a non-resident taxable person shall be required to apply for registration at least __________ days prior to the commencement of business.
Mr. Bala has made supply (within State) of taxable goods to the tune of ₹17 lakh, export supplies of ₹3 lakh and intra-state supply of exempt services of ₹4 lakh. His aggregate tur
Non-resident taxable person is required to provide details in the return for non-resident foreign taxable person in the Return Form No.:
Input Service Distributor shall file the return in GSTR-6 for the input service distributed by:
A taxable person who makes an excess claim of input tax credit or excess reduction in output tax liability shall pay interest at such rate not exceeding :
Section 56 of the CGST Act, 2017 specifies that if any tax ordered to be refunded after the order of an Appellate Authority is not refunded within 60 days from the date of applicat
A supply made by a taxable person to a recipient consisting of two or more taxable supply of goods or services of both or any combination thereof which are only bundled and supplie
Tax on inter-State supplies, import into India, supplies made outside India and supplies made in SEZ shall be charged to:
Provision for levy and collection of tax on intra-State supply of goods or services or both by the Union Territory and for matters connected therewith or incidental thereto are bei
The highest enabling limit of tax rate of IGST has been prescribed at:
The base Financial Year for the purpose of calculating compensation amount payable to the State as per Goods and Service tax (Compensation to States) Act, 2017 shall be taken:
The proceeds of the cess and such other amounts as being recommended by the GST Council shall be credited to a non-lapsable fund known as:
A proper Officer not below the rank of Joint Commissioner or an Officer authorized by such proper Officer can make an order of siezure in Form:
Goods seized by a proper Officer or an Authorized Officer can be released on a provisional basis upon execution of a bond for the value of goods and furnishing of security. The bon
Taxes that were replaced by GST legislation are:
A registered supplier under composition levy can withdraw at any time and be required to file the Form for withdrawal from composition levy in:

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