830 EP-TL

EXECUTIVE PROGRAMME
TAX LAWS – TEST PAPER
(This test paper is for practice and self study only and not to be sent to the Institute)

Time allowed: 3 hours Maximum Mark: 100

Note : All the references to sections mentioned in Part I of the Question Paper relate to the Income Tax Act,1961 and
relevant Assessment Year 2022-23, unless stated otherwise.

DIRECT TAXES (PART I) – 50 MARKS

1) Short term capital loss can be set-off as per provisions of section 74 of the Income Tax Act, 1961 from :
a) Short term capital gain
b) Short term capital gain and Long term capital gain
c) Long term capital gain
†Ȍ Š‘”––‡”…ƒ’‹–ƒŽ‰ƒ‹ƒ†’”‘ϐ‹–Ƭ‰ƒ‹ˆ”‘„—•‹‡••
2) A non-resident is not required to furnish return of income under section 139(1) if his total income during the
previous year consists of :
a) Income from Technical fee
b) Income from Interest/Dividends
c) Income from Royalty
d) Income from House Rent
3) Agriculture income from agriculture land located in a foreign country is taxable in the case of :
(A) Non-resident
(B) Not ordinarily resident
(C) Resident
ȋȌ ƒŽŽ…ƒ•‡••–ƒ–‡†‹ǡƬ
4) ”‘ϐ‹–•‘ˆ•ǤͳͲǡͲͲǡͲͲͲ‹•‡ƒ”‡†ˆ”‘ƒ„—•‹‡••‹™Š‹…Š‹•…‘–”‘ŽŽ‡†‹†‹ƒǡŠƒŽˆ‘ˆ–Š‡’”‘ϐ‹–•„‡‹‰
received in India. How much amount is taxable in India for a Non-resident individual:
a) Rs. 10,00,000
b) Nil
c) Rs. 5,00,000
d) Rs. 2,50,000
5) The maximum limit of rebate allowed under section 87A of the Income tax Act, 1961 in case of a non- resident
individual whose total income does not exceeds Rs. 5,00,000 during the previous year 2021- 22 is:
a) Rs. 12,500
b) Rs. 5,000
c) Rs. 10,000
d) Nil
 Test paper 831

6) In permanent establishment includes:

a) A person or a place
b) Construction site
c) Business preserve
d) All of the above
7) Mr. Sujit (aged 47 years), a doctor by profession based at Mumbai, earned an income from profession Rs.
34,00,000 and interest on bank deposit Rs. 2,00,000 (includes interest on saving bank interest Rs. 30,000). He
deposits Rs. 1,20,000 in public provident fund. Compute his taxable income for the assessment year 2022-23
(assuming assessee has not opted for section 115 BAC of the Income Tax Act, 1961)?
a) Rs. 34,10,000
b) Rs. 34,50,000
c) Rs. 34,60,000
d) Rs. 34,70,000
8) The basic exemption limit applicable to the Super Senior Citizen (Resident in India) Individual during the
previous year 2021-22 is:
a) Rs. 2,50,000
b) Rs. 3,00,000
c) Rs. 5,00,000
d) Nil
9) In case of Advance Ruling ‘AAR’, an applicant may withdraw an application within
from the date of the application:
a) 30 days
b) 45 days
c) 60 days
d) 90 days
10) Mr. Narendra (Aged 81) a resident of India during the previous year 2021-22 rendered services in India and
earned a salary Income of Rs. 4,80,000. Compute the tax liability of Mr. Narendra for the FY 2021- 22 in India
(assuming assessee has not opted for section 115 BAC of the Income Tax Act, 1961)?
a) Rs. 22,660
b) Rs. 24,720
c) Rs. 11,845
d) NIL
11) The Total Income of the assessee has been computed as Rs.1,25,794.90. The total income after rounding off
will be taken as:
a) Rs.1,25,700
b) Rs.1,25,790
c) Rs.1,25,795
d) Rs.1,25,700
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12) Š‡ ƒš‹— ƒ‘—– ‘ˆ Ž‡ƒ˜‡ •ƒŽƒ”› ‘– …Šƒ”‰‡ƒ„Ž‡ –‘ –ƒš ƒ• •’‡…‹ϐ‹‡† „› –Š‡
‘˜‡”‡– ‹ …ƒ•‡ ‘ˆ
government employee is:
a) Rs. 3 Lakhs
b) Rs. 5 Lakhs
c) Rs. 10 Lakhs
d) Fully Exempt
13) ”Ǥ
ƒ‡•Š‹•ƒ‡’Ž‘›‡†‹”‹˜ƒ–‡–†Ǥ–Š‡’”‡˜‹‘—•›‡ƒ”ǡŠ‡”‡…‡‹˜‡†ƒ•ƒŽƒ”›‘ˆ•Ǥ͵͸ǡͲͲͲ’‡”
month and entertainment allowance of Rs. 2,000 per month. He spent Rs. 10,000 on entertainment allowance.
Calculate the amount of deduction under section 16(ii):
a) Rs. 24,000
b) Rs. 10,000
c) Rs. 5,000
d) Nil
14) Sohan has stayed in India during the Previous Year 2021-22 for 181 days, and he is a non-resident in 9 out
of 10 years immediately preceding the current Previous Year. He has stayed in India for 365 days in all in
the 4 years immediately preceding the relevant Previous Year; and 480 days in all the 7 years immediately
preceding the current Previous Year. His residential status for AY 2022-23 would be?
a. ‡•‹†‡–Ƭ”†‹ƒ”‹Ž›‡•‹†‡–
b. ‡•‹†‡–„—–‘–”†‹ƒ”‹Ž›‡•‹†‡–
c. Non-resident
d. Not ascertainable
15) Which of the following is not exempt under section 10?
a. Šƒ”‡‹…‘‡‘ˆƒ‡„‡”ˆ”‘ƒ
b. Šƒ”‡‹…‘‡‘ˆƒ’ƒ”–‡”ˆ”‘ƒϐ‹”
c. ƒŽƒ”›”‡…‡‹˜‡†„›ƒ’ƒ”–‡”ˆ”‘–Š‡ϐ‹”
d. ‘–Šȋ„ȌƬȋ…Ȍ
16) For the purposes of determining the perquisite value of the loan at a concessional rate given to the employee, the
lending rate of .................................................. as on the .......................................................................................... day of the relevant
PY is required, for loans exceeding INR ................................
a. SBI, 1st, 20000
b. ICICI, last, 50000
c. SBI, last, 50000
d. ICICI, 1st, 20000
17) Deduction u/s 24(a) is?
a. 1/3rd of NAV
b. Repairs actually incurred by the owner
c. 30% of NAV
d. Interest on borrowed Capital
 Test paper 833

18) Mr. Ravi solved a crossword puzzle and received Rs. 1,68,000 after deduction of tax at source. His income from
crossword puzzle chargeable to tax would be :
a. Rs. 1,68,000
b. Nil
c. Rs. 1,44,000
d. Rs. 2,40,000
19) Which of the following is not a revenue receipt?
i. Compensation received for the loss of a capital asset
ii. Compensation received for damage to or loss of a trading asset.
iii. ”‘ϐ‹–•‘’—”…Šƒ•‡ƒ†•ƒŽ‡‘ˆ•Šƒ”‡•„›ƒ•Šƒ”‡„”‘‡”‘Š‹•‘™ƒ……‘—–Ǥ
iv. Income from letting out buildings owned by a company to its employees etc
a) i only
b) i and ii both
c) i , ii, and iii
d) All of the above
20) Ȁ•ͷͶǡ…ƒ’‹–ƒŽ‰ƒ‹•ƒ”‡‡š‡’–‡†ǡ‹ˆ‹˜‡•–‡†‹–Š‡„‘†•‹••—‡†„›Ƭǡ‘”‘–Š‡”‘–‹ϐ‹‡†„‘†•ǡ
within?
a. 6 months from date of transfer of asset
b. 6 months from end of relevant PY
c. ͸‘–Š•ˆ”‘‡†‘ˆ‘”†ƒ–‡‘ˆϐ‹Ž‹‰‘ˆ”‡–—”™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”
d. Anytime during the PY
21) ”Ǥƒ…‹–‹œ‡ǡ…ƒ‡–‘†‹ƒˆ‘”–Š‡ϐ‹”•––‹‡†—”‹‰–Š‡ ʹͲͳ͸Ǧͳ͹Ǥ‹••–ƒ›‹†‹ƒˆ‘” ʹͲͳ͸Ǧͳ͹ǡ
2017-18, 2018-19, 2019-20, 2020-21 and 2021-22 are as follows:

Financial Year No. of days in stay in India

2016-17 55
2017-18 60
2018-19 85
2019-20 90
2020-21 100
2021-22 70
 ‡–‡”‹‡–Š‡”‡•‹†‡–‹ƒŽ•–ƒ–—•‘ˆ”Ǥ‹†‹ƒ†—”‹‰–Š‡ ʹͲʹͳǦʹʹǫ
a) ‡•‹†‡–ƒ†”†‹ƒ”‹Ž›‡•‹†‡–Ǯǯ
b) ‡•‹†‡–„—–‘–”†‹ƒ”‹Ž›‡•‹†‡–Ǯǯ
c) Non-Resident
d) Cannot be determined
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22) Ram succeeded to the business of his father Ramanuj consequent upon demise of Mr. Ramanuj on 1-2-2020.
Ram recovered Rs. 60,000 due from a customer which was written off by late Ramanuj as bad debt and allowed
in the assessment year 2013-14. The amount recovered is :
a) Exempt from tax
b) Fully taxable as business income
c) Rs. 30,000 being 50% taxable as business income
d) To be set off against current year bad debts
23) ’’‡ƒŽ–‘‹‰Š‘—”–ƒ‰ƒ‹•––Š‡‘”†‡”‘ˆ‹•ϐ‹Ž‡†™‹–Š‹ǣ
a) 30 Days
b) 60 Days
c) 90 Days
d) 120 Days
24) Š‡–‡”Ǯ‘’ƒ›ǯ†‡ϐ‹‡†—†‡”•‡…–‹‘ʹȋͳ͹Ȍ‘ˆ–Š‡…‘‡ƒš…–ǡͳͻ͸ͳ‹…Ž—†‡•ǣ
i. any Indian company
ii. any body corporate incorporated by or under the laws of a country outside India i.e. a foreign company,
iii. any institution, association or body which is or was assessable or was assessed as a company for any
assessment year under the Indian Income Tax Act, 1922 or which is or was assessable or was assessed
under this Act as a company for any assessment year commencing on or before the 1st day of April, 1970
a) Ž›‹
b) i and ii both
c) i , ii and iii
d) none of the above
25) Deduction u/s 80C, in respect of Life Insurance Premium, Contribution to Provident Fund etc., is allowed to?
a. Any assessee
b. An individual
c. ‹†‹˜‹†—ƒŽȀ
d. ‹†‹˜‹†—ƒŽȀ ”‡•‹†‡–‹†‹ƒ
26) Income from a minor child from a Fixed Deposit with a bank, made out of income earned from scholarship, is
to be?
a. Assessed in the hands of the minor child
b. Clubbed with the income of the parent whose total income before such clubbing is higher
c. Exempted from tax
d. Clubbed with father’s income
27) Mr. Shyam received cash gift of Rs. 61,000 from his friends on the occasion of his 55th birthday. None of the
friends are relative. The amount taxable in the hands of Mr. Shyam would be :
a) Nil
b) Rs. 11,000
c) Rs. 61,000
d) None of the above
 Test paper 835

28) ”Ǥƒ•Š†‡”‹˜‡†‹…‘‡ˆ”‘•ƒŽ‡‘ˆ–‡ƒƒ—ˆƒ…–—”‡†ƒ†‰”‘™‹–Š‡˜‹ŽŽƒ‰‡‘ˆƒƒ–ƒƒǤ‹•‹…‘‡

for the previous year 2021-22 from the said activity is Rs. 40 lakhs. The amount exempt from tax by way of
agricultural income is :
a) Rs. 16 lakhs (40%)
b) Rs. 10 lakhs (25%)
c) Rs. 24 hkns (60%)
d) Rs. 14 lakhs (35%)
29) Joy Charitable Trust (registered under section 12AA) has total income of Rs. 40 lakhs. It applied Rs. 20 lakhs
towards its objects. How much is chargeable to tax in case the trust does not opt for accumulation of income
under section 11(2) of the Act?
a) Rs. 20 lakhs
b) Rs. 14 lakhs
c) Rs. 10 lakhs
d) Rs. 6 lakhs
30) Cost of Acquisition in case of bonus shares allotted for computing the capital gains would be.
a) FMV of the shares on the date of allotment
b) Nil
c) Cost of original shares
d) None of the above
31) Which of the following is capital receipt?
a) Reimbursement of capital outlay if the total amount received exceeds the cost of the outlay
b) Compensation received for the loss of a capital asset
c) Both i and ii
d) None of the above
32) ‘‰‡––Š‡„‡‡ϐ‹–•‘ˆǡ‹–‹•‡…‡••ƒ”›–Šƒ–‹…‘‡‘ˆ–Š‡••‡••‡‡‹•ǣ
a) Taxable in the Foreign Country only
b) Doubly taxable with the country with whom India has DTAA Agreement.
c) Is Taxable in India only
d) None of the all
33) ”Ǥǡƒ”‹–‹•Š…‹–‹œ‡ǡ…ƒ‡–‘†‹ƒˆ‘”–Š‡ϐ‹”•––‹‡‘ͳ͸ǤͲͳǤʹͲʹʹˆ‘”–Š‡’—”’‘•‡‘ˆ‡’Ž‘›‡–‹†‹ƒǤ
Determine residential status of Mr. B in India during the FY 2021-22?
a) ‡•‹†‡–ƒ†”†‹ƒ”‹Ž›‡•‹†‡–Ǯǯ
b) ‡•‹†‡–„—–‘–”†‹ƒ”‹Ž›‡•‹†‡–Ǯǯ
c) Non-Resident
d) Cannot be determined
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34) Bad debts is deductible in the year:

a) When provision for bad debts are made
b) Š‡†‡„–•‹•ϐ‹”•––‹‡™”‹––‡ƒ•„ƒ†
c) When debts was incurred
d) When it became time-barred debt
35) Š‡–ƒšƒ„Ž‡’‡”“—‹•‹–‡•˜ƒŽ—‡‘ˆ—†‡”•‡…–‹‘ͳ͹ȋʹȌȋ˜‹Ȍ‘ˆ–Š‡…‘‡–ƒš…–ǡͳͻ͸ͳ‹•ǣ
a) FMV of the shares on the grant date less any exercise price recovered from an employee.
b) FMV of the shares on the vesting date less any exercise price recovered from an employee.
c) FMV of the shares on the exercise date less any exercise price recovered from an employee.
d) None of the above
36) An income which accrue or arise in India from a business controlled or profession set-up in India is taxable
in case of:
a) Resident only
b) Not ordinarily resident only
c) Non-resident
d) All assessee
37) Mr. Sumit (aged 67 years), a non-resident in India, has a total income of Rs. 25,00,000 during the previous
year 2021-22. This income includes foreign source income of Rs. 6,00,000 from a country with which India
has DTAA to avoid double taxation. Tax levied by the foreign country on that foreign income was Rs. 1,50,000,
Compute the tax liability of Mr. Sumit in India for the FY 2021-22? (assuming assessee has not opted for
section 115BAC of the Income Tax Act, 1961)
a) Rs. 4,06,850
b) Rs. 3,63,075
c) Rs. 4,01,700
d) Rs. 3,95,200
38) Š‡‡”–‹ϐ‹…ƒ–‡‹••—‡†„›ƒ‡’Ž‘›‡”–‘Š‹•‡’Ž‘›‡‡•‹…ƒ•‡‘ˆ•ƒŽƒ”›‹…‘‡‹•
a) Form 16
b) Form 26
c) Form 26Q
d) Form 27A
39) Which of the following income is / are exempt from tax?
a) ƒ›‡–•”‡…‡‹˜‡†ˆ”‘ˆƒ‹Ž›‹…‘‡„›ƒ‡„‡”‘ˆƒ
b) Šƒ”‡‘ˆ’”‘ϐ‹–”‡…‡‹˜‡†„›ƒ’ƒ”–‡”‘ˆƒ’ƒ”–‡”•Š‹’ϐ‹”Ǥ
c) Any income of an educational institution and hospitals
d) All of the above
 Test paper 837

40) ”Ǥ ‘›ǡ “—ƒŽ‹ˆ›‹‰ ƒ•  ‹ †‹ƒ †—”‹‰ –Š‡ ‹ƒ…‹ƒŽ ‡ƒ” ʹͲʹͳǦʹʹǡ Šƒ˜‹‰ ƒ –ƒšƒ„Ž‡ ‹…‘‡ ‘ˆ •Ǥ
ͳǡͷͲǡͲͲͲǤ‡‘™•ƒŠ‘—•‡’”‘’‡”–›‹ǤŠ‡–Š‡””Ǥ‘›‹•”‡“—‹”‡†–‘ϐ‹Ž‡‹–•”‡–—”‘ˆ…‘‡‹†‹ƒ
for the Financial Year 2021-22?
a) ‡•ǡƒ•Š‡‹•‹†‹ƒ†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”Ǥ
b) ‡•ǡƒ•Š‡‹•‹†‹ƒ†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”ƒ†‘™•ƒŠ‘—•‡’”‘’‡”–›‘—–•‹†‡†‹ƒǤ
c) No, as the taxable income does not exceeds the maximum amount not chargeable to tax.
d) None of the above.
41) ”Ǥƒ‰Š—ǡƒ‰‡†ͺͷȋȌǡŠƒ˜‹‰–ƒšƒ„Ž‡‹…‘‡‹••ǤͷǡͲͲǡͲͲͲ†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”ʹͲʹͳǦʹʹǤŠ‡–ƒš
amount will be
a) Rs. 25,750
b) Rs. 12,875
c) Rs. 10,400
d) Nil
42) An authority of advance shall have the following powers:
i. Discovery and inspection
ii. Enforcing the attendance of person and examining him an oath
iii. Compelling the production of books and account and other documents
a) (i) only
b) (i) and (ii) only
c) (i) and (iii) only
d) (i) (ii) and (iii)
43) In which of the following cases, income of previous year is assessable in the previous year itself:
i. Assessment of persons leaving India
ii. A person who is into illegal business
iii. A person who is running a charitable institution
a) (i) only
b) (i) and (ii) only
c) (i) and (iii) only
d) (i) (ii) and (iii)
44) ”Ǥ—”Œ‹–ǡƒ‘Ǧ”‡•‹†‡–‹†‹ƒ†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”’ƒ›‹‰…‘•—Ž–ƒ…›ˆ‡‡•‘ˆ•ǤͷͲŽƒŠ•–‘–†Ǥ
(a non-resident foreign company). The consultancy fees has been paid in connection with a project/ liaison
‘ˆϐ‹…‡‹†‹ƒǤ†‡”™Š‹…Š•‡…–‹‘”Ǥ—”Œ‹–‹•‘„Ž‹‰ƒ–‹‘–‘†‡†—…––ƒšƒ–•‘—”…‡‘–Š‡ƒ„‘˜‡’ƒ›‡–ǫ
a) Section 194J of the Income tax Act, 1961
b) Section 195 of the Income tax Act, 1961
c) No TDS is required to be deducted
d) None of the above
 838 EP-TL

45) An assessee, engaged in the business of growing and manufacturing tea in India, the agricultural income in
that case shall be:
a) 40% of the income from such business
b) 60% of the income from such business
c) Market value of the agricultural produce minus expenses on cultivation of such produce
d) 75 % of the Income from such business
46) Mr. Chanchal received a gift of Rs. 80,000 from his friend on the occasion of his own marriage. The amount
shall be:
a) Taxable
b) Taxable subject to standard deduction of 30%
c) Not taxable
d) None of the above
47) Section 80QQB of the Income tax act deals with:
a) Royalty Income of authors
b) Royalties from Patent
c) –‡”‡•–‘‡„‡–—”‡•‘ˆ
‘˜–Ǥ‘’ƒ›
d) ”‘ϐ‹–•ˆ”‘‡š’‘”–‘ˆ•‘ˆ–™ƒ”‡
48) Transfer of income without transfer of asset would be taxable in the hands of:
a) Transferor only
b) Transferee only
c) Either transferor or transferee
d) Both transferor and transferee
49) ƒ–‹‘ƒŽ”ƒ†‡”•ƒ’ƒ”–‡”•Š‹’ϐ‹”’ƒ‹†•Ǥͳǡ͸ͲǡͲͲͲƒ•…‘–”ƒ…–…Šƒ”‰‡•–‘‹ƒŽ’Ƭ‘Ǥȋϐ‹”ȌǤ‘–ƒš™ƒ•
deducted at source for the above said payment. The amount liable for disallowance under section 40a(ia) for
the assessment year 2022-23 is :
a) Nil
b) Rs. 1,60,000
c) Rs. 80,000
d) Rs. 48,000
50) Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘—•–„‡•ƒ–‹•ϐ‹‡†ˆ‘”…Žƒ‹‰‡š’‡†‹–—”‡—†‡”•‡…–‹‘͵͹™Š‹Ž‡…‘’—–‹‰’”‘ϐ‹–•
and gains from business and profession :
a) The expenditure must not be in capital nature
b) The expenditure must not be in personal nature
c) The expenditure must be incurred wholly and exclusively for the purpose of business or profession.
d) All of the above
 Test paper 839

INDIRECT TAXES (PART II) – 50 MARKS

51. …‘–ƒ‹•–Š‡’‘™‡”–‘ƒ‡Žƒ™•™‹–Š”‡•’‡…––‘
Ǥ
a) Article 246A
b) Article 246
c) Article 254
d) Article 264
52.
…ƒ‡‹–‘ˆ‘”…‡„›–Š‡ Constitutional Amendment Act.
a) 111
b) 101
c) 102
d) 110
53. ‡…–‹‘ͳͲ‘ˆ–Š‡
…–ǡʹͲͳ͹…‘–ƒ‹•’”‘˜‹•‹‘•”‡Žƒ–‡†–‘ .
a) Forward Charge Mechanism
b) Reverse Charge Mechanism
c) Composition Levy
d) Time of supply of goods
54. Šƒ–‹•–Š‡–Š”‡•Š‘Ž†Ž‹‹–‘ˆ–—”‘˜‡”‹–Š‡’”‡…‡†‹‰ϐ‹ƒ…‹ƒŽ›‡ƒ”ˆ‘”‘’–‹‰–‘’ƒ›–ƒš—†‡”…‘’‘•‹–‹‘
scheme for States other than special category States?
a) Rs. 1.5 Crore
b) Rs. 1 Crore
c) Rs. 75 Lacs
d) Rs. 50 Lacs
55. ƒ”ƒ˜ Ƭ ‘’ƒ›  ‹• ƒ ”‡‰‹•–‡”‡† ’‡”•‘ —†‡” 
 …–ǡ ʹͲͳ͹Ǥ – Šƒ• ƒ‹–ƒ‹‡† „‘‘• ‘ˆ ‹ƒ…‹ƒŽ
‡ƒ”ʹͲͳͺǦͳͻƒ†–Š‡
ƒ—ƒŽ”‡–—”™ƒ•ƒŽ•‘ϐ‹Ž‡†„‡ˆ‘”‡–Š‡†—‡†ƒ–‡Ǥ’–‘™Šƒ–’‡”‹‘†ǡ–Š‡„‘‘•‘ˆ
ƒ……‘—–ƒ†ƒ…‹ŽŽƒ”›”‡…‘”†•‘ˆ–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”ʹͲͳͺȂͳͻŠƒ˜‡–‘„‡”‡–ƒ‹‡†„›‹–ǫ͹ʹ‘–Š•ˆ”‘–Š‡
due date of furnishing the annual return the books of account and ancillary records have to be retained by it48
months from the due date of furnishing the annual return the books of account and ancillary records have to
be retained by it
a) 60 months from the due date of furnishing the annual return the books of account and ancillary records
have to be retained by it
b) 84 months from the due date of furnishing the annual return the books of account and ancillary records
have to be retained by it
56. Ƭ‘Ǥ•‘Ž†’”‘†—…–ǡ”‘†—…–ƒ†”‘†—…–ƒ•‹š‡†•—’’Ž›Ǥˆ•‘Ž†•‡’ƒ”ƒ–‡Ž›–Š‡ƒ’’Ž‹…ƒ„Ž‡

”ƒ–‡•ƒ”‡ͷΨǡͳʹΨƒ†ʹͺΨ”‡•’‡…–‹˜‡Ž›ǤŠƒ–
”ƒ–‡™‘—Ž†ƒ’’Ž›™Š‡–Š‡›ƒ”‡•—’’Ž‹‡†–‘‰‡–Š‡”ǫ
a) 5% i.e. least rate
b) 12% i.e. standard rate
c) 28% i.e. highest rate
d) 15% i.e. average rate
 840 EP-TL

57. ’—–‡”˜‹…‡‹•–”‹„—–‘”ȋȌƒ›†‹•–”‹„—–‡–Š‡

…”‡†‹–™‹–Š‹–Š‡–ƒ–‡ƒ•ǣ
a) 

b) 

c) 

d) Any of the above
58. Š‡–ƒš—†‡”
Ž‡‰‹•Žƒ–‹‘‹†‹ƒ‹•„‡‹‰Ž‡˜‹‡† .
a) š…Ž—•‹˜‡Ž›„›‹‘ƒ†–ƒ–‡ƒ™•
b) ‹—Ž–ƒ‡‘—•Ž›„›‹‘ƒ†–ƒ–‡ƒ™•
c) Ž›„›‹‘ƒ™•
d) Ž›„›–ƒ–‡ƒ™•
59. Ƭ‘Ǥ„‘—‰Š–ƒƒ…Š‹‡ˆ‘”•Ǥ͵ŽƒŠ•‘ͲͳǤͲͶǤʹͲͳͻ’Ž—•
‘‘†•ƒ†‡”˜‹…‡•ƒš̷ͳͺΨ™ƒ•…Šƒ”‰‡†‘‹–Ǥ
The goods manufactured became chargeable w.e.f. 01.08.2020. How much of ITC on such machinery purchase
…‘—Ž†„‡ƒ˜ƒ‹Ž‡†ƒˆ–‡”–Š‡‰‘‘†•ƒ—ˆƒ…–—”‡†„›‹–„‡…ƒ‡–ƒšƒ„Ž‡—†‡”
ǫ
a) Rs. 54,000
b) Rs. 27,000
c) Rs. 37,800
d) Rs. 40,500
60. Which of the following is considered as Inter State Supply?
a) —’’Ž‹‡•”‡…‡‹˜‡†ˆ”‘—‹–‹‘‹†ƒ–‘‘‡•–‹…ƒ”‹ˆˆ”‡ƒ
b) —’’Ž‹‡•ƒ†‡–‘†‡˜‡Ž‘’‡”‹ƒ†Žƒˆ”‘‡”ƒŽƒ
c)
‘‘†•‹’‘”–‡†ˆ”‘ ƒ’ƒ
d) All of the Above
61. Š‹…Š‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰…ƒŽŽ‡†–Š‡‹‘‡””‹–‘”›ƒ•„‡‹‰…‘˜‡”‡†—†‡”‹‘‡””‹–‘”›
‘‘†•ƒ†‡”˜‹…‡
ƒš…–ȋ
ȌǡʹͲͳ͹ǫ
a) Delhi
b) Ponducherry
c) Daman and Diu
d) All of the above
62. Which of the following utilization of input tax credit is permitted ?
a) ‘ˆ
ƒ‰ƒ‹•–

b) ‘ˆ
ƒ‰ƒ‹•–

c) ‘”
ƒ‰ƒ‹•–

d) ‘ˆ
ƒ‰ƒ‹•–

63. In arriving at C.I.F. Value under Customs, the insurance can be taken at actual, capped to?
a) ʹͲΨ‘ˆ ǤǤǤ
b) 20% of C.I.F.
…Ȍ ͳǤͳʹͷΨ‘ˆ ǤǤǤ
d) 1.125% of C.I.F.
 Test paper 841

64. When an e-way bill is not required to be generated?

a) Š‡”‡–Š‡‰‘‘†•„‡‹‰–”ƒ•’‘”–‡†ƒ”‡•’‡…‹ϐ‹‡†‹‡š—”‡–‘—Ž‡ͳ͵ͺ‘ˆ–Š‡
—Ž‡•
b) Where the goods are being transported from the customs port, airport, air cargo complex and land
customs station to an inland container depot or a container freight station for clearance by Customs
c) Where the goods are being transported by a non-motorized conveyance
d) All of the above cases
65. ‘•—Ž–ƒ–•ǡ”‡‰‹•–‡”‡†ƒ–‡ŽŠ‹’”‘˜‹†‡•
–”ƒ‹‹‰–‘‡’Ž‘›‡‡•‘ˆƬ‘Ǥƒ–ƒ‹’ƒ–ǡƒ”›ƒƒǤ
Ƭ‘Ǥ‹•—”‡‰‹•–‡”‡†—†‡”
…–Ǥ–Š‹•…ƒ•‡ǡ™Š‹…Š‹•–Š‡’Žƒ…‡‘ˆ•—’’Ž›ǫ
a) Delhi
b) Haryana
c) Both of the above
d) None of the above
66. Š‹…Š•‡…–‹‘‘ˆ
…–ʹͲͳ͹†‡ƒŽ•™‹–Š’Žƒ…‡‘ˆ—’’Ž›‘ˆ•‡”˜‹…‡•ǡ™Š‡”‡Ž‘…ƒ–‹‘‘ˆ•—’’Ž‹‡”ƒ†”‡…‹’‹‡–
is in India?
a) Section 9
b) Section 10
c) Section 11
d) Section 12
67. ‘ˆ
…–ǡʹͲͳ͹Ž‹•–•†‘™–Š‡ƒ…–‹˜‹–‹‡•™Š‹…Š•ŠƒŽŽ„‡–”‡ƒ–‡†‡‹–Š‡”ƒ••—’’Ž›‘ˆ‰‘‘†•‘”•—’’Ž›
of services.
a) Schedule I
b) Schedule II
c) Schedule III
d) Schedule IV
68. 
…–ǡʹͲͳ͹™ƒ•’ƒ••‡†„›ƒ”Ž‹ƒ‡–‘–Š‡„ƒ•‹•‘ˆ .
a) Article 246A
b) Article 268A
c) Article 269A
d) Article 279A
69. ‘ˆ
…–ǡʹͲͳ͹Ž‹•–•†‘™–Š‡–”ƒ•ƒ…–‹‘•™Š‹…Š‡˜‡™‹–Š‘—–…‘•‹†‡”ƒ–‹‘ƒ”‡…‘•–”—‡†ƒ••—’’Ž›Ǥ
a) Schedule I
b) Schedule II
c) Schedule III
d) Schedule IV
 842 EP-TL

70.
‹ˆ–•ƒ†‡„›‡’Ž‘›‡”–‘ƒ›‡’Ž‘›‡‡—’–‘ in any Financial Year shall not be treated
ƒ••—’’Ž›—†‡”
Žƒ™•Ǥ
a) INR 25,000
b) INR 50,000
c) INR 2,00,000
d) INR 5,00,000
71. Š‡ˆ‡ƒ–—”‡•‘ˆƒ…‘’‘•‹–‡•—’’Ž›—†‡”
ƒ”‡ǣ
a) Two or more taxable supplies of goods / services / both which are supplied in conjunction with each
other
b) They are naturally bundled
c) ‡‘ˆ–Š‡•—’’Ž‹‡•™‹–Š‹–Š‡’ƒ…ƒ‰‡‹•‹†‡–‹ϐ‹ƒ„Ž‡ƒ•ƒ’”‹…‹’ƒŽ•—’’Ž›
d) All of the above
72. Š‡ˆ‡ƒ–—”‡•‘ˆƒ‹š‡†•—’’Ž›—†‡”
ƒ”‡ǣ
a) Two or more taxable supplies of goods / services / both which are supplied in conjunction with each
other
b) They are deliberately bundled
c) ‘‡‘ˆ–Š‡•—’’Ž‹‡•™‹–Š‹–Š‡’ƒ…ƒ‰‡‹•‹†‡–‹ϐ‹ƒ„Ž‡ƒ•ƒ’”‹…‹’ƒŽ•—’’Ž›
d) All of the above
73. ™Š‹…Š‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰•‹–—ƒ–‹‘•—†‡”
Žƒ™•†‡Ž‹˜‡”›…ŠƒŽŽƒ™‹ŽŽ„‡”‡“—‹”‡†–‘„‡‹••—‡†‹•–‡ƒ†‘ˆ
invoice?
a) Transportation of goods for job work
b) Transportation of goods for reasons other than by way of supply
c) Supply of liquid gas where the quantity at the time of removal from the place of business of the supplier
is not known
d) All of the above
74. ‘ˆ–Š‡—•–‘•…–ǡͳͻ͸ʹ’”‘˜‹†‡•ˆ‘”…‘ϐ‹•…ƒ–‹‘‘ˆ‹’”‘’‡”Ž›‹’‘”–‡†‰‘‘†•Ǥ
a) Section 110
b) Section 111
c) Section 112
d) Section 113
75. “Improperly exported goods” under Customs Act, 1962 mean .
a) Attempted to export prohibited goods
b) ––‡’–‡†–‘„‡‡š’‘”–‡†–Š”‘—‰Šƒ›”‘—–‡‘–Š‡”–Šƒ‘–‹ϐ‹‡†”‘—–‡
c) Attempted to export goods found concealed in a package
d) All of the above
 Test paper 843

76. ‘ˆ–Š‡—•–‘•…–ǡͳͻ͸ʹ†‡ƒŽ•™‹–Š‘˜‡›ƒ…‡•™Š‹…Šƒ”‡Ž‹ƒ„Ž‡–‘…‘ϐ‹•…ƒ–‹‘Ǥ
a) Section 112
b) Section 113
c) Section 114
d) Section 115
77. What is the time limit beyond which if goods are not returned, the inputs sent for job work shall be treated as
supply?
a) Six months
b) ‡‡ƒ”
c) Five Years
d) Seven Years
78. In case of goods received in instalments or lot, when can a registered person entitled to take ITC?
a) ––Š‡–‹‡‘ˆϐ‹”•–‹•–ƒŽ‡–‘”Ž‘–”‡…‡‹˜‡†
b) At the time of last instalment or lot received
c) At the time of 50% of instalment or lot received
d) None of the above
79. Who are the person compulsorily liable for registration?
a) Casual taxable person
b) Input Service Distributor
c) persons who are required to deduct TDS
d) All of the above
80. Ms. Rita a Practicing Company Secretary registered at Haryana travels to Delhi for business purpose and stays
at hotel Leela in Delhi. In this case, which is the place of supply?
a) Haryana
b) Delhi
c) Chandigarh
d) None of the above
81. Which place will be considered as Place of Supply if goods are supplied on board of aircraft?
a) Location at which such goods are taken on board
b) Location at which such goods are consumed
c) ‘…ƒ–‹‘ƒ–™Š‹…Šƒ‹”…”ƒˆ–ƒ””‹˜‡†ƒ–ϐ‹ƒŽ†‡•–‹ƒ–‹‘
d) None of the above
82. Š‹…Š•‡…–‹‘‘ˆ
…–ǡʹͲͳ͹†‡ƒŽ•™‹–Š‹‡‘ˆ•—’’Ž›‘ˆ‰‘‘†•ǫ
a) Section 12
b) Section 13
c) Section 14
d) Section 15
83. If a dealer is liable to be registered on 18th January 2021 and he has applied for registration on 1st February,
2021, what is the effective date of registration?
a) 1st February, 2021
b) 18th January, 2021
c) 17th February, 2021
d) 16th February, 2021
 844 EP-TL

84. Š‡–‡”Ǯ–ƒšƒ„Ž‡’‡”•‘ǯ—†‡”–Š‡
Žƒ™‡ƒ• Ǥ
a) A person who is registered
b) A person who is liable to be registered
c) Both (a) and (b)
d) None of the above
85. The supplier registered under Composition Levy Scheme cannot .
a) Claim ITC
b) Collect tax on supply
c) Raise Tax Invoice
d) All of the above
86. Mr. A registered person in Delhi, is supplier of mobile Phone. Mr. B unregistered person resides in Bihar, came
to Delhi for IAS coaching, bought one mobile Phone from Mr. A. Which is the place of supply in this situation?
a) Delhi
b) Bihar
c) Any of A or B
d) None of the above
87. Which of the following value is taken as value of a supply of goods or services or both, as per the provisions of
‡…–‹‘ͳͷ‘ˆ
…–ʹͲͳ͹ǫ
a) MRP
b) Transaction Value
c) Notional Value
d) None of the above
88. Šƒ–•ŠƒŽŽ„‡‡š…Ž—†‡†ˆ‘”†‡–‡”‹‹‰˜ƒŽ—‡‘ˆ—’’Ž›—†‡”•‡…–‹‘ͳͷ‘ˆ
…–ʹͲͳ͹
a) Packing Charges
b) Freight charges
c) Discounts offered to customers and recorded in the invoice
d) All of the above
89. Š‡‹‘–‡””‹–‘”›
‘‘†•Ƭ‡”˜‹…‡•…–ǡʹͲͳ͹‹•ƒ’’Ž‹…ƒ„Ž‡‘ǣ
a) Inter-state supply of goods or services or both by union territories
b) Intra-state supply of goods or services or both by union territories
c) Both (a) and (b)
d) None of the above
90. To calculate projected revenue of state for compensation, what is the projected nominal growth rate of
revenue?
a) 12%
b) 14%
c) 16%
d) 18%
 Test paper 845

91. Where the registered person has claimed Depreciation on the ----------------------------------- ‘ˆ–Š‡ƒ’‹–ƒŽ
‘‘†•ǡ
ITC shall not be allowed.
a) Cost
b) Tax Component of Cost
c) Both
d) None of the above
92. Sec.111 to Sec. 127 of Customs Act, 1962 deals with .
a) Warehousing of goods
b) ‘ϐ‹•…ƒ–‹‘‘ˆ‰‘‘†•
c) Types of Duties
d) None of the above
93. Which of the following is not considered as Intra state Supply?
a) —’’Ž‹‡•–‘ƒ†„›
b) Imported goods till they cross the customs frontiers of India
c) Supplies made to a foreign tourist taking the goods out of India
d) All of the above
94. ”Ǥ”‡‰‹•–‡”‡†’‡”•‘Šƒ˜‹‰Š‡ƒ†‘ˆϐ‹…‡‹––ƒ””ƒ†‡•Šƒ†‹–ǯ•‘‡‘ˆ–Š‡”ƒ…Š‘ˆϐ‹…‡‹•‹‡•–‡‰ƒŽǤ
”‘–Š‡„”ƒ…Š‘ˆϐ‹…‡ǡ”Ǥ•—’’Ž›–‘‘Ž•–‘”Ǥ”‡‰‹•–‡”‡†‹ƒŒƒ•–ŠƒǤŠ‹…Š‹•–Š‡’Žƒ…‡‘ˆ•—’’Ž›‹–Š‹•
situation?
a) ––ƒ””ƒ†‡•Š
b) West Bengal
c) Rajasthan
d) None of the above
95. Šƒ–‹•–Š‡–‹‡‘ˆ•—’’Ž›‘ˆ˜‘—…Š‡”•™Š‡–Š‡•—’’Ž›™‹–Š”‡•’‡…––‘–Š‡˜‘—…Š‡”‹•‹†‡–‹ϐ‹ƒ„Ž‡ǫ
a) Date of issue of voucher
b) Date of redemption of voucher
c) Expiry date of Voucher
d) Earlier of A or B or C
96. Šƒ–‹•–Š‡–‹‡‘ˆ•—’’Ž›‘ˆ˜‘—…Š‡”•™Š‡–Š‡•—’’Ž›™‹–Š”‡•’‡…––‘–Š‡˜‘—…Š‡”‹•‘–‹†‡–‹ϐ‹ƒ„Ž‡ǫ
a) Date of issue of voucher
b) Date of redemption of voucher
c) Expiry date of Voucher
d) Earlier of A or B or C
 846 EP-TL

97. ‘’ƒ›‡…”‡–ƒ”› ‹”‹•‡‰ƒ‰‡†–‘Šƒ†Ž‡–Š‡Ž‡‰ƒŽ™‘”’‡”–ƒ‹‹‰–‘–Š‡‹…‘”’‘”ƒ–‹‘‘ˆ‘’ƒ›

ǡ–Š‡”–Šƒ‹–•”‘ˆ‡••‹‘ƒŽˆ‡‡•‘ˆ•ʹͷͲͲͲȀǦǡ ‹”ƒŽ•‘”‡…‘˜‡”‡†ˆ”‘•ͶͲͲͲˆ‘””‡‰‹•–”ƒ–‹‘
ˆ‡‡’ƒ‹†–‘–Š‡‡‰‹•–”ƒ”‘ˆ‘’ƒ‹‡•Ǥϐ‹”‹•‡”‡Ž›ƒ…–‹‰ƒ•ƒ’—”‡ƒ‰‡–‹–Š‡’ƒ›‡–‘ˆˆ‡‡•Ǥ
In this situation, what will be the value of supply of services?
a) Rs 25,000/-
b) Rs. 29,000/-
c) Rs 4000/-
†Ȍ ’‡ƒ”‡–˜ƒŽ—‡
98. ”Ǥ„Šƒ›ǡƒ–”ƒ†‡”‹ƒƒƒ†‹—Šƒ•‘’–‡†ˆ‘”…‘’‘•‹–‹‘•…Š‡‡‘ˆ–ƒšƒ–‹‘—†‡”
Ǥ‡–‡”‹‡–Š‡
”ƒ–‡‘ˆ–‘–ƒŽ
’ƒ›ƒ„Ž‡„›Š‹—†‡”…‘’‘•‹–‹‘•…Š‡‡Ǥ
a) ͲǤͷΨ
ƬͲǤͷΨ

b) ͲǤͷΨ
ƬͲǤͷΨ

c) ͳΨ
ƬͳΨ

d) ͳΨ
ƬͳΨ

99. Š‹…Š‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰ƒ”‡ˆ‡ƒ–—”‡•‘ˆ
ǫ
a) Value added tax
b) Destination based tax
c) Tax on Supply
d) All of the above
100. India has adopted a-------------------------------------------
‘†‡ŽǤ
a) Single
b) Dual
c) Triple
d) None of the above
Test paper 847

Answer Key

1 b 36 d 71 d
2 b 37 d 72 d
3 c 38 a 73 d
4 a 39 d 74 b
5 a 40 b 75 d
6 d 41 d 76 d
7 d 42 d 77 b
8 c 43 a 78 b
9 a 44 b 79 d
10 d 45 b 80 b
11 b 46 c 81 a
12 a 47 a 82 a
13 d 48 a 83 b
14 b 49 b 84 c
15 a 50 d 85 d
16 a 51 a 86 a
17 c 52 b 87 b
18 d 53 c 88 c
19 a 54 a 89 b
20 a 55 ac 90 b
21 b 56 c 91 b
22 b 57 c 92 b
23 d 58 b 93 d
24 c 59 c 94 c
25 c 60 d 95 a
26 b 61 c 96 b
27 c 62 c 97 a
28 c 63 c 98 b
29 b 64 d 99 d
30 b 65 b 100 b
31 c 66 d
32 b 67 c
33 c 68 c
34 c 69 a
35 c 70 b