topic input tax credit

1. On making the payment, the input tax credit which was reversed earlier can be re-availed within

(a) 180 days

(b) 1 year

(d) No time limit

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2. Where a supplier has taken deduction of depreciation on the tax component of the cost of capital goods or plant and machinery as per Income Tax Act, 1961, he can

(a) Avail 100% ITC of the said tax component

(b) Avail only 15% of the said tax component as ITC every year

(d) Avail ITC at the depreciation rate prescribed under the Income Tax Act

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3. Where goods or services are used by the registered person partly for the purpose of any business and partly for other purposes, the input tax credit shall

(a) Not be allowed

(b) Be allowed in full

(d) Be allowed to the extent of 50%

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4. Where goods and services are used partly for effecting taxable supply including zero-rated supplies and partly for exempted supplies, the input tax credit shall

(a) Not be allowed

(b) Be allowed in full

(d) Be available to the extent goods and services are used for effecting taxable supplies including zerorated supplies

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5. If the goods are received in lots/instalment

(a) ITC can be availed proportionately on receipt of each lot/instalment

(b) 100% ITC can be taken on receipt of first instalment

(d) ITC can be availed upon receipt of last instalment

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6. The time limit for taking input tax credit is

(a) The time limit for taking input tax credit is (a) 180 days from the date of invoice

(b) 1 year from the date of invoice

(d) No limit

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7. Which of the following inward supplies are not eligible for ITC in case of a company manufacturing paints?

(a) Food and beverages

(b) Outdoor catering

(d) All of the above

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8. Which of the following inward supplies are eligible for ITC in case of a company manufacturing paints?

(a) Motor vehicles and other conveyances

(b) Motor vehicles and other conveyances when they are used for transportation of goods

(d) None of the above

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9. Credit on input services or capital goods held in stock can be availed in case of new registration/voluntary registration

(a) Yes

(b) No

(d) Yes on capital goods only

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10. The taxpayer needs to reverse the credit already taken if the recipient fails to pay to the supplier, the amount towards the value of supply along with tax payable thereon within a period of

(a) 100 days from the date of issue of invoice

(b) 120 days from the date of issue of invoice

(d) 240 days from the date of issue of invoice

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11. Which of the following statement is true for a composition tax payer?

(a) A composition tax payer can avail only 50% of ITC on capital goods

(b) A composition tax payer can avail 100% ITC on inputs

(d) Composition tax will be available as ITC to the recipient only if the tax is mentioned separately in the invoice raised by the composition tax payer

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12. A registered person shall be entitled to avail ITC in respect of any supply of goods or services or both if

(a) He is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed

(b) He has received the goods or services or both

(c) The tax charged in respect of such supply has been actually paid to the Government, either in cash or through utilisation of ITC admissible in respect of the said supply and he has furnished the return u/s 39

(d) All the above conditions are satisfied

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13. An assessee obtains new registration on account of scheme from composition to regular scheme. It can avail credit on inputs lying in stock. What is the time limit for taking said credit?

(a) 1 year from the date of invoice

(b) 2 years from the date of invoice

(d) None of the above

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14. ITC on pre- registration stock is allowed if registration is taken within _______ days from the date on which he is liable for registration.

(a) 15

(b) 30

(d) 60

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15. Input tax credit shall not be available in respect of:

(a) Motor vehicles used for transportation of goods

(b) Motor vehicles used for imparting training on driving

(d) None of the Above

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16. Suppose a dealer has an IGST Credit of `4 lakhs in his ITC Ledger and the same time he has an IGST liability of `2 lakhs, CGST Liability of `3 lakhs and SGST Liability of `5 lakhs. What amount is the dealer required to deposit to his Electronic Cash Ledger to discharge his tax liability and to file a valid return?

(a) ₹1 lakh CGST and 5 lakhs SGST

(b) ₹1 lakh IGST and 5 lakhs SGST

(d) ₹1 lakh IGST and 5 lakhs to CGST

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17. Input Tax Credit of IGST can be utilised in the following sequence:

(a) SGST/UTGST, CGST, IGST

(b) IGST, CGST, SGST/UTGST

(d) Firstly against IGST and then against either CGST or SGST/UTGST as per taxpayer’s wish

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18.

(a) (i)

(b) (i) and (ii)

(d) (i), (ii) and (iii)

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19.

(a) (i)

(b) (i) and (ii)

(d) (i), (ii) and (iii)

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20. M/s Comfortable (P) Ltd is registered under GST in the State of Odisha. It is engaged in the business of manufacturing of iron and steel products. It has received IT engineering services from M/s High-Fi Infotech (P) Ltd for ₹11,00,000 (excluding GST @ 18%) on 28-Oct20XX. Invoice for service rendered was issued on 5-NovXX. M/s Comfortable (P) Ltd made part-payment of ₹4,20,000 on 30-Nov-XX. Being unhappy with service provided by M/s High-Fi Infotech (P) Ltd, it did not make the balance payment. Deficiency in service rendered was made good by M/s High-Fi Infotech (P) Ltd by 15-Feb-XY. M/s Comfortable (P) Ltd made payment of ₹3,00,000 on 15-Feb-XY and balance payment was made on 6-June-20XY(ie, after 180 days of issue of invoice). Input tax credit available in respect of IT engineering services received from M/s High-Fi Infotech (P) Ltd in FY 20XX-XY:

(a) ₹1,98,000

(b) Nil

(d) ₹1,09,831

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21. Akash Ltd, a registered person in Punjab has purchased Air Conditioner for invoice value of `32,000 (which includes GST at 18%) from Mukesh Ltd registered in Punjab. Akash Ltd had capitalized Air Conditioner in his books of accounts for full value of `32,000 and taking the benefit of depreciation on the same. Keeping in view of the above situation, the input tax credit which Akash Ltd is required to take in his books of accounts will be:

(a) Nil

(b) ₹4,881

(d) ₹2,880

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22.

(a) ₹2,25,00,000/-

(b) ₹2,10,00,000/-

(d) ₹75,00,000/-

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23. For banking companies using inputs and input services partly for taxable supplies and partly for exempt supplies, which of the statement is true?

(a) ITC shall be compulsorily restricted to credit attributable to taxable supplies including zero rated supplies

(b) 50% of eligible ITC on inputs, capital goods, and input service shall be mandatorily taken in a month and the rest shall lapse.

(d) ITC shall be compulsorily restricted to credit attributable to taxable supplies excluding zero rated supplies.

None

24.

(a) ₹13,500

(b) ₹11,700

(d) ₹1,800

None

25.

(a) ₹9,50,000

(b) ₹3,50,000

(d) ₹28,50,000

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Topic - Input Tax Credit

Topic -
Input Tax Credit