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You browse ‘Tax and Central Excise’ in category ‘Essay examples’ Goods produce in India might be excisable items or non-excisable goods. Simply no central excise duty, if the goods are non-excisable. No . Excisable goods may be dutiable or non-dutiable goods. 3) Yes. No duty may be levied in the event the goods produced by the manufacturer can be not removable but marketable as per the decision of the Substantial court of India in the case of Union of India v Delhi Towel and Standard Mills Ltd. No .

The term goods is actually not defined in the Central Excise Act, 1944. Yes. Manufacturer includes deemed manufacturer 6) No . The word “LEVY” means imposition of tax/duty. Collection of duty is usually postponed to the level of removal of goods. [Rule four of the Central Excise Rules, 2002] 7) Number Duty cannot be collected in the event the goods happen to be non-excisable in the time manufacture, but are excisable in the time removal. Number Duty rates are specified in the Central Excise Tariff Act, 1985. Yes. Responsibility Rate is indicated against each contract price item but not against proceeding or sub-heading. 10) Certainly.

Manufacture involves any procedure incidental or perhaps ancillary for the completion of a manufactured product. Yes. Marketability is essential to levy the central excise duty. 12) No . Merchandise mentioned in the First Routine or Second Schedule towards the Central Excise Tariff Take action, 1985 is called excisable items. 13) Number The term company has been described under section 2(f) in the Central Excise Act, 1944. The definition under section 2(f) is not exhaustive although inclusive. 14) No . Brand name owner can be not a manufacturer even though underneath contract a 3rd party completely companies the product.

No . Classification is pertinent, even though most products entice 14% duty. No . Circulars can be issued by the Central Board of Excise and Customs (CBEC). 4. Multiple Choice Questions (1) As per Rule 15 the Central Excise Rules, 2002, the option of paying obligation is available to people manufacturers who have manufacture (a)Aluminium circles (b)Plastic Products (c)Gold Products (d) Agriculture Items (2) Products specified below Standards of Weights and Measures Act, 1976 as well as in the warning announcement issued by the Government of India along with price of abatement can be assessed under a) Maximum Retail Price (b) Transaction Benefit (c) Price tag Price (d) Whole Sale Price (3) Captively Consumed Goods means (a) Goods manufactured and consumed within the factory (b)Goods manufactured (c) Goods bought and used in the factory (d) Goods received from part (4) Interconnected undertakings means (a) Head office and Part office (b) Holding and subsidiary corporations (c) Band of companies (d) Companies under the same administration (5) What kind of the subsequent will come beneath the Specific Rate of Obligation? (a)Cigarette product (b) Solid wood product (c)Plastic product d)Diesel product (6) What percentage should be added to the cost of development in the case of attentive consumption? (a) 15% (b) 10% (c) 0% (d) 20% (7) MRP merchandise Assessable worth will be determined as (a)Transaction basis (b)MRP less abatement (c) Percentage of contract price value (d)None of the above (8) Which of the next will form part of deal value (a) Transportation costs from the host to removal for the place of customer (b) Transport charges from the place of factory to the host to branch (c) Transportation expenses from the place of distributor to the place of client d) Transport charges from the place of buyer to any additional place (9) Assessable does not include one of the pursuing (a) Cost of material (b) Cost insurance (c) Expense of transportation (d) Interest upon delayed repayment (10) As per Rule 15 of the Central Excise Valuation Rules, the idea of interconnected undertakings means (a) Associate companies (b) Group companies (c) Holding and Subsidiary firms (d) non-e of the above Answer: (1) (a) (2) (a) (3) (a) (4) (b) (5) (a) (6) (b) (7) (b) (8) (b) (9) (d) (10) (c) five. Fill in the Blanks 1) Specific Duty means responsibility is payable depending on the____________and__________by the assessee (2) Provisions under section 4A have___________effect above section some of the Central Excise Take action (3) Development 1500 units, quantity offered 510 products @ two hundred fifity per product, 840 models @ 2 hundred per product, sample clearances 35 products and the balance 150 units are in stock. Consequently, the assessable value is definitely Rs. _________ (4) Excisable goods used within the factory for the manufacture of final product is called___________ (5) Times Ltd (Holding Company) offered goods to Y Ltd (Subsidiary Company) at Rs., 00, 500. In turn Sumado a Ltd sold goods to Z Ltd (unrelated person) at Rs. 1, 15, 000, then this assessable benefit in the hands of Back button Ltd________. (6) Assessable in case there is captive usage is the expense of production plus_______ (7) The transaction value cannot be considered as assessable benefit if, anyone or portion of the conditions____________. (8) MRP conditions are not relevant for grouped together commodities supposed for________. (9) Compound Levy Scheme is definitely an___________schemes. (10) Dharmada Costs recovered from your buyer can be form component of__________. Answer: (1) Duration and excess weight of the item 2) Overriding (3) Rs. 3, 02, 500 (4) Captive usage (5) Rs. 1, 10, 000 (6) @10% (7) Not satisfied (8) Industrial or institutional consumers. (9) Recommended (10) Assessable Value 6th. Say Yes Or No, Provide Reasons (1) Specific Work means duty is payable by the assessee about excisable merchandise based on the importance of goods. (2) Compound garnishment scheme means an optional scheme (3) Maximum Selling Price means not bar duties and taxes (4) Transaction value is applicable only when conditions specific in the provisions are pleased. 5) Dharmada charges gathered from the customer are not includible in the assessable value. (6) Excise responsibility and sales tax has to be included in the assessable worth (7) You cannot find any basis of valuation under Central Excise Regulation (8) Insurance charges through the place of website to the place of buyer shall form element of assessable worth (9) Captive consumption products need not end up being certified by the Cost Scrivener (10) Money discount would not form part of assessable benefit. Answer: (1) No .

Certain Duty means duty has to be payed by the assessee on excisable goods based upon the length and weight with the products. (2) Yes. Compound levy scheme means an optional scheme (3) Yes. Maximum Selling Price means not bar duties and taxes (4) Yes. Transaction value can be applied only when conditions specified in the provisions happen to be satisfied. (5) No . Dharmada charges gathered from the buyer are includible in the assessable value. (6) No . Excise duty and sales tax needs to be excluded in the assessable worth (7) Number

There are five basis of value under Central Excise Rules (8) Number Insurance charges from the place of depot to the place of purchaser shall not form part of assessable value (9) No . Captive consumption products need be qualified by the Expense Accountant (10) Yes. Cash discount does not form element of assessable value. 7. Mcq (1) WILL BE -1 Contact form should have subsequent colors (a) White, Fan, Pink and Green (b) White, Fan, Red and Green (c) White, Aficionado, Black and Green (d) Light, Buff, Went up and Green 2) CT- 1 type will be issued by the Merchant exporter towards the Manufacturer intended for clearing items (a) With no payment of Central Bar (b) Elimination of Central Excise work (c) With payment of reduced price of Central Excise Work (d) With payment of full sum of Central Excise Duty. (3) Qualification of procurement of goods underneath procedure for foreign trade Warehousing can be carried out under the (a) CT-3 Kind (b) CT-2 Form (c) ARE -1 (d) Connect -1 (4) The Notification of Executing is valid for a period of (a) twelve months from the day of acceptance by the office. b) 12-15 months from your date of acknowledgement by department (c) 24 months in the date of acknowledgement by the department (d)6 months in the date of acknowledgement by the department (5) Excisable merchandise removed pertaining to re-warehousing and export therefrom without repayment of responsibility by using the (a) B-3 Relationship (b)B-2 Bond (c) B-4 Bond (d)B-7 Bond (6) Some times, if inside the view from the Central Bar Department the maker carries risk (namely discrepancies) the Section may question him to transmit the Bond in. (a)B-l with reliability or surety (b)B-2 with security and surety c)B-3 with protection (d) B-4 with surety (7) CT-1 form received by the manufacturer from (a)Merchant exporter (b)EOU unit (c)Manufacturer (d)First stage dealer (8) The Foreign trade Oriented Models can obtain indigenous materials without repayment of central excise duty. These products have to issue (a)CT -3 certificate (b)CT-4 certificate (c)CT-1 certificate (d)CT-2 certificate (9) If right invoice pertaining to export together with the packing list and ARE -1 form in (a) Sixtuplicate (b) Copy (c) Triplicate (d) Make four (10) No rebate is allowed in case the rebate sum is less than a)Rs. 500 (b)Rs. 1, 500 (c) Rs. 2, 1000 (d) Rs. 4, 500 Answer: (1) (a) (2) (a) (3) (b) (4) (a) (5) (a) (6) (a) (7) (a) (8) (a) (9) (a) (10) (a) almost 8. Fill in the Blanks (1) No rebate is allowed if the refund amount is less than________ (2) Goods can be taken off by doing a connect in case of service provider exporter with____________or without (3) Proof of export which is given by the customs authorities simply by certifying the_______________ (4) ________________certificate is required only when bond can be executed by the merchant vendre. 5) The goods exported to_______________and_________not eligible for discount (6) A great exporter who executes a bond to exempt him self from payment of excise duty will not be eligible to claim___________ (7) Relationship is accomplished by the Vendor Exporter he may be required to get hold of a_________from his banker for a specified amount. (8) __________is called because general connect with Surety/Security for removal of goods with no payment of duty (9) In case of security bond by means of cash pay in no________can become allowed (10) If items are closed by excise officer this sort of a closing is called __________ Answer: 1) Rs. five-hundred (2) with sealing or perhaps without sealing (3) ARE-1 Form (4) CT-1 (5) Nepal and Bhutan (6) Rebate (7) Bank Assure (8) B-l Bond (9) Interest (10) One Time Bottle of wine Seal on the lookout for. Say Yes or No, Give Reasons (1) Export of products with account but with no packing list can be exported (2) WILL BE -1 Type need not be prepared if the items are released under Connection. (3) Merchant exporter means a person engaged in manufacturing of goods pertaining to exporting or perhaps intending to foreign trade goods. 4) CT-1 varieties will be granted by the superintendent of Persuits to the service provider exporter about execution of bond (namely B , 1) (5) ARE-1 Contact form is to be prepared by the céder in reproduction (6) Provides under Central Excise are always secured (7) No work is payable upon exported products. Therefore there is no need of value and classification (8) Self-sealing can be done by any person with the unit (9) ARE-1 contact form is not required to be made by the exporter. (10) Export has to be completed within 3-4 months from the day of removal from the manufacturer Answer: 1) No . Foreign trade of goods with invoice with the packing list can be exported (2) No . ARE -1 Form should be prepared even if the goods happen to be exported underneath Bond. (3) No . Merchant exporter means a person engaged in acquiring excisable goods for the purpose of conveying or planning to export items. (4) No . CT-1 forms will be released by the superintendent of central excise to the merchant céder on setup of connect (namely B-l) (5) No . ARE-1 form is to be made by the vendre in sixtuplicate (6) Number Bonds under Central Excise may be guaranteed or unsecured. 7) Number classification and valuation is required for the purpose of identifying the duty draw-back or DEPB license etc . (8) Number Sealing of Goods for Foreign trade which may be self-sealing or underneath seal of Central Excise. (9) Number ARE-1 contact form is required to prepare yourself by the vendre. (10) No . Export has to be completed inside 6 months through the date of removal through the factory twelve. Multiple Choice Questions (1) The unutilized CENVAT Credit rating can be taken forward (a) Up to six months time (b) About 8 years (c) Without the time limit (d) Up to a decade. 2) Cenvat Credit on capital items can be claimed in the year in which it is acquired (a) Approximately 50% (b) Up to completely (c) About 25% (d) Up to 75% (3) Cenvat Credit on goods besides capital items can be utilized (a) As soon as items received in the factory (b) Only after payment truly made (c) Only following the goods truly sold (d) As soon as manufacture takes place (4) Cenvat Credit is not really applicable if the following merchandise are purchased (a) Light Diesel powered Oil (b) Steel products (c) Plastic-type products (d) Wood products 5) Cenvat Credit can be adjusted against (a)Dutiable goods manufactured (b)Non-dutiable merchandise manufactured (c) Non-excisable products manufactured (d)All excisable merchandise manufactured (6) Which in the following things is a capital goods (a) Tools, side tools (b)Raw materials (c) Consumables (d) Accessories (7) Depreciation beneath section 32 of the Income-tax Act, 1961 should not have been claimed (a) On the expense portion of the Capital Goods (b)On the excise portion of the administrative centre Goods. (c) On the portion of other than Capital Goods d) On the portion of Factory Building (8) Cenvat credit can be utilized for payment of excise duty accessed on any (a) Last products (b)Input products (c) Exempted items (d)Intermediary non-dutiable products (9) Personal Journal Account must be prepared in (a) Triplicate (b) Solitary (c) Twice (d) Quadruplicate (10) Cenvat credit on inputs apart from capital items can be allowed at (a) 100% (b)50% (c)25% (d) 0% (11) A unit purchasing SSI exemption can acquire CENVAT credit on capital goods but such credit can be utilized just (a) if the value of apital merchandise exceeds Rs. 100 lakh (b) following clearance of Rs. one hundred and fifty lakh (c) if the capital goods are exported Response: (1) (c) (2) (a) (3) (a) (4) (a) (5) (a) (6) (a) (7) (b) (8) (a) (9) (a) (10) (a) (11) (b) 11. Complete the Blanks (1) Motor vehicles are not_____________goods for purpose of Manufacture (2) In respect of capital goods dispatched for task work these kinds of should be brought back within_________days in the date of dispatch. 3) The Second Level Dealer means a dealer who buys goods by a_______________ (4) The PLA is a certain amount when obligation is deposited in bank by_________challan (5) Depreciation must not be claimed by manufacturer who also avails the Cenvat credit rating on___________ (6) The term ___________ means raw-materials, consumables, components used to production the done product. (7) Don’t preserve separate set of accounts yet pay a quantity equal to ___________of the value of exempted goods and forego the Cenvat credit rating of advices utilized solely for production of free final merchandise. 8) Stability of CENVAT Credit Receivable (inputs) Bank account and PLA Account happen to be shown because ____________in the Assets part of the “balance sheet”. (9) Deadline of repayment of Central Excise Obligation for the month of March is______________ (10) Input tax credit on capital goods may be______________against the work payable final products. Answer: (1) Capital (2) one hundred and eighty days. (3) First Stage Dealer (4) GAR-7 (5) Capital Items (6) In the manufacture (7) 10% (8) Current Resources. (9) 31st March (10) Claimed. doze. Say Certainly or No, Offer Reasons 1) Cenvat credit can be accepted as soon as the inputs are sent by the dealer (2) Cenvat cannot be utilized for payment of duty upon waste (3) Cenvat credit rating on capital goods is fixed to fifty percent of the duty in the year from the receipt (4) If there is no excise responsibility final items, cenvat credit cannot be said in the case of deal in DTA (5) Once credit continues to be taken on input products and the same is eliminated for home consumption, excise work is not payable (6) In Sept 2008, the Government came out with the Cenvat Credit rating Rules, 2005 by merging the Cenvat Credit Rules, 2002 as well as the Service Duty Credit Guidelines, 2002. 7) The term “Capital goods” underneath Cenvat Rules is DIFFERENT from your term capital goods as understood in accounting or in income-tax (8) In the matter of goods cleaned for DTA for insight credit to be claimed, the finished merchandise should go through at least Re you of bar duty (9) If a single invoice covers goods dropping under distinct sub-heading, separate entries should be made for every single of this sort of sub-heading (10) In case of inputs and capital goods Cenvat credit is available as soon as insight is received in the factory. Answer: (1) Yes. Cenvat credit may be taken as soon as the inputs are received by manufacturer. 2) No . Cenvat can be utilized to get payment of duty in waste (3) Yes. Cenvat credit upon capital goods is restricted upto 50% of the duty back in of the invoice and the balance in the subsequent year or years. (4) Yes. Cenvat credit may not be claimed in the case of sale in DTA if the final goods are non-dutiable. (5) Number Cenvat credit not allowed in those items which are cleared as such to get domestic contract price area. (6) No . In September 2004, the Government came out with the Cenvat Credit Guidelines, 2004 by merging the Cenvat Credit Rules, 2002 and the Services Tax Credit Rules, 2002 (7) Certainly.

The term “Capital goods” beneath Cenvat Guidelines is DIFFERENT from your term capital goods a: understood in accounting or perhaps in income-tax (8) Certainly. goods removed for DTA for insight credit to be claimed, the finished product should go through at least Re you of excise duty (9) Yes. Solitary invoice protects goods falling under diverse sub-heading, individual entries will be made for every of this kind of sub-heading (10) Yes. Type goods and capital merchandise Cenvat credit rating is available the moment input is usually received in the factory. 13. Multiple Choice Questions 1)A manufacturer becoming eligible for SSI related exemptions is connected to his proceeds in the previous yr a) Below Rs. 500 Lakhs b) Less than Rs. 150 Lakhs c) Less than Rs. 90 Lakhs d) Less than Rs. 350 Lakhs (2)SSI Exemption scheme used by the manufacturer he is not required to pay out the central excise work up to a) Rs. a hundred and fifty Lakhs on dutiable products b) Rs. 300 Lakhs on dutiable goods c) Rs. 4 hundred Lakhs about dutiable merchandise d) Rs. 100 Lakhs on dutiable goods (3)Value of attentive consumption goods is forming part of the Rs. 400 Lakhs turnover, in case the final item a) Exempt in any notice ) Not exempt in any notification c) Exempt underneath Notification 8/2003 d) non-e of the over (4)Industries aren’t eligible for SSI exemption inspite of their turnover. a) Cars b) Plastic material c) Daily news d) Electronic and Electric powered (5)The due date for processing Quarterly returning ER -3 under Central Excise is usually a) 20th of the next month. b) 10th with the following month c) 5th of the pursuing month d) 15th in the following month (6)The deadline for payment of Central Excise Duty by the SSI unit intended for the month of The spring is a) 15th from the following month b) fifteenth of October c) tenth of the next month ) 5th in the following month (7)Frequency of audit to get SSI device paying central excise obligation is less than Rs. 10 Lakhs. a) Once in two years b) Once in 5 years c) Once in 10 years d) Every year. (8)Job worker is usually exempt from basic excise responsibility if the distributor of natural material acquired undertaken repayment of excise duty under a) Notification 24/86 Central Excise Law b) Notice 214/86 Central Excise Legislation c) Notice 8/2003 Central Excise Law d) Warning announcement 18/2003 Central Excise Rules (9)Registration is definitely not required in case the turnover intended for small scale units a) Lower than Rs. 15 0 Lakhs ) Below Rs. 90 Lakhs c) Less than Rs. 100 Lakhs d) Less than Rs. 10 Lakhs (10)What is to be carried out if turnover exceeds Rs 90 lakhs but is less than Rs a hundred and fifty lakhs? a) Declaration to get filed b) No Statement to be recorded c) Assertion may be registered d) Statement must be registered after attaining Rs. 150 Lakhs Response: 1) (a) 2) (a) 3) (a).. 4) (a) 5) (a) 6) (a) 7) (b) 8) (b) 9) (a) 10) (a) 14. Fill in the Blanks 1) SSI exemption can be bought only when the turnover in the last year proceeds is less than 2) SSI product can obvious the excisable goods uptowithout payment of duty. ) Quarterly returnto be registered before the thanks dateof this month by SSI units claiming the exemption notification (4)Payment of duty is definitely on monthly basis and must be made on or beforeof the following month 5) Not any declaration must be given to the department if the previous season turnover is less than 6) A career worker is usually exempt from basic excise duty if the supplier of raw material had undertaken repayment of excise duty underneath Notificationof Central Excise 7) SSI models will get the Cenvat Credit rating only as well as abovetaxable turnover during the current year. ) Registration is not required pertaining to SSI units if the yield during the prior year is no more than of taxable turnover. 9) Audit of SSI models is done once innumber of years 10) Export turnover isfor the calculations of proceeds under the warning announcement 8/2003. Response: Rs. 400 Lakhs Rs. 150 Lakhs ER-3, 20th 15th in the following month Rs. 80 Lakhs 214/1986 Rs. 150 Lakhs. Rs. 150 Lakhs. Two to five Free. 15. State Yes or any, Give Reasons 1) The federal government of India issued Notification No . 8/2003 providing relaxation from central excise duty, without any conditions. ) If perhaps in a previous year the turnover of any manufacturer is equal to Rs. 4 crores then they can in the current yr claim the exemption rewards available to a SSI. 3) SSI devices opted the exemption notice benefit pays duty in the event the dutiable goods cleared from the factory exceeds Rs. one hundred and fifty lakhs and claim Cenvat credit upon inputs. 1) Manufacturers who may have Cenvat credit (on capital goods plus on apart from capital goods) which is more than duty payable on free turnover will certainly opt for SSI exemption advantage. ) Clearance of excisable goods with out payment of duty to 100% EOU unit will certainly form element of turnover to calculate the threshold limit of Rs. 4 crores. Sales to Nepal and Bhutan is recognized as as a great export product sales. Export types of procedures are very difficult for SSI units. Exempted units via central bar duty are also exempted via registration. Review of SSI unit can be conducted annually. There is no big difference between way of calculation of Rs. 4 hundred Lakhs and Rs. 150 Lakhs. Answer: 1) Number The Government of India issued Notification Number 8/2003 rendering relaxation by central excise duty, with conditions. ) No . Previous year the turnover of the manufacturer is usually equal to Rs. 4 crores then this individual cannot claim in the current 12 months exemption rewards available to a SSI. 3) Yes. SSI units decided the exemption notification advantage can pay responsibility if the dutiable goods cleaned from the manufacturer exceeds Rs. 150 lakhs and declare Cenvat credit on advices. 4) No . Manufacturers who have Cenvat credit rating (on capital goods as well as on besides capital goods) which is more than duty payable on free turnover might not exactly opt for SSI exemption profit. 5) No .

Clearance of excisable goods without payment of responsibility to totally EOU device will not type part of proceeds to determine the tolerance limit of Rs. four crores. No . Sales to Nepal and Bhutan viewed as home distance. No . Export procedures aren’t tough intended for SSI models. Yes. Exempted units from central bar duty can also be exempted via registration. No . Audit of SSI unit is executed not upon yearly basis. Yes. There exists a difference between method of calculations of Rs. 400 Lakhs and Rs. 150 Lakhs. 16. Multiple Choice Questions (1)Registration is compulsory pertaining to the dealer who hopes to act because a) Initially Stage Seller ) Third Stage Supplier c) Supplier d) Customer (2)An app for registration under central excise law is required to become in a) Form A-l b) Form B-1 c) Form CT-1 d) Form ARE-1 (3)The DSA will probably be preserved for a) Five Years b) Two Years c) One Year d) Six Months (4)The excise responsibility payable by manufacturer is dependent on a) Account b) Door Pass c) Lorry receipt d) Charge Note (5)Which one of the pursuing is to be published by the producer on a monthly basis a) ER , 1 b) ER , 3 c) ER , 5 d) ER , 7 (6)Original invoice should be issued to the a) Purchaser b) Conduire c) Central Excise Division ) Consignment Agent (7)The penalty pertaining to non-registration is definitely a) Volume of duty of contravening goods or perhaps Rs 10, 000 no matter which is bigger b) Sum of duty of contravening goods or Rs 12, 000 whatever is less c) Amount of duty of contravening merchandise or Rs 1, 500 whichever is definitely higher. d) Amount of duty of contravening merchandise or Rs 5, 1000 whichever is higher (8)The due date of payment of tax through e-payment can be a) 6th of the next month b) 5th of the following month c) 23 st of each and every month d) 15th from the following month (9)LTU will probably be headed by simply a) Key Commissioner of CBDT or perhaps of CBEC ) Main Commissioner of CBEC c) Commissioner of Central Excise d) Office of Tax. (10)CIN stands for a) Challan Identification Number b) Cash Identification Amount c) Percentage Identification Quantity d) Central Information Amount. Answer: (a) (a) (a) (a) (a) (a) (a) (a) 1) (a) 2) (a) seventeen. Fill in the Banks The 15 number PAN based registration amount is called 2) Registration underneath Central Bar can be naturally in the name of a small, provided the best guardian undertakes to The fees for delayed submission of return may extend upto The term GAR means

A LTU can be an undertaking which has paid out central bar or assistance tax of more thanduring the previous year. (6)The initially page and the last webpage of the DSA shall be properly authenticated by the orperson LTUs will get facilities of payment of taxes throughsystem. 8) Every assessee compulsorily documents the annual installed potential statement just before 30th April of the doing well financial 12 months in theForm 7) The due date of payment of tax through e-payment is 6th with the following month by the companies and by sixteenth of the pursuing month when it comes to SSI devices.

In the case of Drive month the due is 8) When ever goods are removed from the factory of the maker to some different premises pertaining to purposes of “Testing” or for “any other process not amounting to manufacture”, excise obligation need not become paid presented the authorization ofof Central Excise is usually obtained. Solution: Excise control code Carry out the business Rs. 5, 500 Government Account (Receipt and Payment) Rules Rs. your five crore. manufacturer or his authorized person single windowpane ER , 7 31st March Commissioner 18. Claim Yes or No, Give Causes

Application intended for registration as a manufacturer should be made Form A-l A 5 digit PAN centered registration quantity (ECC) will probably be allotted to the assessee You cannot find any penalty intended for non-registration, even when registration under the statute is compulsory Daily Stock Consideration can be current once in month Bill under central excise regulation is required to become in triplicate Payment of duty can be made once in half a year 7) E-payment is obligatory for those produces who have paid central bar duty is Rs 40 lacs or even more during the preceding financial 12 months. ) In the event the assessee brings up CIN inside the Return, it is not necessary to affix the copy of challan with the Returning. Challan Identity Number (CIN) has three parts. fully EOU has to submit the monthly return in ER-2 Form. Answer: Yes. Program for sign up as a manufacturer should be manufactured in Form A-l No . A 15 number PAN centered registration amount (ECC) will probably be allotted for the assessee 3) No . There is certainly penalty to get non-registration which is Rs. 10, 000 or perhaps duty in contravening merchandise whichever can be higher Number Daily Share Account must be updated in daily basis, two days wait is allowed. Yes.

Account under central excise rules is required to be made in triplicate No . Repayment of obligation can be manufactured on month-to-month basis 7) Yes. E-payment is necessary for those manufactures who have paid out central bar duty is definitely Rs 60 lacs or more during the previous financial year. 8) Yes. If the assessee mentions CIN in the Returning, it is not necessary to attach the copy of challan with all the Return. Yes. Challan Identification Number (CIN) has three parts. Certainly. 100% EOU has to post the monthly return in ER-2 Form. 19. Multiple Choice Questions (1)Desk Assessment audit is actually a part of a) Special Examine b) C , AG Audit c) Excise Taxation 2000 ) Investigation (2)In the case of Excise Examine 2000, number of assessee is founded on a) Risk factor b) Non-risk factor c) Value of assessee d) Worth of goods (3)Time period to issue detect before starting the audit. a) 20 days b) 5 days and nights c) twenty-five days d) 15 days (4)Cenvat credit taxation can be bought by a) The Chief Office of Central Excise. b) The Office of Central Excise c) The Associate Commissioner of Central Bar d) The Deputy Commissioner of Central Excise (5)Yearly audit can be applied for those units who paid the central excise responsibility by way of funds more than a) Rs. 300 Lakhs b) Rs. one hundred and fifty Lakhs ) Rs. 75 Lakhs (d) Rs. 85 Lakhs Solution: 1) (c) 2) (a) 3) (d) 4) (b) 5) (a) 20. Complete the Blanks 1) Models paying duty more than Rs 3 crore has review 2) C , A G submits the are accountable to the, who also causes these types of to be put before every single House of Parliament. 3) Valuation Review carried out by. 4) The bills of Cenvat credit taxation and taxation fees should be paid by. 5) The most time limit pertaining to submission of such cost audit survey isdays from the date of receipt of cost review order by the manufacturer (6) C , AG submits the are accountable to the, whom causes these to be laid before every House of Parliament. 7) The taxation plan should be documented inside the. (8) The charge Accountant has to submit his audit statement within the time specified simply by the______________. (9) Road checks are carried out by the section authorities to check on whether almost all goods going are supported bydocuments or not. (10)A minimum ofnotice should be provided to the assessee before starting the examine. (11)Stock currently taking can be done by the superintendent or perhaps Inspector of central excise for ______________and___________. Answer: Every year The Chief executive of India. Cost Accountant Excise Division 180 days and nights The Director of India.

Working papers Commissioner or perhaps Commissioner of Central Bar. Duty spending. 15 days. Completed goods and Cenvat merchandise 21. State Yes or any, Give Reasons 1 . Excise audit is definitely compulsory every year if the payment of bar duty much more than three or more crores. installment payments on your There are three types of excise audits under Central Excise Legislation. 3. Desk review audit can be done by a rehearsing Chartered Accountant or a rehearsing Cost Scrivener in the premises of manufacturer. 4. Valuation audit could be ordered by the Superintendent of Central Bar 5. The expenses and audit costs shall be paid by Assessee. Returns happen to be filed by assessee with no verification by the Excise department. Hence zero audit is required to be done. 7. Central Excise Income Audit (known as CERA Audit) done by the Cost Accountant or Chartered Documentalist. 8. The desk review is a portion of the internal review procedure plus the services in the professionals will be taken to ensure that the department. 9. Valuation Examine can be bought only with all the prior authorization of Chief Commissioner of Central Excise. 10. The desk assessment audit should be completed in 5-7 working days Solution: 1) Yes.

Excise audit is required every year if the payment of excise responsibility is more than 3 crores. 2) Yes. There are three types of excise audits under Central Excise Regulation. 1) Number Desk review audit could be conducted by a practicing Chartered Accountant or a practicing Expense Accountant inside the premises of Department. 2) No . Valuation audit could be ordered by the Assistant or Deputy Commissioner of central excise after getting the preceding permission of Chief Commissioner of Central Excise. 3) No . The expenses and audit charges shall be paid out by the office. 3) Number

Returns will be filed by the assessee devoid of verification by the Excise office. Hence audit is required to become conducted. 4) No . Central Excise Revenue Audit (known as CERA Audit) conducted by the C and A G office. 4) Certainly. The workplace review is actually a part of the interior audit method and the solutions of the professionals are delivered to help the department. 5) Yes. Valuation Taxation can be ordered only with the prior endorsement of Key Commissioner of Central Excise. 5) Yes. The office review taxation should be completed in 5-7 business days. 22. Fill out the Blanks

Service Taxes is a taxes on. Support Tax can be applied to the whole of India except the statue of. Registration can be mandatory if the value of taxable services exceeds Rs. during the financial year. 4) Form________________is utilized for applying for sign up under Support Tax. 5) The Deadline of payment of service tax pertaining to the month is________________of the succeeding month. 6) The effective level of support tax which include Education Cess is________________. 7) Registered building means almost all premises from where a great assessee can be providing____________________. ) The present rate of assistance tax is___________ plus_______________plus. 9) The Services tax company is required to issue (within fourteen days of completion of service) an_____________ signed by simply him or a person authorized by him. (10)If service tax repayment is made through internet financial, such e-payment can be produced by__________ of the following month or pursuing quarter because the case could possibly be. Answer: 1 . Value of taxable services 2 . Jammu and Kashmir 3. Rs. 9, 00, 000 5. ST-1 five. 5th 6th. 12. 36% 7. Taxable services almost 8. 12% additionally 2% additionally 1% on the lookout for. Invoice. twelve. 6th 23. Say Yes Or No, Offer Reasons ) The list of records must be maintained is not offered in the Service Tax Rules 2) Sole registration in the matter of multiple providers rendered can be done subject to conditions 3) The due date pertaining to monthly come back for support tax is definitely the 25th of the succeeding month in the case of an organization 4) A service provider is the person who makes the service 5) GAR-7 is the contact form used to pay Service taxes 6) Services tax documents are to be managed at the signed up premises of the service provider. 7) For any postponed payment of service taxes, interest can not be levied. 8) If Services tax paid during the prior year is within excess of Rs. 0 lakhs then e-payment is required 9) One Registration is achievable with the agreement from Division, only when the assessee retains centralized billing or centralised accounting to get multiple services provided by more than one areas. 10) In the event the last time of payment and filing return is actually a public getaway, tax needs to be paid and return registered on the past working day. Answer: 1) No . This list is to be published once in the time filing his first S i9000. T. a few return. Sales register, Purchase register, Money book, Petty cash book, General ledger, etc . 2) Yes.

One registration in the matter of multiple providers rendered may be possible subject to conditions 3) No . The deadline for submitting the returning is 1 / 2 yearly twenty fifth October and 25th April. There is no month-to-month return concept in the service tax provisions. 4) Certainly. A service company is the individual that renders the service 5) Yes. GAR-7 is the form used to pay Service taxes 6) Yes. Service tax records have to be maintained at the registered building of the provider. 7) Number For any late payment of service taxes, interest necessary. 8) Certainly. If Services tax paid out during the previous year is at excess of Rs. 0 lakhs then e-payment is required 9) Certainly. Single Subscription is possible with the permission coming from Department, only when the assessee maintains centralized billing or perhaps centralised accounting for multiple services provided from several premises. 10) No . In case the last day of payment and filing return can be described as public vacation, tax can be paid and return may be filed within the next time of day. 24. Mcq (1)Service taxes can be accessed on the a) Taxable companies b) Exempted services c) Partly free and to some extent taxable solutions d) Upon purchase of input goods (2)Value of works contract includes ) Expense of consumables, electrical power b) Benefit of copy of home in products c) Benefit of VAT or Sales Tax on the above d) non-e of the over (3)A individual that neither hopes to hold neither holds any title towards the goods or services is referred to as a) Pure Agent b) Dealer c) Service tax provider d) Manufacturer (4)Under Service Tax (Determination of Value) Rules, 2006, Act means a) The Fund Act, 1994 b) The Central Excise Act, 1944 c) Central Excise Tariff Act, 85 d) Central Sales Tax Work, 1956 (5)Service tax is usually not relevant to the condition of a) Jharkhand b) Himachal Pradesh c) Tripura d) Jammu and Kashmir 6)The retailer of services is liable to pay services tax only when the service provider having a) No place of business in India b) Place of business in India c) Permanent addresses in India d) Probably none of the over (7)The assistance tax paid out on suggestions services believed as Cenvat credit after the export of service a) Can be said rebate (i. e. work drawback) b) Cannot be said any discount c) May be claimed because refund d) None of them of the above (8)If the unwavering property in regards to which service is delivered outside India the assistance is considered an export a) Irrespective of in which the payment has come from ) Only when repayment came from offshore. c) To some extent from overseas d) Even without payment received from an importer. (9)The value of any taxable service, since the case could possibly be, does not include a) The rail fare collected by rail travel agent b) Value of services gathered by also agent c) Services provide by the advisor d) non-e of the above (10)Which with the following providers does not arrive under foreign trade of service? a) Atmosphere transport of passengers embarking for intercontinental travel b) Export of services regarding immovable house c) Foreign trade of providers with respect to management consultancy providers d) non-e of the over.

Answer: (a) (a) (a) (a) (d) (a) (b) (a) (a) (a) twenty-five. Fill in the Blanks 1 ) Service tax liability depends upon the type of thewho provides the taxable service 2 . Service duty can be accessed on theand 3. Services provided by Central or State Government are taxable unless these kinds of services are 4. If the value is usually not ascertainable thenshould always be referred pertaining to arriving the importance of such services. 5. Away of pocket or purse expenses sustained arein the significance of taxable service. 6. The expenditure or perhaps costs sustained by the provider as aof the recipient of service will be excluded from the value in the taxable service. Receipt of advance funds is not 8. Taxable event in the case of import is definitely the date of 9. Service tax has to be payed onof taxable service actually received and never on sum billed, although taxable celebration arises. 12. The costs incurred by the provider as aof the person receiving service will be excluded from the value from the taxable support Answer: 1) Person. 2) Taxable Assistance and Benefit of Taxable Service 3) “statutory services” 4) Assistance Tax (Determination of Value) Rules, 06\. 5) Includible. 6) Genuine Agent 7) a taxable event 8) actual transfer 9) The value. 10) Genuine Agent 6th. Say Certainly or No, With Reasons 1) If a services is rendered free services tax is not payable because the value of the services is no and no sum is received from the customer. 2) There is concept of pure agent that exists when it comes to service tax valuation. 3) The value of items transferred to the work worker is usually not included in the assessable worth of service. 4) Service Tax could be levied with an advance payment received. 5) The central excise police officer has the power to determine the value in the services after providing a chance to be heard to the assessee. ) Companies delivered by a person having a place of business in Jammu and Kashmir to a person creating a place of business in Andhra Pradesh is controlled by service duty. 7) Statutory services are taxable solutions. 8) Several services will be taxable when provided to “any person”. If a services falls in that category, support provided upon sub-contract basis will be prone to pay service tax. 9) A person having a place of business in Andhra Pradesh gives to a person having a corporate offices in Jammu and Kashmir. Such support is liable to service taxes law. 0) The flight collected by simply air travel agent in respect of support provided by him does not include inside the value of services. Answer: 1) Yes. If a service is delivered free services tax can be not payable because the value of the support is zero and no amount is received from the consumer. 2) Yes. There is concept of pure agent that exists for the purpose of services tax value. 3) Yes. The value of goods transferred to the position worker is definitely not included inside the assessable benefit of assistance. 4) Yes. Service Tax can be accessed on an progress payment received. 5) Yes.

The central excise officer has the power to determine the value of the services after providing a chance to be heard to the assessee. 6) Certainly. Services shipped by a person having a place of business in Jammu and Kashmir to a person having a place of business in Andhra Pradesh is definitely subject to services tax, host to delivery of service is important. 7) No . Statutory services are not taxable services 8) Yes. Several services happen to be taxable when provided to “any person”. If a services falls in that category, services provided about sub-contract basis will be prone to pay assistance tax. 9) No .

A person creating a place of business in Andhra Pradesh provides into a person creating a place of business in Jammu and Kashmir. This sort of service is liable to assistance tax rules. 10) Yes. The airfare collected simply by air travel agent in respect of assistance provided by him does not include inside the value of services. twenty seven. Multiple Choice Questions 1 ) Service taxes liability comes up only when the taxable proceeds of the prior year surpasses a) Rs. 10, 00, 000 b) Rs. being unfaithful, 00, 1000 c) Rs. 8, 00, 000, d) Rs. 7, 00. 500 2 . Not any service duty will be levied on worth of goods and material offered to the services recipient although roviding support, provided Cenvat Credit upon such products and material is a) not taken b) used c) partially reversed d) non-e in the above several. One of the following services is actually a “reverse charge” a) Common Fund marketers services b) Management agency services c) Telecommunication solutions d) Information Technology services 5. Services made to the Book Bank of India is usually a) taxable service b) exempted support c) partially exempted d) not one of the above your five. Importer of service is likely to shell out service tax only when a) provider of service is without place of business in India b) provider of service provides place of business in India ) import of service is definitely not taxable in India d) supplier of service is related to the importer 6th. Services are taxable only if defined under a) Section 65( 105) of Financial Act, 1994 b) Section 64( 105) of Finance Act, 1994 c) Services Tax Guidelines d) Section 4 in the Central Excise Act, 1944 7. What kind of the subsequent service is referred to as reverse charge a) Service provider is liable to pay service tax b) Service recipient is liable to pay support tax c) No one is likely to pay out service duty d) In whose services are exempted via service tax 8. Services provided to United Nations workers for their personal purposes can be a) Liable to pay assistance tax ) Not liable to pay support tax c) Partly prone to pay assistance tax d) non-e with the above on the lookout for. ACA firm had a proceeds of Rs. 17 lakhs in Yl. Its yield was Rs. 5 lakhs in Y2, Rs. almost 8 lakhs in Y3 and Rs. five lakhs in Y4. By which years is the firm liable to pay services tax? a) Yl and Y2 b) Yl, Y2andY3 c) Y2 and Y3 d) Probably none of the above 10. Permission turnover of Rs. 10 lakhs to get previous year it is the benefit of taxable service made and for the existing year a) Value of taxable assistance received b) Value of taxable providers rendered c) Value of taxable companies partly received and partially rendered d) non-e of the above. Answer: 1) (a) 2) (a) 3) (a) ) (b) 5) (a) 6) (a) 7) (b) 8) (b) 9) (a) 10) (a) 28. Complete the Blanks 1 . In case the taxable companies exceedbut is less thanthen the service provider will have to register with all the Superintendent of Central Bar under the Assistance Tax provisions. 2 . For certain services support tax liability is to be paid by the support receiver is named 3. Services provided to Special Economical Zones (or) services provided by Special Monetary Zones are 4. Assistance tax legal responsibility is exempted if the yield is less than or perhaps equal to a few. If the taxable turnover throughout the current season 2008-09 exceedsthen there is no exemption limit back in 2009-10.

Solution: 1) Rs. 9, 00, 000 although less than Rs. 10, 00, 000 2) Reverse fee 3) Low Exempted Solutions 4) Rs. 10, 00, 000 5) Rs. 10, 00, 1000. 29. Multiple Choice Questions 1 . What is the due date for repayments of assistance tax regarding a partnership firm? a) 5th working day of the month immediately following each month b) twenty fifth day with the month immediately following every 1 / 4 c) fifth day of the month immediately following every quarter d) twenty fifth day of the month immediately following every month installment payments on your , A Ltd’ gets into into an advertising contract with , M Ltd. , for a amount of Rs. 15, 500 on 5-6-2006. , A Ltd. , receives an advance of Rs. 15, 000 in 06. six. 2006 and the balance quantity on the finalization services of service on 12. ’07. 2006. The service tax payable simply by , ABS Ltd. , is: a) Rs. 1836 by 25-8-2006 a) Rs. 1224 by simply 25-6-2007 and Rs. 612 by 25-8-2006 b) Rs. 1836 simply by 5-8-2006 b) Rs. 1224 by 5-7-2006 and Rs. 612 by 5-8-2006 a few. , Y Ltd’ supplies management consultancy services to , X’ for a thought of Rs. 20, 000. , Con Ltd. , raises the check on , X’ about 05. summer. 2006. , Y Ltd. ” will get the payment from , X” on 15. 07. 2006. The moment should , Y Ltd. , pay out the service tax? a) on or perhaps before 5-8-2006 b) about or prior to 5-7-2006 c) on or perhaps before 31 -7-2006 d) on or before 30-6-2006. Service duty is payable for the credit in the Central Govt in: a) Form ST-3 b) SCHIER -7 challan c) Type F d) non-e of the above a few. Adjustment of excess of service tax may be allowed on the basis of a) Pro-rata b) Total amount by time c) Only 80 percent d) Just 50% 6th. Penalty for not maintaining the proper books of accounts may possibly extend to a) Rs. 5, 500 b) Rs. 50, 000 c) Rs. 2, five-hundred d) Rs. 1, 500 7. A great assessee is usually allowed to fix mistakes and file modified return a) Within 90 days from the date of submitting of the first return b) Within 180 days in the date of filing with the original go back c) Without the time limit ) non-e with the above 8. E- repayment of assistance tax is definitely mandatory only if the payment of support tax is higher than a) Rs. 50 Lakhs b) Rs. 5 Lakhs c) Rs. 10 Lakhs d) Rs. 15 Lakhs 9. How much abatement will be allowed to Mandap Keeper, Resorts and Meeting Services featuring full providing services a) 40% b) 60% c) 100% d) 50% 12. Cenvat credit is prohibited if the insight services will be exclusively found in the output providers a) Exempted service b) Export of services c) Taxable foreign trade of providers Answer: (c) (d) (a) (b) (a) (a) (a) (a) (a) (b) 40. Fill in the Blanks 1 .

Abatement is definitely an amount that can befrom the importance of the support. 2 . In the case of Individuals the due date for payment of service tax for the III quarter is three or more. In the case of companies the service tax to get October has to be payed on or perhaps before of 4. For a lot of assessees the due date to get payment of service duty for the service rendered in the month of Drive is five. E-payment of service tax has been produced mandatory for assessees that have paid support tax greater than Rs. over the last financial year or through the current economical year 6. Half yearly return has to be filed using Form, The number of copies ought to be _____ several.

The time limit for filing revised come back isdays from the date of 8. Charges for not obtaining registration can be Rs. every day for every day time of standard or Rs. whichever can be higher. on the lookout for. The charges will be decreased to%, if perhaps tax, interest and fees are paid out within 30 days from the day of invoice of order of Central Excise Expert. 10. The facility of e-payment of service duty has also been introduced from Answer: Deducted 5th of January 5th of November 31st March 1) Rs. 60, 00. 1000 2) SAINT , three or more, triplicate 3) 90 days in the date of filing the original return. 4) Rs. 00 per day or Rs. 5, 000. 5) 25%. 6) 11. 05. 2005 31. Say Yes or No, Provide Reasons You ought to specify the heading under which the service being offered is falling. 2) Support provided by India with respect to immovable home situated in another country is called export of companies. 1) There might be no reversal of Cenvat credit in input service towards In house decorator companies used to generate partly dutiable goods along with non dutiable goods. 2) There can be simply no reversal of Cenvat credit on type services to get an output service provider in case the final providers are deemed exports. ) Due date of payment of service duty for e-payer is the sixth of pursuing month such as dues pertaining to March month. Service duty will be paid out by someone on month-to-month basis Deadline of submitting of 1 / 2 yearly come back ST , 3 is 30th Sept. 2010 Revised comes back can be recorded with in 90 days from the particular date of first return registered by the assessee E- repayment of support tax is usually compulsory for each assessee Eventual assessment is definitely not relevant at any presented case below service taxes provisions. Solution: 1) Certainly. Specify the heading underneath which the support being presented is falling is necessary when it comes to classification. ) Yes. Support provided from India with respect to immovable house situated overseas is called foreign trade of services. 3) No . There should be change of Cenvat credit upon input assistance towards Interior decorator solutions used to create partly dutiable goods and non dutiable goods. 4) Yes. There might be no reversal of Cenvat credit on input providers for an output service provider if the final services happen to be deemed export products. 5) Number Due date of payment of service duty for e-payer is the sixth of following month except the costs for 03 month. No . Service duty will be paid out by someone on quarterly basis No .

Due date of submission of half yearly return ST-3 is 25th October and 25th Apr. Yes. Revised returns may be filed within 90 days from the date of original return filed by assessee Number E- repayment of service tax is definitely not compulsory for every assessee No . Provisional assessment can be applied under support tax conditions. 32. Mcq (1)Voluntary subscription if turnover does not surpass a) Rs. 10, 00, 000 b) Rs. 1 ) 00, 1000 c) Rs. 12, 00, 000 d) Rs. 40, 00, 000 (2)Registration is usually Compulsory based on transactions (irrespective of turnover) if the dealer falls within the following groups ) Supplier is a great importer b) Dealer providing goods in the state c) Dealer can be dealing with the exempted items d) Probably none of the previously mentioned. (3)Dealer is liable to pay tax at Special costs as specific in Schedule. a) Permitted avail the VAT credit b) Not eligible to get the VAT credit c) 50% of VAT eligible for credit d) Eligible to acquire the VAT credit after registered below VAT (4)The prescribed power may end the subscription of a VALUE-ADDED TAX dealer, where the VAT supplier: a) Does not have any fixed place of business b) Provides place of business c) Has place of residence d) non-e from the above 5)Compulsory registration below VAT applicable if the dealer a) deals with inter-state revenue b) relates to exempted products c) exchanging goods inside the state d) none of them from the above Answer: 1) (a) 2) (a) 3) (b) 4) (a) 5) (a) 33. Claim Yes or No, With Factors 1) You will find two types of registration (i) Compulsory Enrollment (ii) Non-reflex Registration. 2) Dealers in whose Voluntary Subscription always turned down by the section 3) Seller dealing with inter-state sales must compulsorily enroll under the Point out VAT. 4) Registration is also available under VAT to get TOT traders or increasing tax elected dealer. ) A qualification of subscription under VAT is not available. Answer: Certainly. There are two styles of sign up (i) Mandatory Registration (ii) Voluntary Registration. No . Sellers whose Non-reflex Registration usually not turned down by the section Yes. Dealer dealing with inter-state sales needs to compulsorily sign-up under VALUE-ADDED TAX. Yes. Sign up is also readily available under APVAT for TOT dealers Yes. A license of registration under VALUE-ADDED TAX is in the Type VAT one zero five 34. Multiple Choice Questions (1)How various Schedules is there under the VALUE-ADDED TAX Act. a) Five Plans b) Six Schedules c) Seven Activities ) Eight Schedules (2)Goods specified beneath Schedule V will be taxed at the price of a) 0% b) 1% (c) 4% (d) 12. five per cent (3)Under which in turn Schedule carry out Bullion and Specie come? a) Plan 1 b) Schedule II c) Routine III d) Schedule IV (4)The stage of levy of tax for Aviators and other motor spirit is the point of a) Initial sale in the State b) Second sales in the Point out c) First and Second sale in the State d) Third deal in the State (5)Sale of taxable merchandise in the course of inter-state trade or commerce dropping within the opportunity of section 3 of the Central Sales Tax Act, 1956 are called ) Zero graded sales b) Exempted sales (c). Non-exempted sales (d) Taxable product sales (6)VAT rate on all kinds of Signal and Dhalls is a) 1% b) 4% c) 12. five per cent d) 0% (7)At the purpose of initially sale in the state the subsequent product appeals to 32. 54% of VAT a) Gasoline b) Machines c) Alcohol d) Diesel-powered Oil (8)Abbreviate ITC a) Input Tax Code b) Input Taxes Credit c) Initial Tax Credit d) In-house Taxes Credit (9)Sale of vegetables and fruits other than those cured, frozen, preserved, prepared, dried, dried up or discontinued are called a) Exempted revenue b) Taxable sales c) Partly free sales d) Special revenue 10)Kerosene offered through public distribution program will attract VAT rate a) 0% b) 1% c) 4% d) 12. 50 percent Answer: 1) (b) 2) (d) 1) (c) 3) (a) 4) (d) 5) (b) 6) (a) 7) (b) 8) (a) 9) (c) thirty five. Say Certainly or No, Offer Reasons 1) Input Taxes Credit could be allowed in respect of Schedule MIRE goods 2) Gold and Jewellery are liable to duty under VALUE-ADDED TAX @ 1% 3) Merchandise that come under the Plan I will obtain Input Taxes Credit 4) Generally sale for books, periodicals and magazines are free goods beneath VAT. 5) VAT rates are common for all the products specific in Schedule V 6) The initial seller of special merchandise in Andhra Pradesh is likely to pay.

The second retailer of these merchandise is not really liable to demand and pay taxes on his product sales. 7) Alcohol, at the point of 1st sale in the State of Andhra Pradesh, is subject to VAT @ 70% 8) VAT charge is actually zero in respect of sales of goods to the unit located in the Particular Economic Zone. 9) Sweets product is classified by the First Schedule and is exempt from VALUE-ADDED TAX. 10) Most intangible goods including copyright laws, patent, repetition license, DEPB are susceptible to VAT @4% Answer: No . Input Taxes Credit can not be allowed in respect of Schedule NI goods. These goods will be subjected to tax at unique rates.

Certainly. Gold and Jewellery are liable to tax under VAT @ 1%. No . Items that belong to Schedule Let me not get Insight Tax Credit rating. Because these types of goods will be exempted goods. Yes. Generally sale of catalogs, periodicals and journals are exempted products under APVAT. Yes. VAT rates are routine for all the products specified in Schedule Versus. Yes. The first retailer of exceptional goods in Andhra Pradesh is liable to pay. The 2nd seller of these goods is not liable to charge and pay tax in the sales. Yes. Liquor, at the point of first sale in the Point out of Andhra Pradesh, is usually subject to VAT @ 70 percent. Yes.

VALUE-ADDED TAX rate is usually zero in respect of sales of products to any device located in the Special Financial Zone. Yes. Sugar method listed in the First Routine and is not impacted by VAT. Certainly. All intangible goods including copyright, obvious, rep permit, DEPB will be subject to VAT @4%. thirty six. Multiple Choice Questions (1) Input Taxes Credit (ITC) can be believed if the inputs are used for a) business purpose b) personnel purpose c) distributing while free sample d) captive consumption (2)Every signed up dealer must file come back for each month on or before a) 20th from the succeeding month b) 10th of the doing well month ) 5th from the succeeding month d) End of the current month (3)ITC can be stated against inter-state sale only when those revenue are maintained a) Type C b) Form Deb c) Form H d) Form I actually (4)The period covered by the return is referred to as a Duty Period and may cover a a) Calendar month b) Season c) A split month d) Six months (5)The method underneath which taxes is enforced at each stage of sales on the complete sale value and the duty paid at the earlier level is allowed as set-off is called a) Invoice technique b) Subtraction method c) Deductive method d) Value addition and deletion approach 6)Under Account method, duty credit can’t be claimed unless and until the a) Tax Invoice is definitely produced b) Tax volume paid c) Goods will be delivered d) Actual product sales take place (7)VAT paid at reduced level is called a) Compounding Garnishment of duty b) Non-compounding levy of tax c) Value added taxes d) Florida sales tax (8)Sales comes back is allowed as a discount from the taxable turnover of goods if the items are came back with in a) Six months of sales b) Twelve months of sales c) Three months of sales d) One month of sales (9)Product X is definitely taxable @ 4% and Product Sumado a is taxable @12. 5%. Product X is sold to get Rs. 95, 000 and Product Con for Rs. 0. 000. Total suggestions tax credit is available for Rs. a few, 000. What would be the net VAT payable? a) Rs. 5, two hundred fifity b) Rs. 5, 1000 c) Rs. 2, 500 d) Rs. 10, two hundred fifity (10)A supplier in Andhra Pradesh paid CST of Rs. 1, 000 about inter-state buys. VAT payable by him on regional sales can be Rs. 1, 250. The internet VAT payable is. a) Rs. two hundred fifty b) Rs. 1, two hundred fifty c) Rs. 1, 1000 d) Rs. 750 Solution: (A) (a) (a) (a) (a) (a) (a) (b) (a) (b) 37. Fill up the Blanks 1) VAT is apoint tax helping to removeeffect. 2) You will discover two types of dealersand. 3) Input Tax is applicable simply to. 4) App for sign up under APVAT can be manufactured using Form No .. ) Schedule I lists those items that arefrom the VALUE-ADDED TAX 6) The Input Tax Credit for VAT paid out goods can be not available intended for goods not meant for. 7) The deadline for submitting of Month to month VAT come back isin the shape. 8) There are three methods for computation of VAT namelyand 9) Type Tax Credit can be stated against inter-state sale only if those product sales are supported by Form 10) The Division can deny the Non-reflex Registration app made by seller if this individual does not have a Solution: 1) Variable point, cascading down effect. 2) VAT Dealer and TANTO Dealer. 3) VAT Seller 4) VAT 100 5) Exempt 6) Business ) 20th in the succeeding month, Form 200 8) Addition method, Invoice method and subtraction approach 9) Kind , C’ 10) Office 38. Say Yes or any, Give Reasons Taxable product sales does not included Zero scored Sales Absolutely no rates and Exempted sales are a single and the same There is no this sort of concept since Voluntary sign up in VAT Schedule MIRE lists those items that are billed to taxes at Unique rates 5) Schedule Versus is a residuary head. Any kind of items that will not find a place under Plan I, II, III or IV may be classified under this timetable Input Tax credit can even be availed about Capital Items ) TIN means Duty Identification Amount which is only the Unique VALUE-ADDED TAX registration number allotted to any or all registered dealers Input Taxes Credit may be availed pertaining to the No rates Revenue 9) Suggestions Tax Credit can be possessed on Inter state buys, or merchandise received simply by consignment product sales or share transfer to this s