PAPER – 3 : TAXATION

Part – I MCQs
Case Scenario -1
Mr. Ananth is a traditional farmer who was inherited with 35 acres of rural
agricultural land which was around 20 kms from nearest town. He is cultivating
in 15 acres-Paddy, which is directly taken by rice traders. Another 10 acres of land
is used for growing Sugarcane and as per practice sugarcane is purchased by
sugar mills nearby the villages for which payments were received by
Neft/RTGS/IMPS. Remaining area is cultivated for (1) Mulberry leaves & (2) Part
of Mulberry leaves are used for being fed to silkworms and obtaining silk cocoons
and selling these silk cocoons in market. During the financial year 2023-24,
Mr. Ananth had got net Income of ` 4,00,000 from Sale of Paddy, ` 3,50,000 net
gain on sale of Sugarcane and ` 75,000 by selling Mulberry leaves alone. He
carried out Mulberry 5 silkworm production using his Mulberry leaves worth
` 50,000 and selling the silk cocoons by spending ` 2,00,000 and got ` 3,75,000
on sale of Silk Cocoons to Silk Co-operatives.
Based on the above information, answer the following MCQ no. 1 to 3:
1. (A) Paddy Income of ` 4,00,000 alone is exempt as Agricultural Income.
(B) Sugarcane Income of ` 3,50,000 and Paddy income of ` 4,00,000 will
constitute as Agricultural Income.
(C) Sale of Mulberry leaves amounting to ` 75,000, Paddy income of
` 4,00,000 and sugarcane income of ` 3,50,000 will all constitute
Agricultural Income.
(D) Paddy Income of ` 4,00,000, Sugarcane Income of ` 3,50,000 and sale &
use of Mulberry leaves of ` 1,25,000 all will constitute Agricultural
Income. (2 Marks)
2. (A) The Sale of Mulberry leaves of ` 75,000 will not constitute as Agricultural
Income.
(B) The amount of ` 3,75,000 being sale proceeds of silk cocoons to Silk co-
operatives will constitute as Agricultural Income.

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 SUGGESTED ANSWER INTERMEDIATE EXAMINATION: JANUARY 2025

(C) Net Income from Production of Silk cocoons of ` 1,75,000 is exempt from
tax being Agricultural Income.
(D) Net Income from sale of Silk Cocoons amounting to ` 1,25,000 will not
be treated as Agricultural Income and will be taxed either as Business
Income or IFOS. (2 Marks)
3. (A) Entire amount of Agricultural Income of Mr. Ananth will be ` 12,00,000.
(B) Agriculture Income will be ` 8,25,000 whereas Gain on Sale of Silk
Cocoons amounting to ` 1,25,000 will be Non-Agriculture Income.
(C) Agriculture Income will be ` 8,75,000 whereas Non-Agriculture Income
will be ` 1,25,000.
(D) Since Mr. Ananth mixes agriculture activities with non-agriculture
activities the entire receipt of ` 12,00,000 will be treated as Non-
Agriculture Income. (2 Marks)
Case Scenario - II
Mr. A transferred a house property to his wife in P.Y. 2023-24 for inadequate
consideration. She received a rent of ` 2 lakh from letting out this property and
spent ` 4,800 as municipal taxes. She deposited the same with bank and earned
an interest of ` 15,000 during the P.Y. 2023-24.
Based on the above information, answer the following MCQ no. 4 to 6:
4. The income of rent and interest will be chargeable to tax in the hands of -
(A) Mr. A - ` 2,15,000 as income of spouse clubbed under clubbing
provisions.
(B). Mr. A - ` 2 lakh under income from House Property (HP) and Mrs. A -
` 15,000 under Income From Other Sources (IFOS).
(C) Mrs. A - ` 1,36,640 under income from House Property and ` 15,000
under IFOS.
(D) Mr. A - ` 1,36,640 under income from HP and Mrs. A - ` 15,000 under
IFOS. (2 Marks)
5. If Mrs. A invests this rent amount in a business and incurs a loss of ` 20,000
and she has income from other business of ` 4 lakh. The income of rent and
business will be chargeable to tax in the hands of -

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 SUGGESTED ANSWER TAXATION

(A) Mr. A - ` 1,36,640 under income from HP and Mrs. A - ` 3.80 lakh under
income from business.
(B) Mr. A - ` 1,22,640 under income from HP and Mrs. A - ` 4 lakh as
business profits.
(C) Mrs. A - ` 1,36,640 under income from HP and ` 3.80 lakh as business
profits.
(D) Mr. A - ` 1.80 lakh under income from HP and Mrs. A - ` 4 lakh as
business profits. (2 Marks)
6. If Mr. A transfers the above property for inadequate consideration with an
agreement to live apart, then the income of rent and interest will be
chargeable to tax in the hands of -
(A) Mr. A - Nil and Mrs. A - ` 1,36,640 under income from HP and ` 15,000
under IFOS.
(B) Mr. A - ` 2.15 lakh under clubbing provisions and Mrs. A - NIL
(C) Mr. A - ` 2 lakh under income from HP and Mrs. A - ` 15,000 under IFOS.
(D) Mr. A - ` 1,36,640 under income from HP and Mrs. A - ` 15,000 under
IFOS. (2 Marks)
7. Raju earned 25,000 from lotteries, ` 10,000 from betting, ` 50,000 from
online games (on internet) and lost ` 5,000 in card games during
P.Y. 2023-24.
The amount of tax to be charged for A.Y. 2024-25 will be -
(A) 30% of (` 25,000+` 10,000) + 20% of ` 50,000 and adjustment of
unexhausted basic limit is permitted against this income.
(B) 30% of (` 25000 + ` 10,000 + ` 50,000 - ` 5,000) and adjustment of
unexhausted basic limit is permitted against this income.
(C) 30% of (` 25,000 + ` 10,000 + ` 50,000) and adjustment of unexhausted
basic limit is not permitted against this income.
(D) 30% of (` 25,000 - ` 5,000) + 20% of (` 10,000 + ` 50,000) and
adjustment of unexhausted basic limit is not permitted against this
income. (2 Marks)

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 SUGGESTED ANSWER INTERMEDIATE EXAMINATION: JANUARY 2025

8. AMT liability are not attracted to: Choose the correct answer from the
following:
(A) Individual/AOP
(B) HUF/BOI/Artificial Juridical person not paying tax under default tax
regime.
(C) Individual/HUF/BOI/AOP
(D) Individual/HUF/BOI/AOP paying tax under default tax regime.
(1 Mark)
Case Scenario - III
Mr. Mohanraj of Kerala, unregistered under GST, deals with supply of cosmetic
items within Kerala. He ordered an i-phone for his son studying in Pune,
Maharashtra, through online from an Electronic Commerce Operator located in
Delhi. He gave his Kerala address for Billing and his son's hostel address in
Maharashtra for delivery. The supplier in Delhi dispatched the ordered phone
from his godown in Karnataka.
He applied for registration under GST in the name of Mohanraj & Co., a proprietor
concern and got registered in the State of Kerala.
During the month of June 2024,
(i) He purchased goods valued ` 5,00,000 for making further supply. Out of the
above purchases, he gifted stock worth ` 2,00,000 to his daughter, who is of
doing the same line of business in Kerala, to help her.
(ii) He supplied stock valued at ` 1,50,000 to an unregistered buyer in Kerala.
(iii) Mohanraj paid ` 10,000 towards rent to Local Municipal Corporation for the
shop taken on rent at a Bus Terminal in Kerala.
(iv) He paid a rent of ` 20,000 for a residential house property taken on rent in
Kerala. This property was used for his personal residence.
All the amounts given above are exclusive of tax, wherever applicable.
Rates of GST for goods are 6%, 6% and 12% for CGST/SGST/IGST respectively.
Rates of GST for services are 9%, 9% and 18% for CGST /SGST/IGST respectively.
Subject to the information given above, conditions for availing ITC are complied
with.

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 SUGGESTED ANSWER TAXATION

Based on the above information, choose the most appropriate answer for the
questions 9-11:
9. In respect of i-phone ordered and delivered, Place of Supply will be,
(A) Kerala
(B) Delhi
(C) Karnataka
(D) Maharashtra
10. Determine the Value of Outward supply (including supply liable under RCM)
of Mr. Mohanraj for the month of June 2024.
(A) ` 1,60,000
(B) ` 1,80,000
(C) ` 3,60,000
(D) ` 3,80,000
11. Amount of ITC that can be claimed by Mr. Mohanraj, for the month of June
2024 including RCM transactions if any, will be__________ each under CGST
and SGST.
(A) ` 18,900
(B) ` 20,700
(C) ` 30,900
(D) ` 32,700
Case Scenario - IV
Mouriya & Co, registered under GST, is engaged in textile manufacturing business
in the State of Tamilnadu. For the Financial year 2017-18, the due date of
furnishing annual return in GSTR-9 was 07.02.2020. But their accountant
submitted the same on 07.03.2020. No appeal or revision or investigation was
faced for the said financial year by the firm.
They supplied Dhoties and Sarees to various State Government during the month
of March 2024, details of which are as follows:
(i) Supplied Sarees worth ` 2,80,000 including GST @ 12% to Government of
Tamilnadu for Tamil New year distribution.
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 SUGGESTED ANSWER INTERMEDIATE EXAMINATION: JANUARY 2025

(ii) Supplied Dhoties worth ` 3,00,000 excluding GST @ 12% to Government of

Tamilnadu for Scheme distribution.
(iii) Supplied both Sarees and Dhoties to Government of Andhra Pradesh for Telugu
New Year, valued at ` 3,50,000 including GST @ 12% . The said supply was
made to its Govt undertaking in Chennai, Tamilnadu. Invoice was issued to the
Andhra Govt in Tirupati.
During the month of April 2024, the firm made wrong availment of excess ITC
under IGST head for an amount of ` 1,00,000. During the time period starting
from excess availment upto such reversal, the balance in credit ledgers of CGST,
SGST and IGST were, ` 70,000, ` 20,000 and ` 20,000 respectively. The Firm
identified the wrong availment and reversed the excess ITC availed.
Ignore break-up of tax rate between CGST/SGST/IGST for GST TDS purposes.
Based on the above information, choose the most appropriate answer for the
questions 12-14.
12. Mouriya & Co will be required to retain books of accounts and other records
maintained under the provisions of the CGST Act, 2017 until _____________
(A) 31.03.2024
(B) 07.03.2025
(C) 07.02.2026
(D) 07.03.2026
13. Determine the Gross amount of TDS (Ignoring Break-up between
CGST/SGST/IGST) which will be deducted by the recipients in respect of
supplies made to various Govts.
(A) ` 6,000
(B) ` 11,000
(C) ` 12,250
(D) ` 17,250
14. In respect of excess claim of ITC under IGST, the firm would be liable to pay
interest on the excess availed IGST ITC amount of
(A) ` Nil

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(B) ` 10,000
(C) ` 80,000
(D) ` 1,00,000
15. Mrs. Padmini, a renowned Kathak artist and a registered person under GST,
provides the following information regarding the activities carried out by her
during the month of June 2024.

Sr. Particulars Amount

No. `
1. Fees received for teaching Kathak 12,50,000
2. Received from a TV channel for appearing in one of 2,75,000
its Shows as Guest Anchor
3. Received from the performance of Kathak 2,50,000
4. Received from the performance of Fusion dance 1,45,000
which includes both western and classical dance

Value of taxable supply of Mrs. Padmini for the month of June 2024 will be
` ___________.
(A) ` 2,75,000
(B) ` 4,20,000
(C) ` 6,70,000
(D) ` 19,20,000
16. Alpha Way Industries, a registered person dealing in supply of taxable goods
all over India, having an aggregate turnover of ` 6.75 Crore in the preceding
Financial Year, is required to issue Tax Invoice with HSN Code of:
(A) 4 digits for goods supplied to registered persons only (B2B)
(B) 4 digits for goods supplied to registered as well as unregistered persons
(B2B and B2C)
(C) 6 digits for goods supplied to registered persons only (B2B)
(D) 6 digits for goods supplied to registered as well as unregistered persons
(B2B and B2C)

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 SUGGESTED ANSWER INTERMEDIATE EXAMINATION: JANUARY 2025

Answer Key

MCQ No. Correct Option

1. (B) or (D)
2. (D)
3. (C)
4. (D)
5. (A)
6. (A)
7. (C)
8. (D)
9. D
10. Out of Syllabus
11. C
12. C
13. C
14. A
15. C
16. D

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PART - II
SECTION A: INCOME TAX LAW
Question No.1 is compulsory.
Candidates are also required to answer any two questions from the remaining
three questions.
Working notes should form part of the respective answers.
All questions relate to Assessment Year 2024-25, unless otherwise stated.

Question 1
Mr. Rohit, a resident individual, aged 65 years, is a qualified medical practitioner.
He runs his own clinic. Income & Expenditure A/c of Mr. Rohit for the year ending
March 31st 2024 is as under :

Expenditure ` Income `
To Salary to Staff 8,20,000 By Consultation Fees 22,00,000
To Administrative 5,90,000 By Salary received from 1,80,000
Expenses Care Hospital Pvt. Ltd.
To Conveyance 24,000 By Rental Income from 78,000
Expenses House Property
To Power & Fuel 24,000 By Dividend from Foreign 10,000
Companies
To Interest on Housing 1,00,000
Loan
To interest on 26,000
Education Loan for son
To Amount paid to 25,000
scientific research
association approved &
notified u/s 35
To Net Profit 8,59,000
Total 24,68,000 Total 24,68,000

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 SUGGESTED ANSWER INTERMEDIATE EXAMINATION: JANUARY 2025

Following is the further information relating to Financial Year 2023-2024:

(i) He is working part-time with Care Hospital Pvt. Ltd. His Salary details are as
under :

Basic Pay ` 13,000 p.m.

Transport Allowance ` 2,000 p.m.
Total ` 15,000 p.m.
Further, during P.Y. 2023-24 his son had undergone a medical treatment in
Care Hospital Pvt. Ltd. free of cost. The hospital would have charged a sum
of ` 1,00,000 for a similar treatment to unrelated patients.
(ii) He owns a residential house. The ground floor of the house (50% portion) is
self-occupied by him while first floor of the house (50% portion) has been
rented out since 01/10/2023. The reconstruction of the entire house was
started on 01.04.2023 and was completed on 30.09.2023. The monthly rent
is ` 10,000. The tenant also pays ` 3,000 p.m. as power back-up charges.
He took a housing loan of ` 12 lakhs on 01.04.2023. Interest on housing
loan for the period 01.04.2023 to 30.09.2023 was ` 60,000 and for the
period 01.10.2023 to 31.03.2024 was ` 40,000.
During the year, he also paid municipal taxes for the F.Y. 2022-23
` 4,000 and F.Y. 2023-24 ` 6,000.
(iii) Other Information:
(a) Payment of salary of ` 25,000 per month to sister-in-law of
Mr. Rohit, who was in-charge of the Accounts & Receivables department.
However, in comparison to similar work profile, the reasonable salary at
market rate is ` 20,000 per month.
(b) Conveyance expenses include a sum of ` 12,000 incurred for conveyance
from house to Care Hospital Pvt. Ltd. and vice-versa in relation to his
employment.
(c) Power and fuel expenses include a sum of ` 6,000 incurred for generator
fuel for providing power back up to the tenant.
(d) Administrative expenses include a sum of ` 10,000 paid as Municipal
Taxes for his house.

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 SUGGESTED ANSWER TAXATION

(e) Clinic Equipment details are :

Opening W.D.V. of Clinic Equipment as on 01.04.2023 was ` 1,00,000
and fresh purchase made on 28.08.2023 for ` 25,000 which was paid in
cash.
(f) He also paid tuition fees of ` 40,000 for his Grand Daughter, which is
debited to his capital a/c.
(g) He availed a loan of ` 8,00,000 from bank for higher education of his
son. He repaid principal of ` 50,000 and interest of ` 26,000 during
P.Y. 2023-2024.
You are required to compute his net taxable income and net tax liability
for the A.Y. 2024-25 if he has exercised the option of shifting out of the
default tax regime provided under section 115BAC(1A).
Answer
Computation of net taxable income and net tax liability of Mr. Rohit for
A.Y. 2024-25 under the normal provisions of the Act

Particulars ` `
I Income from Salaries
Basic Pay (` 13,000 x 12) 1,56,000
Transport Allowance (` 2,000 x 12) [Fully 24,000
taxable]
Cost of treatment for son in Care Nil
Hospitals Pvt. Ltd. [Exempt, since value of
medical treatment provided to an
employee’s family member in any
hospital maintained by the employer is
excluded from the definition of
perquisite]
Gross Salary 1,80,000
Less: Standard deduction u/s 16 [Actual
salary or ` 50,000, whichever is less] 50,000
Net Salary 1,30,000
Less: Set off of loss from house property 41,500
88,500

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 SUGGESTED ANSWER INTERMEDIATE EXAMINATION: JANUARY 2025

II Income from house property

Let out portion [First floor]
Gross Annual Value [Rent received is 60,000
taken as GAV = ` 10,000 p.m. x 6
months]
Less: Municipal taxes paid in the P.Y. 5,000
2023-24 pertaining to let out portion
[(` 4,000 + ` 6,000)/2], allowable since it
is paid during the year, even if it relates
to earlier years
Net Annual Value (NAV) 55,000
Less: Deduction u/s 24
(a) 30% of ` 55,000 16,500
(b) Interest on housing loan [(` 60,000
(+) ` 40,000)/2] 50,000 66,500
(11,500)
Self-occupied portion [Ground Floor]
Annual Value Nil
Less: Deduction u/s 24
Interest on housing loan for
reconstruction
`1,00,000 [(` 40,000 + ` 60,000)/2] 30,000 (30,000)
restricted to
Loss from house property (41,500)
III Profits and gains of business or
profession
Net profit as per Income and 8,59,000
Expenditure account
Add: Items of expenditure not
allowable while computing business
income
(a) Excessive salary paid to sister-in Nil
law [allowed, since sister-in law
does not fall within the definition of
relative]

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(b) Conveyance expenses in relation to 12,000

her employment with Care Hospital
Pvt. Ltd. debited to Income and
Expenditure A/c, not allowed
(c) Power and fuel expenses incurred 6,000
for providing power back up to
tenant not deductible
(d) Municipal tax paid relating to
residential house included in 10,000
administrative expenses, not
deductible
(e) Interest on housing loan for 1,00,000
reconstruction of residential house
(f) Interest on education loan for son 26,000
1,54,000
10,13,000
Less: Allowable expenditure
Depreciation on Clinic equipments
- On Opening WDV ` 1,00,000 @15% 15,000
- On additions during the year
` 25,000, no depreciation is
allowable, since payment was made
in cash and hence, it will not form Nil
part of actual cost.
15,000
9,98,000
Less: Items of income to be treated
separately under the respective head
of income
(i) Salary received from Care Hospitals 1,80,000
Pvt. Ltd.
(ii) Rental income from house property 78,000
(iii) Dividend from foreign companies 10,000
2,68,000
7,30,000

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 SUGGESTED ANSWER INTERMEDIATE EXAMINATION: JANUARY 2025

Note – Mr. Rohit, is a medical

professional and if he claims that his
profits and gains from profession are
lower than ` 11,00,000 (50% of gross
receipts i.e., ` 22,00,000) and his total
income exceeds the maximum amount
not chargeable to tax, he would be
required to maintain books of accounts
and get them audited from an
accountant by virtue of section
44ADA(4).
IV Income from Other Sources
Power back up charges from tenant 18,000
(` 3,000 p.m. x 6 months)
Less: Actual expenditure incurred for 6,000
providing power back up
12,000
Dividend from foreign companies 10,000
22,000
Gross Total Income 8,40,500
Less: Deduction under Chapter VI-A
Deduction under section 80C – Tuition Nil
fee paid for grand child is not allowable
Deduction under section 80E - 26,000
Interest on loan taken for higher
education of her son is deductible
Principal repayment of loan taken for Nil
education is not deductible
26,000
Total Income 8,14,500
Net tax liability
Tax on total income of ` 8,14,500
Up to `3,00,000 Nil
` 3,00,001 – ` 5,00,000 [@5% of 10,000
` 2,00,000]

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` 5,00,000 – ` 8,14,500 [@20% of 62,900

` 3,14,500]
72,900
Add: Health and education cess @4% 2,916
Net tax liability 75,816
Net tax liability (rounded off) 75,820

Question 2
(a) Mr. Paras has a proprietary business since P.Y. 2015-16. He has transferred
this business on 01.04.2023 by way of a slump sale for a total consideration
of ` 40 Lakh. The fair market value of his capital assets as on 01.04.2023 is
` 35 Lakh. He has incurred expenses for this deal of ` 1,50,000. His Balance
Sheet as on 31.03.2023 is given below:

Liabilities ` Assets `
Own Capital 20,00,000 Building 18,00,000
Bank Loan 5,00,000 Debtors 5,00,000
Unsecured Loans 2,50,000 Machinery 5,00,000
Creditors 4,10,000 Other assets 3,60,000
31,60,000 31,60,000

Other information :
(1) Bank loan balance includes ` 2 lakh for personal purpose.
(2) Machinery costing ` 50,000 has been allowed 100% as deduction u/s
35AD
(3) Other assets include self-generated goodwill of ` 60,000.
(4) Unsecured loans include ` 1 lakh for amount payable for the purchase
of the ornaments of his wife.
Compute the capital gain/loss for the A.Y. 2024-25.
(b) Mr. Ganesh whose Professional Receipts for the year ended 31.03.2023 were
` 1.25 crores has made payment to Mr. Rajesh (a Chartered Accountant)
during P.Y. 2023-24 who has multi faced activities.

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 SUGGESTED ANSWER INTERMEDIATE EXAMINATION: JANUARY 2025

Examine whether TDS Provisions re applicable for following payments made

by Mr. Ganesh to CA Rajesh :
(i) Professional Fee for consultation - ` 32,450 on 15.06.2023 including GST
paid @18%.
(ii) Royalty Payment for Use of Computer Software by various clients of
Mr. Rajesh - ` 2,50,000 on 03.03.2024.
(iii) Fee for Technical services related to Business of Mr. Ganesh -
` 20,000 on 15.12.2023.
(iv) Fees for teaching accountancy to his Son - ` 40,000 on 31.10.2023.
Answer
(a) Computation of capital gains on slump sale for A.Y. 2024-25

Particulars `
Full value of consideration [Higher of (i) FMV of capital 40,00,000
assets on 1.4.2023 of ` 35 lakhs or (ii) FMV of Monetary
consideration received of ` 40 lakhs]
Less: Expenses for transfer 1,50,000
38,50,000
Less: Net worth (See Note below) 21,90,000
Long-term capital gain, since the business is held for more 16,60,000
than 36 months [Indexation benefit not available]

Note - Computation of net worth

Building 1 18,00,000
Machinery 2 [` 5,00,000 – ` 50,000, being the amount 4,50,000
allowed as 100% as deduction u/s 35AD]
Debtors 5,00,000

1
Assuming Balance Sheet values represent the written down value of building as per section
43(6)(c).
2
Assuming Balance Sheet values represent the written down value of machinery as per section
43(6)(c).

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 SUGGESTED ANSWER TAXATION

Other assets (` 3,60,000 – ` 60,000, being the amount of

self-generated goodwill) 3,00,000
Total assets 30,50,000
Less: Bank Loan (` 5,00,000 – ` 2,00,000, being 3,00,000
loan for personal purpose)
Unsecured Loan (` 2,50,000 – ` 1,00,000, 1,50,000
being the amount payable for purchase of
ornaments of his wife)
Creditors 4,10,000 8,60,000
Net worth 21,90,000

(b) (i) Professional Fees for consultation

As per section 194J, tax is required to be deducted at source @10% on
fees for professional services, if the amount paid exceeds ` 30,000.
In the present case, since the amount of professional fees of ` 27,500
(` 32,450 x 100/118) excluding GST is not exceeding ` 30,000, no tax is
required to be deducted at source on such payment by Mr. Ganesh.
(ii) Royalty payment for use of computer software
No tax is deductible at source by Individuals and HUFs on royalty
payment. Hence this payment is not liable for TDS under section 194J.
(iii) Fee for technical services related to business of Mr. Ganesh
As per section 194J, tax is required to be deducted at source 2% on
fees for technical services, if the amount paid exceeds ` 30,000.
Since in the present case, the amount of fees for technical services of
` 20,000 is not exceeding ` 30,000, no tax is required to be deducted
at source on such payment by Mr. Ganesh.
(iv) Fees for teaching accountancy to his son
No tax is required to be deducted at source u/s 194J in respect of fees
for teaching, since it does not fall within the scope of professional
services. Moreover, TDS also not required to be deducted at source
since such fees is paid by Mr. Ganesh for his personal purposes.

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 SUGGESTED ANSWER INTERMEDIATE EXAMINATION: JANUARY 2025

Question 3
(a) (A) What is the meaning of Micro arid Small Enterprise u/s 43B of Income
Tax Act, 1961?
(B) Mr. Prem has following assets as on 01.04.2023 :
(i) A machinery costing ` 4 lakh, which was used for scientific research
related to business and deduction u/s 35 was allowed ` 40,000.
(ii) A laptop received as a gift from his friend costing ` 60,000. It was
purchased on 01.04.2022 by his friend.
(iii) A temporary wooden structure costing ` 70,000 erected in Dec. 23
which was used for business purposes.
Compute the depreciation allowed on these assets for F.Y. 2023-24.
(b) Mr. X, age 83 years, a resident individual, gives the following particulars of
his receipts for A.Y. 2024-25 :

1. Installment received from the bank under reverse ` 1,50,000

mortgage arrangement
2. Interest on bank term deposits ` 2,00,000
3. Interest on bank saving a/c ` 45,000
4. Pension from Central Govt. ` 4,50,000
5. STCG on sale of dining table and chairs ` 1,00,000
6. Income from dairy farming on his rural agricultural ` 50,000
land

Compute his total income and Income Tax thereon for A.Y. 2024-25
considering that assessee has opted out of Default tax regime.
Answer
(a) (A) For Manufacturing Enterprises and Enterprises rendering Services
Micro Enterprise - Investment in Plant and Machinery or Equipment ≤
` 1 crore and Annual Turnover ≤ ` 5 crores.
Small Enterprise - Investment in Plant and Machinery or Equipment ≤
` 10 crores and Annual Turnover ≤ ` 50 crores.

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 SUGGESTED ANSWER TAXATION

(B) Computation of Depreciation to Mr. Prem for P.Y. 2023-24

Particulars Amount
(`)
Depreciation on machinery used for scientific research 54,000
@15% on ` 3,60,000 [` 4,00,000, being actual cost –
` 40,000, being deduction allowed u/s 35]
Depreciation on laptop received as a gift @40% on 14,400
` 36,000 [` 60,000, being actual cost to previous owner –
` 24,000, being depreciation for P.Y. 2022-23 allowable to
assessee if it was the only asset]
Depreciation on temporary wooden structure @40% x 14,000
50% on ` 70,000 [Since it is put to use for less than 180
days]
82,400

(b) Computation of total income and tax liability of Mr. X for A.Y. 2024-25
` `
I Income from Salaries
Pension from Central Government 4,50,000
Less: Standard deduction u/s 16 [Actual salary 50,000
or ` 50,000, whichever is less]
4,00,000
II Capital Gains
STCG on sale of dining table and chairs [Not a Nil
capital asset since it is personal effects]
III Income from Other Sources
Installment received under reverse mortgage Nil
[Exempt u/s 10(43)]
Interest on bank term deposits 2,00,000
Interest on bank saving a/c 45,000
Income from dairy farming on agricultural land 50,000
2,95,000

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 SUGGESTED ANSWER INTERMEDIATE EXAMINATION: JANUARY 2025

Gross Total Income 6,95,000

Less: Deduction under section 80TTB 50,000
Total Income 6,45,000
Tax liability
Up to ` 5,00,000 Nil
` 5,00,001 – ` 6,45,000 [@20% of ` 1,45,000] 29,000
29,000
Add: Health and education cess @4% 1,160
Tax liability 30,160

Question 4
(a) Mr. Rakesh furnishes the following details for year ended 31.03.2024:

Particulars `
Short Term Capital Gain 2,80,000
Loss from Speculative Business 1,20,000
Long Term Capital Gain on Sale of Land 60,000
Long Term Capital Loss on Sale of shares (STT not paid) 2,00,000
Income From Business of Textile (after allowing current 1,00,000
year Depreciation)
Income From Salary (Computed) 2,00,000
Loss from Let - Out House Property 80,000
Share of Loss from Firm 1,60,000
Investment in PPF 21,000
Medical Insurance Premium for self paid by Cheque 24,000
Preventive Health Check-up fees for wife paid by Cheque 5,000

Following are the Carry Forward Losses:

• Carry Forward Loss from Business of Textile ` 1,20,000 - this being the
8th year from the year of Loss.

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 SUGGESTED ANSWER TAXATION

Compute Total Income of Mr. Rakesh for the A.Y. 2024-2025 if he has
exercised the option of shifting out of default tax regime provided under
section 115BAC(1A). Also state the eligible Carry Forward losses.
(b) (i) Which are all persons required to mandatorily file the Return of Loss
as per section 80 of Income Tax Act, 1961.
(ii) Consequences of Non-filing of Return of Loss in time
OR
(b) (i) What is Belated Return u/s 139(4) of Income tax Act, 1961 and when
it should be filed?
(ii) Explain Non-Applicability of Updated Return u/s 139(8A)
Answer
(a) Computation of Total Income of Mr. Rakesh for the A.Y. 2024-25
` `
Income from Salary (computed) 2,00,000
Less: Loss from let-out house property (80,000)
1,20,000
Profit and gains of business or profession
Income from textile business 1,00,000
Less: Loss of ` 1,20,000 from textile business set-
off to the extent of ` 1,00,000 1,00,000
Nil
Share of loss from firm - not allowed to be set- Nil
off
Capital Gain
Short term capital gain 2,80,000
Long-term capital gain on sale of land 60,000
Less: Long term capital loss of ` 2,00,000 on sale
of shares set-off to the extent of ` 60,000 60,000 Nil
Balance loss of ` 1,40,000 to be carried forward to
A.Y 2025-26

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 SUGGESTED ANSWER INTERMEDIATE EXAMINATION: JANUARY 2025

Gross Total Income 4,00,000

Less: Deduction under Chapter VI-A
- Under section 80C – Investment in PPF 21,000
- Under section 80D – Medical insurance 25,000 46,000
premium for self of ` 24,000 and preventive
health checkup fees for wife of ` 5,000
restricted to
Total Income 3,54,000
Losses to be carried forward to A.Y. 2025-26
Loss from speculative business 1,20,000
Loss from speculation business cannot be set-off against
any income other than profit and gains of another
speculation business. Such loss can, however, be carried
forward to A.Y. 2025-26 as per section 73(4) for set-off
against income from speculation business of that year.
Long term capital loss on sale of shares 1,40,000
Balance loss cannot be set-off against short term capital
gain or against any other head of income. The same has to
be carried forward for set-off against long-term capital gain
of the subsequent assessment year.
Balance brought forward loss of ` 20,000 from textile
business
Such business loss cannot be carried forward since business
loss can be carried forward for a maximum of eight
assessment years immediately succeeding the assessment
year for which the loss was first computed and A.Y.
2024-25, is the eighth year.

(b) First Alternative

(i) As per section 80, a person having the following losses is required to
mandatorily file return of loss u/s 139(3) on or before the due date
specified u/s 139(1) for the purpose of carry forward of such losses -
(a) Business loss u/s 72(1)
(b) Speculation business loss u/s 73(2)

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 SUGGESTED ANSWER TAXATION

(c) Loss from specified business u/s 73A(2) [In case assessee has
exercised the option of shifting out of the default tax regime
provided under section 115BAC(1A)]
(d) Loss under the head “Capital Gains” u/s 74(1)
(e) Loss from the activity of owning and maintaining race horses u/s
74A(3).
(ii) If the return of loss is not filed within the time allowed u/s 139(1) then,
the following losses cannot be carried forward –
(a) Business loss u/s 72(1)
(b) Speculation business loss u/s 73(2)
(c) Loss from specified business u/s 73A(2) [In case assessee has
exercised the option of shifting out of the default tax regime
provided under section 115BAC(1A)]
(d) Loss under the head “Capital Gains” u/s 74(1)
(e) Loss from the activity of owning and maintaining race horses u/s
74A(3)
(b) Second Alternative
(i) A belated return is a return which is not furnished within the time
allowed under section 139(1) but furnished at any time -
(i) before three months prior to the end of the relevant assessment
year (i.e., 31.12.2024 for P.Y. 2023-24); or
(ii) before the completion of the assessment,
whichever is earlier.
(ii) The provisions of updated return would not apply, if the updated
return of such person for that assessment year –
(i) is a loss return; or
(ii) has the effect of decreasing the total tax liability
(iii) results in refund or increases the refund due

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 SUGGESTED ANSWER INTERMEDIATE EXAMINATION: JANUARY 2025

Part-II
SECTION B: GOODS AND SERVICES TAX
1. For Part-II, Section -B comprises of questions from 5-8. In Section B, answer
question no. 5 which is compulsory and any two questions from question nos.
6-8.
2. Working notes should form part of the answer.
3. All questions in Section- B should be answered on the basis of position of GST
law as amended by Finance Act, 2023 and the significant notifications/
circulars issued upto 30th June, 2024.
Question 5
(a) Galaxy Cube Private Ltd., a registered person in Bharuch, Gujarat, engaged
in various lines of business, provided the following details regarding its
transactions made during the month of May 2024:

Outward / Inward Transactions: Amount

`
Supplied a latest technology laptop with touch screen option to 60,000
Managing Director's friend (Open market value as well as sale to
unknown customers was at ` 90,000)
Supplied printed letter cards to M K Industries, a registered person 5,00,000
in Gandhinagar, Gujarat. Logo design was supplied by M K
Industries. Out of ` 5,00,000, Materials cost was ` 4,00,000 and
balance was Printing cost.
Provided services of transportation of passengers by an Omnibus 12,58,000
through an Electronic Commerce Operator (ECO).
Provided catering services to Excel University of Patna, Bihar, 2,12,000
which is recognized by UGC for granting recognised qualification
Made supply of goods in the territorial waters to Blue Waters Inc., 4,50,000
registered in the State of Maharashtra. Such place of territorial
water was at a distance of 5 nautical miles to the baseline of
coastal State of Gujarat and 7 nautical miles to the baseline of
coastal State of Maharashtra.
Purchased goods from DK & Co., a registered composition dealer. 3,35,000

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 SUGGESTED ANSWER TAXATION

Additional Information :
(i) During the course of filing invoices, accountant identified an invoice
dated 31.03.2024, issued by Mr. Mahajan, whose residential house was
taken on rent for MD of the company for his residential use. Invoice
was for ` 50,000 (excluding tax). No payment has been made for
this invoice.
(ii) All the figures given above are exclusive of GST.
(iii) All inward and outward supplies are intra-state except where details
of place of recipient are given.
(iv) Subject to the information given above, all the conditions necessary
for availing the ITC have been fulfilled.
(v) GST Rates are as follows:

Particulars CGST SGST IGST

Supply of Goods 6% 6% 12%
Supply of Services 9% 9% 18%

Compute the net minimum GST payable in cash by Galaxy Cube Private
Ltd. for the month of May 2024. (10 Marks)
(b) Gamma Multiplex registered in the State of Punjab, gives the following offers
for booking movie tickets :

Sr. Particulars Price Charged (excluding GST)

No.
1 Tickets only ` 200 per person
2 Combo offer ` 350 per person (which includes ` 200 for ticket and
` 150 for snacks)
3 Snacks only ` 250 per token (snacks quantity will be more
when compared to combo offer)

For the month of April 2024, Gamma Multiplex situated in Punjab made the
following supplies :
(i) 10,000 tickets under combo offer
(ii) 2,500 tickets only

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 SUGGESTED ANSWER INTERMEDIATE EXAMINATION: JANUARY 2025

(iii) 1,000 tokens of snacks only

GST rates applicable are:

Rate of GST CGST SGST IGST

Supply of Snacks 2.5% 2.5% 5%
Supply of service of exhibition of cinema 9% 9% 18%

You are required to determine the following, by explaining the relevant

provisions :
(i) Rate of GST to be applied when combo supply is made
(ii) Rate of GST to be applied when snacks are sold in Multiplex
(iii) Gross GST payable by Gamma Multiplex for the month of April, 2024.
(5 Marks)
Answer
(a) (i) Computation of output tax liability of Galaxy Cube Pvt. Ltd. for
May, 2024

Particulars Value CGST SGST IGST

(`) (`) (`) (`)
GST payable under
forward charge
Supply of laptop to 60,000 3,600 3,600
Managing Director’s [60,000 × [60,000 ×
Friend 6%] 6%]
[Since supply is made to
an unrelated person
(Managing Director’s
friend not being a related
person) and price is the
sole consideration, value
of supply is the
transaction value i.e. the
price actually paid or

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SUGGESTED ANSWER TAXATION

payable for the said

supply.]
Supplied printed letter 5,00,000 30,000 30,000
cards to M K Industries [5,00,000 [5,00,000
[Since letter cards are X 6%] X 6%]
supplied by the printer
using its own physical
inputs to print the logo
supplied by the recipient,
it is a composite supply
wherein the predominant/
principal supply is supply
of goods. It is an intra-
State supply since the
place of supply is Gujarat
being the location where
movement of goods
terminates.]
Transportation of 12,58,000 1,13,220 1,13,220
passenger services by an [12,58,000 [12,58,000
omnibus provided X 9%] X 9%]
through electronic
commerce operator
(ECO)
[Tax on transportation of
passengers services by an
omnibus provided
through ECO by a
company is not a notified
service under section 9(5)
of the CGST Act, 2017 and
hence tax is payable by
Galaxy Cube Private Ltd.
and not by the ECO since
the person supplying

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SUGGESTED ANSWER INTERMEDIATE EXAMINATION: JANUARY 2025

such service through ECO

is a company.]
Catering services to Excel 2,12,000 - - 38,160
University [2,12,000
[Taxable/Not exempt X 18%]
since catering services are
exempt only when such
services are provided to
an educational institution
providing services by way
of pre-school education
& education up to higher
secondary school or
equivalent.
In this case, catering
services are provided to
an educational institution
providing education as a
part of a curriculum for
obtaining a qualification
recognized by any law.
Thus, same are taxable.
Further, it is an inter-State
supply since place of
supply is Patna being the
place of performance of
services.]
Supply of goods in 4,50,000 27,000 27,000
territorial waters [4,50,000 [4,50,000
[Where supply is in the X 6%] X 6%]
territorial waters, the
place of supply is deemed
to be in the coastal State
where the nearest point
of the appropriate
baseline is located, viz.

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SUGGESTED ANSWER TAXATION

Gujarat in the given case.

Hence, supply will be
intra-State supply of
goods.]
Total GST payable under 1,73,820 1,73,820 38,160
forward charge
Less: Eligible ITC
Goods purchased from - - -
composition dealer
[ITC is not available since
input tax does not
include the tax paid
under the composition
levy and a composition
supplier does not collect
tax from the recipients.
Also, ITC on inward
supplies received from a
composition supplier is
blocked.]
Residential house taken (4,500) (4,500)
on rent for MD [50,000 X [50,000 X
[ITC is available as said 9%] 9%]
services are used in
course or furtherance of
business.]
Net GST 1,69,320 1,69,320 38,160
Add: GST payable under
reverse charge 4,500 4,500
[Tax on renting of [50,000 X [50,000 X
residential dwelling to a 9%] 9%]
registered person is
payable by such
registered person under
reverse charge, IN CASH

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 SUGGESTED ANSWER INTERMEDIATE EXAMINATION: JANUARY 2025

since ITC can only be

utilized for paying the
output tax.
Further, GST liability on
said services arises in the
month of May since time
of supply is 31.05.2024,
being earliest of (i) date
of payment or (ii) 61st
day from the date of
issue of invoice by
supplier.]
Minimum net GST 1,73,820 1,73,820 38,160
payable in cash

(b) (i) The combo supply of cinema tickets and snacks is a composite supply
wherein the entire supply will attract GST at the rate applicable to
service of exhibition of cinema being the principal supply.
Further, it is an intra-State supply since the place of supply is
Punjab 1.
Thus, in the given case, rates of GST to be applied are 9% CGST and
9% SGST.
(ii) Supply of snacks is an individual supply.
Further, it is an intra-State supply since the place of supply is
Punjab 2.
Thus, the applicable rates of GST are 2.5% CGST and 2.5% SGST.

1
as the place of supply of services supplied to unregistered persons with no address on
records is location of the supplier.
2
as the place of supply of goods supplied to unregistered persons over the counter with
no address on records is location of the supplier.

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 SUGGESTED ANSWER TAXATION

(iii) Computation of Gross GST payable by Gamma Multiplex for

April, 2024

S. Particulars GST Value CGST SGST

No. Rate (`) (`) (`)
(%)
1. Supply of combo offer 9 35,00,000 3,15,000 3,15,000
[10,000 X ` 350]
2. Supply of tickets only 9 5,00,000 45,000 45,000
[2,500 X ` 200]
3. Supply of snacks only 2.5 2,50,000 6,250 6,250
[1,000 X ` 250]
Total GST payable by 3,66,250 3,66,250
Gamma Multiplex

Question 6
(a) Nootan Ltd., a registered person in Indore, Madhya Pradesh, provides details
of the following transactions carried out during the month of June 2024:

Sr. Particulars Amount

No. in `
1. Paid remuneration to Mr. Madan, for the services rendered 20,00,000
by him in the capacity of Director. Company deducted TDS
under section 192 (Salary) and 194J (Professional or
Technical services) of Income-Tax Act, 1961. Gross payments
made were ` 8,50,000 and ` 11,50,000 respectively for
Salary and Professional services. (Intra-State supply)
2. Paid rent to Indian Railways, registered in Madhya Pradesh, 1,25,000
for its property located in the same State, which was taken
on lease by the company.
3. Paid to XYZ Security Private Limited, for providing security 5,35,000
services to its warehouses across the State. Security agency
is not registered under GST.
4. Paid fee to Local Municipal corporation for renewal of the 4,800
company's factory License for the financial year 2024-2025.

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 SUGGESTED ANSWER INTERMEDIATE EXAMINATION: JANUARY 2025

Additional Information:
(i) All above figures are exclusive of taxes, wherever applicable.
(ii) Assume the rate of GST as 18%, 9% and 9% for IGST,
CGST/SGST respectively.
(iii) Turnover of Nootan Limited for the preceding financial year was
` 67 lakh.
You are required to compute the GST payable by Nootan Limited under
Reverse Charge basis for the month of June 2024. Reason for the treatment
of each item should form part of the answers. (5 Marks)
(b) Determine the Place of Supply for the following independent cases, by briefly
stating the relevant provisions :
(i) Marxy Pharmaceuticals, registered under GST at Jaipur, Rajasthan
hires Sargam Events LLP, registered under GST at Sagar, Madhya
Pradesh for its annual event to be held in Gandhinagar, Gujarat.
(ii) PSL Ltd., a registered person in Chandigarh, Punjab orders from CMR
Ltd., a registered person in Ranchi, Jharkhand for delivery of goods to
MHT Ltd., a registered person in Ranchi, Jharkhand.
You are required to determine PoS for both of the above supplies made by
CMR Ltd. as well as PSL Ltd. (5 Marks)
Answer
(a) Computation of GST Payable by Nootan Limited under reverse charge

S. Particulars CGST SGST

No. (`) (`)
1. Remuneration paid to Mr. Madan 1,03,500 1,03,500
[` 11,50,000 × 9%]
[(i) Remuneration paid to director for
professional services subjected to TDS
under section 194J of the Income-tax Act is
outside the scope of Schedule III of the
CGST Act, 2017 and tax is payable under
reverse charge by the recipient company –
Nootan Ltd.

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 SUGGESTED ANSWER TAXATION

(ii) However, salary of ` 8,50,000 paid to

director subjected to TDS under section 192
of the Income-tax Act is not taxable since
services provided by an employee to
employer in course of or in relation to his
employment are outside the scope of
supply in terms of Schedule III of the CGST
Act, 2017. Thus, the same is neither supply
of goods nor supply of services]
2. Paid rent to Indian Railways Nil Nil
[Tax on renting of immovable property
services provided by Indian Railways is not
payable under reverse charge.]
3. Security services received Nil Nil
[Tax on security services is not payable
under reverse charge since supplier is a
body corporate.]
4. Paid fee to Local Municipal Corporation Nil Nil
[Not taxable/Exempt since the
consideration for the services provided by
local authority does not exceed ` 5,000.]
Total GST payable by Nootan Ltd. under 1,03,500 1,03,500
reverse charge

(b) (i) The place of supply of services provided to registered person by way
of organization of a cultural, artistic, sporting, scientific, educational or
entertainment event or services related to such event shall be the
location of the recipient.
Accordingly, place of supply is Jaipur, Rajasthan.
(ii) In case of ‘Bill to Ship to’ supply model, where goods are delivered
by supplier to recipient at the direction of a third person, the place
of supply is the principal place of business of such third person.
Accordingly, in case of supply made by CMR Ltd., the place of supply is
Chandigarh, Punjab.

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 SUGGESTED ANSWER INTERMEDIATE EXAMINATION: JANUARY 2025

The place of supply involving movement of goods will be their location at

the time when the movement of goods terminates for delivery to the
recipient.
Accordingly, in case of supply made by PSL Ltd., the place of supply is
Ranchi, Jharkhand.
Question 7
(a) Rameshwar Industries is engaged in the manufacturing semi-conductors in
the State of Assam. It makes only intra-State outward supplies.
Following details have been made available by Rameshwar Industries:

Date of commencement of business March 14, 2024

Date when turnover exceeded ` 10 lakh March 29, 2024
Date when turnover exceeded ` 20 lakh April 15, 2024
Date when turnover exceeded ` 40 lakh April 28, 2024
Date, of application for registration as per the May 15, 2024
provisions of Section 22·of the CGST Act, 2017
Date of issuance of certificate of registration May 29, 2024

Based on the above information, You are required to determine the

following by briefly stating the relevant provision,
(i) Effective date of registration of Rameshwar Industries
(ii) Period for which revised tax invoice can be issued
(iii) Timeline within which such revised tax invoice is to be issued.
(5 Marks)
(b) Write a short notes on:
(i) Rectification of errors / omissions in respect of returns filed u/s 39 of
the CGST Act, 2017.
(ii) Exception to the rectification
(iii) Time-limit for making such rectification. (5 Marks)

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 SUGGESTED ANSWER TAXATION

Answer
(a) (i) Where an applicant submits application for registration within 30 days
from the date he becomes liable to registration, effective date of
registration is the date on which he becomes liable to registration.
Rameshwar Industries became liable to registration on 28 th April,
2024 when its turnover exceeded the applicable threshold limit of
` 40 lakh (since it is engaged exclusively in supply of goods). Since
it applied for registration within 30 days, the effective date of
registration is 28 th April, 2024.
(ii) Revised tax invoices can be issued against the invoices already
issued during the period starting with the effective date of
registration till the date of issuance of certificate of registration.
Therefore, in the given case, Rameshwar Industries can issue the
revised tax invoices against the invoices already issued during the
period beginning with 28 th April, 2024 till 29 th May, 2024.
(iii) Revised tax invoices are to be issued within 1 month from the date
of issuance of certificate of registration i.e. within 1 month from
29 th May, 2024 i.e. upto 29 th June, 2024.
(b) (i) Rectification of errors/omissions
Omission or incorrect particulars discovered in the returns filed
under section 39 can be rectified in the return to be filed for the tax
period during which such omission or incorrect particulars are
noticed.
Any tax payable as a result of such error or omission will be required
to be paid along with interest.
(ii) Exception to the rectification
Rectification of error or omission discovered on account of scrutiny,
audit, inspection or enforcement activities by tax authorities is not
permitted.
(iii) Time limit for making such rectification
The maximum time limit within which the rectification of
errors/omissions is permissible is earlier of the following dates:

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 SUGGESTED ANSWER INTERMEDIATE EXAMINATION: JANUARY 2025

(a) 30th day of November following the end of the financial year to
which such details pertain or
(b) Actual date of filing of the relevant annual return
Question 8
(a) CBIC has issued a recent clarification on Time of Supply in respect of supply
of services of construction of road and maintenance thereof of National
Highway Projects of National Highway Authority of India (NHAI) in Hybrid
Annuity Mode (HAM) model. Briefly discuss the said clarification. (5 Marks)
OR
(a) Explain briefly about the exemption available under the CGST Act, 2017 in
respect of services provided by an Old Age Home. (5 Marks)
(b) (i) Rule 138E of CGST Rules, 2017 prohibits certain persons to furnish the
information in Part A of Form GST EWB-01 in respect of any outward
movement of goods of a registered person. List the said persons. (2 Marks)
(ii) List any six State taxes that were subsumed in the GST regime.
(3 Marks)
Answer
(a) Since in HAM model of NHAI, periodical payments are spread over the
contract period in the form of installments, it is a ‘continuous supply of
services’.
It has been clarified by CBIC vide a circular that the time of supply of
services under HAM contract, including construction and operation and
maintenance portion, should be:
(I) in case where the invoice is issued on or before the specified date
(due date of payment) or the date of completion of the event
specified in the contract, as applicable:
(a) date of issuance of invoice
or
(b) date of receipt of payment
whichever is earlier.

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 SUGGESTED ANSWER TAXATION

(II) in case where invoices are not issued on or before the specified date
(due date of payment) or the date of completion of the event
specified in the contract:
(a) date of provision of the said service (i.e., the due date of payment
as per the contract)
or
(b) date of receipt of the payment
whichever is earlier.
(a) Alternative
Services by an old age home run by Central Government, State Government
or an entity registered under section 12AA or 12AB of the Income-tax Act,
1961 to its residents (aged 60 years or more) against consideration up to
` 25,000 per month per member, provided that the consideration charged
is inclusive of charges for boarding, lodging and maintenance.
(b) (i) As per rule 138E of the CGST Rules, 2017, following persons (including
a consignor, consignee, transporter, an e-commerce operator or a
courier agency) shall not be allowed to furnish the information in Part
A of Form GST EWB-01 in respect of any outward movement of goods
of a registered person:
(a) A composition supplier who has not furnished the Statement for
payment of self-assessed tax (Form GST CMP-08) for 2 consecutive
quarters.
(b) A person paying tax under regular scheme has not furnished the
returns for a consecutive period of 2 tax periods.
(c) A person paying tax under regular scheme has not furnished
Statement of Outward Supplies (Form GSTR-1) for any 2 months
or quarters.
(d) A person whose registration has been suspended under the GST
law.

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SUGGESTED ANSWER INTERMEDIATE EXAMINATION: JANUARY 2025

(ii) Following are the State taxes that were subsumed in the GST regime:
(a) State surcharges and cesses in so far as they relate to supply of
goods & services.
(b) Entertainment Tax (except those levied by local bodies)
(c) Tax on lottery, betting and gambling
(d) Entry Tax (All Forms)
(e) Purchase Tax
(f) VAT/ Sales tax
(g) Luxury Tax
(h) Taxes on advertisements

38