Test I.D.

: 20650
Course: CA Intermediate
Paper: Taxation Marks: 50
Test: Unit Test I Time Allowed: 2 Hours
Roll No:____________

Q1)a) Answer the following:

1) A & Co. received Rs. 2 lacs as compensation from B & Co. for premature termination of contract of agency.
Amount so received is .
(a) Capital receipt & taxable
(b) Capital receipt & not taxable
(c) Revenue receipt & taxable
(d) Revenue receipt & not taxable

2) Mr. P was born in India in 1979 & later on took citizenship of Australia. His parents were born in India in 1949.
His Grandfather was born in Rawalpindi in 1916 but his Grandmother was born in London in 1920. Mr. P is:
(a) A person of India origin
(b) Citizen of India
(c) A foreign national
(d) None of These

3) For the purposes of computing exemption under section 10(10), in case of Mr. Anand, an employee of ABC Ltd.,
who is covered by the Payment of Gratuity Act, 1972, "salary" includes –
(a) only basic pay
(b) basic pay and dearness allowance, if provided in the terms of employment
(c) basic pay and dearness allowance
(d) basic pay, dearness allowance and commission as a fixed percentage of turnover

4) Rajesh is provided with a rent-free unfurnished accommodation, which is owned by his employer, XY Pvt. Ltd.
in New Delhi. The value of perquisite in the hands of Rajesh is __________.
a) 20% of salary
b) 15% of salary
c) 10% of salary
d) 7.5% of salary

5) Which of the following would be agricultural income -

(a) Income from breeding of livestock
(b) Income from poultry farming
(c) Rent received from land used for movie shooting
(d) Rent received from land used for grazing of cattle required for agricultural activities

6) An employee received payment from URPF on his retirement. His own contribution to URPF & Interest on his
own contribution will be.
(a) Taxable, Taxable
(b) Exempt, Exempt
(c) Taxable, Exempt
(d) Exempt, Taxable
7) In case of House Property with Disputed Title of Ownership, income arising from such disputed house property
will be assessed in the hands of:
(a) Person having the possession of house property
(b) Person living close to the house property.
(c) It will be the decision of Department as to who is the owner till the court gives its decision.
(d) Depends on the discretion of AO.

8) The concept of partial integration of agricultural income with non-agricultural income is applicable to -
(a) only individuals & HUF
(b) only firms and companies
(c) Individuals, HUF, AOPs/BOIs & Artificial juridical persons
(d) All persons
Marks 8

b) From the following details, find out the salary chargeable to tax for the A.Y.2023-24 assuming he has not opted
for the provisions of section 115BAC-
Mr. X is a regular employee of Rama & Co., in Gurgaon. He was appointed on 1.1.2022 in the scale of Rs. 20,000
-Rs. 1,000 - Rs. 30,000. He is paid 10% D.A. & Bonus equivalent to one month pay based on salary of March
every year. He contributes 15% of his pay and D.A. towards his recognized provident fund and the company
contributes the same amount. DA forms part of pay for retirement benefits.
He is provided free housing facility which has been taken on rent by the company at Rs. 10,000 per month. He
is also provided with following facilities:
(i) Facility of laptop costing Rs. 50,000.
(ii) Company reimbursed the medical treatment bill of his brother of Rs. 25,000, who is dependent on him.
(iii) The monthly salary of Rs. 1,000 of a house keeper is reimbursed by the company.
(iv) A gift voucher of Rs. 10,000 on the occasion of his marriage anniversary.
(v) Conveyance allowance of Rs. 1,000 per month is given by the company towards actual reimbursement
of conveyance spent on official duty.
(vi) He is provided personal accident policy for which premium of Rs. 5,000 is paid by the company.
(vii) He is getting telephone allowance @Rs. 500 per month. Marks 5

c) Mr. Ramesh & Mr. Suresh are brothers and they earned the following incomes during the financial year 2022-
23. Mr. Ramesh settled in Canada in the year 1996 and Mr. Suresh settled in Delhi. Compute the total income
for the A.Y. 2023-24.

Sr. Particulars Mr. Ramesh Mr. Suresh

No. (Rs.) (Rs.)
1. Interest on Canada Development Bonds (only 50% of 35,000 40,000
interest received in India)
2. Dividend from British company received in London 28,000 20,000
3. Profits from a business in Nagpur, but managed directly 1,00,000 1,40,000
from London
4. Short term capital gain on sale of shares of an Indian 60,000 90,000
company received in India
5. Income from a business in Chennai 80,000 70,000
6. Fees for technical services rendered in India, but received 1,00,000 ----
in Canada
7. Interest on savings bank deposit in UCO Bank, Delhi 7,000 12,000
8. Agricultural income from a land situated in Andhra Pradesh 55,000 45,000
 9. Rent received in respect of house property at Bhopal 1,00,000 60,000

10. Life insurance premium paid --- 30,000

Marks 6

d) Mr. X owns one residential house in Mumbai. The house is having two identical units. First unit of the house is
self-occupied by Mr. X and another unit is rented for Rs. 8,000 p.m. The rented unit was vacant for 2 months
during the year. The particulars of the house for the previous year 2022-23 are as under:

Standard rent Rs. 1,62,000 p.a.

Municipal valuation Rs. 1,90,000 p.a.
Fair rent Rs. 1,85,000 p. a
Municipal tax (Paid by Mr. X) 15% of municipal valuation
Light and water charges Rs. 500 p.m.
Interest on borrowed capital Rs. 1,500 p.m.
Lease money Rs. 1,200 p.a.
Insurance charges Rs. 3,000 p.a.
Repairs Rs. 12,000 p.a.
Compute income from house property of Mr. X for the A.Y. 2023-24. Marks 5

e) Rudra Ltd. has one unit at Special Economic Zone (SEZ) and other unit at Domestic Tariff Area (DTA). The
company provides the following details for the previous year 2022-23.

Particulars Rudra Ltd. (Rs.) Unit in DTA (Rs.)

Total Sales 6,00,00,000 2,00,00,000
Export Sales 4,60,00,000 1,60,00,000
Net Profit 80,00,000 20,00,000
Calculate the eligible deduction under section 10AA of the Income-tax Act, 1961, for the Assessment Year
2023-24, in the following situations:
(i) If both the units were set up and start manufacturing from 22-05-2014.
(ii) If both the units were set up and start manufacturing from 14-05-2018. Marks 4

Q2)a) Answer the following:

1) Which article of the Constitution outlines the composition and functions of the GST Council?
(a) 270
(b) 279A
(c) 246A
(d) 269A

2) Transportation of passengers by ________are exempt from GST.

(a) Railway in first class
(b) Railway in an air-conditioned coach
(c) Metro
(d) All of the above

3) Which of the following services provided by Department of Posts are exempt from GST?
(a) Speed posts
(b) Life Insurance
(c) Express parcel posts
(d) None of the above
4) Which is not considered as supply under GST Law?
(a) Stock transferred from one establishment in Delhi to another establishment in Gurgaon, Haryana
registered under same PAN.
(b) CA Ram supplies accounting services to CA Radha in lieu of taxation services received from CA Radha.
(c) A Health club supplies lunch to its members at its annual meeting against a nominal charge.
(d) Mr. A sells a flat to Mr. B
(i) Date of completion certificate - 31/01/20XX
(ii) Date of agreement with buyer - 01/02/20XX
(iii) Consideration received - 05/02/20XX

5) GST is payable by the recipient under reverse charge on:

(a) Sponsorship services
(b) Transport of goods by rail
(c) Transport of passengers by air
(d) All of the above

6) Which of the following activities is a supply of services?

(a) Transfer of right in goods/ undivided share in goods without transfer of title in goods
(b) Transfer of title in goods
(c) Transfer of title in goods under an agreement which stipulates that property shall pass at a future date.
(d) All of the above

7) Which of the following is not included in aggregate turnover?

(a) Exempt supplies of goods or services or both
(b) Export of goods or services or both
(c) Inter-State supply of goods or services or both
(d) Value of inward supplies on which tax is paid under reverse charge
Marks 7

b) State with reasons, whether GST is payable in the following independent cases:-
(i) Services provided to recognized sports body as curator of national team.
(ii) Services provided by way of transportation of passenger in Metered Cab.
(iii) Services by way of public conveniences such as provision of facilities of washrooms.
(iv) Services provided by a player to a franchisee which is not a recognized sports body. Marks 4

c) XYZ Ltd gives gift worth Rs.5,00,000 to an employee. Does it qualify as a supply? Would your answer be
different if gifts of Rs.45,000 has been given to the employee. Marks 3

d) (a) Holiday Guest House, situated at Shimla, provides boarding & lodging services to tourists at economical
cost. The charges of a single deluxe room per day are Rs. 999. Mr. X has booked one deluxe room for two days
during Christmas holidays. You are required to determine whether GST is payable by Holiday Guest House on
the above booking. If yes, determine the amount of GST so payable.
Will your answer change, if the charges of a single deluxe room per day charged by Holiday Guest House are Rs.
1,000?
(b) M/s Damodar Ltd. provides services by way of storage of seasonal fruits and vegetables in Bhatinda,
Punjab. The monthly rental for a godown is Rs 15,000. Examine whether GST is payable by M/s Damodar Ltd.
Marks 4

e) (a) Chanchal started providing beauty and grooming services and inaugurated “Care & Care Beauty Centre” in
Janak Puri, Delhi on 01st April, 20XX. She opted to pay tax under Notification No. 2/2019 CT (R) dated
07.03.2019 in the said financial year.
The aggregate turnover of Care & Care Beauty Centre for the quarter ending 30th June, 20XX was Rs. 20 lakh.
Further, for the half year ending 30th September, 20XX, the turnover reached Rs. 50 lakh. Care & Care Beauty
Centre recorded a rapid growth and the turnover reached Rs. 70 lakh by the end of October, 20XX. Determine
the total tax liability of Care & Care Beauty Centre by the end of October, 20XX.

(b) Care & Care Beauty Centre wishes to opt for composition scheme from the next financial year. You are
required to advise it whether it can do so?

Note: Rate of GST applicable on such services is 18%. Marks 4

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