CA Inter MCQs Indirect Tax – Input Tax Credit and its Utilisation

CA Inter MCQs GST or IDT ( Indirect Tax ) – Practice CA Inter MCQs of Input Tax Credit and its Utilisation

Question – 1

Where inputs, inputs services and capital goods are used in the supply of exempted goods or services, then the benefit of ITC on such inputs, input services and capital goods ________

a. Shall not be available
b. Shall be available
c. Shall be available upto 50% of tax
d. None of the above

Question – 2

A banking company or a financial institution including a NBFC, engaged in supplying services by way of accepting deposits, extending loans or advances shall have the option to avail of, every month, an amount equal to ________ of the eligible input tax credit on inputs, capital goods and input services in that month and the rest shall lapse.

a. 5%
b. 50%
c. 6%
d. 60%

Question – 3

Arinjay Academy has taken membership of a club for its employee from Royal Club. Royal Club raised an invoice of amounting Rs. 17,250 including GST of Rs. 2,250 on Arinjay Academy on 01.11.2018.

Whether ITC is available to Arinjay Academy ?

a. Yes
b. No

Question – 4

In which of the following cases, ITC would not be available ?

a. Tax paid as a result of evasion of taxes
b. Tax paid upon detention of goods or conveyances in transit
c. Tax paid towards redemption of confiscated goods/ conveyances
d. All of the above
e. Both (A) and (B)

Question – 5

Sumit a registered composite dealer and he wants to pay tax under normal scheme in FY 2018-19. The registration certification had been granted to him on 01.05.2018. He will be eligible for ITC for inputs/ capital goods held with him on the date immediately preceding the __________

a. Date on which he becomes liable to pay tax under normal scheme
b. Date from which he becomes liable to pay tax
c. Date of submission of application for registration
d. None of the above

CA Inter MCQs GST or Indirect Tax

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