50 Important questions for indirect tax
CA Final May 13
Prof Mukesh Chhangani
1. Definition of capital goods.
2. Definition of inputs.
3. Definition of input services.
4. Practical question on Cenvat credit.
5. Refund of cenvat credit to service provider u/r 5B.
6. Transfer of SAD credit from one factory to another.
7. If the assessee gets refund from insurance company including excise amount, than no need to reverse the duty amount. (Tata advances materials ltd. 2011).
8. Variants of VAT. (Gross Product, income, consumption)
9. Methods of computing VAT. (Addition, invoice, intermediary substraction, direct substraction method).
10. Practical question on VAT
11. Definition of India (65B(27)---WOI+TW+EEZ+CS-Jammu and Kashmir).
12. Definition of service(65B(44)(Activity, between 2 parties, consideration, including declared services excluding Employee services, Court fees, Sale of goods, mere transaction in money.)
13. Rules for bundled services.{66F(1),66F(2)(Most specific descripttion v/s. general descripttions),3(a)naturally bundled,3(b) not naturally bundled.}
14. Practical question on post office services.(Speed post, agency, LIC, express cargo taxable others exempt).
15. Practical question on coaching classes. (Pre-school, Vocational, recreational, sports, Diploma exempt others taxable)
16. Practical question on money changers. (2 rates, 1 rate given).
17. Practical question on banking and other financial services.(bank interest exempt but bank charges taxable).
18. Practical question on promotion and marketing of lottery. (7000 > 80%, 11000<80%.)
19. Practical question on goods transport agency. (reverse charge, 75% abatements, Agro exempt, 1500, 750 exempt, Rule 10 POPS.)
20. POPS rules 5-6 marks (rule 7,10,11,12,)
21. Case study on POTS rule 7 (receipt basis){proprietor, indv, partnership firm up to 50 Lakhs, reverse charges}.
22. Case study on Declared services
23. Theory on Reverse charge mechanism.
24. Special audit u/s 72A.
25. Practical question on customs
26. Practical question on baggage. (Rs. 35,000 limit).
27. E payment is compulsory in case of customs (if import duty is more than 100000)
28. Definition of customs airport u/s 2(10).,Entry u/s 2(16). Indian custom water u/s. 2(28). (0 to 24 nautical miles).
29. Appointment of custom ports and airports.
30. Explain import and export procedures.
31. Warehousing: interest payment 15% p.a. u/s. 61 (For overstay of goods).
32. Differentiate between duty drawback u/s 74 and 75.
33. Power to arrest u/s 104 of customs (cognizable offences –prohibited goods or duty more than 50 lakhs)
34. Appeal to Commissioner of Appeal (now it is 2 months time limit) or appeal to CESTAT.
35. Conditions for settlement of cases. (WORDS)
36. Does the process of cutting and embossing aluminium foil for packing the cigarettes amount to manufacture?. (No as per GTC industries 2011). But now it is Deemed manufacturing in case of packing, repacking, labeling and relabeling of cigarettes.
37. Practical question on Small scale industries. (Limit 150 lakhs n 400 lakhs)
38. Case study on classification of goods. Minwool Rock fibres 2012 (SC), prefer most specific descripttion (6807.10 than general descripttion 6803.00). or Wockhardt life science 2012 (SC) Povidone iodine is a medicine)
39. Define inter connected undertaking for rule 10 of excise valuation.
40. Process of cutting, slitting and printing of aluminium amounts to manufacture. (17-3-12).
41. Case law: Salora international Ltd. wrt to classification of parts of television sets which were assembled to test functioning of television shall be classified as television. (trade parlance theory)
42. Mouse pads are not part of computers hence to be classified separately. (circular no 19/2012).
43. Case study: Fiat India Pvt. Ltd. 2012 (SC): if the goods are sold below cost of production for the purpose of penetration in the market, than Transaction Value is not Assessable value and best judgement assessment would be applicable and the valuation will be done accordingly.
44. Practical question on rule no 7 (Transfer to Depot) of excise valuation rules.
45. Write a note on valuation of goods as per MRP 4A.
46. Write a short note on daily stock account.
47. Form no ER 8. (Quarterly returns 10th, Not no 1/11 and no. 12/12.
48. Penal provision section 9 wrt registration 7 years jail and fine if duty more than 30,00,000, 3 years jail and fine if duty less than equal to 3000000/
49. Rule 16 of central excise rules.
50. Practical question on removal by 100% EOU to DTA.
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