SUDHIR SIR KEE CLASS-5

 

SUDHIR SIR KEE CLASS- 5  QUESTIONS

(a).1919

(b).1921

(c ).1948

(d).1954

(a). France

(b).Germany

(c ).USA

(d).UK

(a). First stage

(b).Second Stage

(c ).Last stage

(d).Every stage

(a). Rajasthan

(b).Bihar

(c ).Haryana

(d).Gujrat

(a).Rs.1725.00

(b).Rs. 1345.00

(c ).Rs. 875.00

(d).Rs. 1545.00

(a).Central excise

(b).Custom duties

(c ).Central Excise and Service tax

(d).Service Tax

(a).Central Sales tax

(b).State Sales Tax

(c ).Service tax

(d).Central Excise

(a).Gross profit variant

(b).Consumption variant

(c ).Gross product variant

(d).Gross income variant

(a).Consumption Variant

(b).Gross product variant

(c ).Gross Income Variant

(d).Gross profit variant.

(a).Permission of the Sales tax authority.

(b). Proper VAT invoice

(c ).Cash Book

(d).Ledger

(a).Brown paper

(b).Black paper

(c ).Red paper

(d).White Paper

(a).2006

(b).2002

(c ).2005

(d).2003

(a).Hurdle in implementation of VAT

(b).Support of successful implementation of VAT

(c ).Increase the efficiency of VAT

(d).Decrease the efficiency of VAT

(a). The process of revival of CST is also started.

(b).The process of strengthening the CST is also started.

(c ).The process of phasing out of CST is also started.

(d).CST has nothing to do with vat.

(a).1%

(b).2%

(c ).3%

(d).4%

(a). tax evasion is restricted.

(b).tax evasion is increased.

(c ).Vat has nothing to do with evasion of Tax.

(d).tax evasion has become easy.

(a). Transparency and accounting cost

(b).Transparency and administrative cost.

(c ).Transparency and certainty .

(d).Transparency and CST

(a). make the revenue collection worst.

(b).make the revenue collection better.

(c ).the revenue collection are the same.

(d).revenue volume has nothing to do with introduction of VAT

(a). Regular and cheap.

(b).Regular and expensive

(c).Irregular and cheap.

(d).irregular and expensive

(a).India

(b).china

(c ).Republic of Vietnam

(d).Japan

(a). 12000.00

(b).14000.00

(c ). 10000.00

(d).12500.00

(a).Rs.68000.00

(b).Rs.78000.00

(c ).Rs. 48000.00

(d).Rs. 38000.00

(a). Rs. 90000.00

(b).Rs. 40000.00

(c ).Rs. 70000.00

(d).Rs. 65000.00

(a).Rs.761000.00

(b).Rs. 864000.00

(c ).Rs.601000.00

(d).Rs. 708200.00

(a). Rs.67000.00

(b).Rs. 107000.00

(c ).Rs. 68000.00

(d).Rs78000.00

(a). Rs.125000.00

(b).Rs. 192000.00

(c ).Rs.152000.00

(d).Rs. 182000.00

(a).Rs. 32000.00

(b).Rs. 38000.00

(c ).Rs. 40000.00

(d).Rs. 20000.00

(a). The Interstate purchases

(b).The Branch transfer

(c ).The state Purchases

(d).The imports.

(a).The Central Government

(b).The Finance Ministry

(c ).The State Government

(d).The president of India

(a).Empowered committee of state Finance Ministers.

(b).Empowered committee of state and Central Ministers.

(c ).The implementation committee of state finance Ministers

(d). The VAT introduction and implementation committee.

(a).Dr. Chandra babu Naidu

(b).Dr. Budhdev Bhattacharya

(c ).Dr. Asim Das Gupta

(d).Dr. Monteksingh Ahluwalia

(a).Dr. Manmohan Singh

(b).Shri Atal Bihari Bajpayee

(c ).Shri P. Chidambaram

(d). Dr. Sam Pitroda

(a). 1-3-12.5%

(b).1-5-12%

(c ).1-4-12%

(d).1-4-12.5%

(a). Invoice Method

(b).Addition Method

(c ).Subtraction Method

(d).Addition plus invoice Method.

(a). The Finished goods and raw material are taxed at different rates.

(b).The Finished Goods and raw material are taxed at the rate of tax applicable on finished goods.

(c ).The Finished Goods and raw material are taxed as per the state law.

(d).The finished Goods and raw material are taxed as per Central law.

(a). Addition Method

(b).Subtraction Method

(c ).Addition plus subtraction Method

(d).Invoice Method

(a). The same

(b). The different

(c ).The same with minor difference

(d).Some times same and some times different

(a). Tax Information Number

(b).Tax India Number

(c ). Tax Identification Number

(d).Tax Introduction Number

(a). Compromising scheme

(b).Consolidation scheme

(c ).Composition scheme

(d).Clubbing Scheme

(a).Rs 40 Lakhs

(b).Rs. 20 Lakhs

(c ).Rs. 15 lakhs

(d).Rs. 50 Lakhs

(a).0.33% to 050%

(b).0.25% to 1%

(c ).1% to 4%

(d).1% to 2%

(a).Within the state from registered dealers only

(b).within interstate trade or commerce- CST purchase

(c ). From Unregistered dealers

(d).From any one from their choice

(a).Can not pass the input credit

(b).Can pass the input credit over 4% of tax

(c ).Can pass the input credit of whole of the tax paid by them within the state

(d).On certain goods they can pass the input with the permission of state Government.

(a).Are the same as VAT dealers.

(b).More complex than the VAT dealers.

(c ).Simple and less complex than VAT dealers.

(d).Simple but in some areas complex.

(a).VAT dealers

(b).Composition dealers

(c ).Any one of the two

(d).Non of the two

(a). Capital Goods

(b).Purchases within the state

(c ).CST Purchases

(d). None of the three above.

(a).4%

(b).12.5%

(c ).8.5%

(d).2%

(a).Rs. 10 Lakhs

(b).Rs. 5 Lakhs

(c ).Rs. 25 Lakhs

(d).Rs. 50 Lakhs

(a).Rs.24000.00

(b).Rs. 12000.00

(c ).NIL

(d).Rs. 48000.00

(a).Rs.80000.00

(b).Rs.40000.00

(c ).Rs. 20000.00

(d).NIL

Q.NO.	ANS	REMARK
1.	(d)	1954-VAT was first introduced in 1954.
2.	(a).	France-France was the first country to introduce VAT in 1954
3.	(d)	Every stage- Vat is a multi point taxation system in which sellers collect tax at every stage of sale and at the time of deposit of the same they deduct the tax paid by them on their purchase.
4.	(c )	Haryana- Haryana has introduced VAT in 2003 itself and was the only state to have it till the other 20 states introduced it in 2005.
5.	(c )	Rs. 875- Tax payable = (Out put tax – input tax). Out put tax is 4% of Rs. 2 Lakhs-    Rs. 8000.00 Input tax i.e. input credit- 4% on Rs. 1 Lakh = Rs. 4000.00 and 12.5% on Rs. 25000.00= Rs.3125.00 hence the total input credit is Rs.  7125.00 Rs.8000- Rs. 7125.00= Rs. 875.00 Tax payable by the dealer.
6.	(c )	Cenvat is central value added tax is applicable on Service tax and central excise and both are vatable to each other i.e the service tax paid on services used for manufacturing of goods can be claimed as credit while paying the excise duty and further the central excise duty paid on goods used in providing the service can also be taken as credit while paying the service tax.
7.	(b )	State Sales tax- The value added tax system – VAT as introduced in India is a replacement of traditional sales tax system in the states.
8.	( b)	Consumption Variant- The consumption variant has been formulated in such a way that it take into account the credit of VAT paid on raw material/ purchase of goods as well as capital goods hence it is superior than other two methods.
9.	(a)	Consumption variant- Since consumption variant is more logical and also popular worldwide hence India has also adopted the same.
10.	(b)	Proper tax invoice- The vat input credit can not be claimed with proper VAT invoice hence the tax invoice having TIN of seller, Name of Seller, name and address of purchaser , TIN of purchaser and tax amount written separately on invoice etc . is required to claim input credit.
11.	( d )	White paper- The empowered committee of state Finance Ministers has issued a policy documents agreed between them on the matters connected with the VAT. This is called “white paper” It was released by the then Finance Minister Shir P. Chidambaram.
12.	(d )	2003 – It was already mentioned in the answer of question No. 4 that Haryana introduced VAT in 2003.
13.	(a )	Hurdle in the successful implementation of VAT since the credit of CST purchases is not allowed hence a process to phase out the CST has started. It has come down from 4% to 3% and then 3 % to 2% and not the trade and industry is waiting for it’s coming down to 1%.
14.	( c)	The process of phasing out of CST is also stated . The same has also explained in the answer of question No.13.
15.	( b)	2% - At present it is two percent and trade and industry is waiting to be declared it at 1% as promised by the Government as per it’s phasing out plans.
16.	(a)	Tax evasion is restricted- Since the VAT is payable at each stage and input credit can only be claimed through proper VAT invoice hence VAT restricts the evasion of Tax.
17.	(c )	Transparency and certainty – The ultimate consumer knows that what he is paying as tax and further the amount of tax is payable on tax collected on sales Less tax paid on purchases so it is certain.
18.	(b)	Make the revenue collection better- since evasion is restricted and further the Government gets the tax on value addition hence the revenue collection will certainly be better.
19.	(b)	Regular and expensive- Since the payment of Vat has to be done on regular basis hence a proper and regular system of accounting is required. The Vat is a complex system then the earlier sales tax system hence the accounting will be more expensive.
20.	(c )	Republic of Vietnam – Please see the module supplied by ICAI to confirm the answer.
21.	(c )	Rs.10000.00- The input credit on CST purchases i.e. purchases from Madhya Pradesh and Maharashtra is not available nothing is to be added to the balance of Rs.10000.00 in the input credit on account of the CST purchases. The input credit will remain Rs.10000.00
22.	( c )	Rs. 48000.00- The input credit on capital goods is available in two installments in Sept and March hence the input credit for the quarter ending on Sept. is Rs.20000.00 (Out of total Rs.40000.00 input credit on capital Goods) . The total input credit including this Rs.20000.00 is Rs. 1, 52,000.00 (Rs. 1.32 Lakhs Plus Rs. 20000.00). The out put tax is Rs. 2.00 Lakhs. Hence the tax payable is Rs. 2 lakhs- 1.52 lakhs= Rs.48000.00
23.	(b )	Rs.40000.00 Since no input credit is available o inter – state purchases.
24.	(d)	Rs. 708200.00 The input credit is available on only 33% of the raw material on which the tax paid is Rs. 1.60 lakhs. (67 % of the same has been used for making tax free goods hence not allowed as ITC) The amount if eligible ITC came to Rs 52800 and total ITC (Rs. 52800.00 Plus Rs. 4.65 lakhs) = Rs. 517800.00. The output tax is Rs. 12.26 Lakhs hence tax payable is Rs. (12,26,000- 517800)= Rs.708200.00
25.	(a)	Rs.67000.00 . Since in case of branch transfer the input credit is allowed with respect to tax paid over 4% but the rate of tax is 4% hence nothing over 4% is paid hence no ITC can be claimed on account of purchases of Rs. 10 Lakhs. The balance of ITC Rs.67000.00 is the answer and nothing can be added to it.
26.	(c )	Rs. 152000.00- Since the credit with respect to goods sent on branch transfer can be claimed over and above the tax paid @ 4%. Since tax is paid @ 12.5% hence a credit @ 8.5% is allowed and it is 8.5% of Rs. 10 Lakhs which comes to Rs. 85000.00 . Since earlier ITC is Rs. 67000.00 and if we add Rs. 67000.00 to it the total ITC will be Rs. 152000.00
27.	(a )	Rs.32000.00- The dealer can claim the credit on the Goods sold within the state and also on CST sales. No credit will be allowed on personal use and further since the rate of tax is 4% hence no credit is allowed on branch transfer. The total goods sold in within the state and Inter-state (CST) sales are Rs. 8.00 Lakhs hence @ 4% Rs.32000.00 is allowed as ITC.
28.	(c)	State Purchases- The neutrality quality of VAT means the rate of tax does not affect the decision of the manufacturer to purchases the raw material since the ITC is allowed on it. If you pay 4% then get 4% rebate and if you pay 12.5% you will get the credit of 12.5% so it is the quality of goods that decide the decision of purchaser. The effect of rate is neutral. But since credit of CST purchases is not allowed hence if one state is selling goods @ 2% and other @ 1% or exempt than it will affect the decision hence this merit is restricted to State purchases only.
29.	( c)	The state Government- The Vat is a state subject hence all the states have made their own law in this respect.
30.	( a)	Empowered committee of state Finance Ministers- This is the fact hence no comment is needed.
31.	(c )	Dr. Asim Das Gupta- This is the fact hence no comment is needed. Mr. Das Gupta was the FM of west Bengal.
32.	( c )	Mr. P. Chidambaram – The white paper was prepared by the Empowered committee of the state Finance Ministers but it was released by Mr. P. Chidambaram – the then finance Minister.
33.	(d )	1-4-12.5 % This is the fact hence no comment is needed.
34.	(a)	Invoice Method- Invoice method is truly reflect the effect of Vat hence India like other countries have introduced it.
35.	(b)	The Finished Goods and raw material are taxed at the rate of tax applicable on finished Goods.
36.	(d )	The Invoice Method
37.	( a)	The same.
38.	(c )	Tax Identification Number.
39.	(c).	Composition Scheme
40.	(d )	Rs.50 Lakhs
41.	(b)	Rs. 0.25% to 1%
42.	(a)	Within the state from registered dealers only
43.	(a)	Can not pass the input credit
44.	(c )	Simple and less complex than VAT dealers.
45.	( a)	Vat dealers
46.	(c )	CST Purchases
47.	( c )	8.5% - Over and above 4% i.e. 12.5% - 4% = 8.5%
48.	( b)	Rs. 5 lakhs
49.	(c )	NIL – Since the Composition dealers can not pass the ITC.
50.	(d) .	NIL- Since the rate of tax is 4% and in case of Branch transfer the credit can only be passed on over and above 4% tax paid hence the answer is NIL.

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