CMA Inter Tax Important Question | Dec 25

Income from Other Sources

Question : 12

Mrs Bharti (aged 50 years), submits the information of following transaction/income during the previous year 2023-2024: 

You are required to compute the income of Mrs Bharti chargeable under the head Income from other sources for the assessment year 2024-25, assuming Mrs Bharti exercise the option of shifting out of the default tax regime provided under section 115BAC. 

Income of Other Person included in Assesses Total Income

Question : 13

The following information is given by X for the year ending March 31, 2025 -

1. On April 10 ,1973, X had transferred shares in an Indian company to Mrs. A (his daughter-in-law) without any consideration. During the previous year 2024-25, Mrs. A has received dividend of ₹ 4,10,000 from the Indian company.

2. On April 10,1993, X had transferred debentures of Tata Chemicals to Mrs. A without any consideration. During the previous year 2024-25, Mrs. A has received interest of ₹ 3,90,000 from Tata Chemicals. Every year Mrs. A deposits interest income in fixed deposit with SBI and during the previous year 2024-25, fixed deposit interest received from SBI is ₹ 40,000.

3. X transfers 1,000 9 percent debentures of ₹ 100 each to Y on the condition that X will have a right to receive 10 per cent interest during X lifetime.

4. X transferred a building to his friend Z on June 15, 2009 on the condition the building will revert back to X after the death of Z. Monthly rental income from building is ₹ 45,000.

Determine the income of different persons in the aforesaid cases for the assessment year 2025-26.

Question : 14

Mr. Gagan, a Classical singer of Bengal and his wife Mrs. Rashmi furnish the following information relating to the A.Y. 2025-26.  

Compute the total taxable income of Mr. Gagan & Mrs. Rashmi for the  A.Y. 2025-26 if they want to pay tax under default regime under section 115BAC.

Set off and Carry Forward of Losses

Question : 15

Mr. A, aged 35 years, submits the following particulars pertaining to the A.Y.2025-26: 

Compute the total income of Mr. A for the A.Y.2025-26, assuming that 

(i) He has exercised the option of shifting out of the default tax regime provided under section 115BAC(1A). 

(ii) He pays tax under the default tax regime.

Deductions, Rebate and Relief

Question : 16

Mr. Kanji (aged 42 years) submits the following particulars for the assessment year 2025-26:

Compute total income if he has opted for the old tax regime.

Taxation of Individual (including AMT but excluding Non-resident) & HUF

Question : 17

For the previous year 2022-23, Mr. Swarup has furnished the following information:

He made the following payments:

Analyze his different component of income and determine his total income and tax payable for the A.Y. 2023-24.  

Advance Tax, Tax Deduction at Source and Introduction to Tax Collection at Source

Question : 18

Mr. Sharma, a resident Indian aged 77 years, gets pension of ₹ 52,000 per month from the UP State Government.  The same is credited to his savings account in SBI, Lucknow Branch. In addition, he gets interest@8% p.a. on fixed deposit of ₹ 20 lakh with the said bank.  Out of the deposit of ₹ 20 lakh, ₹ 2 lakh represents five year term deposit made by him on 1.4.2024. Interest on savings bank credited to his SBI savings account for the P.Y.2024-25 is ₹ 9,500.

(1) From the above facts, compute the total income and tax liability of Mr. Sharma for the A.Y. 2025-26, assuming that he has exercised the option of shifting out of the default tax regime provided under section 115BAC(1A).

(2) What would be the amount of tax deductible at source by SBI, assuming that the same is a specified bank? Is Mr. Sharma required to file his return of income for A.Y.2025-26, if tax deductible at source has been fully deducted? Examine.

(3) Is Mr. Sharma required to file his return of income for A.Y. 2025-26, if the fixed deposit of ₹ 20 lakh was with Canara Bank instead of SBI, other facts remaining the same?

Provisions for filing Return of Income and Self-assessment

Question : 19

State with reasons whether you agree or disagree with the following statements:

(a) Return of income of Limited Liability Partnership (LLP) could be verified by any partner.

(b) Time limit for filing return under section 139(1) in the case of Mr. A having total turnover of ₹ 160 lakhs (₹ 100 lakhs received in cash) for theyear ended 31.03.2025 whether or not declaring presumptive income under section 44AD, is 31st October, 2025.

Indirect Taxation 

Introduction

Question : 20

State the features of indirect tax.

Question : 21

Write a short note (meaning, functions and salient features ) on GST Network (GSTN). 

Levy and Collection of CGST and IGST

Question : 22

(i) X, is an architect and based at Mumbai. During December 2024, he has prepared building plan of a new hotel for ITC which will be constructed near Nariman Point in Mumbai. For this purpose, he charges ₹ 55 lakh from ITC. In addition, ITC has provided travellers cheques of Rs. 10 Lakh (which can be used only outside india) and complementary voucher for stay of 3 nights at ITC Grand Chola, Chennai (value of voucher is ₹ 44,000). X is of the view that only monetary consideration of ₹ 55 lakh is chargeable to GST at the rate of 18 per cent and the value of travellers cheques/complementary stay voucher is not taxable. Do you agree ? If not, calculate GST liability in this case which will be borne by ITC additionally.

(ii) Suppose, in above problem, X agrees not to provide similar drawings to any other company in hospitability industry in India or abroad. On this promise, X gets from ITC, Wills Lifestyle Complementary Vouchers (for purchasing any article from any Wills Lifestyle Store in India for Rs. 10 lakh). X is of the view that no additional supply of service and nothing is chargeable to GST on receipt of complementary vouchers. X has not received any other consideration in cash or by cheque. Is it chargeable to GST? What will be GST liability if ITC does not want to pay any GST along with complementary vouchers to X ? GST rate for similar service is 18 per cent.

Question : 23

X & Co., a partnership firm, is engaged in intra-State supply of goods and services in Bengaluru. Its turnover for the financial year 2023-24 and the first quarter of the financial year 2024-25 is given below -

X & Co. wants to opt for Composition Scheme with effect from April 1, 2024. Is it possible? If yes, find out the tax liability of it for the first quarter of 2024-25 under Composition Scheme.

Basic concepts of Time and Value of Supply

Question : 24

Y Ltd., Mumbai, a registered supplier, is manufacturing Chocolates and Biscuits.It provides the following details of taxable inter-state supply made by it for the month of October, 2022. 

Calculate the value of taxable supply made by Y Ltd. for the month of October2022.

Question : 25

Mr. Ritesh of Assam, provides the following information for the preceding financial year 2023-24. You are required to find out the aggregate turnover for the purpose of eligibility of composition levy scheme and determine, whether he is eligible for composition levy scheme or not, for the F.Y. 2024-25.

All the amounts are exclusive of GST. Further, he assured that in F.Y. 2023-24, no inter-State supply will be executed by him.

Input Tax Credit

Question : 26

XYZ Ltd. is engaged in manufacture of taxable goods. Compute the ITC available with XYZ Ltd. for the month of October from the following particulars:-

Note:

1. Subject to the information given above, assume that all the other conditions necessary for availing ITC have been fulfilled.
2. The annual return for the previous financial year was filed on 15th September.

Registration

Question : 27

Who can be registered as Goods and Service Tax Practitioners under Section 48 of the CGST Act?

Question : 28

Examine whether the liability to register compulsorily under section 24 arises in each of the independent cases mentioned below:

(1) Meenu, a supplier in Maharashtra, is exclusively engaged in supply of potatoes produced out of cultivation of her own land, within Maharashtra and also outside Maharashtra.

(2) Jinu Oils, Gujarat, is engaged in supplying machine oil as well as petrol. Further, it provides services of refining of oil to customers. Total turnover of supply of machine oil is Rs 10 lakh, supply of petrol is Rs 5 lakh and supply of services is Rs 6 lakh.

(3) Tilu is working as an agent, he is supplying taxable goods as an agent of Tiku (who is registered taxable person) and its aggregate turnover does not exceed Rs 20 lakh during the financial year.

Tax Invoice – Electronic Way Bill

Question : 29

Royal Fashions, a registered supplier of designer outfits in Delhi, decides to exhibit its products in a Fashion Show being organised at Hotel Park Royal, Delhi on 4th January. For the occasion, it gets the service by way of makeover of its models from Aura Beauty Services Ltd., Ashok Vihar, for which a consideration is Rs 5,00,000 (excluding GST) has been charged. Aura Beauty Services Ltd. issued a duly signed tax invoice on 10th February showing the lumpsum amount of Rs 5,90,000 inclusive of CGST and SGST @ 9% each for the services provided. Answer the following questions:

1. Examine whether the tax invoice has been issued within the time limit prescribed under law.
2. Tax consultant of Royal Fashions objected to the invoice raised suggesting that the amount of tax charged in respect of the taxable supply should be shown separately in the invoice raised by Aura Beauty Services Ltd. However, Aura Beauty Services Ltd. contended that there is no mandatory requirement of showing tax component separately in the invoice. You are required to examine the validity of the objection raised by tax consultant of Royal Fashions.

Question : 30

DLH Ltd., a real estate developer company, is located in Chennai. On August 1, 2025, it enters into an agreement with Z to transfer a 1,000 square feet commercial flat in a building under construction in Madurai. As per agreement, the possession of the flat will be handed over in March 2025. Agreed consideration is ₹ 90,00,000 + GST. GST rate is 18 percent. Tax invoice issued by DLH gives the following data. Z pays ₹ 70,00,000 by cheque at the time of signing the agreement.

Possession is handed over on March 10, 2025. Z is not satisfied with the quality of stone and wood used by DLH. Consequently, against the balance payment of ₹ 30,80,000, Z pays ₹ 24,00,000 on March 20, 2025 which is accepted by DLH as full and final payment.

Discuss the treatment of balance of ₹ 6,80,000 for the purpose of GST.

Returns and Payment of Taxes

Question : 31

A & Co. (firm) was dissolved and its GST registration was cancelled on 31.08.2022.

What is the time limit within which A & Co. must file a final return in form GSTR-10?

A.On or before 31.03.2023.

B.On or before 31.12.2022.

C.On or before 30.11.2022.

D.On or before 30.09.2022.

Question : 32

Annual return is summary of :

A.GSTR 1 

B.GSTR 3B 

C.GSTR 4 

D.All of the above 

Question : 33

ABC Ltd., have filed their GSTR-3B for the month of July, 2024 within the due date prescribed under Section 39 i.e. 20.08.2024. Post filing of the return, the registered person has noticed during September 2024 that tax dues of ₹ 40,000 for the month of July, 2024 have not been paid. ABC Ltd., has paid the above amount of  ₹ 40,000, through GSTR-3B of September 2024, filed on 20.10.2024 [payment through Cash ledger - ₹ 30,000 and Credit ledger ₹ 10,000]. Examine the Interest payable under the CGST Act, 2017.  

What would be your answer if, GSTR-3B for the month of July 2024 has been filed belatedly on 20.10.2024 and the self-assessed tax of ₹ 40,000/- has been paid on 20.10.2024 [payment through electronic cash ledger - ₹ 30,000 and electronic credit ledger ₹ 10,000] 

Notes: 

• No other supply has been made nor tax payable for the month of July, 2024 other than ₹ 40,000/- missed out to be paid on forward charge basis
• Ignore the effect of leap year, if applicable in this case. 

Customs Act-Basic Concepts and Definitions

Question : 34

 A commodity is imported into India from a country covered by a notification issue by the Central Government u/s 9A of the Customs Tariff Act, 1975. Following  particulars are made available: 

 Assessable Value for levying Basic Customs Duty: ₹ 12,62,500

Quantity imported: 500 kgs.

Basic customs duty: 10% 

 IGST: 18% 

As per the notification, the anti-dumping duty will be equal to the differencebetweenthe cost of commodity calculated @ US$ 50 per kg (Exchange Rate is 1USD= INR 70) and the landed value of the commodity as imported  Appraise the liability on account of normal duties and the anti-dumping duty. 

Question : 35

Describe the conditions to impose Countervailing Duty on Subsidized articles under section 9 of the Customs Tariff Act, 1975 and also state  the quantum of duty and duration of imposition of such duty.

Valuation Rules

Question : 36

BSA and Company Ltd. have imported a machine from U.K. from the following particulars furnished by them, arrive at the assessable value for the purpose of customs duty payable: 

Other Particulars: 

a. Inter-bank exchange rate as arrived at by the authorized dealer: ₹ 72.50 per U.K. Pound.

b. CBIC had notified for purpose of Section 14 of the Customs Act, 1944, exchange rate of ₹ 70.25 per U.K. Pound.

c. Importer paid ₹ 5,000 towards demurrage charges for delay in clearing the machine from the Airport.

Question : 37

Compute value of the imported goods for customs purpose with the following information –

Computation of Assessable Value and Duties

Question : 38

From the particulars given below, Calculate the assessable value and total customs duty: 

(i) Cost of imported machine: US $ 20,000 

(ii) Expenses up to the place of exportation: US $ 2,000 

(iii) Buying commission: US$ 200 

(iv) Designing charges in India: ₹ 1, 50,000

(v) Materials supplied by the buyer free of cost: ₹ 2, 00,000

(vi) CBIC had notified exchange rate of one US $ is equal to ₹78 (Inter-bank rate is ₹ 79)

(vii) Basic customs Duty @10%, social welfare surcharge @10% and IGST @ 18%. 

Question : 39

Malya Internationals Ltd., has imported a machinery by air from Germany. Bill of Entry is presented on 20.01.2023. However, entry inwards is granted on 25.01.2023. Relevant information of the transaction are provided hereunder:

Calculate the assessable value in INR for the purposes of levy of customs duty as well as total customs duty.