This document includes a series of multiplechoice questions mcqs that were. There general accepted principle is that when a transaction is liable for value added taxvat, then the same transaction will not be liable for the service tax. One of the following taxes is not subsumed under gst a octroi by local authorities c entertainment tax by local authorities b entry tax by state governments d tax on lottery by state governments 24. Aug 27, 2012 pay service tax on 40% of total contract if work is original means new and pay 60% of total contract if work is not original here total contract value also include free of cost material provided by the service receiver further if you are not company and service receive is company then 50% of the assessed tax is to be deposited by service receiver. Original contract it is assumed that a original work contract is 40% services and 60% goods there is 40% service component in case of original contract,hence service tax is applicable only on these 40% example. An annuity is a financial contract between an insurance company and a buyer typically an investor or retiree. Apply to tax accountant, tax preparer, accountant and more.
Surcharge in case of a firm for assessment year 200910 is payable at the rate. The statement given in the question is false, hence, option a is not correct. Works contract is a supply of a goods b services c both goods and services d none. Income tax objective type questions accounts india. State workers occupation or title and give a complete description of the work done by himher. Whether capital goods purchased for execution of works are eligible for input tax credit. Hence total value of goods in which property is transferred in the execution of a civil work contract may be taken 70 % of the total value of the contract. Input tax credit is the credit that manufacturers receive for paying input taxes towards inputs used in the manufacture of products.
Applied direct taxation objective questions and answers. What is works contract some contracts are for contracts for labour, work or service and not for sale of goods, though goods are used in executing the contract for labour, work or service e. Unlv is an educational institution of the state of nevada and is tax exempt. Under which head the income tax recoveries effected from the bills paid by the treasuries. Can a works contractor claim input tax credit on opening stock. None of above view answer workspace report discuss in. For tds, specify contractor c, dividend d, professional p, and so on. Download updated icai faqs and mcqs on gst september, 2018 indian economy has been witnessing the spurring growth with the paradigm shift from consumer based tax to destination based tax from july 1,2017. Sample test paper this test paper is for practice and self study only and not to be sent to the institute time allowed. D negotiate new contracts with major buyers of the firms products. Download pdf file to revise income tax mcqs for ca inter exams. Sep 12, 2018 download updated icai faqs and mcqs on gst september, 2018 indian economy has been witnessing the spurring growth with the paradigm shift from consumer based tax to destination based tax from july 1,2017. In construction contract, a builder constructs a b. An entire chapter is devoted to teaching you how to prepare effectively for essay exams.
Goods and services tax multiple choice questions 1. Direct tax mcq multiple choice question and answer. Covering various important national and international topics, the chosen questions help you improve your general knowledge gk and perform the. Works contract has been defined in section 65b of the finance act, 1994 as a contract wherein transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods and such contract is for the purpose of carrying out construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, alteration of any moveable or. Works contract under gst is goods used in work relating to a immovable property b both movable and immovable property. Tax deduction at source at lower rate where a contractor is of the view that his liability of payment of tax on sale of goods in a works contract will be lesser than the aggregate of amounts of deduction if deduction is made at general rate of tax deduction, he may apply to his assessing authority for issuing direction to the contractee for.
Rates of service tax in case of wct service tax on work. These income tax gk quiz or general awareness quiz objective questions answers are very helpful for competitive exams bba, mba, pgdbm etc. Services by an employee to the employer in the course of or in. Xyz ltd sub contracted works contract work as well as labor work also some time. As per section 175 c of the cgst act, 2017, input tax credit shall not be. Works contract tax wct work contract uttar pradesh u.
In order to make the scheme rational on this point, difference of 5 % and 70 % should have. Which of these is not an objective of cost accounting. Before giving opinion on the issues it will be useful to refer the questions related with this transaction. You use the tds setup default values program p75i010 to assign tax types for tds and wct to supplier records. Gstn means goods and services tax network, a nonprofit organization managed by the center, states, and nongovernment financial organizations. May 29, 2018 on sale of goods, vat is applicableon sale of services, service tax is applicablethere are some services which are in nature of both goods and services,these are called works contracttax on work contract are called work contract tax wctexample. Download objective type questions of direct tax pdf visit our pdf store. I need a consultation, to write one page of explanation how taxes will work for business owners and individuals in my startup. Input tax credit itc input tax is the gst paidpayable on purchases of goods and services. A in consideration that b will employ c in collecting the rent of bs zamindari, promises b to be responsible, to the amount of 5000 rupees for the due collection and payment by c of those rents.
A works contractor is entitled to input tax credit on the opening stock as on 01. The tax payable on a supply of goods and services by the recipient. Download ca inter income tax mcqs book for upcoming exams. Advance learning on tax treatment of various forms of salary like bonus, overtime pay, salary in lieu of notice period, etc. In exchange for a lump sum or monthly payments toward the principal, an insurance company will pay out income through a series of payments or a onetime lump sum. You can find a completed w9 on the accounts payable website. Tax payers shall be allowed to take credit of taxes paid on inputs itc and utilize the same for payment of output tax.
Thus, there is a clear demarcation of a works contract as a supply of service under gst. With the implementation of goods and services tax gst in india from july 1. How to pay tax as an independent contractor or freelancer. On sale of goods, vat is applicableon sale of services, service tax is applicablethere are some services which are in nature of both goods and services,these are called works contracttax on work contract are called work contract tax wctexample. Payments and gifts eligible for tax relief chapter 5. Free download in pdf income tax general knowledge multiple choice questionsmcqs and answers. Arrear rent is taxable after deducting 30% as per section 25b of the income tax act, 1961. As per rule 2a of the service tax rules determination of value rules, 2006, the service portion involved in the execution of original works is 40% of the total works contract and the service portion involved in the execution of works contract other than original works is 70% of the total works contract. Gst mcq 2020, gst quiz, take gst online test updated mcq. Dear readers, welcome to daily current affairs quiz questions with answers on uno. Surcharge of 10 per cent is payable by an individual where the total income exceeds. When people will start providing services on my platform we will start from state illinois, chicago, then will go over the usa, lawn. Solved examples with detailed answer description, explanation are given and it would be easy to understand.
The works contract service has always been a subject matter of debate or discussion, either in computation of tax under vat act or under service tax act and more importantly after the introduction of reverse charge mechanism, where both service provider and service recipient is the person liable to pay tax. Jan 08, 2018 works contract has been defined in section 65b of the finance act, 1994 as a contract wherein transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods and such contract is for the purpose of carrying out construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, alteration of any moveable or. The chapter provides instruction, advice, and examtaking tips that help you make the most of your study time. Indeed, with all these constant initiatives of the government, when gst is paving the way to bind the country into an economic union, the dedicated efforts of professionals are of utmost importance in efficaciously implementing gst throughout the country and to ensure that the tax compliance is given top priority. Advance salary received by an employee is taxed in the year of receipt. In other words, remuneration received for extra work will be charged to tax as salary income. For work done in 2019, this tax rate amounts to 15. Under which head will tax on travel by air be classified.
Contract work tax calculators jobs, employment freelancer. May 29, 2018 original contract it is assumed that a original work contract is 40% services and 60% goods there is 40% service component in case of original contract,hence service tax is applicable only on these 40% example. Gstn has established on 28th march 20 and one stop solution to make payments of all your indirect tax liabilities. Apply to tax preparer, senior tax preparer and more. Positive economics a does not depend on market interactions. For canadian tax principles practice exams and solutions 20162017 practice examination chapter 3 employment income page 1. These objective type mcq questions on uno are useful for competitive exams like ibps, bank po, sbi po, rrb, rbi, lic, specialist officer, clerk, ssc, upsc, railway etc. Contractors have different tax and super obligations to employees. Additional surcharge education cess of 3% per cent is payable on a income tax. Compensation to states under gst compensation to states act, 2017 is paid by. Meaning of work contract work contract means a contract wherein transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods and such contract is for purpose of carrying out construction, erection. A contract required hair styling to be done to tobys satisfaction, but toby was. The works contract service has always been a subject matter of debate or discussion, either in computation of tax under vat act or under service tax act and more importantly after the introduction of reverse charge mechanism, where both service provider and service recipient is. Direct tax mcq multiple choice question and answer direct tax mcq with detailed explanation for interview, entrance and competitive exams.
Sale of agricultural land on 1st april, 1970 is an example of transfer of capital asset. Important mcq of gst by ca vivek gaba expected in exam 1. You might even call yourself an independent contractor, subcontractor or a subbie. Arrear rent is taxable after deducting 30% as per section 25b of the incometax act, 1961. May 06, 2011 objective questions in income tax multiple choice questions finance act 2008 1. As a contractor, you can be an individual sole trader or working in your own company, partnership, or trust. C labour is an immobile factor that does not change its skill level.
After the finance act 2012 enacted, clause 54 of the newly introduced section 65bprovides definition to works contract, which means, a contract wherein transfer ofproperty in goods involved in the execution of such contract is leviable to tax as. As per section 2119 of the cgst act, 2017, works contract. Work contract tax wct meaning and explanation meaning. Gst the institute of chartered accountants of india. E publication on eway bill under gst july,2018 ehandbook on job work. Answers to multiplechoice questions explain why one choice is correct as well as why the other choices are wrong, to ensure complete understanding.
A proven resource for high performance, the siegels series keeps you focused on the only thing that matters the exam. However, in other situations the allocation process is more complex. Dec 25, 2015 works contract means a contract wherein. Termination a the employee may at any time terminate this agreement and his employment by giving not less than two weeks written notice to the employer.
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