Indirect Tax Laws - November 2015

1. State whether following statements are true or false w.r.t. provisions relating to Advance Ruling. (i) Questions on which the advance ruling can be sought under this Act, include rate of tax applicable to a particular supply and place of supply. (ii) Rectification of advance ruling is not possible once the Authority for Advance Ruling has passed the orders. (iii) The Authority for Advance Ruling shall pronounce its ruling within 90 days from the date of receipt of application. (iv)…

Corp. (P) Ltd. is a registered manufacturer of fruit juices. It purchases plastic bottles and cardboard and sends the same for affixing stickers on plastic bottles and manufacturing boxes from cardboard to a registered job worker, M/s. Hammer Industries (P) Ltd. These raw materials are sent directly from the place of business of supplier to the premises of job worker. M/s. Lex Corp. (P) Ltd. booked input tax credit on purchase of such items. The following transactions took place in…

Mr. Rahul Roy, proprietor of M/s. Royal Shoe & Company is running a business of manufacturing shoes with the brand name of ‘JUNOON’. The manufacturing unit is located in Delhi and registered under GST. However, due to low profitability in the business, he has decided to transfer his business to his friend Mr. Dilip Tijori. Mr. Dilip Tijori is already running the business of manufacturing shoes under a proprietorship firm named M/s Hawai Shoes & Company which is located in…

4. An appeal to the High Court can be filed under the CGST Act, 2017 in the following cases: (i) Bya person aggrieved against the order passed by the State bench or Area bench of the Appellate Tribunal. (ii) By a person aggrieved against the order passed by the National bench or Regional bench of the Appellate Tribunal. (iii) For matter involving substantial question of law. (iv) All of the above. Choose the correct option from the following: (a) (i)…

Ms. Reena Banerji is engaged in retail business of selling mobile phones in the State of West Bengal. She has effected supplies to the customers in the State of Uttar Pradesh and Haryana. Her total turnover during the financial year ending 31st March, 20XX is = 18,00,000. Owing to low profit margins in the business, she has decided to shut down the business in April 20XX. The proper officer has collected evidences of the inter-State sale of mobile phones effected…

6. Fury Ltd. has received an order for supply of services amounting to $ 5,00,000/- from a US based client. Fury Ltd. is unable to supply the entire services from India and asks Neik Inc., Mexico (who is not an establishment of Fury Ltd.) to supply a part of the services, i.e. 40% of the total contract value to the US client. Fury Ltd. raised the invoice for entire value of $ 5,00,000 but the US client paid $ 3,00,000…

Mr. Khiladi Kumar, is the Managing Director of Khiladi Equipments (P) Ltd. The Company has offices and factories in Mumbai and is registered under GST. Mr. Khiladi Kumar, has decided to send food grains and other relief materials worth % 50,00,000/- and = 20,00,000 respectively through railway and airways to the cyclone hit victims in Kerala in the month of November, 20XX. The Company has contacted Super Airlines and Indian Railways to transport the materials from Mumbai to Kerala and…

8. For the purposes of rule 7 (Deductive Value) of the Customs (Determination of Value of Imported Goods) Rules, 2007, determine the unit price in greatest aggregate quantity: A Ltd. makes two sales. In the first sale, 500 units are sold at a price of & 95. In the second sale, 400 units are sold at a price of = 100. (a) 95 (b) 100 (c) Average of 95 and 100i.e. (95+100)/2 = 97.5 (d) Insufficient data 106 FINAL (OLD)…