Under Section 8 of the CGST Act 2017, how is a 'Composite Supply' distinguished from a 'Mixed Supply' and how is each taxed?

Composite Supply: Two or more taxable supplies of goods or services which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a 'Principal Supply' -> Taxed at the rate applicable to the Principal Supply. Mixed Supply: Two or more individual supplies made together for a single price which does not constitute a composite supply -> Taxed at the rate of the supply that attracts the HIGHEST rate of tax.

Under Clubbing of Income (Sections 60–64) and Set-off & Carry Forward of Losses (Sections 70–80), what are the key rules for Minor's Income and Speculation / Capital Losses?

Minor child's income (other than from manual work or skill/talent, or child with disability under 80U) is clubbed with the parent whose total income is greater, with an exemption of Rs. 1,500 per child under Sec 10(32) (in old regime). Speculation business loss can be set off ONLY against speculation business profit (carried forward for 4 years); Short-Term Capital Loss (STCL) can be set off against both STCG and LTCG, whereas Long-Term Capital Loss (LTCL) can be set off ONLY against LTCG (both carried forward for 8 years).

Under Section 94B of the Income Tax Act 1961 (Thin Capitalisation / Limitation on Interest Deduction), when is interest paid to a Non-Resident Associated Enterprise (AE) disallowed?

When an Indian company (or PE of a foreign company) incurs interest expenditure exceeding Rs. 1 Crore in respect of debt issued/guaranteed by a Non-Resident Associated Enterprise, the ‘Excess Interest’ disallowed is the LOWER of: 1) Total interest paid/payable in excess of 30% of EBITDA, OR 2) Interest paid or payable to the Associated Enterprise (disallowed interest can be carried forward for 8 assessment years).

Under the CGST Act 2017, what defines 'Supply' under Section 7 and what is the difference between Schedule I, Schedule II, and Schedule III?

Section 7(1)(a) covers all forms of supply of goods/services (sale, transfer, barter, exchange, license, rental, lease, disposal) made for a consideration in the course or furtherance of business. Schedule I: Activities treated as supply EVEN WITHOUT consideration (permanent transfer of business assets where ITC was availed, supplies between related/distinct persons, principal-agent of goods, import of services from related person for business); Schedule II: Classification as supply of Goods vs Services; Schedule III: Negative List (neither supply of goods nor services, e.g., employee to employer services, sale of land/completed building, actionable claims other than specified actionable claims like online money gaming/casinos/betting).

Under Section 16 of the IGST Act 2017, what are 'Zero-Rated Supplies' and what are the two options available to exporters for claiming GST refunds?

Zero-rated supply comprises ONLY: 1) Export of goods or services, and 2) Supply of goods or services for authorized operations to a Special Economic Zone (SEZ) developer or SEZ unit. Two options: Option A -> Supply under Bond or Letter of Undertaking (LUT) without payment of IGST and claim refund of unutilized Input Tax Credit (ITC); Option B -> Supply on payment of IGST (for notified goods/services) and claim refund of such IGST paid.

Under Section 16 of the CGST Act 2017, what are the mandatory conditions and time limit for availing Input Tax Credit (ITC), including the 180-day payment rule?

Conditions (Sec 16(2)): 1) Possession of valid tax invoice/debit note, 2) Details furnished by supplier in GSTR-1 and communicated to recipient in GSTR-2B, 3) Actual receipt of goods/services (including 'Bill to - Ship to' deemed receipt), 4) Tax charged has actually been paid to the Government, 5) Furnishing of return under Sec 39 (GSTR-3B). Under the 180-day rule, if recipient fails to pay invoice value + tax within 180 days from invoice date (except RCM/Schedule I), ITC must be reversed with interest at 18% p.a. (re-available upon actual payment). Time limit (Sec 16(4)): Earlier of 30th November following the end of the financial year to which the invoice/debit note pertains OR date of furnishing the relevant Annual Return.

Under Section 17(5) of the CGST Act 2017 (Blocked Credits), what are the rules regarding ITC on Motor Vehicles, Food & Beverages, and Works Contract Services?

1) Motor vehicles for transportation of persons having approved seating capacity <= 13 persons (including driver) are BLOCKED, EXCEPT when used for further supply of such vehicles, transportation of passengers, or imparting training on driving (ITC on Goods Transport Vehicles / Trucks is always ALLOWED); 2) Food, beverages, outdoor catering, health services are blocked unless used for making an outward taxable supply of the same category or obligatory for an employer to provide to employees under any law; 3) Works contract services and goods/services received for construction of immovable property on own account are blocked (except for Plant & Machinery or repairs charged to Revenue/P&L).

What are the due dates and purposes of standard GST Returns (GSTR-1, GSTR-3B, CMP-08, GSTR-4, GSTR-9, and QRMP Scheme)?

GSTR-1 (Outward supplies): 11th of next month (13th of month following quarter under QRMP with optional IFF up to 13th of Month 1 & 2); GSTR-3B (Summary return & tax payment): 20th of next month (22nd/24th of month following quarter under QRMP with PMT-06 payment by 25th of Month 1 & 2); CMP-08 (Quarterly composition payment): 18th of month following quarter; GSTR-4 (Annual composition return): 30th April following FY; GSTR-9 (Annual Return): 31st December following FY.

Under Section 10 of the CGST Act 2017, what are the turnover limits, tax rates, and restrictions for the Composition Scheme?

Turnover limit in preceding FY: Rs. 1.5 Crore for goods/restaurants (Rs. 75 Lakhs for 8 special category states) with CGST+SGST rate of 1% for manufacturers/traders (of taxable/total turnover) and 5% for restaurant services. Under Sec 10(2A) for service providers: Turnover <= Rs. 50 Lakhs, taxed at 6% (3% CGST + 3% SGST). Restrictions: Cannot make inter-State outward supplies (except passive e-commerce for goods subject to conditions), cannot collect tax from customers, cannot claim Input Tax Credit (ITC), and cannot issue a Tax Invoice (issues a Bill of Supply).

In CA Final Direct Tax, what are the three methods of Double Taxation Avoidance Relief under Sections 90, 90A, and 91, and how is Section 91 Unilateral Relief calculated?

Sec 90 (DTAA with foreign country) & Sec 90A (Specified Associations): Exemption Method or Tax Credit Method, and under Sec 90(2) the assessee can apply the provisions of the Income Tax Act or the DTAA, whichever is MORE beneficial. Sec 91 (Unilateral Relief - when no DTAA exists): A Resident gets a deduction from Indian tax equal to Doubly Taxed Income x LOWER of (Indian Average Rate of Tax OR Foreign Rate of Tax).

Under Section 40A(3) of the Income Tax Act 1961, what is the rule for disallowance of cash expenditure?

Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a single day otherwise than by an account payee cheque/bank draft/electronic clearing system exceeds Rs. 10,000 (Rs. 35,000 in the case of plying, hiring, or leasing goods carriages), 100% of such expenditure is disallowed (subject to Rule 6DD exceptions).

Under Section 15 of the CGST Act 2017, what are the inclusions and exclusions in the Value of Taxable Supply?

Transaction Value includes: 1) Any taxes/duties/cesses under any law OTHER than GST and TCS under Income Tax, 2) Third-party payments made by recipient that the supplier is liable to pay, 3) Incidental expenses (packing, commission, freight charged before/at delivery), 4) Interest/late fee/penalty for delayed payment of consideration (on receipt basis), 5) Subsidies directly linked to price OTHER than subsidies provided by Central or State Governments. Discounts are excluded if given at/before supply and shown on invoice, or post-supply if pre-agreed, linked to specific invoices, and recipient reverses proportionate ITC.

Under Income from House Property (Sections 22–27), how is Gross Annual Value (GAV) determined and what are the deductions under Section 24?

Expected Rent = Higher of Municipal Value or Fair Rent, but restricted to Standard Rent. GAV = Higher of Expected Rent or Actual Rent received/receivable (less unrealized rent). Net Annual Value (NAV) = GAV minus Municipal Taxes actually paid by the owner. Section 24 deductions: Sec 24(a) Standard Deduction = 30% of NAV; Sec 24(b) Interest on borrowed capital (capped at Rs. 2,00,000 for self-occupied property under the old regime, unlimited for let-out property, though overall HP loss set-off against other heads is capped at Rs. 2,00,000 under Sec 71(3A)).

Under the CGST Act 2017, what are the requirements for E-Invoicing and E-Way Bill generation?

E-Invoicing (IRN generation on Invoice Registration Portal): Mandatory for registered persons whose aggregate turnover in ANY preceding financial year from 2017-18 onwards exceeds Rs. 5 Crore (for B2B supplies and exports; Banks, Insurance, GTA, SEZ units are exempt). E-Way Bill (Rule 138): Required before commencement of movement of goods where consignment value (including GST, excluding exempt goods) exceeds Rs. 50,000 (validity: 1 day for every 200 km or part thereof for normal cargo, and 1 day for every 20 km for Over Dimensional Cargo).

Under Section 6(1) of the Income Tax Act 1961, what are the basic conditions and exceptions for an individual to be Resident in India?

Basic conditions: Stay in India for 1) >= 182 days in the Previous Year (PY), OR 2) >= 60 days in PY AND >= 365 days in the 4 preceding PYs. Exception: The 60-day limb is replaced by 182 days for an Indian citizen leaving India for employment outside India (or as crew of an Indian ship), and for an Indian citizen/Person of Indian Origin (PIO) visiting India (unless their total Indian income exceeds Rs. 15 Lakhs, where 120 days applies and they become RNOR under Sec 6(1A)).

Under Income from Other Sources (Section 56(2)(x)), how are gifts of Money, Movable Property, and Immovable Property taxed?

1) Aggregate cash/money without consideration > Rs. 50,000 -> Whole aggregate amount is taxable; 2) Immovable property without consideration where Stamp Duty Value (SDV) > Rs. 50,000 -> SDV is taxable; 3) Immovable property for inadequate consideration -> Taxable if (SDV - Consideration) exceeds the HIGHER of Rs. 50,000 AND 10% of Consideration; 4) Specified movable property (shares, jewellery, art) -> Rs. 50,000 aggregate threshold. Exempt if received from a 'Relative', on marriage, or under a will/inheritance.

Under Sections 12 and 13 of the CGST Act 2017, how is the Time of Supply (Point of Taxation) determined for Goods (Forward Charge), Services (Forward Charge), and Reverse Charge Mechanism (RCM)?

Goods (Forward Charge - Sec 12(2)): Date of issue of invoice (or last date required under Sec 31); advance received for goods is NOT taxable at receipt. Services (Forward Charge - Sec 13(2)): If invoice is issued within prescribed time (30 days / 45 days for banks), EARLIER of Date of Invoice or Date of Payment; if invoice is NOT issued within time, EARLIER of Date of Provision of Service or Date of Payment. Goods RCM (Sec 12(3)): Earliest of Receipt of goods, Date of payment, or 31st day from supplier's invoice. Services RCM (Sec 13(3)): Earlier of Date of payment or 61st day from supplier's invoice.

Compare Capital Gains exemptions under Sections 54, 54EC, and 54F of the Income Tax Act 1961.

Sec 54: LTCG on transfer of Residential House reinvested in 1 Residential House in India (or 2 houses once in a lifetime if LTCG <= Rs. 2 Cr), max cost of new house eligible capped at Rs. 10 Cr; Sec 54EC: LTCG on Land or Building invested within 6 months in NHAI/REC/PFC/IRFC bonds (5-year lock-in, max investment Rs. 50 Lakhs); Sec 54F: LTCG on ANY asset other than a residential house reinvested in 1 Residential House in India (proportionate exemption based on Net Consideration reinvested, capped at Rs. 10 Cr).

Under Section 43B of the Income Tax Act 1961 (Deductions allowed only on Actual Payment), what is the special rule added by Clause (h) for payments to Micro and Small Enterprises (MSEs)?

While general Section 43B items (taxes, duties, bonus, employer PF, interest to banks) are allowed if paid on or before the due date of filing the return under Sec 139(1), under Clause 43B(h), any sum payable to a Micro or Small Enterprise beyond the time limit specified in Section 15 of the MSMED Act 2006 (max 45 days with written agreement, or 15 days without agreement) is allowed ONLY in the previous year in which it is actually paid (due date of ROI extension does NOT apply).

In CA Final Direct Tax (International Taxation), what are the five methods for computing Arm's Length Price (ALP) under Section 92C (Transfer Pricing) and the range concept?

1) Comparable Uncontrolled Price (CUP), 2) Resale Price Method (RPM), 3) Cost Plus Method (CPM), 4) Profit Split Method (PSM), 5) Transactional Net Margin Method (TNMM), and 6) Other Method (Rule 10AB). When using CUP, RPM, CPM, or TNMM with 6 or more comparable entries in the dataset, the Arm's Length Range is the 35th percentile to the 65th percentile (if actual price falls outside, the Median/50th percentile is taken).

Under Profits and Gains of Business or Profession (PGBP - Section 32), what are the rules for Block of Assets Depreciation and Additional Depreciation?

Depreciation is calculated on the Written Down Value (WDV) of the Block of Assets (50% of normal rate if asset is acquired and put to use for LESS than 180 days during the PY). Under Sec 32(1)(iia), Additional Depreciation of 20% (10% if put to use < 180 days, balance 10% in next year) is available under the old regime on new Plant & Machinery acquired by a taxpayer engaged in manufacture/production or power generation/transmission.

In CA Final Indirect Tax (Customs Act 1962), how is Assessable Value (Transaction Value) for Imported Goods determined under Section 14 and Rule 10 of the Customs Valuation Rules 2007?

FOB Value + Rule 10(1) adjustments (buying commission is EXCLUDED, other commissions/brokerage, engineering/design work undertaken outside India, royalties/license fees as condition of sale are INCLUDED) + Rule 10(2) Cost of Transport (actual freight, or 20% of FOB if not ascertainable; for Air Freight, restricted to maximum 20% of FOB) + Insurance (actual, or 1.125% of FOB if not ascertainable) = CIF Assessable Value, converted using the CBIC notified exchange rate in force on the date of filing the Bill of Entry under Sec 15.

Under the Customs Act 1962, what is the sequence for computing Basic Customs Duty (BCD), Social Welfare Surcharge (SWS), and IGST under Section 3(7) of the Customs Tariff Act?

1) Assessable Value (AV) = CIF Value; 2) Basic Customs Duty (BCD) = AV x BCD%; 3) Social Welfare Surcharge (SWS) = 10% of BCD; 4) Value for IGST = AV + BCD + SWS (+ any Anti-Dumping/Safeguard Duty); 5) IGST = (Value for IGST) x IGST%. Note: Only the IGST component (and GST Compensation Cess, if applicable) is eligible as Input Tax Credit (ITC); BCD and SWS are NOT eligible as ITC.

Under Section 49 and Rule 88A of the CGST Rules, what is the statutory order of utilization of Input Tax Credit (IGST, CGST, SGST)?

1) IGST credit MUST first be utilized fully to set off IGST liability; any remaining IGST credit can then be utilized to set off CGST and/or SGST/UTGST liabilities in ANY order and in any proportion. 2) CGST and SGST credits can ONLY be utilized after IGST credit is completely exhausted: CGST credit -> first CGST, then IGST; SGST credit -> first SGST, then IGST. Cross-utilization between CGST and SGST is strictly prohibited.

Compare TDS on Contractors (Sec 194C), Professional/Technical Services (Sec 194J), Rent (Sec 194-I), and Purchase of Goods (Sec 194Q).

Sec 194C (Contractors): 1% (Individual/HUF) or 2% (Others) if single payment > Rs. 30,000 or aggregate > Rs. 1,00,000. Sec 194J: 2% on technical services/royalty for films/call centers, 10% on professional services/other royalty if > Rs. 30,000 p.a. Sec 194-I (Rent > Rs. 2,40,000 p.a.): 2% on Plant & Machinery, 10% on Land/Building/Furniture. Sec 194Q (Purchase of Goods by buyer with turnover > Rs. 10 Cr): 0.1% of purchase value exceeding Rs. 50 Lakhs from a resident seller.

Under Sections 10 and 12 of the IGST Act 2017, what are the key Place of Supply rules for Domestic Goods and Domestic Services?

Goods (Sec 10): 1) Movement of goods -> Location where movement terminates for delivery; 2) Bill-to-Ship-to (third party direction) -> Principal place of business of the third person (buyer); 3) No movement -> Location of goods at time of delivery; 4) Assembly/installation at site -> Place of installation. Services (Sec 12): General rule -> Location of registered recipient (if unregistered, location of recipient if address on record exists, else location of supplier); Services directly relating to Immovable Property (architects, hotels) -> Location of the immovable property.

Under Section 5 of the Income Tax Act 1961, how does the Scope of Total Income differ for ROR (Resident and Ordinarily Resident), RNOR (Resident but Not Ordinarily Resident), and NR (Non-Resident)?

ROR: Taxed on Global Income (Indian + Foreign income). NR: Taxed ONLY on income received/deemed to be received in India OR accruing/arising (or deemed to accrue/arise) in India. RNOR: Taxed like NR, PLUS foreign income derived from a business controlled in or a profession set up in India.

Under Capital Gains (Sections 45–55A), what are the holding period criteria to classify an asset as a Long-Term Capital Asset (LTCA)?

Under the simplified rationalized holding period framework: 1) Listed securities (equity shares, units of equity-oriented mutual funds, REITs/InvITs, zero coupon bonds) are LTCA if held for > 12 months; 2) Unlisted shares and Immovable property (land/building) are LTCA if held for > 24 months (under the rationalized 2-tier regime, all listed financial assets require > 12 months and all unlisted/non-financial assets require > 24 months).

Under Section 51 (GST TDS) and Section 52 (GST TCS) of the CGST Act 2017, what are the rates and thresholds?

GST TDS (Sec 51 - Government departments, local authorities, PSU notified entities): Deduct 2% (1% CGST + 1% SGST or 2% IGST) where the total value of supply under a contract (excluding GST) exceeds Rs. 2,50,000. GST TCS (Sec 52 - Electronic Commerce Operators collecting consideration): Collect 0.5% (0.25% CGST + 0.25% SGST or 0.5% IGST) of the net value of taxable supplies made through the platform.

Under Section 22 and Section 24 of the CGST Act 2017, what are the aggregate turnover thresholds for GST Registration and who is subject to Compulsory Registration regardless of turnover?

Sec 22 Thresholds: Exclusive supply of Goods -> Rs. 40 Lakhs (Rs. 20 Lakhs / Rs. 10 Lakhs for special category states); Supply of Services (or Goods + Services) -> Rs. 20 Lakhs (Rs. 10 Lakhs for Manipur, Mizoram, Nagaland, Tripura). Sec 24 Compulsory Registration (no threshold): Inter-state suppliers of goods, Casual Taxable Persons (CTP), Non-Resident Taxable Persons (NRTP), persons liable to pay tax under Reverse Charge (RCM), Input Service Distributors (ISD), and e-commerce operators (ECOs) / persons supplying goods through ECOs (subject to passive ECO exemption).

What are the Presumptive Taxation thresholds and deemed profit rates under Sections 44AD, 44ADA, and 44AE of the Income Tax Act 1961?

Sec 44AD (Eligible Business): Turnover <= Rs. 2 Cr (up to Rs. 3 Cr if cash receipts <= 5% of total turnover); Deemed profit = 8% of turnover (6% for digital/bank receipts). Sec 44ADA (Specified Professionals): Gross receipts <= Rs. 50 Lakhs (up to Rs. 75 Lakhs if cash receipts <= 5%); Deemed profit = 50% of gross receipts. Sec 44AE (Goods Carriages - owning <= 10 vehicles): Rs. 1,000 per ton of gross vehicle weight per month (for heavy goods vehicle) or Rs. 7,500 per vehicle per month for other vehicles.

Under Section 115BAC of the Income Tax Act 1961 (Default Tax Regime), what are the major exemptions/deductions allowed vs disallowed for salaried individuals?

Under the Section 115BAC Default Regime, standard deduction (under Sec 16(ia)), employer's contribution to NPS under Sec 80CCD(2), deduction for new employees under Sec 80JJAA, and Agniveer Corpus Fund (80CCH(2)) are ALLOWED; however, HRA, LTA, Chapter VI-A deductions (80C, 80D, 80E, etc.), and interest on self-occupied house property under Sec 24(b) are NOT allowed.

ICAI CA Direct & Indirect Taxation (Income Tax Act 1961 & CGST/IGST Act 2017): Heads of Income, TDS/TCS, Input Tax Credit (ITC), Place of Supply & GST Returns

Comprehensive ICAI CA Intermediate & Final Direct Tax (Income Tax Act 1961) and Indirect Tax (CGST & IGST Act 2017) flashcards covering Residential Status, Five Heads of Income, Deductions, TDS/TCS, GST Supply, ITC, and Place of Supply.

Level: advanced
Languages: en → en
Cards: 32
Markdown: ICAI CA Direct & Indirect Taxation (Income Tax Act 1961 & CGST/IGST Act 2017): Heads of Income, TDS/TCS, Input Tax Credit (ITC), Place of Supply & GST Returns (.md)

Flashcards (32)

#	Front (Term / Question)	Back (Definition / Answer)
1	Under Section 8 of the CGST Act 2017, how is a 'Composite Supply' distinguished from a 'Mixed Supply' and how is each taxed?	Composite Supply: Two or more taxable supplies of goods or services which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a 'Principal Supply' -> Taxed at the rate applicable to the Principal Supply. Mixed Supply: Two or more individual supplies made together for a single price which does not constitute a composite supply -> Taxed at the rate of the supply that attracts the HIGHEST rate of tax.
2	Under Clubbing of Income (Sections 60–64) and Set-off & Carry Forward of Losses (Sections 70–80), what are the key rules for Minor's Income and Speculation / Capital Losses?	Minor child's income (other than from manual work or skill/talent, or child with disability under 80U) is clubbed with the parent whose total income is greater, with an exemption of Rs. 1,500 per child under Sec 10(32) (in old regime). Speculation business loss can be set off ONLY against speculation business profit (carried forward for 4 years); Short-Term Capital Loss (STCL) can be set off against both STCG and LTCG, whereas Long-Term Capital Loss (LTCL) can be set off ONLY against LTCG (both carried forward for 8 years).
3	Under Section 94B of the Income Tax Act 1961 (Thin Capitalisation / Limitation on Interest Deduction), when is interest paid to a Non-Resident Associated Enterprise (AE) disallowed?	When an Indian company (or PE of a foreign company) incurs interest expenditure exceeding Rs. 1 Crore in respect of debt issued/guaranteed by a Non-Resident Associated Enterprise, the ‘Excess Interest’ disallowed is the LOWER of: 1) Total interest paid/payable in excess of 30% of EBITDA, OR 2) Interest paid or payable to the Associated Enterprise (disallowed interest can be carried forward for 8 assessment years).
4	Under the CGST Act 2017, what defines 'Supply' under Section 7 and what is the difference between Schedule I, Schedule II, and Schedule III?	Section 7(1)(a) covers all forms of supply of goods/services (sale, transfer, barter, exchange, license, rental, lease, disposal) made for a consideration in the course or furtherance of business. Schedule I: Activities treated as supply EVEN WITHOUT consideration (permanent transfer of business assets where ITC was availed, supplies between related/distinct persons, principal-agent of goods, import of services from related person for business); Schedule II: Classification as supply of Goods vs Services; Schedule III: Negative List (neither supply of goods nor services, e.g., employee to employer services, sale of land/completed building, actionable claims other than specified actionable claims like online money gaming/casinos/betting).
5	Under Section 16 of the IGST Act 2017, what are 'Zero-Rated Supplies' and what are the two options available to exporters for claiming GST refunds?	Zero-rated supply comprises ONLY: 1) Export of goods or services, and 2) Supply of goods or services for authorized operations to a Special Economic Zone (SEZ) developer or SEZ unit. Two options: Option A -> Supply under Bond or Letter of Undertaking (LUT) without payment of IGST and claim refund of unutilized Input Tax Credit (ITC); Option B -> Supply on payment of IGST (for notified goods/services) and claim refund of such IGST paid.
6	Under Section 16 of the CGST Act 2017, what are the mandatory conditions and time limit for availing Input Tax Credit (ITC), including the 180-day payment rule?	Conditions (Sec 16(2)): 1) Possession of valid tax invoice/debit note, 2) Details furnished by supplier in GSTR-1 and communicated to recipient in GSTR-2B, 3) Actual receipt of goods/services (including 'Bill to - Ship to' deemed receipt), 4) Tax charged has actually been paid to the Government, 5) Furnishing of return under Sec 39 (GSTR-3B). Under the 180-day rule, if recipient fails to pay invoice value + tax within 180 days from invoice date (except RCM/Schedule I), ITC must be reversed with interest at 18% p.a. (re-available upon actual payment). Time limit (Sec 16(4)): Earlier of 30th November following the end of the financial year to which the invoice/debit note pertains OR date of furnishing the relevant Annual Return.
7	Under Section 17(5) of the CGST Act 2017 (Blocked Credits), what are the rules regarding ITC on Motor Vehicles, Food & Beverages, and Works Contract Services?	1) Motor vehicles for transportation of persons having approved seating capacity <= 13 persons (including driver) are BLOCKED, EXCEPT when used for further supply of such vehicles, transportation of passengers, or imparting training on driving (ITC on Goods Transport Vehicles / Trucks is always ALLOWED); 2) Food, beverages, outdoor catering, health services are blocked unless used for making an outward taxable supply of the same category or obligatory for an employer to provide to employees under any law; 3) Works contract services and goods/services received for construction of immovable property on own account are blocked (except for Plant & Machinery or repairs charged to Revenue/P&L).
8	What are the due dates and purposes of standard GST Returns (GSTR-1, GSTR-3B, CMP-08, GSTR-4, GSTR-9, and QRMP Scheme)?	GSTR-1 (Outward supplies): 11th of next month (13th of month following quarter under QRMP with optional IFF up to 13th of Month 1 & 2); GSTR-3B (Summary return & tax payment): 20th of next month (22nd/24th of month following quarter under QRMP with PMT-06 payment by 25th of Month 1 & 2); CMP-08 (Quarterly composition payment): 18th of month following quarter; GSTR-4 (Annual composition return): 30th April following FY; GSTR-9 (Annual Return): 31st December following FY.
9	Under Section 10 of the CGST Act 2017, what are the turnover limits, tax rates, and restrictions for the Composition Scheme?	Turnover limit in preceding FY: Rs. 1.5 Crore for goods/restaurants (Rs. 75 Lakhs for 8 special category states) with CGST+SGST rate of 1% for manufacturers/traders (of taxable/total turnover) and 5% for restaurant services. Under Sec 10(2A) for service providers: Turnover <= Rs. 50 Lakhs, taxed at 6% (3% CGST + 3% SGST). Restrictions: Cannot make inter-State outward supplies (except passive e-commerce for goods subject to conditions), cannot collect tax from customers, cannot claim Input Tax Credit (ITC), and cannot issue a Tax Invoice (issues a Bill of Supply).
10	In CA Final Direct Tax, what are the three methods of Double Taxation Avoidance Relief under Sections 90, 90A, and 91, and how is Section 91 Unilateral Relief calculated?	Sec 90 (DTAA with foreign country) & Sec 90A (Specified Associations): Exemption Method or Tax Credit Method, and under Sec 90(2) the assessee can apply the provisions of the Income Tax Act or the DTAA, whichever is MORE beneficial. Sec 91 (Unilateral Relief - when no DTAA exists): A Resident gets a deduction from Indian tax equal to Doubly Taxed Income x LOWER of (Indian Average Rate of Tax OR Foreign Rate of Tax).
11	Under Section 40A(3) of the Income Tax Act 1961, what is the rule for disallowance of cash expenditure?	Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a single day otherwise than by an account payee cheque/bank draft/electronic clearing system exceeds Rs. 10,000 (Rs. 35,000 in the case of plying, hiring, or leasing goods carriages), 100% of such expenditure is disallowed (subject to Rule 6DD exceptions).
12	Under Section 15 of the CGST Act 2017, what are the inclusions and exclusions in the Value of Taxable Supply?	Transaction Value includes: 1) Any taxes/duties/cesses under any law OTHER than GST and TCS under Income Tax, 2) Third-party payments made by recipient that the supplier is liable to pay, 3) Incidental expenses (packing, commission, freight charged before/at delivery), 4) Interest/late fee/penalty for delayed payment of consideration (on receipt basis), 5) Subsidies directly linked to price OTHER than subsidies provided by Central or State Governments. Discounts are excluded if given at/before supply and shown on invoice, or post-supply if pre-agreed, linked to specific invoices, and recipient reverses proportionate ITC.
13	Under Income from House Property (Sections 22–27), how is Gross Annual Value (GAV) determined and what are the deductions under Section 24?	Expected Rent = Higher of Municipal Value or Fair Rent, but restricted to Standard Rent. GAV = Higher of Expected Rent or Actual Rent received/receivable (less unrealized rent). Net Annual Value (NAV) = GAV minus Municipal Taxes actually paid by the owner. Section 24 deductions: Sec 24(a) Standard Deduction = 30% of NAV; Sec 24(b) Interest on borrowed capital (capped at Rs. 2,00,000 for self-occupied property under the old regime, unlimited for let-out property, though overall HP loss set-off against other heads is capped at Rs. 2,00,000 under Sec 71(3A)).
14	Under the CGST Act 2017, what are the requirements for E-Invoicing and E-Way Bill generation?	E-Invoicing (IRN generation on Invoice Registration Portal): Mandatory for registered persons whose aggregate turnover in ANY preceding financial year from 2017-18 onwards exceeds Rs. 5 Crore (for B2B supplies and exports; Banks, Insurance, GTA, SEZ units are exempt). E-Way Bill (Rule 138): Required before commencement of movement of goods where consignment value (including GST, excluding exempt goods) exceeds Rs. 50,000 (validity: 1 day for every 200 km or part thereof for normal cargo, and 1 day for every 20 km for Over Dimensional Cargo).
15	Under Section 6(1) of the Income Tax Act 1961, what are the basic conditions and exceptions for an individual to be Resident in India?	Basic conditions: Stay in India for 1) >= 182 days in the Previous Year (PY), OR 2) >= 60 days in PY AND >= 365 days in the 4 preceding PYs. Exception: The 60-day limb is replaced by 182 days for an Indian citizen leaving India for employment outside India (or as crew of an Indian ship), and for an Indian citizen/Person of Indian Origin (PIO) visiting India (unless their total Indian income exceeds Rs. 15 Lakhs, where 120 days applies and they become RNOR under Sec 6(1A)).
16	Under Income from Other Sources (Section 56(2)(x)), how are gifts of Money, Movable Property, and Immovable Property taxed?	1) Aggregate cash/money without consideration > Rs. 50,000 -> Whole aggregate amount is taxable; 2) Immovable property without consideration where Stamp Duty Value (SDV) > Rs. 50,000 -> SDV is taxable; 3) Immovable property for inadequate consideration -> Taxable if (SDV - Consideration) exceeds the HIGHER of Rs. 50,000 AND 10% of Consideration; 4) Specified movable property (shares, jewellery, art) -> Rs. 50,000 aggregate threshold. Exempt if received from a 'Relative', on marriage, or under a will/inheritance.
17	Under Sections 12 and 13 of the CGST Act 2017, how is the Time of Supply (Point of Taxation) determined for Goods (Forward Charge), Services (Forward Charge), and Reverse Charge Mechanism (RCM)?	Goods (Forward Charge - Sec 12(2)): Date of issue of invoice (or last date required under Sec 31); advance received for goods is NOT taxable at receipt. Services (Forward Charge - Sec 13(2)): If invoice is issued within prescribed time (30 days / 45 days for banks), EARLIER of Date of Invoice or Date of Payment; if invoice is NOT issued within time, EARLIER of Date of Provision of Service or Date of Payment. Goods RCM (Sec 12(3)): Earliest of Receipt of goods, Date of payment, or 31st day from supplier's invoice. Services RCM (Sec 13(3)): Earlier of Date of payment or 61st day from supplier's invoice.
18	Compare Capital Gains exemptions under Sections 54, 54EC, and 54F of the Income Tax Act 1961.	Sec 54: LTCG on transfer of Residential House reinvested in 1 Residential House in India (or 2 houses once in a lifetime if LTCG <= Rs. 2 Cr), max cost of new house eligible capped at Rs. 10 Cr; Sec 54EC: LTCG on Land or Building invested within 6 months in NHAI/REC/PFC/IRFC bonds (5-year lock-in, max investment Rs. 50 Lakhs); Sec 54F: LTCG on ANY asset other than a residential house reinvested in 1 Residential House in India (proportionate exemption based on Net Consideration reinvested, capped at Rs. 10 Cr).
19	Under Section 43B of the Income Tax Act 1961 (Deductions allowed only on Actual Payment), what is the special rule added by Clause (h) for payments to Micro and Small Enterprises (MSEs)?	While general Section 43B items (taxes, duties, bonus, employer PF, interest to banks) are allowed if paid on or before the due date of filing the return under Sec 139(1), under Clause 43B(h), any sum payable to a Micro or Small Enterprise beyond the time limit specified in Section 15 of the MSMED Act 2006 (max 45 days with written agreement, or 15 days without agreement) is allowed ONLY in the previous year in which it is actually paid (due date of ROI extension does NOT apply).
20	In CA Final Direct Tax (International Taxation), what are the five methods for computing Arm's Length Price (ALP) under Section 92C (Transfer Pricing) and the range concept?	1) Comparable Uncontrolled Price (CUP), 2) Resale Price Method (RPM), 3) Cost Plus Method (CPM), 4) Profit Split Method (PSM), 5) Transactional Net Margin Method (TNMM), and 6) Other Method (Rule 10AB). When using CUP, RPM, CPM, or TNMM with 6 or more comparable entries in the dataset, the Arm's Length Range is the 35th percentile to the 65th percentile (if actual price falls outside, the Median/50th percentile is taken).
21	Under Profits and Gains of Business or Profession (PGBP - Section 32), what are the rules for Block of Assets Depreciation and Additional Depreciation?	Depreciation is calculated on the Written Down Value (WDV) of the Block of Assets (50% of normal rate if asset is acquired and put to use for LESS than 180 days during the PY). Under Sec 32(1)(iia), Additional Depreciation of 20% (10% if put to use < 180 days, balance 10% in next year) is available under the old regime on new Plant & Machinery acquired by a taxpayer engaged in manufacture/production or power generation/transmission.
22	In CA Final Indirect Tax (Customs Act 1962), how is Assessable Value (Transaction Value) for Imported Goods determined under Section 14 and Rule 10 of the Customs Valuation Rules 2007?	FOB Value + Rule 10(1) adjustments (buying commission is EXCLUDED, other commissions/brokerage, engineering/design work undertaken outside India, royalties/license fees as condition of sale are INCLUDED) + Rule 10(2) Cost of Transport (actual freight, or 20% of FOB if not ascertainable; for Air Freight, restricted to maximum 20% of FOB) + Insurance (actual, or 1.125% of FOB if not ascertainable) = CIF Assessable Value, converted using the CBIC notified exchange rate in force on the date of filing the Bill of Entry under Sec 15.
23	Under the Customs Act 1962, what is the sequence for computing Basic Customs Duty (BCD), Social Welfare Surcharge (SWS), and IGST under Section 3(7) of the Customs Tariff Act?	1) Assessable Value (AV) = CIF Value; 2) Basic Customs Duty (BCD) = AV x BCD%; 3) Social Welfare Surcharge (SWS) = 10% of BCD; 4) Value for IGST = AV + BCD + SWS (+ any Anti-Dumping/Safeguard Duty); 5) IGST = (Value for IGST) x IGST%. Note: Only the IGST component (and GST Compensation Cess, if applicable) is eligible as Input Tax Credit (ITC); BCD and SWS are NOT eligible as ITC.
24	Under Section 49 and Rule 88A of the CGST Rules, what is the statutory order of utilization of Input Tax Credit (IGST, CGST, SGST)?	1) IGST credit MUST first be utilized fully to set off IGST liability; any remaining IGST credit can then be utilized to set off CGST and/or SGST/UTGST liabilities in ANY order and in any proportion. 2) CGST and SGST credits can ONLY be utilized after IGST credit is completely exhausted: CGST credit -> first CGST, then IGST; SGST credit -> first SGST, then IGST. Cross-utilization between CGST and SGST is strictly prohibited.
25	Compare TDS on Contractors (Sec 194C), Professional/Technical Services (Sec 194J), Rent (Sec 194-I), and Purchase of Goods (Sec 194Q).	Sec 194C (Contractors): 1% (Individual/HUF) or 2% (Others) if single payment > Rs. 30,000 or aggregate > Rs. 1,00,000. Sec 194J: 2% on technical services/royalty for films/call centers, 10% on professional services/other royalty if > Rs. 30,000 p.a. Sec 194-I (Rent > Rs. 2,40,000 p.a.): 2% on Plant & Machinery, 10% on Land/Building/Furniture. Sec 194Q (Purchase of Goods by buyer with turnover > Rs. 10 Cr): 0.1% of purchase value exceeding Rs. 50 Lakhs from a resident seller.
26	Under Sections 10 and 12 of the IGST Act 2017, what are the key Place of Supply rules for Domestic Goods and Domestic Services?	Goods (Sec 10): 1) Movement of goods -> Location where movement terminates for delivery; 2) Bill-to-Ship-to (third party direction) -> Principal place of business of the third person (buyer); 3) No movement -> Location of goods at time of delivery; 4) Assembly/installation at site -> Place of installation. Services (Sec 12): General rule -> Location of registered recipient (if unregistered, location of recipient if address on record exists, else location of supplier); Services directly relating to Immovable Property (architects, hotels) -> Location of the immovable property.
27	Under Section 5 of the Income Tax Act 1961, how does the Scope of Total Income differ for ROR (Resident and Ordinarily Resident), RNOR (Resident but Not Ordinarily Resident), and NR (Non-Resident)?	ROR: Taxed on Global Income (Indian + Foreign income). NR: Taxed ONLY on income received/deemed to be received in India OR accruing/arising (or deemed to accrue/arise) in India. RNOR: Taxed like NR, PLUS foreign income derived from a business controlled in or a profession set up in India.
28	Under Capital Gains (Sections 45–55A), what are the holding period criteria to classify an asset as a Long-Term Capital Asset (LTCA)?	Under the simplified rationalized holding period framework: 1) Listed securities (equity shares, units of equity-oriented mutual funds, REITs/InvITs, zero coupon bonds) are LTCA if held for > 12 months; 2) Unlisted shares and Immovable property (land/building) are LTCA if held for > 24 months (under the rationalized 2-tier regime, all listed financial assets require > 12 months and all unlisted/non-financial assets require > 24 months).
29	Under Section 51 (GST TDS) and Section 52 (GST TCS) of the CGST Act 2017, what are the rates and thresholds?	GST TDS (Sec 51 - Government departments, local authorities, PSU notified entities): Deduct 2% (1% CGST + 1% SGST or 2% IGST) where the total value of supply under a contract (excluding GST) exceeds Rs. 2,50,000. GST TCS (Sec 52 - Electronic Commerce Operators collecting consideration): Collect 0.5% (0.25% CGST + 0.25% SGST or 0.5% IGST) of the net value of taxable supplies made through the platform.
30	Under Section 22 and Section 24 of the CGST Act 2017, what are the aggregate turnover thresholds for GST Registration and who is subject to Compulsory Registration regardless of turnover?	Sec 22 Thresholds: Exclusive supply of Goods -> Rs. 40 Lakhs (Rs. 20 Lakhs / Rs. 10 Lakhs for special category states); Supply of Services (or Goods + Services) -> Rs. 20 Lakhs (Rs. 10 Lakhs for Manipur, Mizoram, Nagaland, Tripura). Sec 24 Compulsory Registration (no threshold): Inter-state suppliers of goods, Casual Taxable Persons (CTP), Non-Resident Taxable Persons (NRTP), persons liable to pay tax under Reverse Charge (RCM), Input Service Distributors (ISD), and e-commerce operators (ECOs) / persons supplying goods through ECOs (subject to passive ECO exemption).
31	What are the Presumptive Taxation thresholds and deemed profit rates under Sections 44AD, 44ADA, and 44AE of the Income Tax Act 1961?	Sec 44AD (Eligible Business): Turnover <= Rs. 2 Cr (up to Rs. 3 Cr if cash receipts <= 5% of total turnover); Deemed profit = 8% of turnover (6% for digital/bank receipts). Sec 44ADA (Specified Professionals): Gross receipts <= Rs. 50 Lakhs (up to Rs. 75 Lakhs if cash receipts <= 5%); Deemed profit = 50% of gross receipts. Sec 44AE (Goods Carriages - owning <= 10 vehicles): Rs. 1,000 per ton of gross vehicle weight per month (for heavy goods vehicle) or Rs. 7,500 per vehicle per month for other vehicles.
32	Under Section 115BAC of the Income Tax Act 1961 (Default Tax Regime), what are the major exemptions/deductions allowed vs disallowed for salaried individuals?	Under the Section 115BAC Default Regime, standard deduction (under Sec 16(ia)), employer's contribution to NPS under Sec 80CCD(2), deduction for new employees under Sec 80JJAA, and Agniveer Corpus Fund (80CCH(2)) are ALLOWED; however, HRA, LTA, Chapter VI-A deductions (80C, 80D, 80E, etc.), and interest on self-occupied house property under Sec 24(b) are NOT allowed.