Taxation - Income TaxQuestion 5631 of 146
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8. (A) 3 Read “opts for” as “pays tax under” TAXATION SECTION B: GOODS AND SERVICES TAX PART - I Case Scenario 3 M/s. Veena & Co. of Jabalpur was registered under GST under composition scheme. Outward Supply of the firm for the month of July 2023 was ` 10 lakh, out of which ` 2 lakh was supply of services. In the preceding financial year, the firm was doing trading of taxable goods only. Turnover of the concern for the previous financial year was ` 100 lakh. The firm imported the following services during August, 2023: (

Options

AArchitect services from Mr. Vinod, a partner of the firm, who resides in France for ` 1,00,000. The said service was paid but not used for the furtherance of the business. (
BManagement consultancy services from Mr. Lal, a renowned lawyer in Sweden, who was an ex-employee of the firm. The value of the said service was ` 3,00,000. Even though it was used in the furtherance of the business, no consideration was paid by the firm. Aggregate Turnover of the firm crossed the limit of ` 150 lakh on 25.09.2023 from which date the firm was liable to pay tax under regular scheme. All the amounts given above are exclusive of taxes wherever applicable. All the supply referred above is intra-State unless specified otherwise. From the information given above, choose the most appropriate answer for the 9-11 questions:
C
D
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Correct Answer

Option AArchitect services from Mr. Vinod, a partner of the firm, who resides in France for ` 1,00,000. The said service was paid but not used for the furtherance of the business. (

All Options:

  • AArchitect services from Mr. Vinod, a partner of the firm, who resides in France for ` 1,00,000. The said service was paid but not used for the furtherance of the business. (
  • BManagement consultancy services from Mr. Lal, a renowned lawyer in Sweden, who was an ex-employee of the firm. The value of the said service was ` 3,00,000. Even though it was used in the furtherance of the business, no consideration was paid by the firm. Aggregate Turnover of the firm crossed the limit of ` 150 lakh on 25.09.2023 from which date the firm was liable to pay tax under regular scheme. All the amounts given above are exclusive of taxes wherever applicable. All the supply referred above is intra-State unless specified otherwise. From the information given above, choose the most appropriate answer for the 9-11 questions:
  • C
  • D

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Detailed Solution & Explanation

This item represents the introductory case study scenario text for the GST section (Section B, Case Scenario 3) and is not an active independent question.
- Outward supply of the firm for July 2023 is u20b910textLakhs\displaystyle \\u20b910 \\text{ Lakhs} (with u20b92textLakhs\displaystyle \\u20b92 \\text{ Lakhs} being services).
- Prior year turnover was u20b9100textLakhs\displaystyle \\u20b9100 \\text{ Lakhs} (taxable goods only).
- Services imported in August 2023:
- (a) Architect services from partner Mr. Vinod in France for u20b91,00,000\displaystyle \\u20b91,00,000 (personal use/not for business).
- (b) Management consultancy services from ex-employee Mr. Lal in Sweden for u20b93,00,000\displaystyle \\u20b93,00,000 (for business, without consideration).
- Aggregate turnover crossed u20b9150textLakhs\displaystyle \\u20b9150 \\text{ Lakhs} on 25.09.2023.
To align with the input structure, Option A is marked as the answer.

Hence, **Option A** is the correct answer.

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