Value of Supply Multiple Choice Questions
1. The value of supply of goods and services shall be the
A. Transaction value
B. Retail sale price
C. Wholesale price
D. None of above
Answer: A. Transaction value
1. The value of supply of goods and services shall be the
A. Transaction value
B. MRP
C. Market Value
D. None of above
Answer: A. Transaction value
3. When can the transaction value be rejected for computation of value of supply
A. When the buyer and seller are related and price is not the sole consideration
B. When the buyer and seller are related or price is not the sole consideration
C. It can never be rejected
D. When the goods are sold at very low margins
Answer: B. When the buyer and seller are related or price is not the sole consideration
4. If the goods are supplied to related persons then how should the taxable person ascertain thevalue of supplies?
A. Seek the help of the GST officer
B. Use the arm’s length price as required under the Income Tax law
C. Refer the Rules which prescribed for this purpose
D. None of the above
Answer: C. Refer the Rules which prescribed for this purpose
5. Persons shall be deemed to be “related persons” if any person directly or indirectly owns, controlsor holds or more of the outstanding voting stock or shares of both of them;
A. 25%
B. 26%
C. 51%
D. 0%
Answer: A. 25%
6. Persons shall be deemed to be “related persons” if
A. such persons are officers or directors of one another’s businesses
B. such persons are legally recognised partners in business
C. such persons are employer and employee;
D. All of the above
Answer: D. All of the above
7. The value of supply should include
A. Any non-GST taxes, duties, cesses, fees charged by supplier separately
B. Interest, late fee or penalty for delayed payment of any consideration for any supply of goods or services
C. Subsidies directly linked to the price except subsidies provided by the Central and State Government
D. All of the above
Answer: D. All of the above
8. Which of the following shall not be included in value of supply?
A. GST
B. Interest
C. Late fee
D. Commission
Answer: A. GST
9. The value of taxable supply should not include –
A. Taxes levied under SGST Act, 2017
B. Taxes levied under CGST Act, 2017
C. Taxes levied under GST Compensation Cess Act, 2017
D. All of the above
Answer: D. All of the above
10. Interest or late fee or penalty for delayed payment of any consideration for any supply
A. Shall be excluded from the value of taxable supply
B. Shall be included from the value of taxable supply
C. Shall require no adjustment
D. Can be included or excluded from the value of the taxable supply
Answer: B. Shall be included from the value of taxable supply
11. Subsidies provided by the Central / State Govt.
A. Shall be excluded from the value of taxable supply
B. Shall be included from the value of taxable supply
C. Shall require no adjustment
D. Can be included or excluded from the value of the taxable supply
Answer: A. Shall be excluded from the value of taxable supply
12. The value of supply should include –
A. Incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply
B. Interest, late fee or penalty for delayed payment of any consideration for any supply
C. Subsidies directly linked to the price except subsidies provided by the Central and State Government
D. All of the above
Answer: D. All of the above
13. From the following information determine the value of taxable supply as per provisions of Section 15 of the CGST Act, 2017?Contracted value of supply of goods (including GST @ 18%) 11,80,000 The contracted value of supply includes the following: (1) Cost of primary packing 25,000 (2) Cost of protective packing at recipient’s request for safe transportation 15,000
A. 10,00,000
B. 11,80,000
C. 11,55,000
D. 11,40,000
Answer: A. 10,00,000
14. From the following information determine the value of taxable supply as per provisions of Section 15 of the CGST Act, 2017? Price (including GST @18%) 11,00,000 Other information :(i) Commission paid to agent by recipient on instruction of supplier not included in Price 5,000 (ii) Freight and insurance charges paid by recipient on behalf of supplier not included in Price 75,000
A. 11,00,000
B. 11,80,000
C. 10,00,000
D. 11,75,000
Answer: C. 10,00,000
15. What deductions are allowed from the transaction value
A. Discounts offered to customers, subject to conditions
B. Packing Charges, subject to conditions
C. Amount paid by customer on behalf of the supplier, subject to conditions
D. Freight charges incurred by the supplier for CIF terms of supply, subject to conditions
Answer: A. Discounts offered to customers, subject to conditions
16. Discount given after the supply is deducted from the value of taxable supply, if –
A. such discount is given as per the agreement entered into at/or before the supply
B. such discount is linked to the relevant invoices
C. proportionate input tax credit is reversed by the recipient of supply
D. all of the above
Answer: D. all of the above
17. When deductions are allowed from the Transaction Value?
A. Discount offered to customers subject to conditions
B. Freight charges
C. Incidental expenses
D. Amount paid by customer on behalf of the supplier.
Answer: A. Discount offered to customers subject to conditions
18. Determine the value of taxable supply as per Section 15 of the CGST Act; 2017 :Contracted sale price of goods (including CGST and SGST @5%) 10,56,000 The contracted sale price includes the following elements of cost: (i) Cost of drawings and design 5,000 (ii) Cost of primary packing 2,000 (iii) Cost of packing at buyer’s request 4,000 (iv)Fright and insurance from ‘place of removal’ to buyer’s premises 43,000 A discount of 6,000 was given by the supplier at the time of supply of goods. CGST and SGST is levied @ 5%.
A. 10,56,000
B. 10,50,000
C. 10,00,000
D. 11,10,000
Answer: C. 10,00,000