Ch 16 (26 to 30) – Tax By KK MCQ

Welcome to your Ch 16: Composition Levy (26 to 30)

26. Which of the following persons can opt for composition scheme?

a) Regular person if his aggregate turnover in the preceding financial is upto threshold limit.

b) Casual taxable person.

c) Non Resident Taxable person.

d) All of the above.

27. A person opting for composition scheme pays following taxes?

a) Tax on outward supply at reduced rates.

b) Tax on reverse charge.

c) Tax on outward supply at normal rates.

d) Both (a) and (b).

28. What will happen if the turnover of a registered person opting to pay taxes under composition scheme during any financial year crosses threshold limit?

a) He can continue under composition scheme till the end of the financial year.

b) He will be liable to pay tax at normal rates of GST on the entire turnover for the financial year.

c) He will cease to remain under the composition scheme with immediate effect.

d) He will cease to remain under the composition scheme from the month following the month in which the aggregate turnover exceeds threshold limit.

29. Mr Z was in composition scheme for the financial year 2017-18. On 1-12-2018 his aggregate turnover exceeds threshold limit. Comment by which date specified form should be filed electronically.

a) FORM GST CMP 05 by 8-12-2018

b) FORM GST CMP 05 by 16-12-2018

c) FORM GST CMP 04 by 8-12-2018

d) FORM GST CMP 04 by 16-12-2018

30. A supplier registered u/s 10. His aggregate turnover crosses the threshold limit as on 7-8-20XX. He filed CMP 04 electronically on common portal on 12-8- 20XX. He is required to issue tax invoice from -

a) 12-8-2018

b) 7-8-2018

c) 13-8-2018

d) None of the above