Welcome to your Ch 6: Definition of Business (1 to 5)
1. Examine the following statements in the light of section 2(17) which defines the term business-
i. Profit motive is essential to constitute a business.
ii. Number of transactions in a day is essential to constitute a business. iii. Once in a life time transaction in the nature of trade can constitute business.
2. Examine the following statements in the light of section 2(17) which defines the term business-
i. If main activity is a business then incidental or ancillary activity shall also constitute a business.
ii. Main activity and incidental or ancillary activity are independent of each other.
3. Supplier of alcoholic liquor for human consumption also sells wastes and cartons arising from packing materials of alcoholic liquor. Examine the following statements in this light-
i. Alcoholic liquor for human consumption shall be subjected to State Excise and State VAT or Central Sales Tax.
ii. Wastes and cartons arising from packing materials of alcoholic liquor shall also be subjected to State Excise and State VAT or Central Sales Tax.
4. Examine the following statements in the light of section 2(17) which defines the term business-
i. Resident welfare association charging membership fees is a business.
ii. A person holding a position of Director in a company is a business.
5. Examine the following statements in the light of section 2(17) which defines the term business-
i. Renting of commercial property is a business.
ii. Renting of residential property is a business.
