{"id":515,"date":"2024-02-23T07:54:54","date_gmt":"2024-02-23T07:54:54","guid":{"rendered":"https:\/\/taxbykk.com\/mcq\/?p=515"},"modified":"2024-02-23T07:54:55","modified_gmt":"2024-02-23T07:54:55","slug":"ch-21-56-to-60","status":"publish","type":"post","link":"https:\/\/taxbykk.com\/mcq\/ch-21-56-to-60\/","title":{"rendered":"Ch 21 (56 to 60)"},"content":{"rendered":"<script>\n                            if (window.qmn_quiz_data === undefined) {\n                                    window.qmn_quiz_data = new Object();\n                            }\n                    <\/script><script>window.qmn_quiz_data[\"86\"] = {\"quiz_id\":\"86\",\"quiz_name\":\"Ch 21: Input Tax Credit (56 to 60)\",\"disable_answer\":\"0\",\"ajax_show_correct\":\"0\",\"progress_bar\":\"1\",\"contact_info_location\":\"1\",\"qpages\":{\"1\":{\"id\":\"1\",\"quizID\":\"86\",\"pagekey\":\"TBwtLrtG\",\"hide_prevbtn\":\"0\"}},\"skip_validation_time_expire\":\"0\",\"timer_limit_val\":0,\"disable_scroll_next_previous_click\":\"0\",\"disable_first_page\":\"0\",\"enable_result_after_timer_end\":\"0\",\"enable_quick_result_mc\":\"0\",\"end_quiz_if_wrong\":0,\"form_disable_autofill\":\"0\",\"disable_mathjax\":\"0\",\"enable_quick_correct_answer_info\":\"0\",\"quick_result_correct_answer_text\":\"Correct! You have selected correct answer.\",\"quick_result_wrong_answer_text\":\"Wrong! You have selected wrong answer.\",\"quiz_processing_message\":\"\",\"quiz_limit_choice\":\"Limit of choice is reached.\",\"not_allow_after_expired_time\":\"\",\"scheduled_time_end\":false,\"error_messages\":{\"email_error_text\":\"Not a valid e-mail address!\",\"number_error_text\":\"This field must be a number!\",\"incorrect_error_text\":\"The entered text is not correct!\",\"empty_error_text\":\"Please complete all required fields!\",\"url_error_text\":\"The entered URL is not valid!\",\"minlength_error_text\":\"Required atleast %minlength% characters.\",\"maxlength_error_text\":\"Maximum %maxlength% characters allowed.\"},\"first_page\":false}\n                    <\/script><div class='qsm-quiz-container qsm-quiz-container-86 qmn_quiz_container mlw_qmn_quiz  quiz_theme_default  '>\n\t\t\t\t\t<form name=\"quizForm86\" id=\"quizForm86\" action=\"\/mcq\/wp-json\/wp\/v2\/posts\/515\" method=\"POST\" class=\"qsm-quiz-form qmn_quiz_form mlw_quiz_form\" novalidate enctype=\"multipart\/form-data\">\n\t\t\t\t<input type=\"hidden\" name=\"qsm_hidden_questions\" id=\"qsm_hidden_questions\" value=\"\">\n\t\t\t\t<input type=\"hidden\" name=\"qsm_nonce\" id=\"qsm_nonce_86\" value=\"55f73bfb4c\">\n\t\t\t\t<input type=\"hidden\" name=\"qsm_unique_key\" id=\"qsm_unique_key_86\" value=\"69e54c471cb4c\">\n\t\t\t\t<div id=\"mlw_error_message\" class=\"qsm-error-message qmn_error_message_section\"><\/div>\n\t\t\t\t<span id=\"mlw_top_of_quiz\"><\/span>\n\t\t\t\t\t\t\t<section class=\"qsm-page \">\n\t\t\t\t\t\t\t\t<div class=\"quiz_section quiz_begin\">\n\t\t\t\t\t\t<div class='qsm-before-message mlw_qmn_message_before'>\n\t\t\t\t<p>Welcome to your Ch 21: Input Tax Credit (56 to 60)<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"quiz_section qsm-question-wrapper question-type-0 question-section-id-418 \" data-qid=\"418\">\n\t\t\t\t\t\t<div class='mlw_qmn_new_question'>56. In case of change of scheme from composition scheme to Regular scheme, whether input tax credit on capital goods is available? <\/div>\n\t\t\t<div class='mlw_qmn_question  qsm_remove_bold' >\n\t\t<p><\/p>\n\t<\/div>\n\t\t<div class='qmn_radio_answers '>\n\t\t\t\t\t\t\t\t<div class=\"qmn_mc_answer_wrap  mrq_checkbox_class\" id=\"question418-1 \">\n\t\t\t\t\t\t\t\t\t\t\t<input type='radio' class='qmn_quiz_radio qmn-multiple-choice-input' name=\"question418\" id=\"question418_1\" value=\"0\" \/>\n\t\t\t\t\t<label class=\"qsm-input-label\" for=\"question418_1\">\n\t\t\t\t\ta) Yes, full ITC is available.\t\t\t\t\t<\/label>\n\t\t\t\t\t \t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"qmn_mc_answer_wrap  mrq_checkbox_class\" id=\"question418-2 \">\n\t\t\t\t\t\t\t\t\t\t\t<input type='radio' class='qmn_quiz_radio qmn-multiple-choice-input' name=\"question418\" id=\"question418_2\" value=\"1\" \/>\n\t\t\t\t\t<label class=\"qsm-input-label\" for=\"question418_2\">\n\t\t\t\t\tb) No.\t\t\t\t\t<\/label>\n\t\t\t\t\t \t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"qmn_mc_answer_wrap  mrq_checkbox_class\" id=\"question418-3 \">\n\t\t\t\t\t\t\t\t\t\t\t<input type='radio' class='qmn_quiz_radio qmn-multiple-choice-input' name=\"question418\" id=\"question418_3\" value=\"2\" \/>\n\t\t\t\t\t<label class=\"qsm-input-label\" for=\"question418_3\">\n\t\t\t\t\tc) Yes, but credit of ITC shall stand reduced by 5% for every quarter or part of quarter from the date of invoice\t\t\t\t\t<\/label>\n\t\t\t\t\t \t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"qmn_mc_answer_wrap  mrq_checkbox_class\" id=\"question418-4 \">\n\t\t\t\t\t\t\t\t\t\t\t<input type='radio' class='qmn_quiz_radio qmn-multiple-choice-input' name=\"question418\" id=\"question418_4\" value=\"3\" \/>\n\t\t\t\t\t<label class=\"qsm-input-label\" for=\"question418_4\">\n\t\t\t\t\td) None of the above.\t\t\t\t\t<\/label>\n\t\t\t\t\t \t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<input type=\"radio\" style=\"display: none;\" name=\"question418\" id=\"question418_none\" checked=\"checked\" value=\"\" \/>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"quiz_section qsm-question-wrapper question-type-0 question-section-id-419 \" data-qid=\"419\">\n\t\t\t\t\t\t<div class='mlw_qmn_new_question'>57. Examine the following statements <\/div>\n\t\t\t<div class='mlw_qmn_question  qsm_remove_bold' >\n\t\t<p>(i) When an exempt supply becomes taxable supply then in such case credit on inputs held in stock on the date immediately preceding the day exemption is withdrawn credit is eligible.<br \/>(ii) When an exempt supply becomes taxable supply then in such case credit on capital goods exclusively used for such exempted supply is ineligible. The credit of capital goods shall, however, stand reduced by 1\/60th of the month or part of the month thereof from the date of the issue of the invoice for such goods.<\/p>\n\t<\/div>\n\t\t<div class='qmn_radio_answers '>\n\t\t\t\t\t\t\t\t<div class=\"qmn_mc_answer_wrap  mrq_checkbox_class\" id=\"question419-1 \">\n\t\t\t\t\t\t\t\t\t\t\t<input type='radio' class='qmn_quiz_radio qmn-multiple-choice-input' name=\"question419\" id=\"question419_1\" value=\"0\" \/>\n\t\t\t\t\t<label class=\"qsm-input-label\" for=\"question419_1\">\n\t\t\t\t\ta) True; False\t\t\t\t\t<\/label>\n\t\t\t\t\t \t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"qmn_mc_answer_wrap  mrq_checkbox_class\" id=\"question419-2 \">\n\t\t\t\t\t\t\t\t\t\t\t<input type='radio' class='qmn_quiz_radio qmn-multiple-choice-input' name=\"question419\" id=\"question419_2\" value=\"1\" \/>\n\t\t\t\t\t<label class=\"qsm-input-label\" for=\"question419_2\">\n\t\t\t\t\tb) False; True\t\t\t\t\t<\/label>\n\t\t\t\t\t \t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"qmn_mc_answer_wrap  mrq_checkbox_class\" id=\"question419-3 \">\n\t\t\t\t\t\t\t\t\t\t\t<input type='radio' class='qmn_quiz_radio qmn-multiple-choice-input' name=\"question419\" id=\"question419_3\" value=\"2\" \/>\n\t\t\t\t\t<label class=\"qsm-input-label\" for=\"question419_3\">\n\t\t\t\t\tc) Both True\t\t\t\t\t<\/label>\n\t\t\t\t\t \t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"qmn_mc_answer_wrap  mrq_checkbox_class\" id=\"question419-4 \">\n\t\t\t\t\t\t\t\t\t\t\t<input type='radio' class='qmn_quiz_radio qmn-multiple-choice-input' name=\"question419\" id=\"question419_4\" value=\"3\" \/>\n\t\t\t\t\t<label class=\"qsm-input-label\" for=\"question419_4\">\n\t\t\t\t\td) Both False\t\t\t\t\t<\/label>\n\t\t\t\t\t \t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<input type=\"radio\" style=\"display: none;\" name=\"question419\" id=\"question419_none\" checked=\"checked\" value=\"\" \/>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"quiz_section qsm-question-wrapper question-type-0 question-section-id-420 \" data-qid=\"420\">\n\t\t\t\t\t\t<div class='mlw_qmn_new_question'>58. There is change in the constitution of registered taxable person (sale, merger, amalgamation of such business or death of a person), it is possible to transfer unutilized input tax credit if <\/div>\n\t\t\t<div class='mlw_qmn_question  qsm_remove_bold' >\n\t\t<p>(i) There is specific provision of transfer of liabilities<br \/>(ii) File FORM GST ITC 02 electronically<\/p>\n\t<\/div>\n\t\t<div class='qmn_radio_answers '>\n\t\t\t\t\t\t\t\t<div class=\"qmn_mc_answer_wrap  mrq_checkbox_class\" id=\"question420-1 \">\n\t\t\t\t\t\t\t\t\t\t\t<input type='radio' class='qmn_quiz_radio qmn-multiple-choice-input' name=\"question420\" id=\"question420_1\" value=\"0\" \/>\n\t\t\t\t\t<label class=\"qsm-input-label\" for=\"question420_1\">\n\t\t\t\t\ta) True; False\t\t\t\t\t<\/label>\n\t\t\t\t\t \t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"qmn_mc_answer_wrap  mrq_checkbox_class\" id=\"question420-2 \">\n\t\t\t\t\t\t\t\t\t\t\t<input type='radio' class='qmn_quiz_radio qmn-multiple-choice-input' name=\"question420\" id=\"question420_2\" value=\"1\" \/>\n\t\t\t\t\t<label class=\"qsm-input-label\" for=\"question420_2\">\n\t\t\t\t\tb) False; True\t\t\t\t\t<\/label>\n\t\t\t\t\t \t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"qmn_mc_answer_wrap  mrq_checkbox_class\" id=\"question420-3 \">\n\t\t\t\t\t\t\t\t\t\t\t<input type='radio' class='qmn_quiz_radio qmn-multiple-choice-input' name=\"question420\" id=\"question420_3\" value=\"2\" \/>\n\t\t\t\t\t<label class=\"qsm-input-label\" for=\"question420_3\">\n\t\t\t\t\tc) Both True\t\t\t\t\t<\/label>\n\t\t\t\t\t \t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"qmn_mc_answer_wrap  mrq_checkbox_class\" id=\"question420-4 \">\n\t\t\t\t\t\t\t\t\t\t\t<input type='radio' class='qmn_quiz_radio qmn-multiple-choice-input' name=\"question420\" id=\"question420_4\" value=\"3\" \/>\n\t\t\t\t\t<label class=\"qsm-input-label\" for=\"question420_4\">\n\t\t\t\t\td) Both False\t\t\t\t\t<\/label>\n\t\t\t\t\t \t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<input type=\"radio\" style=\"display: none;\" name=\"question420\" id=\"question420_none\" checked=\"checked\" value=\"\" \/>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"quiz_section qsm-question-wrapper question-type-0 question-section-id-421 \" data-qid=\"421\">\n\t\t\t\t\t\t<div class='mlw_qmn_new_question'>59. What is the effect in ITC in case of switch over from taxable to exempt transactions or from regular to composition? <\/div>\n\t\t\t<div class='mlw_qmn_question  qsm_remove_bold' >\n\t\t<p><\/p>\n\t<\/div>\n\t\t<div class='qmn_radio_answers '>\n\t\t\t\t\t\t\t\t<div class=\"qmn_mc_answer_wrap  mrq_checkbox_class\" id=\"question421-1 \">\n\t\t\t\t\t\t\t\t\t\t\t<input type='radio' class='qmn_quiz_radio qmn-multiple-choice-input' name=\"question421\" id=\"question421_1\" value=\"0\" \/>\n\t\t\t\t\t<label class=\"qsm-input-label\" for=\"question421_1\">\n\t\t\t\t\ta) An amount equal to the credit of tax paid on stock held (inputs, semi-finished goods or finished goods) and capital goods (reduced by percentage points) on the day preceding the date of opting for composition\/ effecting exempt supplies will have to be paid.\t\t\t\t\t<\/label>\n\t\t\t\t\t \t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"qmn_mc_answer_wrap  mrq_checkbox_class\" id=\"question421-2 \">\n\t\t\t\t\t\t\t\t\t\t\t<input type='radio' class='qmn_quiz_radio qmn-multiple-choice-input' name=\"question421\" id=\"question421_2\" value=\"1\" \/>\n\t\t\t\t\t<label class=\"qsm-input-label\" for=\"question421_2\">\n\t\t\t\t\tb) An amount equal to the credit of tax paid on input service on the day preceding the date of opting for composition\/ effecting exempt supplies will have to be paid.\t\t\t\t\t<\/label>\n\t\t\t\t\t \t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"qmn_mc_answer_wrap  mrq_checkbox_class\" id=\"question421-3 \">\n\t\t\t\t\t\t\t\t\t\t\t<input type='radio' class='qmn_quiz_radio qmn-multiple-choice-input' name=\"question421\" id=\"question421_3\" value=\"2\" \/>\n\t\t\t\t\t<label class=\"qsm-input-label\" for=\"question421_3\">\n\t\t\t\t\tc) Both (a) and (b)\t\t\t\t\t<\/label>\n\t\t\t\t\t \t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"qmn_mc_answer_wrap  mrq_checkbox_class\" id=\"question421-4 \">\n\t\t\t\t\t\t\t\t\t\t\t<input type='radio' class='qmn_quiz_radio qmn-multiple-choice-input' name=\"question421\" id=\"question421_4\" value=\"3\" \/>\n\t\t\t\t\t<label class=\"qsm-input-label\" for=\"question421_4\">\n\t\t\t\t\td) None of the above\t\t\t\t\t<\/label>\n\t\t\t\t\t \t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<input type=\"radio\" style=\"display: none;\" name=\"question421\" id=\"question421_none\" checked=\"checked\" value=\"\" \/>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"quiz_section qsm-question-wrapper question-type-0 question-section-id-422 \" data-qid=\"422\">\n\t\t\t\t\t\t<div class='mlw_qmn_new_question'>60. Examine the following statements <\/div>\n\t\t\t<div class='mlw_qmn_question  qsm_remove_bold' >\n\t\t<p>(i) in case of supply of capital goods or plant and machinery on which input tax credit has been taken, the registered person will have to pay higher of following two amount:<br \/>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u2022 Input tax credit taken on the said capital goods\/ plant and machinery reduced by the\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 percentage points specified; or<br \/>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u2022 the tax on the transaction value of such goods.<br \/>(ii) in case of supply of goods (refractory bricks, moulds and dies, jigs and fixtures on which ITC has been taken) as scrap, the registered person is required to pay the tax on the transaction value of such goods.<\/p>\n\t<\/div>\n\t\t<div class='qmn_radio_answers '>\n\t\t\t\t\t\t\t\t<div class=\"qmn_mc_answer_wrap  mrq_checkbox_class\" id=\"question422-1 \">\n\t\t\t\t\t\t\t\t\t\t\t<input type='radio' class='qmn_quiz_radio qmn-multiple-choice-input' name=\"question422\" id=\"question422_1\" value=\"0\" \/>\n\t\t\t\t\t<label class=\"qsm-input-label\" for=\"question422_1\">\n\t\t\t\t\ta) True; False\t\t\t\t\t<\/label>\n\t\t\t\t\t \t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"qmn_mc_answer_wrap  mrq_checkbox_class\" id=\"question422-2 \">\n\t\t\t\t\t\t\t\t\t\t\t<input type='radio' class='qmn_quiz_radio qmn-multiple-choice-input' name=\"question422\" id=\"question422_2\" value=\"1\" \/>\n\t\t\t\t\t<label class=\"qsm-input-label\" for=\"question422_2\">\n\t\t\t\t\tb) False; True\t\t\t\t\t<\/label>\n\t\t\t\t\t \t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"qmn_mc_answer_wrap  mrq_checkbox_class\" id=\"question422-3 \">\n\t\t\t\t\t\t\t\t\t\t\t<input type='radio' class='qmn_quiz_radio qmn-multiple-choice-input' name=\"question422\" id=\"question422_3\" value=\"2\" \/>\n\t\t\t\t\t<label class=\"qsm-input-label\" for=\"question422_3\">\n\t\t\t\t\tc) Both True\t\t\t\t\t<\/label>\n\t\t\t\t\t \t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"qmn_mc_answer_wrap  mrq_checkbox_class\" id=\"question422-4 \">\n\t\t\t\t\t\t\t\t\t\t\t<input type='radio' class='qmn_quiz_radio qmn-multiple-choice-input' name=\"question422\" id=\"question422_4\" value=\"3\" \/>\n\t\t\t\t\t<label class=\"qsm-input-label\" for=\"question422_4\">\n\t\t\t\t\td) Both False\t\t\t\t\t<\/label>\n\t\t\t\t\t \t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<input type=\"radio\" style=\"display: none;\" name=\"question422\" id=\"question422_none\" checked=\"checked\" value=\"\" \/>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"quiz_section\">\n\t\t\t\t\t\t<div class='qsm-after-message mlw_qmn_message_end'>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/section>\n\t\t\t\t\t<input type=\"hidden\" name=\"qmn_question_list\" value=\"418Q419Q420Q421Q422Q\" 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