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🔥 IBS MTP 1 MCQ Analysis - DROPPING TONIGHT!
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👀 You asked. We analysed.
🔥 IBS MTP 1 MCQ Analysis - DROPPING TONIGHT!
STAY TUNED @CAMcqsPractice
🔥1
IDT MCQ 1🧾
A manufacturer in Chhatrapati Sambhajinagar sends goods to a buyer in Indore, 450 km away as per the e-way bill. The transporter first fills in Part B on 10 October 2025 at 11:00 am. The truck breaks down on 12 October, and the goods move in another truck at 6:00 pm on 13 October. What should the transporter do?
A) Generate a new e-way bill, because the old one is tied to the first truck.
B) Update Part B with the new truck; the e-way bill is valid until midnight of 13 October.
C) Update Part B with the new truck; the e-way bill is valid until 11:00 am on 13 October.
D) Cancel the e-way bill and generate a new one.
Answer the poll first📊 and then check this👇
Answer - Option B
Why it's a trap: An e-way bill is valid for 1 day per 200 km or part of it, so 450 km gives 3 days. The count starts when Part B is first filled in, and each day ends at midnight of the following day, so it is valid until midnight of 13 October. Changing the truck only needs Part B updated. Cancellation is allowed only within 24 hours, and here it isn't needed anyway.
📌 ICAI set this exact trap in the May 2026 CA Final exam, Paper 5 (Indirect Tax), Q4(b).
Find out which topics cost you marks: free MCQ 1 at camcqs.com
A manufacturer in Chhatrapati Sambhajinagar sends goods to a buyer in Indore, 450 km away as per the e-way bill. The transporter first fills in Part B on 10 October 2025 at 11:00 am. The truck breaks down on 12 October, and the goods move in another truck at 6:00 pm on 13 October. What should the transporter do?
A) Generate a new e-way bill, because the old one is tied to the first truck.
B) Update Part B with the new truck; the e-way bill is valid until midnight of 13 October.
C) Update Part B with the new truck; the e-way bill is valid until 11:00 am on 13 October.
D) Cancel the e-way bill and generate a new one.
Answer the poll first📊 and then check this👇
📌 ICAI set this exact trap in the May 2026 CA Final exam, Paper 5 (Indirect Tax), Q4(b).
Find out which topics cost you marks: free MCQ 1 at camcqs.com
IDT MCQ 2
Indus Foods, Ludhiana, exports 2,000 jars of pickle under LUT at ₹300 per jar (FOB = invoice value). It also sells 3,000 identical jars in India at ₹150 per jar. Its input tax credit for the month:
- Inputs: ₹1,40,000
- Input services: ₹1,00,000
- Capital goods: ₹1,00,000
What refund can it claim?
A) ₹1,37,143
B) ₹1,70,000
C) ₹1,20,000
D) ₹1,94,286
Answer: C
Why it's a trap: Two caps apply. First, export turnover counts at the lower of the export value and 1.5 times the domestic price of the same goods: lower of ₹6,00,000 and ₹4,50,000, so ₹4,50,000. Second, credit on capital goods is excluded, so the eligible credit is ₹2,40,000. Refund = 4.5 lakh ÷ 9 lakh × ₹2,40,000 = ₹1,20,000.
📌 ICAI set this exact trap in the May 2026 CA Final exam, Paper 5 (Indirect Tax), Q4(a).
Find out which topics cost you marks: free timed MCQ 1 at camcqs.com
Indus Foods, Ludhiana, exports 2,000 jars of pickle under LUT at ₹300 per jar (FOB = invoice value). It also sells 3,000 identical jars in India at ₹150 per jar. Its input tax credit for the month:
- Inputs: ₹1,40,000
- Input services: ₹1,00,000
- Capital goods: ₹1,00,000
What refund can it claim?
A) ₹1,37,143
B) ₹1,70,000
C) ₹1,20,000
D) ₹1,94,286
Why it's a trap: Two caps apply. First, export turnover counts at the lower of the export value and 1.5 times the domestic price of the same goods: lower of ₹6,00,000 and ₹4,50,000, so ₹4,50,000. Second, credit on capital goods is excluded, so the eligible credit is ₹2,40,000. Refund = 4.5 lakh ÷ 9 lakh × ₹2,40,000 = ₹1,20,000.
📌 ICAI set this exact trap in the May 2026 CA Final exam, Paper 5 (Indirect Tax), Q4(a).
Find out which topics cost you marks: free timed MCQ 1 at camcqs.com
❤1
DT MCQ 1
Saffron Tiles, Morbi, gives a resident dealer a smartphone as a sales incentive. Saffron bought the phone for ₹1,20,000; its MRP is ₹1,40,000. What must Saffron do?
A) Ensure TDS of ₹12,000 has been paid before handing over the phone
B) Deduct TDS of ₹14,000 on the MRP
C) Nothing, since the benefit is in kind
D) Deduct TDS of ₹12,000 within a month after handing it over
Answer: A
Why it's a trap: Section 194R covers benefits in kind above ₹20,000. When the giver bought the item, it is valued at the purchase price, not the MRP. And because there is no cash to deduct from, the giver must make sure the tax is paid before the benefit is released.
📌 ICAI set this exact trap in the May 2026 CA Final exam, Paper 4 (Direct Tax), Q4(a).
Find out which topics cost you marks: free timed MCQ 1 at camcqs.com
Saffron Tiles, Morbi, gives a resident dealer a smartphone as a sales incentive. Saffron bought the phone for ₹1,20,000; its MRP is ₹1,40,000. What must Saffron do?
A) Ensure TDS of ₹12,000 has been paid before handing over the phone
B) Deduct TDS of ₹14,000 on the MRP
C) Nothing, since the benefit is in kind
D) Deduct TDS of ₹12,000 within a month after handing it over
Why it's a trap: Section 194R covers benefits in kind above ₹20,000. When the giver bought the item, it is valued at the purchase price, not the MRP. And because there is no cash to deduct from, the giver must make sure the tax is paid before the benefit is released.
📌 ICAI set this exact trap in the May 2026 CA Final exam, Paper 4 (Direct Tax), Q4(a).
Find out which topics cost you marks: free timed MCQ 1 at camcqs.com
Got a question wrong in your mock? Here’s how to fix it before the exam ⬇️
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