🔰Crux of EFF Theory Discussion in Our Group

Compiled by:- Sahil

1. Illustrate with an example the redistribution effect of a tax and transfer
policy.

Tax ....
Tax is chargeable as per the Income basis ...
Higher the income higher the tax .....
With the help of tax as income government can function its redistribution function smoothly and can give free rashans etc. to low income people

2. Describe the rationale for the stabilization function of government policy.

Amplified business cycles
Left to itself market do not results in full employment and price stability

3. What do you understand by externalities.

Also called spill over or 3rd party effect
Cost of actions of an individual is borne by someone else

Externalities can be positive and negative..
Negative = action of one party imposes cost on another party..
Positive= action of one party confers benifit of another party

4. Market failure
It is a situation where the free market forces fails to allocate resources effectively and efficiently and results into either overproduction or underproduction of goods or service . 😂😂Leading to less than optimal market outcome

5. How do public goods cause market failure

Imperfect information
Seller knows more
Buyer knows more

Lead to adverse selection nd moral hazard

6.Objectives of fiscal policy

Price stability
Economic development
Full employment
Equitable distribution of income and wealth

7. What is reverse repo and repo rate right now?
3.35% & 4%

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Exam over 😁👍

Hello All 🙋‍♂
Here is some Important Update for All of You...

For May22 CA Inter Students- You will get all updates here as usual ( @CaInterRocks )

For CA Final Students:- @CaRocksFinal

For Stock Market Discussion you can Join here:- https://t.me/TradingRockerz

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*Important changes in GST Law effective from January 1st 2022*


1. *New GST Compliance obligation for providing restaurant Services on E-Commerce Operators*

All the E-Commerce Operators providing “Restaurant Services” will be liable to pay GST on such services instead of the hotel suppliers. The GST @ 5% will be paid by such e-Commerce Operators like Zomato, Swiggy, etc.

2. *Blocking of GSTR-1 for non filing of GSTR 3B:-*

GSTR-1 return filing facility will be blocked if a registered Taxpayer have not submitted the return in FORM GSTR-3B for the previous two return periods. For example, if a taxpayer has not filed GSTR-3B for October 2021 and November 2021, the GSTR-1 filing facility will be blocked from the 1st January 2022.

3. *GST Provision related to communication of Details of invoice or debit note to the recipient:-*
The provisions of Section 16 of the CGST Act has been amended wherein sub-section (2), after clause (a), the clause has been inserted, namely “(aa) the details of the invoice or debit note referred to in clause (a) has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under section 37. This will ensure validated credit by the recipient before availing the same.

4. *Correction in Inverted Duty structure in Footwear and Textiles sector:-*
The GST Council recommended to introduce GST rate changes from January 2022 in order to correct the inverted duty structure in the Footwear and Textile Sector. All footwear, irrespective of prices will attract GST at 12 percent, while barring cotton, all textile products including readymade garments will have GST at the rate of 12 percent.

5. *Self-assessed tax shall include the tax payable in respect of details of outward supplies*

In the Provisions of section 75, in sub-section (12), a new Explanation has been inserted, namely “For the purposes of this subsection, the expression “self-assessed tax” shall include the tax payable in respect of details of outward supplies furnished under section 37, but not included in the return furnished under section 39.” *So whatever is declared in the Statement of Outward supply i.e., GSTR-1 shall also be treated as a Self-Assessed liability.*

6. No appeal to be filed against section 129(3) order, unless a sum equal to 25% of the penalty is paid:-

Under Section 107, sub-section (6), has been amended with an insertion of new proviso, namely “Provided that no appeal shall be filed against an order under sub-section (3) of section 129, unless a sum equal to twenty-five percent of the penalty has been paid by the appellant.” This will add additional compliance burden in respect of penalties imposed in the Adjudicating Orders while filing appeals.

7. *Rules related to Mandatory Aadhaar authentication for GST Refund & Revocation application:-*

Aadhaar authentication with the GSTIN for claiming GST Refunds (all types of refunds and irrespective of the amount of claim involved) and Revocation application has been made Mandatory and are to be effective from 1 January 2022.

📚CA INTER ACCOUNTS DEC 21 SUGGESTED ANSWERS
By CA IQTIDAR MALIK Sir

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📚CA INTER LAW DEC 21 SUGGESTED ANSWERS
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📚CA INTER Costing DEC 21 SUGGESTED ANSWERS
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Password:- 123

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📚CA INTER Adv. ACCOUNTS DEC 21 SUGGESTED ANSWERS
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📚CA INTER FM DEC 21 SUGGESTED ANSWERS
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📚CA INTER Audit DEC 21 SUGGESTED ANSWERS
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📚CA INTER EIS+SM DEC 21 SUGGESTED ANSWERS
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📚CA INTER Audit DEC 21 SUGGESTED ANSWERS
By EScholar

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📚CA INTER DEC21 EXAMS SUGGESTED ANSWERS BY FACULTIES

Accounts :-
https://t.me/CaInterRocks/3590
Corporate & Other Law :-
https://t.me/CaInterRocks/3591
Cost and Management Accounting:-
https://t.me/CaInterRocks/3592
DT:- (Discussion+soln)
https://youtu.be/WNM-Fnh5f6o
GST:- (Discussion+soln)
https://youtu.be/qqp5mSoHVcc


Advanced Accounts:-
https://t.me/CaInterRocks/3593
Audit:-
https://t.me/CaInterRocks/3599
EisSm:-
https://t.me/CaInterRocks/3598
FmEff:-
https://t.me/CaInterRocks/3595

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Credit : @JigarJKadiya

🖥📚CA Inter DT Amendment for May 22 Exams

By : CA Vardhaman Sir

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