GST Question for Today:- Kidzee Ltd., a wholesaler of toys registered in Chandigarh, is renowned in the local market for the varieties of toys and their reasonable prices. Kidzee Ltd. makes supply of 100 pieces of baby’s learning laptops and chat learning phones to Nancy General Store on 25th September, 20XX by issuing a tax invoice amounting to Rs. 1,00,000. However, the said toys were returned by Nancy General Store on 30th September, 20XX. Which document Kidzee Ltd. is required to issue in such a case?
(a) Debit Note
(b) Refund voucher
(c) Credit note
(d) Payment voucher

The correct answer to above question would be (C). In case of Sales return, Sec 34 provides that Supplier is required to issue credit note for the value of goods + GST applicable thereon

Income Tax Question for Today:- APM Ltd. is a pioneer company in textile industry. At the end of F.Y. 2022-23, it decided to distribute deposit certificates (without interest) to its shareholders (preference as well as equity shareholders). Total value of accumulated profits of APM Ltd. was Rs. 25 lakhs. Mr. A is an equity shareholder of APM Ltd. holding 10% of share capital. During F.Y. 2022-23, Mr. A received deposit certificates (without interest) valuing Rs. 5,00,000 from APM Ltd. Comment upon taxability of receipt of deposit certificates in the hands of Mr. A.
(a) Deposit Receipts (without interest) are taxable to the extent of Rs.2,50,000 under Income from other sources.
(b) Deposit Receipts (without interest) are fully taxable under Income from other sources.
(c) Deposit Receipts (without interest) are exempt since DDT is payable by the company.
(d) Deposit Receipts (without interest) are fully taxable and shall be included in Gross total income. But such receipt shall be allowed as deduction under Chapter-VI A

The correct answer to above question would be (A). As per Sec 2(22)(b) any distribution of bonus deposit certificates to shareholders shall be treated as dividend in their hands to the extent of accumulated profits of the company. Hence, in this case, Rs. 2,50,000 of deposit certificates would be taxable u/h Other sources in hands of shareholder.

GST Question for Today:- In which of the following situations E-way bill will not be required?
I) When the goods valuing INR 55,000 are transported using bullock cart
ii) When the goods are transported from the customs port, airport, air cargo complex and land custom station to an inland container depot or a container freight station for clearance by customs. Goods value – INR 2,00,000/-
iii) When the goods being transported are alcoholic liquor for human consumption, petroleum crude, high
speed diesel
iv) When empty cargo containers are being transported
a) i
b) i,ii
c) i,ii,iii
d) I, ii, iii and iv

The correct answer to above question would be (D). All the transactions given above are outside the requirement of E-waybill as per Rule 139(14) i.e. no EWB required even if consignment value is more than 50,000.

Income Tax Question for Today:- Mr. Raja, a proprietor, commenced operation of the business of a new three star hotel in Mumbai on 1.7.2022. He had made a total investment of Rs. 7.58 crores till 30.6.2022. Out of total investment of Rs. 7.58 crores, Rs. 1.58 crores was used for purchase of land in P.Y.2022-23. Rs. 4.70 crores was used for constructing Hotel and balance of Rs. 1.30 used for purchasing the furniture in P.Y. 2022-23. He wants to avail the benefit of deduction under section 35AD as he satisfied with all the conditions prescribed u/s 35AD. His profit and gains from the business for P.Y. 2022-23 is Rs. 50 lakhs before claiming deduction u/s 35AD. He wants to file his income-tax return on 12.12.2023. How much deduction Mr. Raja can claim for A.Y. 2023-24 and the losses which he can carry forward to A.Y. 2024-25?

(a) He can claim the deduction of Rs. 7.58 crores from his business income but he would not be able to carry forward the business loss of Rs. 7.08 crores
(b) He can claim the deduction of Rs. 6.00 crores from his business income and can carry forward the business loss of Rs. 5.50
(c) He can claim the deduction of Rs. 6.00 crores from his business income but cannot carry forward the business loss of Rs. 5.50 crores
(d) He can claim the deduction of Rs. 7.58 crores from his business income and can carry forward the business loss of Rs. 7.08 crores

The correct answer to above question would be (C). Deduction u/s 35AD is allowed in respect of any capital expenditure incurred for specified business excluding expenditure on land, goodwill & financial instruments. Hence, Mr. Raja can claim deduction of Rs. 6 Crore u/s 35AD and hence loss from specified business comes out to be Rs. 5.5Crore. However, this loss cannot be carried forward if the return is filed after due date of filing return of income

GST Question for Today:- Which of the following statements is correct for a tax payer who has opted for composition scheme?
a) A registered person supplying goods/services under the composition scheme shall issue a bill of supply.
b) Last date for payment of liability towards tax, interest, penalty, fee or any other sum is 20th day of each month.
c) A composition dealer shall be required to file GSTR-1 and GSTR-3B on monthly basis.
d) A composition dealer has an option to file GSTR-3B on quarterly basis, however tax payment has to be made on monthly basis upto 25th of next month

The correct answer to above question would be (A). Composition dealers are not allowed to issue tax invoice in respect of their outward supplies, instead they have to issue a Bill of Supply

Income Tax Question for Today:- X Ltd. credits a sum of Rs. 45,000 as commission to Y Ltd., an Indian company on 25.06.2022 without deducting tax at source. Y Ltd. paid its entire tax liability on its income by way of advance payment of tax during P.Y. 2022-23 and filed its return of income for A.Y. 2023-24 on 15.07.2023. X Ltd. also has a certificate in Form No. 26A from a chartered accountant. Compute the amount of deduction that shall be allowed to X Ltd. in respect of the commission credited to Y Ltd. for PY 22-23 assuming that X Ltd. follows mercantile system of accounting.
(a) Rs. 45,000
(b) Nil
(c) Rs. 13,500
(d) Rs. 31,500