GST Question for Today:- Mr. Shubham has purchased a new refrigerator (to be used in kitchen of his office for use by his employees) for Rs. 2,50,000 (plus GST of Rs. 30,000) on 25th May 2021. He has estimated its useful life to be 5 years and hence he has decided to charge 20% depreciation each year on straight line basis. Which of the following statements is correct about availment of ITC:-
a) He should avail ITC of Rs. 500 each month so that he can claim ITC over a period of 36 months
b) He can avail entire ITC of Rs. 30,000 in May 2021 itself, irrespective of how depreciation is charged in books of accounts
c) He is not allowed any ITC since refrigerator is not used in course and furtherance of business
d) He is not allowed any ITC since it is specifically restricted under section 17(5)

The correct answer to above question would be (b) . In case of capital goods used for course & furtherance of business, ITC is allowed on receipt of goods (the fact that capital goods will be used over a period of time will have no relevance)

GST Question for Today:- Mr. Raghu avails services of Mr. Raja, a Chartered Accountant, as under-
(i) Audit of financial accounts Rs. 55,000
(ii) Tax audit and annual filing Rs. 10,000
(iii) Income-tax return filing of Mr. Raghu ’s wife Rs. 5,000
All the above amounts are exclusive of taxes and the applicable rate of GST on these services is 18%.
The accountant of Mr. Raghu has booked the entire expenses of Rs. 70,000 plus GST in the books of account. Mr. Raghu is eligible to take input tax credit of -
(a) Rs. 13,500
(b) Rs. 11,700
(c) Rs. 9,900
(d) Rs. 1,800

The correct answer to above question would be (b). ITC would be allowed only in respect of services in (i) and (ii) since they are for business purpose.

GST Question for Today:- Mr. R has supplied design services to Mr. S for which invoice was issued on 5th April 2021. The consideration for the services was Rs.10,00,000 which was required to be paid within 3 months. However, Mr. S made the payment on 31st August 2021 (i.e. after the stipulates period) for which Mr. R charged late fees of Rs. 50,000. Final payment of Rs. 10,50,000 was made by Mr. S to Mr. R on 31st August 2021. What would be your advice to Mr. R for time of supply in respect of the given transaction:-
a) Time of Supply of Rs 10,00,000 shall be 5th April 2021 whereas time of supply for Rs. 50,000 shall be 31st August 2021.
b) Time of supply for entire Rs. 10,50,000 shall be 31st August 2021
c) Time of supply of entire Rs 10,50,000 shall be 5th April 2021
d) Time of supply for Rs. 10,00,000 shall be 5th April 2021 whereas for Rs. 50,000 it is the option of Mr. R either to treat 5th April or 31st August 2021 as time of supply

Next Test of Taxation will be conducted on Sunday...Marathon Part 3 will be public by Friday

The correct answer to above question would be (a). In case of Rs. 10L, TOS will be date of invoice (since it is prior to payment). However, TOS for addition in value due to late fees shall be date on which such late fees is received i.e. 31st August.

GST Question for Today:- Determine the time of supply of service on reverse charge basis in accordance with the provisions of CGST Act 2017
Date of invoice issued by supplier: 30th November 2021
Date of completion of service: 30th November 2021
Date of payment by recipient: 15th November 2021
Date of receipt of services in recipient's books: 30th November 2021
a) 30th November 2021
b) 15th November 2021
c) 30th January 2022
d) 15th January 2022

Last Part of Income tax Marathon has been made public

Chapters covered in the marathon are as under:-
1) Income under Capital Gains
2) Taxation of Gifts
3) Clubbing of Income
4) TDS and TCS
5) AMT and Sec 115BAC

Hi all
Admit cards for May/June exams are out...You can download them from icai exam website

All the Best

Law Question for Today:- Adani Enterprises Limited has its shares listed on a recognized stock exchange in India. During the current financial year ending on 31st March 2020, the securities and exchange board of India (SEBI) has found some irregularities in the filings made by the company. Accordingly, SEBI proposes to make an application to the Tribunal for reopening of the books of accounts of the Company. You, as an expert, are called upon by SEBI to advise with which last financial year for reopening of books of accounts an application can be made?
a) 2015-2016
b) 2013-2014
c) 2010-2011
d) 2011-2012