Surcharge in case of a firm for assessment year 200910 is payable at the rate. Works contract has been defined in section 65b of the finance act, 1994 as a contract wherein transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods and such contract is for the purpose of carrying out construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, alteration of any moveable or. May 29, 2018 original contract it is assumed that a original work contract is 40% services and 60% goods there is 40% service component in case of original contract,hence service tax is applicable only on these 40% example. This document includes a series of multiplechoice questions mcqs that were. Download objective type questions of direct tax pdf. Advance salary received by an employee is taxed in the year of receipt. Additional surcharge education cess of 3% per cent is payable on a income tax. Input tax credit is the credit that manufacturers receive for paying input taxes towards inputs used in the manufacture of products. Meaning of work contract work contract means a contract wherein transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods and such contract is for purpose of carrying out construction, erection. Original contract it is assumed that a original work contract is 40% services and 60% goods there is 40% service component in case of original contract,hence service tax is applicable only on these 40% example. Whether capital goods purchased for execution of works are eligible for input tax credit.
Applied direct taxation objective questions and answers. Income tax objective type questions accounts india. As a contractor, you can be an individual sole trader or working in your own company, partnership, or trust. Xyz ltd sub contracted works contract work as well as labor work also some time. Direct tax mcq multiple choice question and answer direct tax mcq with detailed explanation for interview, entrance and competitive exams. E publication on eway bill under gst july,2018 ehandbook on job work. Download pdf file to revise income tax mcqs for ca inter exams. Download updated icai faqs and mcqs on gst september, 2018 indian economy has been witnessing the spurring growth with the paradigm shift from consumer based tax to destination based tax from july 1,2017. C labour is an immobile factor that does not change its skill level. Works contract under gst is goods used in work relating to a immovable property b both movable and immovable property. An annuity is a financial contract between an insurance company and a buyer typically an investor or retiree. State workers occupation or title and give a complete description of the work done by himher. You can find a completed w9 on the accounts payable website. Indeed, with all these constant initiatives of the government, when gst is paving the way to bind the country into an economic union, the dedicated efforts of professionals are of utmost importance in efficaciously implementing gst throughout the country and to ensure that the tax compliance is given top priority.
In construction contract, a builder constructs a b. Under which head the income tax recoveries effected from the bills paid by the treasuries. A in consideration that b will employ c in collecting the rent of bs zamindari, promises b to be responsible, to the amount of 5000 rupees for the due collection and payment by c of those rents. Goods and services tax multiple choice questions 1. For work done in 2019, this tax rate amounts to 15. One of the following taxes is not subsumed under gst a octroi by local authorities c entertainment tax by local authorities b entry tax by state governments d tax on lottery by state governments 24. Input tax credit itc input tax is the gst paidpayable on purchases of goods and services. A proven resource for high performance, the siegels series keeps you focused on the only thing that matters the exam. Surcharge of 10 per cent is payable by an individual where the total income exceeds. Can a works contractor claim input tax credit on opening stock.
Rates of service tax in case of wct service tax on work. Work contract tax wct meaning and explanation meaning. With the implementation of goods and services tax gst in india from july 1. You use the tds setup default values program p75i010 to assign tax types for tds and wct to supplier records. When people will start providing services on my platform we will start from state illinois, chicago, then will go over the usa, lawn. Works contract is a supply of a goods b services c both goods and services d none. Sample test paper this test paper is for practice and self study only and not to be sent to the institute time allowed. I need a consultation, to write one page of explanation how taxes will work for business owners and individuals in my startup. These objective type mcq questions on uno are useful for competitive exams like ibps, bank po, sbi po, rrb, rbi, lic, specialist officer, clerk, ssc, upsc, railway etc. As per section 175 c of the cgst act, 2017, input tax credit shall not be. None of above view answer workspace report discuss in. Gstn means goods and services tax network, a nonprofit organization managed by the center, states, and nongovernment financial organizations. There general accepted principle is that when a transaction is liable for value added taxvat, then the same transaction will not be liable for the service tax.
On sale of goods, vat is applicableon sale of services, service tax is applicablethere are some services which are in nature of both goods and services,these are called works contracttax on work contract are called work contract tax wctexample. Arrear rent is taxable after deducting 30% as per section 25b of the incometax act, 1961. D negotiate new contracts with major buyers of the firms products. In order to make the scheme rational on this point, difference of 5 % and 70 % should have. Tax payers shall be allowed to take credit of taxes paid on inputs itc and utilize the same for payment of output tax.
A works contractor is entitled to input tax credit on the opening stock as on 01. Aug 27, 2012 pay service tax on 40% of total contract if work is original means new and pay 60% of total contract if work is not original here total contract value also include free of cost material provided by the service receiver further if you are not company and service receive is company then 50% of the assessed tax is to be deposited by service receiver. The tax payable on a supply of goods and services by the recipient. Thus, there is a clear demarcation of a works contract as a supply of service under gst. Sep 12, 2018 download updated icai faqs and mcqs on gst september, 2018 indian economy has been witnessing the spurring growth with the paradigm shift from consumer based tax to destination based tax from july 1,2017. Unlv is an educational institution of the state of nevada and is tax exempt. After the finance act 2012 enacted, clause 54 of the newly introduced section 65bprovides definition to works contract, which means, a contract wherein transfer ofproperty in goods involved in the execution of such contract is leviable to tax as sale of goodsand such. As per rule 2a of the service tax rules determination of value rules, 2006, the service portion involved in the execution of original works is 40% of the total works contract and the service portion involved in the execution of works contract other than original works is 70% of the total works contract. Gst mcq 2020, gst quiz, take gst online test updated mcq. Payments and gifts eligible for tax relief chapter 5. Works contract tax wct work contract uttar pradesh u. In exchange for a lump sum or monthly payments toward the principal, an insurance company will pay out income through a series of payments or a onetime lump sum.
The works contract service has always been a subject matter of debate or discussion, either in computation of tax under vat act or under service tax act and more importantly after the introduction of reverse charge mechanism, where both service provider and service recipient is the person liable to pay tax. Advance learning on tax treatment of various forms of salary like bonus, overtime pay, salary in lieu of notice period, etc. As per section 2119 of the cgst act, 2017, works contract. Apply to tax preparer, senior tax preparer and more. Download objective type questions of direct tax pdf visit our pdf store. Services by an employee to the employer in the course of or in. Thus, the statement given in the question is false and, hence, option b is the correct option.
The works contract service has always been a subject matter of debate or discussion, either in computation of tax under vat act or under service tax act and more importantly after the introduction of reverse charge mechanism, where both service provider and service recipient is. Solved examples with detailed answer description, explanation are given and it would be easy to understand. Jan 08, 2018 works contract has been defined in section 65b of the finance act, 1994 as a contract wherein transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods and such contract is for the purpose of carrying out construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, alteration of any moveable or. Contract work tax calculators jobs, employment freelancer. A contract required hair styling to be done to tobys satisfaction, but toby was. Covering various important national and international topics, the chosen questions help you improve your general knowledge gk and perform the. However, in other situations the allocation process is more complex. Objective questions in income tax multiple choice questions finance act 2008 1. Arrear rent is taxable after deducting 30% as per section 25b of the income tax act, 1961. Positive economics a does not depend on market interactions. May 29, 2018 on sale of goods, vat is applicableon sale of services, service tax is applicablethere are some services which are in nature of both goods and services,these are called works contracttax on work contract are called work contract tax wctexample.
Dec 25, 2015 works contract means a contract wherein. Gstn has established on 28th march 20 and one stop solution to make payments of all your indirect tax liabilities. These income tax gk quiz or general awareness quiz objective questions answers are very helpful for competitive exams bba, mba, pgdbm etc. After the finance act 2012 enacted, clause 54 of the newly introduced section 65bprovides definition to works contract, which means, a contract wherein transfer ofproperty in goods involved in the execution of such contract is leviable to tax as. For tds, specify contractor c, dividend d, professional p, and so on. Before giving opinion on the issues it will be useful to refer the questions related with this transaction. Answers to multiplechoice questions explain why one choice is correct as well as why the other choices are wrong, to ensure complete understanding. The input tax credit is available on the purchase of goods used in the execution of works contract. Compensation to states under gst compensation to states act, 2017 is paid by. You might even call yourself an independent contractor, subcontractor or a subbie. Direct tax mcq multiple choice question and answer. Download ca inter income tax mcqs book for upcoming exams. The statement given in the question is false, hence, option a is not correct. Under which head will tax on travel by air be classified.
Gst the institute of chartered accountants of india. Sale of agricultural land on 1st april, 1970 is an example of transfer of capital asset. Which of these is not an objective of cost accounting. Working as a contractor australian taxation office. An entire chapter is devoted to teaching you how to prepare effectively for essay exams. How to pay tax as an independent contractor or freelancer. Dear readers, welcome to daily current affairs quiz questions with answers on uno. Tax deduction at source at lower rate where a contractor is of the view that his liability of payment of tax on sale of goods in a works contract will be lesser than the aggregate of amounts of deduction if deduction is made at general rate of tax deduction, he may apply to his assessing authority for issuing direction to the contractee for. Apply to tax accountant, tax preparer, accountant and more. May 06, 2011 objective questions in income tax multiple choice questions finance act 2008 1.
Termination a the employee may at any time terminate this agreement and his employment by giving not less than two weeks written notice to the employer. Contractors have different tax and super obligations to employees. For canadian tax principles practice exams and solutions 20162017 practice examination chapter 3 employment income page 1. Important mcq of gst by ca vivek gaba expected in exam 1. Hence total value of goods in which property is transferred in the execution of a civil work contract may be taken 70 % of the total value of the contract.
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