
Dear Professional Seniors & Friends,
Warm Greetings!
Here is the Next post of #MCQ on concept based practical professional knowledge on reversal of ITC on account of non-payment within 180 days in a unique manner to be self answered by participants. The detailed answer of these MCQs shall be posted next day for the self assessment of the participants.
MCQ 54.1: A sells goods to B and issues invoice of Rs 1000. B paid Rs 200 for freight on behalf of A. B did not pay the A Rs 1000 within 180 days.
A) ITC on Rs 1000 will be reversed.
B) ITC on Rs 200 will be reversed.
C) ITC on Rs 800 will be reversed.
D) No ITC is required to be reversed.
MCQ 54.2: X ltd import services from a related person outside India without consideration, but in the course of furtherance of business. Which of the following is correct?
A) X ltd need not to deposit GST under reverse charge since the transaction is without consideration.
B) X ltd need to deposit GST under reverse charge and he cannot take credit of same since he is not required to made any payment within 180 days.
C) X ltd need to deposit GST under reverse charge and he can take credit of same and the same need not be reversed notwithstanding he is not required to made any payment within 180 days .
D) X ltd need to deposit GST under reverse charge and he can take credit of same but the same has to be reversed after 180 days.
Have a Nice Day!
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CA Sanjay Kumar Agrawal
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Dear Professional Seniors & Friends,
Warm Greetings!
This post of MCQ is on provisions relating to reversal of ITC on account of non payment within 180 days.
Answer to MCQ 54.1: C) ITC on Rs 800 will be reversed.
Answer to MCQ 54.2: C) X ltd need to deposit GST under reverse charge and he can take credit of same and the same need not be reversed notwithstanding he is not required to made any payment within 180 days.
Practical Analysis for MCQ 54.1 :-
Based on the above analysis, correct answer MCQ 54.1: C) ITC on Rs 800 will be reversed since on Rs 200, no ITC is required to be reversed.
Practical Analysis for MCQ 54.2 :-
Based on the above analysis, correct answer MCQ 54.2: C) X ltd need to deposit GST under reverse charge and he can take credit of same and the same need not be reversed notwithstanding he is not required to made any payment within 180 days.
(Disclaimer: The objective of the MCQ post is just to discuss the concept, it may happen, by change of facts, the answer may be different. Please do not treat this as professional opinion; you can definitely have your own opinion.)
Sincere Regards!
CA Sanjay Kumar Agrawal
Mobile: 9810116321
To access MCQ posts regularly, please Join Telegram Channel:
https://t.me/caSanjayKumarAgrawal
For All MCQ post please click on:
Webpage: http://www.casanjay.me/
Facebook: https://www.facebook.com/CA.Sanjay.K.Agrawal/
Linkedin: https://www.linkedin.com/in/ca-sanjay-kumar-agrawal/
#CASanjay #MrCA #MsCA #MCQ #CharteredAccountants #CharteredAccountant #CA #India
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