Top 50+ Solved Input Tax Credit MCQ Questions Answer
Q. Whether definition of Inputs includes capital goods.
a. Ye
b. No
c. Certain capital goods only
d. None of the above
Q. Is it mandatory to capitalize the capital goods in books of Accounts?
a. Ye
b. No
c. Optional
d. None of the above
Q. Whether credit on capital goods can be taken immediately on receipt of the goods?
a. Ye
b. No
c. After usage of such capital goods
d. After capitalizing in books of Accounts
Q. The term “used in the course or furtherance of business” means?
a. It should be directly co-related to output supply
b. It is planned to use in the course of business
c. It is used or intended to be used in the course of business
d. It is used in the course of business for making outward supply
Q. Under section 16(2) of CGST Act how many conditions are to be fulfilled for the entitlement ofcredit?
a. All four condition
b. Any two conditions
c. Conditions not specified
d. None of the above
Q. Whether credit on inputs should be availed based on receipt of documents or receipt of goods
a. Receipt of good
b. Receipt of Documents
c. Both
d. Either receipt of documents or Receipt of goods
Q. In case supplier has deposited the taxes but the receiver has not received the documents, isreceiver entitled to avail credit?
a. Yes, it will be auto populated in recipient monthly returns
b. No as one of the conditions of 16(2) is not fulfilled
c. Yes, if the receiver can prove later that documents are received subsequently
d. None of the above
Q. Input tax credit on capital goods and Inputs can be availed in one installment or in multipleinstallments?
a. In thirty-six installment
b. In twelve installments
c. In one installment
d. In six installments
Q. The tax paying documents in section 16(2) is
a. Bill of entry, Invoice raised on RCM supplies, etc.
b. Acknowledged copy of tax paid to department
c. Supply invoice by the recipient
d. Any of the above
Q. The time limit to pay the value of supply with taxes to avail the input tax credit?
a. Three month
b. Six Months
c. One hundred and eighty days
d. Till the date of filing of Annual Return
Q. What is the time limit for taking input tax credit by a registered taxable person?
a. No time limit
b. 1 year from the date of invoice
c. Due date of furnishing of the return under section 39 for the month of September following the end of financial year to which such invoice or invoice relating to such debit note pertains
d. Due date of furnishing of the return under section 39 for the month of September following the end of financial year to which such invoice or invoice relating to such debit note pertains or furnishing of the relevant annual return, whichever is earlier Manan Prakashan 35
Q. Can the recipient avail the Input tax credit for the part payment of the amount to the supplier within one hundred and eighty days?
a. Yes, on full tax amount and partly value amount
b. No, he can’t until full amount is paid to supplier
c. Yes, but proportionately to the extent of value and tax paid
d. None of the above
Q. Whether credit can be availed without actual receipt of goods where goods are transferredthrough transfer of document of title before or during the movement of goods?
a. Yes
b. No
c. Yes, in specific instances
d. Can be availed only after transfer of document of title after movement of goods
Q. Whether depreciation on tax component of capital goods and Plant and Machinery and whetherinput tax credit is Permissible?
a. Yes
b. No
c. Input tax credit is eligible if depreciation on tax component is not availed
d. None of the above
Q. What is the maximum time limit to claim the Input tax credit?
a. Till the date of filing annual return
b. Due date of September month which is following the financial year
c. Earliest of (a) or (b)
d. Later of (a) or (b)