Top 50+ Solved Input Tax Credit MCQ Questions Answer
Q. An assessee obtains new registration, voluntary registration, change of scheme from composition to regular scheme and from exempted goods/ services to taxable goods/services. It can avail credit on inputs lying in stock. What is the time limit for taking said credit?
a. 1 year from the date of invoice
b. 3 years from the date of invoice
c. 5 years from the date of invoice
d. None of the above
Q. Credit on Input services or capital goods held in stock can be availed in case of new Registration/ Voluntary Registration
a. Ye
b. No
c. Yes, on Input services only
d. Yes, on capital goods only
Q. In case of Compulsory registration, input tax credit can be availed on
a. stocks held on the day immediately preceding the date from which he becomes liable to pay tax under the provisions of this Act, provided application for registration is filed within 30 days from the due date
b. stocks held on the day immediately preceding the date of grant of registration under the provisions of this Act
c. stocks held on the day immediately preceding the date of application of registration under the provisions of this Act
d. None of the above
Q. In case of Voluntary registration input tax credit can be availed
a. on stocks held on the day immediately preceding the date from which he becomes liable to pay tax under the provisions of this Act
b. on stocks held on the day immediately preceding the date of grant of registration under the provisions of this Act
c. on stocks held on the day immediately preceding the date of application of registration under the provisions of this Act
d. None of the above
Q. Eligibility of credit on capital goods in case of change of scheme from Composition scheme toRegular scheme
a. Eligible during application for Regular scheme
b. Not eligible
c. Yes, immediately before the date from which he becomes liable to pay tax under the Regular scheme
d. None of the above
Q. Can the unutilized input tax credit be transferred in case of change in constitution of business?
a. Not possible
b. No, it will be exhausted
c. Yes, it will be transferred only if there is provision for transfer of liabilities
d. It will be transferred only if it is shown in books of Accounts of transferror
Q. Is Input tax fully restricted in case of switchover from taxable to exempt supplies
a. Ye
b. No
c. Proportionately restricted
d. Not restricted
Q. Is Input tax to be paid in case of switchover from taxable to exempt supplies
a. Yes, equivalent to the credit in respect of inputs held in stock (including semi- finished and finished goods) and on capital goods held in stock
b. No
c. Yes, full credit
d. No, should be debited to electronic credit ledger
Q. Is Input tax to be reversed in case of supply of capital goods
a. Yes fully
b. No
c. Yes, to extent of credit taken as reduced by prescribed percentage or tax on transaction value whichever is higher
d. Yes, to the extent of transaction value of such goods
Q. ITC can be taken on goods if goods not received by registered person but
a. By his agent on his direction
b. By the job worker on his instruction
c. By any other person on his direction
d. Any of above
Q. ITC can be availed on
a. Possession of prescribed invoice/ debit note
b. Receipt of goods/services
c. Tax on such supply has been paid to government and return being furnished by the supplier
d. Fulfilling all the above conditions
Q. Maximum time limit for availing ITC is
a. The date of filing of annual return
b. Due date of filing return u/s 39 for the month of September
c. Earliest of above two
d. Later of above two
Q. ITC can be claimed by a registered person for
a. Taxable supplies for business purpose
b. Taxable supplies for non-business purpose
c. Exempted supplies
d. Non-taxable supplies