Direct & Indirect Taxation — Summer 2025

Multiple Choice Questions ( All Compulsory ) (1) What does the term “Basis of Charge” refer to in taxation? A. The manner in which a tax is paid B. The conditions under which a tax is levied C. The amount of tax to be paid D. The type of tax imposed (2) The Goods and Services Tax (GST) is classified into how many categories? A. 2 B. 3 C. 4 D. (3) What is the tax rate applicable on the supply of goods and services under GST in India? A. 10% B. 12% C. 18% D. Varies based on the goods and services Page 1 of (4) The Customs Act of India is governed by which Ministry? A. Ministry of Finance B. Ministry of Commerce C. Ministry of External Affairs D. Ministry of Industry (5) The term “Time of Supply” under GST refers to: A. The time when the goods are delivered B. The time when the invoice is raised C. The time when the goods are sold D. The time when tax is due (6) In a GST invoice, the GST rate on a product is 12%. The price of the product before GST is Rs. 50,000. What will be the total invoice value including GST? A. Rs. 50,000 B. Rs. 56,000 C. Rs. 60,000 D. Rs. 62,000 (7) Which of the following is not a part of the Income from Business or Profession head? A. Profit from sale of goods B. Income from freelance work C. Income from service charges D. Rental income from property (8) What is the threshold limit for GST registration for service providers? A. Rs. 10 lakh B. Rs. 20 lakh C. Rs. 40 lakh D. Rs. 50 lakh (9) The composition scheme under GST is available to businesses with a turnover of: A. Rs. 50 lakh B. Rs. 1 crore C. Rs. 2 crore D. Rs. 5 crore (10)Which of the following taxes are part of the Goods and Services Tax (GST)? A. Value Added Tax (VAT) B. Sales Tax C. Central Excise Duty D. None of the above (11)Under the GST law, which of the following is a non-taxable supply and hence not subject to GST? A. Sale of goods by a retailer B. Rent of residential property for personal use C. Export of services D. Sale of goods under a contract (12)Under GST, the term "reverse charge" means: A. Tax payable by the supplier B. Tax payable by the recipient C. Tax exempt supply D. Tax payable on export goods (13)Which of the following is not a tax-exempt income under Section of the Income Tax Act? A. Dividend from Indian companies B. Agricultural income C. Interest on PPF D. Interest on bank savings account Page 2 of (14)The income of a non-resident individual is taxed in India on: A. Only Indian income B. Worldwide income C. Income earned outside India D. Income earned in India and repatriated