Tax and Central Excise

ICWAI Objective Type questions and Answers on Indirect Tax 1. Different Choice Questions (1) Excise obligation can be collected on those merchandise which are a) Manufactured in India b) Sold in India a) Removed from the industrial facility b) None of the abovementioned (2)Dutiable products implies a) Goods are dependent upon Central Excise obligation b) Goods which are excluded from extract obligation c) Non excisable merchandise d) Goods not in the slightest degree referenced in the Central Excise Tariff (3)Place of Removal under Central Excise implies a) Removing the products from the spot of wholesaler b) Removing the products from the spot of customs station c) Removing the products from the spot of processing plant ) None of the abovementioned (4)Non-Dutiable merchandise implies a) Name of the item not referenced in the Tariff Act b) Name of the item referenced in the Tariff Act c) Name of the item referenced in the Tariff Act with the Rate of Duty d) Name of the item reference d in the Tariff Act with the Zero Rate (5)Payment of Central Excise Duty relies up upon a) Removal merchandise from the spot of expulsion b) Manufacture of products in the plant c) Deemed assembling of merchandise d) Removal products for branch move (6)The extract obligation on alcoholic products fabricated by the producer is payable to a) State Government ) Central Government c) Corporation d) Local power (7)Which of the accompanying obligations is secured under the First Schedule of the Central Excise Tariff Act? a) Basic Excise obligation b) Special Excise Duty c) Additional Excise Duty d) Education Cess (8)Which of the accompanying obligations is under the domain of the State Government? a) Central Excise obligation b) Customs obligation c) Service charge d) VAT (9)Which are the merchandise still under the physical control? (a)Plastic items (b)Cigarette items (c)Apparel items (d) Glass items (10) At the hour of assembling of item X draws in 14% BED.At the hour of evacuation the pace of obligation is 8%. Which is the obligation draws in for the item X a) 14% b) 8% c) 11% (Average) d) Zero (Because the rate has changed) Answer: (an) (a) (c) (d) (an) (an) (a) (d) (b) (b) 2. Fill in the Blanks 1) Central Excise obligation can be demanded at the hour of 2) Goods at the hour of assembling, not referenced in the Central Excise Tariff Act, can be called 3) Central Excise Tariff Act, 1985 containssections 4) Goods are ordered under Central Excise Tariff Act dependent on theof Nomenclature havingdigit grouping 5)The products remembered for theSchedule of Central Excise Act are same as those on which extract obligation is payable under segment 4A of the Act. 6) Goods at the hour of production, referenced in the Central Excise Tariff Act, can be called 7) Goods are grouped under Central Excise Tariff Act dependent on thesystem 8) There are Chapters under the Central Excise characterization 9) Labeling and relabelling goes under 10) Service charge came into power fromF inance Act Answer: Manufacture of merchandise in India Non excisable merchandise 20-areas Harmonized System Eight Third. Excisable goodsHarmonized System of Nomenclature 96 parts Third Schedule of Central Excise 1994 3. State Yes or No, Give Reasons All merchandise fabricated are dependent upon focal extract obligation. Every Excisable great are dutiable products No obligation can be demanded if the merchandise made by the producer isn't versatile however attractive Goods has been characterized in the Central Excise Act Manufacturer incorporates considered maker There is no distinction among toll and assortment 7) Duty can likewise be gathered regardless of whether the products are non-excisable at the hour of maker, yet are excisable at the hour of expulsion of merchandise from the spot of removal.Duty rates are determined in the Central Excise Act, 1944 Central Excise Duty Rate is shown against each levy thing and not against heading or sub-heading. Assembling incorporates any pro cedure accidental or auxiliary to the consummation of a made item. Attractiveness is fundamental to demand the focal extract obligation 12) Goods referenced in the First Schedule or Second Schedule to the Central Excise Tariff Act, 1985 are called non-excisable merchandise. Maker isn't characterized under Central Excise Tariff Act. 14) Brand name proprietor is a producer despite the fact that under agreement an outsider totally makes the productClassification is unessential, since all items draw in 14% obligation Circulars can be given by the Government of India Answer: 1) No. Products made in India might be excisable merchandise or non-excisable merchandise. No focal extract obligation, if the merchandise are non-excisable. No. Excisable merchandise might be dutiable or non-dutiable products. 3) Yes. No obligation can be exacted if the merchandise produced by the maker isn't portable however attractive according to the choice of the Supreme court of India on account of Union of Ind ia v Delhi Cloth and General Mills Ltd. No.The term merchandise has not been characterized in the Central Excise Act, 1944. Indeed. Producer incorporates regarded maker 6) No. The term â€Å"LEVY† implies burden of expense/obligation. Assortment of obligation is delayed to the phase of evacuation of merchandise. [Rule 4 of the Central Excise Rules, 2002] 7) No. Obligation can not be gathered if the products are non-excisable at the hour of assembling, yet are excisable at the hour of expulsion. No. Obligation rates are indicated in the Central Excise Tariff Act, 1985. Indeed. Obligation Rate is demonstrated against each tax thing and not against heading or sub-heading. 10) Yes.Manufacture incorporates any procedure coincidental or auxiliary to the finishing of a fabricated item. Truly. Attractiveness is fundamental to require the focal extract obligation. 12) No. Products referenced in the First Schedule or Second Schedule to the Central Excise Tariff Act, 1985 is called exci sable merchandise. 13) No. The term producer has been characterized under area 2(f) in the Central Excise Act, 1944. The definition under segment 2(f) isn't comprehensive however comprehensive. 14) No. Brand name proprietor isn't a maker despite the fact that under agreement an outsider totally fabricates the product.No. Arrangement is important, despite the fact that all items draw in 14% obligation. No. Handouts can be given by the Central Board of Excise and Customs (CBEC). 4. Various Choice Questions (1) according to Rule 15 the Central Excise Rules, 2002, the alternative of paying obligation is accessible to those makers who make (a)Aluminium circles (b)Plastic Products (c)Gold Products (d) Agriculture Products (2) Goods indicated under Standards of Weights and Measures Act, 1976 just as in the notice gave by the Government of India alongside pace of decrease can be evaluated under a) Maximum Retail Price (b) Transaction Value (c) Retail Price (d) Whole Sale Price (3) Captively Consumed Goods implies (a) Goods fabricated and overwhelmed by in the industrial facility (b)Goods made (c) Goods bought and utilized in the processing plant (d) Goods got from branch (4) Interconnected endeavors implies (a) Head office and Branch office (b) Holding and auxiliary organizations (c) Group of organizations (d) Companies under a similar administration (5) Which one of the accompanying will go under the Specific Rate of Duty? (a)Cigarette item (b) Wood item (c)Plastic item d)Diesel item (6) What rate ought to be added to the expense of creation on account of hostage utilization? (a) 15% (b) 10% (c) 0% (d) 20% (7) MRP item Assessable worth will be determined as (a)Transaction premise (b)MRP less decrease (c) Percentage of levy esteem (d)None of the over (8) Which one of the accompanying will shape some portion of exchange esteem (a) Transportation charges from the spot of evacuation to the spot of purchaser (b) Transportation charges from the spot of processing plant to the spot of branch (c) Transportation charges from the spot of wholesaler to the spot of purchaser d) Transportation charges from the spot of purchaser to some other spot (9) Assessable does exclude one of the accompanying (a) Cost of material (b) Cost protection (c) Cost of transportation (d) Interest on deferred installment (10) according to Rule 10 of the Central Excise Valuation Rules, the idea of interconnected endeavors implies (an) Associate organizations (b) Group organizations (c) Holding and Subsidiary organizations (d) None of the above Answer: (1) (a) (2) (a) (3) (a) (4) (b) (5) (a) (6) (b) (7) (b) (8) (b) (9) (d) (10) (c) 5. Fill in the Blanks 1) Specific Duty implies obligation is payable dependent on the____________and__________by the assessee (2) Provisions under area 4A have___________effect over segment 4 of the Central Excise Act (3) Production 1500 units, amount sold 510 units @ 250 for every unit, 840 units @ 200 for every unit, test clearances 35 units and the equalization 150 units are available. Thus, the assessable worth is Rs. _________ (4) Excisable merchandise expended inside the industrial facility for the assembling of definite item is called___________ (5) X Ltd (Holding Company) offered products to Y Ltd (Subsidiary Company) at Rs. , 00,000. Thusly Y Ltd offered merchandise to Z Ltd (irrelevant individual) at Rs. 1, 10,000, at that point the assessable incentive in the hands of X Ltd________. (6) Assessable if there should be an occurrence of hostage utilization is the expense of creation plus_______ (7) The exchange esteem can't be considered as assessable worth if, any one or part of the conditions____________. (8) MRP arrangements are not pertinent for bundled items implied for________. (9) Compound Levy Scheme is an___________schemes. (10) Dharmada Charges recouped from the purchaser is structure part of__________. Answer: (1) Length and weight of the item 2) Overriding (3) Rs. 3, 02,500 (4) Captive utilization (5) Rs. 1, 10 ,000 (6) @10% (7) Not fulfilled (8) Industrial or institutional purchasers. (9) Optional (10) Assessable Value 6. State Yes Or No, Give Reasons (1) Specific Duty implies obligation is payable by the assessee on excisable merchandise dependent on the estimation of products. (2) Compound toll conspire implies a discretionary plan (3) Maximum Retail Price implies not restrictive of obligations and expenses (4) Transaction esteem is pertinent just when conditions determined in the arrangements are fulfilled. 5) Dharmada charges gathered from the purchaser are not includible in the assessable worth. (6) E