S1: Under GST, the 'Reverse Charge Mechanism' (RCM) is applicable on the supply of notified goods by an unregistered person to a registered person. S2: Under RCM, the recipient must pay GST using his electronic cash ledger, not the electronic credit ledger. Which statement(s) is/are correct? MCQ with Answer and Explanation
S1: Under GST, the 'Reverse Charge Mechanism' (RCM) is applicable on the supply of notified goods by an unregistered person to a registered person. S2: Under RCM, the recipient must pay GST using his electronic cash ledger, not the electronic credit ledger. Which statement(s) is/are correct?
A. S2 only
B. Both S1 and S2
C. S1 only
D. Neither S1 nor S2
Answer: Option B
Solution (By JKSSB Mock Tests)
Both statements are correct. RCM applies to notified goods from unregistered suppliers, and the recipient must pay the tax in cash (via the electronic cash ledger) before claiming ITC in the electronic credit ledger.
S1: Depreciation is charged on all fixed assets except land. S2: Depreciation is charged on land if it is a freehold land. Which statement(s) is/are correct?
Explanation:
Depreciation is charged on all depreciable fixed assets. Land (specifically freehold land) has an unlimited useful life and is not depreciated. Leasehold land is depreciated over the lease term. S1 is correct, S2 is incorrect.
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