S1: Under GST, the Reverse Charge Mechanism (RCM) is applicable on the supply of notified services by an unregistered person to a registered person. S2: Under RCM, the recipient of the service is liable to pay GST and can also claim ITC on the same, subject to normal ITC rules. 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 services by an unregistered person to a registered person. S2: Under RCM, the recipient of the service is liable to pay GST and can also claim ITC on the same, subject to normal ITC rules. Which statement(s) is/are correct?
A. Both S1 and S2
B. S2 only
C. S1 only
D. Neither S1 nor S2
Answer: Option A
Solution (By JKSSB Mock Tests)
Both statements are correct. RCM shifts the liability to pay GST to the recipient for notified services from unregistered suppliers, and the recipient can claim ITC if the service is used for business and not blocked under Section 17(5).
The 'Business Combinations' (Ind AS 103) require acquisition method. It involves:
A.Only merger accounting
B.Pooling of interests
C.Identifying acquirer, determining acquisition date, recognising and measuring identifiable assets, liabilities, and non-controlling interest, and recognising goodwill or bargain purchase
Under the Single Entry system, if additional capital introduced is Rs 20,000, Closing Capital is Rs 80,000, Opening Capital is Rs 50,000, and Drawings are Rs 15,000, what is the profit/loss?
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