TDS on rent under Section 194I is deducted at: MCQ with Answer and Explanation

TDS on rent under Section 194I is deducted at:
A. 10% for land/building, 2% for plant/machinery
B. 2%
C. 1%
D. 5% for all
Answer: Option A
Solution (By JKSSB Mock Tests)
Section 194I: rent for plant/machinery 2%, for land/building/furniture 10%.

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Practice More Accountancy and Book Keeping Questions

Question #1
An increase in the value of a fixed asset is credited to:
A. Capital Reserve
B. General Reserve
C. Revaluation Reserve
D. Profit & Loss Account

Correct Answer: Option C


Explanation:
Increase in value on revaluation is credited to Revaluation Reserve, as per AS 10.

Question #2
S1: In standard costing, the 'Labour Efficiency Variance' is calculated as (Standard Hours for Actual Production - Actual Hours Worked) x Standard Rate. S2: If the actual hours worked are less than the standard hours, the variance is favorable. Which statement(s) is/are correct?
A. S2 only
B. S1 only
C. Both S1 and S2
D. Neither S1 nor S2

Correct Answer: Option C


Explanation:
Both statements are correct. The formula for Labour Efficiency Variance is (SH - AH) x SR. If AH < SH, the result is positive, indicating a favorable variance (less time taken than standard).

Question #3
The GST Composition Scheme is designed primarily to benefit:
A. Small taxpayers by reducing compliance burden
B. Large multinational corporations
C. Exporters
D. E-commerce operators

Correct Answer: Option A


Explanation:
It allows small businesses (up to a certain turnover) to pay a fixed percentage of turnover as tax and file simpler, less frequent returns.