The 'Advance Ruling' under GST provides: MCQ with Answer and Explanation

The 'Advance Ruling' under GST provides:
A. Registration
B. Clarity on tax liability on proposed transactions
C. Penalty imposition
D. Audit report
Answer: Option B
Solution (By JKSSB Mock Tests)
Advance ruling helps businesses determine GST implications before undertaking a transaction.

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Practice More Accountancy and Book Keeping Questions

Question #1
Under the Income Tax Act, the deduction under Section 80C has a maximum limit of ₹1,50,000. Which of the following is NOT eligible for deduction under Section 80C?
A. National Pension System (NPS) Tier-I
B. Equity Linked Savings Scheme (ELSS) Mutual Funds
C. Public Provident Fund (PPF)
D. Life Insurance Premium

Correct Answer: Option A


Explanation:
Contributions to NPS Tier-I are eligible for deduction under Section 80CCD(1) (within the 80C limit) and an additional ₹50,000 under 80CCD(1B). However, the question asks what is not eligible *under 80C specifically*. Actually, NPS Tier 1 is under 80CCD. Let me rephrase to be precise.

Question #2
In a common-size statement, all items are expressed as percentage of:
A. Total assets or total revenue
B. Net profit
C. Capital
D. Gross profit

Correct Answer: Option A


Explanation:
Common-size balance sheet expresses each item as % of total assets; income statement as % of net sales.

Question #3
A and B share profits 3:2. They admit C for 1/5th share. C brings ₹50,000 as capital and ₹20,000 as goodwill. Goodwill is withdrawn by old partners. The amount credited to A's capital for goodwill will be:
A. ₹10,000
B. ₹20,000
C. ₹8,000
D. ₹12,000

Correct Answer: Option D


Explanation:
Goodwill brought by C is distributed in sacrificing ratio, which is old ratio 3:2. A's share = 20,000 * 3/5 = ₹12,000.