The 'Reverse Charge Mechanism' (RCM) under GST applies when: MCQ with Answer and Explanation

Question
The 'Reverse Charge Mechanism' (RCM) under GST applies when:
A. A registered person buys from an unregistered person (for specified goods/services)
B. Only for imports
C. A registered person buys from another registered person
D. For exports
Answer: Option A
Solution (By JKSSB Mock Tests)
RCM is applicable in certain cases including supplies by unregistered persons to registered persons (though now mostly suspended except specific notified items). Also for specified services like legal, goods transport agency, etc.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1
Securities Premium Account is shown on the liabilities side of the Balance Sheet under the heading:
A. Long-term Provisions
B. Reserves and Surplus
C. Current Liabilities
D. Share Capital
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
Securities premium is a capital profit and is classified under 'Reserves and Surplus' in the balance sheet.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
The 'Analytical Procedures' are required:
A. Only as substantive
B. Never
C. At planning, as substantive procedures, and at final review stage
D. Only at planning stage
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
SA 520 mandates analytical procedures at these stages.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'Reverse Charge Mechanism' under GST means:
A. Tax is paid by the recipient of supply
B. Tax is deferred
C. Tax is paid by the supplier
D. Tax is exempt
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
Under reverse charge, the liability to pay GST shifts from the supplier to the recipient.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Explore All Accountancy and Book Keeping MCQs
Today's Top Topics
Accountancy and Book Keeping 1861 Statistics 1318
Explore Subjects
Geography GK 6121 Current Affairs 575 History GK 3374 Accountancy and Statistics 3179 Maths 5575
Practice Mix
Select the most appropriate meaning of the idiom: 'Make a mountain out of a molehill'.
What does the 'GUI' acronym stand for in computer interface terminology?
A trader marks his goods 80% above cost price and gives a discount of 40%. Find his gain percent.
Which type of memory is used to store the firmware that boots the computer?
The average of 8 numbers is 30. If one number is 40, find the average of the remaining 7.