Description
1) What is the idea of “Residential Status” in direct taxes on individuals, and how does it affect a taxpayer’s (both resident and non-resident) tax liability in India? (10 Marks)
2) What is the GST (Goods and Services Tax) notion of “Supply” in India, and how does it establish the taxability of transactions within the GST framework? Explain the distinction between VAT and GST. (10 Marks)
3) XYZ Electronics Pvt. Ltd. is a Mumbai-based electronic gadget company. They just received an order for 1000 units of their latest smart phone model from a dealer in another state. The selling price per unit is INR 15,000, with a 12% GST rate. XYZ Electronics Pvt. Ltd. is interested in learning about the GST consequences of this interstate sale. Can you answer the following questions for them?
- a) What type of supply does this transaction fall under and how will it be treated under GST? (5 Marks)
- b) What is the GST liability for XYZ Electronics Pvt. Ltd. on this sale, and how will they calculate the tax amount? (5 Marks)