Sunday Quiz_12072020

Electric shaving machine is classifiable under following:

A. 8510: Shavers and hair clippers with self-contained electric motors

B. 8509: Electro mechanical domestic appliances with self-contained electric motor

• Option A

• Option B

• More Information Required

• Can be classified under both

• I use only blade and so I dont know the answer

GST department has issued SCN u/s 74 on A Ltd for non payment of GST for the months Dec 2019 to March 2020. What is the date by which the SCN should be served on the Assessee?

• 9/30/2023

• 12/31/2023

• 6/30/2025

• 12/31/2025

• Any working day is fine

B Ltd had an amount of Rs.4 Crores recoverable from one of its client. Since the client could not pay up the money in cash, it offered to settle the a commercial land in favour of B Ltd. B Ltd has not yet decided any use for the land but took it as settlement. Land should be

• Classified as PPE under Ind AS 16

• Classified as Investment Property under Ind AS 40

• Classified as Inventories under Ind AS 2

• None of the above

• Who cares. As long as you got the land - its okay

A Ltd took an asset on lease for 5 Years. Lease rent is Rs.5/unit produced, payable annually, subject to maximum of Rs.2 Crores pa. A Ltd is expected to produce 30 Lakh units pa. Assuming a discount rate of 10%, initial recognition of Lease Liability is -

• Rs.NIL

• Rs.758 Lakhs

• Rs.568 Lakhs

• Rs.1000 Lakhs

• I dont even understand the question

Ms. Abhaya, a Sikkimese woman, married Mr. Kumar from Tamil Nadu on 16th May 2008. During the PY 2019-20, she received rent of ₹16 lakhs from a business run in Sikkim. What would be the taxable income of Ms. Abhaya?

• Nil. Exempt u/s 10(26AAA)

• ₹8 Lakhs. 50% exempt u/s 10(26AAA)

• ₹16 Lakhs. Not exempt u/s 10(26AAA)

• ₹16 Lakhs. Taxable @ 10% u/s 10(26AAA)

• “For I don’t care too much for money, for money can’t buy me love.”— The Beatles

The amount credited to SEZ Re-investment Reserve A/C must not be utilised for:

• Acquiring machinery

• Acquiring raw materials

• Payment of dividend

• Payment to creditors

As per Clause 15 of Form 3CD - Give the following particulars of the capital asset converted into stock-in-trade:— (a) Description of capital asset; (b) Date of acquisition; (c) Cost of acquisition; (d) Amount at which the asset is converted into stock-in-trade.

The above disclosure is required in respect of the year in which -

• The capital asset is bought

• The capital asset is converted into stock in trade

• The capital asset is ultimately sold

• All the above

• My Mindvoice - Is there a clause like this in 3CD??

Ethics - As per ICAI regulations on training articles, the number of hours of articleship shall be ........ hours in a week. However the same can be extended to ............ hours subject to complementary off being given in the next week.

• Infinity, Infinity square

• 48, 56

• 35,45

• 40, 50

Spot price of Gold is Rs 2985. A Call option (European) expiring 3 months at a strike price of Rs 3050 is now traded for Rs 137.50. The intrinsic value of call is .... [Present value discounting factor is 0.97]

• 137.50

• 133.37

• Nil

• 2958.50

• Call charges 6 paise per minute [Reliance Jio]

A company has a target sales ratio of 0.75, a target Net Profit margin of 0.08, a target D.E. Ratio of 0.80 and

target earnings retention rate of 0.75. In a steady state, what is the sustainable growth rate?

• 14.40%

• Information inadequate

• 16.82%

• 10.80%

• Ask Vijay Mallya