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

Question Report Error

The 'RCM' (Reverse Charge Mechanism) under GST applies to:

A. All supplies

B. Specified categories of supplies and registered persons

C. Only services

D. Only goods

Answer: Option B

Solution (By JKExamLibrary)

RCM is applicable to notified categories of goods/services and where supplier is unregistered to registered recipient.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Practice More Accountancy and Book Keeping Questions

Question #1 Report Error

A business paid ₹12,000 as insurance premium for the year ending 31st March 2025, out of which ₹3,000 relates to next year. Insurance expense for current year is:

A. ₹9,000

B. ₹3,000

C. ₹12,000

D. ₹15,000

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Correct Answer: Option A

Explanation:
Prepaid ₹3,000, so current year expense = 12,000 - 3,000 = ₹9,000.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2 Report Error

Cost Audit in India is mandatory for specific companies under which section of the Companies Act, 2013?

A. Section 139

B. Section 143

C. Section 44AB

D. Section 148

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Correct Answer: Option D

Explanation:
Section 148 empowers the Central Government to mandate cost audits for companies engaged in specific production or manufacturing activities.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping