Test on Section 43B(h)

A company buys goods worth ₹100,000 (excluding GST) from an MSE. The applicable GST rate is 18%, making the total payable amount ₹118,000 (including GST).

If the company claims the ITC for the GST and the payment falls under Section 43B(h) disallowance, what amount is disallowed?

• ₹0 (No disallowance)

• ₹18,000 (GST amount)

• ₹100,000 (Amount excluding GST)

• ₹118,000 (Full amount including GST)

Which of the following statements accurately defines a Small Enterprise according to the MSME Act?

• Net investment in plant and machinery or equipment exceeds Rs 10 crore, and net turnover exceeds Rs 50 crore

• Net investment in plant and machinery or equipment does not exceed Rs 10 crore, and net turnover does exceed Rs 50 crore

• Net investment in plant and machinery or equipment does not exceed Rs 10 crore, and net turnover does not exceed Rs 50 crore

• Net investment in plant and machinery or equipment exceeds Rs 10 crore, and net turnover does not exceed Rs 50 crore

A Udyam-registered company, currently classified as a small enterprise, purchases land worth Rs. 10 crore. Based on the information provided, will this purchase affect their small enterprise status?

• Yes, the land purchase exceeds the investment limit and changes the company's status.

• No, investment in land does not count towards the investment limit for enterprise classification.

• The answer is unclear, more information is needed.

• It depends on the specific regulations of the local government.

An MSE supplies goods to a company. The due date for payment is March 31st, 2024.

• The company issues a cheque to the MSE on March 31st, but the MSE encashes it after March 31st.

As per accepted commercial practices, when is the payment considered made ?

• On the date the cheque is issued (March 31st).

• On the date the cheque is encashed by the MSE.

• The answer depends on the specific agreement between the company and the MSE.

• It is not possible to determine based on the information provided.

As per the MSMED Act, how is the turnover of an enterprise (micro, small, or medium) calculated for classification purposes?

• Only domestic sales of goods are considered

• Only domestic sales of services are considered

• Both domestic and export sales of goods and services are included

• Exports of goods and services are excluded

Which of the following statements is true for computation of Net Investment ?

• Only the cost of new (first-hand) plant and machinery is considered

• The definition is based on the Income-tax Rules, 1962, and includes all tangible assets except land, buildings, furniture, and fittings

• The purchase value includes GST

• The definition only applies to manufacturing enterprises