alleryStart learning →A composite supply has a principal service taxed at 5% and an ancillary service taxed at 18%. What rate applies?
A5%
B18%
C23%
D11.5%
Answer & Solution
Correct answer: A. 5%
A composite supply takes the rate of its principal supply, so 5% applies despite the higher-rated ancillary service.
Keep practising Levy and Collection of Tax
Browse all Levy and Collection of Tax questions for CA Inter, or explore more Taxation topics.
Related questions
On which date was the sunset for new anti-profiteering complaints set?Anti-profiteering under GST was established through which section of the CGST Act?What does the Revenue Neutral Rate (RNR) represent?Who headed the committee set up to design a GST model under Prime Minister Vajpayee?What indirect tax reform did V. P. Singh begin in 1986?States were assured compensation for GST revenue loss for how many years?Who presides over the GST Council?Which of these is outside GST and taxed separately?