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CA Final · Indirect Tax Laws · Electronic Commerce Transactions

Sunrise Stays Pvt Ltd runs an online platform that lists hotel accommodation. For a particular service category, the Government has notified under section 9(5) that tax shall be paid by the operator. Consider the following statements: (I) Such operator must be registered under section 24(iv). (II) Suppliers making only section 9(5) supplies through it are compulsorily registrable under section 24(ix). Which is correct?

Only statement I is correct. Section 24(iv) compels registration of an operator liable to pay tax under section 9(5). Section 24(ix) expressly excludes supplies specified under section 9(5), so suppliers making only such supplies through the operator are not compulsorily registrable under that clause.

  1. ABoth I and II are correct
  2. BOnly II is correct
  3. CNeither I nor II is correct
  4. DOnly I is correctCorrect

Explanation

Section 24(iv) requires registration of persons who are required to pay tax under section 9(5), so statement I is correct. Section 24(ix) applies to suppliers of goods or services other than supplies specified under section 9(5), so suppliers making only section 9(5) supplies are not covered by it; statement II is incorrect.

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