Page 7 - Chapter 2.cdr

(b) any activity or transaction in connection with or incidental or ancillary to sub- ii) Yes, as per the definition of business, supply or acquisition of goods including
clause (a) capital goods and services in connection with commencement or closure of
(c) any activity or transaction in the nature of sub-clause (a) , whether or not business. CH 2
there is volume, frequency, continuity or regularity of such transaction iii) No , as per the definition of business, provision of services to members as in
(d) supply or acquisition of goods including capital goods and services in connection return for subscription fee, thus in the given case as free trekking camp is
with commencement or closure of business organized for non-members.

(e) provision by a club, association, society , or any such body (for a subscription or iv) Yes, as per definition of business, admission, for a consideration, of persons to
any other consideration) of the facilities or benefits to its members any premises as in the given case the entry fee is charged for admission into the
(f) admission , for a consideration, of persons to any premises park.
(g)services supplied by a person as the holder of an office which has been accepted Charge of Tax & Concept of Supply
by him in the course or furtherance of his trade, profession or vocation CCP 02.06.14.00

(h) Activities of a race club including by way of totalisator or a licence to book Determine whether the below activity covered under definition of business?
maker or activities of a licensed book maker in such club and (Amended) and (Case Study)
(I) any activity or transaction undertaken by the Central Government, a State i) Goods sold in store maintained by the company for the welfare of the
Government or any local authority in which they are engaged as public employees.
authorities ii) If Mr. chotu want to hire a premises but the same is already hired by Mr.

Motu. Now Mr. Motu agrees to vacant on payment of ` 3lakh to him which is
CCP 02.06.13.00 popularly called Pagadi”.
Determine whether the following activities fall under the scope of business? iii)Activities of Pune Race club for horse race collected `5 lakh through
i) M/s X pvt ltd is engaged in the manufacture of auto parts for industrial licensed book marker or totalizer or activities of licensed book marker in

purposes such a club.
ii) M/s ABC ltd acquired capital goods lying in stock of M/s S ltd as on takeover Answer:
of business of M/s S ltd. i) Turnover of goods sold in the store maintained by the company for the welfare of
iii) ETA Star adventure club provides a free trekking camp to non-members of the employees was held to be INCIDENTAL TO MAIN BUSINESS.
the club ii) Business include admission to any premises for consideration Now Mr. Motu
iv) Adlabs Imagica charges ` 1500 as an entry fee into the park to its receiving payment of ` 3 lakh for allowing is covered in definition of business.
customers iii) Activities by a race club are covered in definition of business.

Answer:
i) Yes, the given activity of manufacture has been included in the definition of
business.

CA VISHAL BHATTAD 09850850800 www.vsmartacademy.com V’Smart Academy 15
CA Final GST Questioner