CA Final Paper 5: IDT case studies
CA Final Paper 5: IDT · Put your knowledge to work in context.
Paper 5, Indirect Tax Laws, is the indirect-tax component of the CA Final examination under the Chartered Accountants curriculum. It is written for candidates who have completed the Intermediate level and are preparing to practise as chartered accountants. The CA Final Paper 5: IDT case studies are 5 cases and about 4,514 words.
1Cloud SaaS, Third-Party INR Payment and Dubai Training
TechnoSoft Solutions Pvt Ltd (TSPL), Bengaluru, supplies a cloud-based analytics platform to Northwind Inc., a US corporation with no place of business in India. The contract is signed in Delaware and invoices are raised on Northwind in US dollars.
927 words, about 5 min2Mixed ITC, ISD Common Services and Expired E-Way Bill
Sunrise Foods Ltd has manufacturing units in Gujarat and Maharashtra, each with a separate GSTIN. During FY 2024-25 it avails ITC of: (i) ₹42 lakh on civil construction of a cold storage warehouse used to store both raw materials and finished goods; (ii) ₹18 lakh on foundation and installation of a new packaging machine; (iii) ₹6 lakh on CSR activities under section 135 of the Companies Act, 2013; (iv) ₹14 lakh on an Innova car used by the managing director; and (v) ₹9 lakh on audit fees, security services and software used for both units.
956 words, about 5 min3Inverted Duty Refund, Deficiency Memo and Export Credit
Aarav Pharma Ltd manufactures formulations taxable at 12%, using inputs taxed at 18%. Its aggregate turnover for FY 2024-25 is ₹10 crore, comprising ₹4 crore of inverted-rated domestic supply, ₹3 crore of zero-rated exports and ₹3 crore of exempt supply.
780 words, about 4 min4Related-Party Import Valuation and Duty Drawback
Meridian Engineering Pvt Ltd, Pune, imports a used CNC grinding machine from a related supplier in Germany for €300,000 CIF Indian port. The invoice separately shows a licence fee of €30,000 for software embedded in the machine, which is necessary for its operation, and a selling commission of €10,000 paid to an agent in Germany.
1,006 words, about 5 min5Fake ITC, Voluntary Payment, Appeal and Professional Ethics
Nova Traders, a registered dealer in Delhi, availed ITC of ₹18 lakh during FY 2023-24 on invoices from Skyline Enterprises. The GST department later found Skyline to be non-existent and issued a show cause notice dated 15.11.2025 to Nova under section 74, proposing recovery of ₹18 lakh, interest under section 50 and penalty equal to the tax availed under section 122(3).
845 words, about 4 min