Taxation UPSC Questions

Economics

Taxation MCQ Questions


1.
Indirect taxes contribute about _____ per cent of the tax revenue.
A.
25
B.
35
C.
45
D.
55
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ANSWER :
C. 45
2.
Which one of the following is not a feature of "Value Added Tax"?
UPSC - 2011
A.
It is a muli-point destination - based system of taxation.
B.
It is a tax levied on value addition at each stage of transaction in the production distribution chain.
C.
It is a tax on the final consumption of goods or services and must ultimately be borne by the consumer.
D.
It is basically a subject of the central government and the state governments are only a facilitator for its successful implementation.
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ANSWER :
D. It is basically a subject of the central government and the state governments are only a facilitator for its successful implementation.
3.
Under which of the following circumstances may 'capital gains' arise?
1. When there is an increases in the sales of a product
2. When there is a natural increases in the value of the property owned
3. When you purchase a painting and there is a growth in its value due to an increase in its popularity
Select the correct answer using the codes given below:
UPSC - 2012
A.
1 only
B.
2 and 3 only
C.
2 only
D.
1, 2 and 3
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ANSWER :
B. 2 and 3 only
4.
What is the major source of Indirect taxes?
A.
Service tax
B.
Value added tax
C.
Gross receipts tax
D.
Excise duty
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ANSWER :
D. Excise duty
5.
A decrease in the tax to GDP ratio of a country indicates which of the following?
1. Showing economic growth rate
2. Less equitable distribution of national income
Select the correct answer using the code given below:
UPSC - 2015
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
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ANSWER :
A. 1 only
6.
The sales tax you pay while purchasing a toothpaste is a
UPSC - 2014
A.
tax imposed by the Central Government
B.
tax imposed by the Central Government but collected by the State Government
C.
tax imposed by the State Government but collected by the Central Government
D.
tax imposed and collected by the State Government
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ANSWER :
D. tax imposed and collected by the State Government