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.
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
3.

Match the following indirect tax issues.

List I List II
a) Excise duty i.) Manufacturing of goods
b) Multiple excise structure ii.) Regressive in nature
c) Cascading effect iii.) Different interpretation on tax payable
A.

a-i,b-ii,c-iii

B.

a-ii,b-iii,c-i

C.

a-iii,b-ii,c-i

D.

a-ii,b-i,c-iii

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ANSWER :

B. a-ii,b-iii,c-i

4.
To prevent the cascading effect, _____ was introduced.
A.
Value Added Tax
B.
Service Tax
C.
Gross receipts tax
D.
Excise duty
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ANSWER :
A. Value Added Tax
5.
_____ is a tax on the value additions at each stage of production rather than on the finished goods.
A.
Estate tax
B.
Value added tax
C.
Property tax
D.
Corporate income tax
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ANSWER :
B. Value added tax
6.
VAT in Indian economy stands for
A.
Value Added Tax
B.
Value Awareness Tax
C.
Vigilance Awareness Tax
D.
Vigilance Added Tax
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ANSWER :
A. Value Added Tax