Taxation UPSC Questions

Economics

Taxation MCQ Questions


7.
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-i,b-iii,c-ii
C.
a-iii,b-ii,c-i
D.
a-ii,b-i,c-iii
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ANSWER :
B. a-i,b-iii,c-ii
8.
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
9.
The term 'Base Erosion and profit shifting is sometimes seen in the news in the context of
UPSC - 2016
A.
mining operation by multi national companies in resource -rich by backward areas
B.
curbing of the tax-evasion by multinational comapanies
C.
exploitation of genetic resource of a country by multinational costs in the planning of development projects.
D.
Lack of consideration of environment costs planning of development projects.
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ANSWER :
B. curbing of the tax-evasion by multinational comapanies
10.
_____ 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
11.
What is/are the most likely advantages of implementing 'Goods and Services Tax (GST)'?
1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India.
2. It will drastically reduce the ' Current Account Deficit' of India and will enable it to increase its foreign exchange reserves.
3. It will enormously increase the growth and size of the economy of India and will enable it to overtake China in the near future.
Select the correct answer using the code given below:
UPSC - 2017
A.
1 only
B.
2 and 3 only
C.
1 and 3 only
D.
1,2 and 3
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ANSWER :
A. 1 only
12.
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