Taxation UPSC Questions

Economics

Taxation MCQ Questions


13.
with reference to the'Prohibition of Benami Property Transactions Act, 1988(PBPT Act)',consider the following statements:
1. A property transaction is not treated as a benami transaction if the owner of the property is not aware of the transaction.
2. Properties held Benami are liable for confiscation by the government,
3. The Act provides for three authorities for investigations but does not provide for any appellate mechanism.
Which of the statements given above is/are correct?
UPSC - 2017
A.
1 only
B.
2 only
C.
1 and 3 only
D.
2 and 3 only
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ANSWER :
B. 2 only
14.
The scheme which allows partial adjustment of duties on capital goods purchased is
A.
Service tax
B.
Value added tax
C.
Modified Value Added Tax
D.
Estate tax
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ANSWER :
C. Modified Value Added Tax
15.
A major reform has been at the state level with the replacement of salestax with state VAT was done by _____
A.
Shri. N. D. Tiwari
B.
Shri. P. Chidambaram
C.
Smt. Nirmala Sitharaman
D.
Shri. Asim Das Gupta
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ANSWER :
D. Shri. Asim Das Gupta
16.
Examine the following statements, and choose the option that suits the best.
Statement 1: The sales tax regime was very complicated with different sales tax rates for the same products in different states.
Statement 2: A state VAT required one product and one tax rate across all states.
A.
Statement -1 is true, statement -2 is true;
statement -2 is NOT the correct explanation for statement -1.
B.
Statement -1 is true, statement -2 is true;
statement -2 is the correct explanation for statement -1.
C.
Statement -1 is true,
statement -2 is false.
D.
Statement -1 is false,
statement -2 is true.
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ANSWER :
B. Statement -1 is true, statement -2 is true;
statement -2 is the correct explanation for statement -1.
17.
Identify the wrong statement.
a) State VAT is not a new tax but only a change in the way of collecting tax from the final stage to the value addition stage.
b) This allows for the set-off of duties from the tax payable but against original invoices/ challans of the tax paid on the inputs purchased.
c) The state VAT has helped in checking tax evasion by introducing a bill culture.
A.
a,b,c
B.
Only b
C.
a and b
D.
None of the above
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ANSWER :
D. None of the above
18.
Match the following
List I List II
a) 270 mass-consumed goods i.) 4 per cent state VAT
b) 280 goods ii.) 12.5 per cent uniform VAT
c) gold and silver ornaments iii.) 1 per cent
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 :
A. a-i,b-ii,c-iii