taxes types, methods & budgeting process section 1 MCQ Questions & Answers Detailed Explanation

Question : 1

Which of the following tax is levied by Union but collected and appropriated by States?

a) Passenger & Goods Tax

b) Taxes on Newspapers

c) Stamp Duties

d) None of the above/More than one of the above

Question : 2

The term “Pump Priming” means:

1. It is a way to stimulate the economy by reducing tax
2. It is done in economic slowdown by increasing government spending
3. RBI prints extra money

a) (i) & (ii) only

b) (iii) only

c) (i) only

d) All of the above

Question : 3

Which of the following statements about Krishi Kalyan Cess (KKC) is/are correct ?

1. KKC is calculated in the same way as Service Tax is calculated.
2. The current rate of KKC is 0.50%
3. KKC is similar to the KKS (Krishi Kalyan Surcharge).

a) 2 and 3 only

b) 1, 2 and 3

c) 1 and 2 only

d) 1 only

Question : 4

Consider the following statements. In India, Stamp duties on financial transactions are

1. Levied and collected by the state
2. Appropriated by the Union Government

a) Only 2

b) Both 1 and 2

c) Only 1

d) Neither 1 nor 2

Question : 5

Fiscal Policy in India is formulated by

a) the Finance Ministry

b) the Reserve Bank of India

c) the Planning Commission

d) the Securities and Exchange Board of India

Question : 6

Service Tax in India was introduced in the year

a) 1996-97

b) 1998-99

c) 1994-95

d) 1991-92