taxes types, methods & budgeting process section 2 MCQ Questions & Answers Detailed Explanation

Question : 1

Consider the following items.

1. Cereal grains hulled
2. Chicken eggs cooked
3. Fish processed and canned
4. Newspapers containing advertising material

a) Only 2 and 3

b) Only 1, 2 and 4

c) Only 1

d) 1, 2, 3 and 4

Question : 2

Which of the following taxes is levied by the Gram Panchayats?

a) Land Revenue Tax

b) Tax on local fairs

c) Sales Tax

d) None of the above

Question : 3

The representation of the relationship between possible rates of taxation and the resulting levels of government revenue is called

a) Philips curve

b) Laffer curve

c) Griffin curve

d) Gini’s curve

Question : 4

Consider the following statements regarding 'Contingency Fund of India'

1. The fund is at the disposal of the president of India
2. The fund is at the disposal of the Prime Minister of India
3. The funds spent shall ultimately be approved by the parliament
4. The funds spent are recouped from the Consolidated Fund of India

a) (ii) & (iv) only

b) (i), (iii) & (iv) only

c) (i) only

d) (i) & (iv) only

Question : 5

Which of the following is not a direct tax in India?

a) Wealth Tax

b) Estate duty

c) Income Tax

d) Sales Tax

Question : 6

Consider the following statements regarding Goods and Services Tax (GST):

1. Taxes need to be paid at each point in the value chain
2. It will have an input tax credit mechanism
3. The total taxes will be passed on to the consumers

a) (i) & (iii) only

b) (ii) & (iii) only

c) (i) & (ii) only

d) All of the above