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

Question : 1

The Minimum Alternative Tax (MAT) was introduced in the budget of the Government of India for the year?

a) 1995-96

b) 1991-92

c) 1992-93

d) 1996-97

Question : 2

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

1. GST is a value-added tax
2. GST is a multipoint destination-based tax

a) (ii) only

b) Both (i) & (ii)

c) (i) only

d) Neither (i) nor (ii)

Question : 3

Consider the following statements regarding the Fifteenth Finance Commission (FFC) recommendations:

1. For horizontal devolution, the population of the 2011 Census will be considered
2. There are six parameters for horizontal devolution out of which ‘Tax Effort’ is one

a) (ii) only

b) Both (i) & (ii)

c) (i) only

d) Neither (i) nor (ii)

Question : 4

Which of the following are included in the category of direct tax in India?

1. Corporation tax
2. Tax on income
3. Wealth tax
4. Customs duty
5. Excise duty

a) 2 and 3

b) 1, 2 and 3

c) 1, 2, 4 and 5

d) 1, 3, 4 and 5

Question : 5

MODVAT is related to

a) Value Added Tax (VAT)

b) Wealth Tax

c) Excise Duty

d) Income Tax

Question : 6

Which of the following are Non-Tax Receipts of the Central Government?

1. Issue of Passport and Visa
2. Registration of Companies
3. Royalty from on shore oilfields
4. Royalty from offshore oilfields

a) (i), (ii) & (iii) only

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

c) (i) only

d) All of the above