Taxes Types, Methods & Budgeting Process Section 2 Practice Questions Answers Test With Solutions & More Shortcuts

Question : 1

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

Select the correct answer using the code given below:

a) (i) & (iii) only

b) (ii) & (iii) only

c) (i) & (ii) only

d) All of the above

Answer »

Question : 2 [UKPCS (Pre) 2011]

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

a) Wealth Tax

b) Estate duty

c) Income Tax

d) Sales Tax

Answer »

Question : 3

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

Select the correct answer using the code given below:

a) (ii) & (iv) only

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

c) (i) only

d) (i) & (iv) only

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Question : 4

Tax revenue collection in our country mainly depends on which of the following:

1. Nominal GDP
2. Real GDP

Select the correct answer using the code given below:

a) (ii) only

b) Both (i) & (ii)

c) (i) only

d) Neither (i) nor (ii)

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Question : 5 [UPSC (Pre) 2018]

Consider the following items.

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

Which of the above item is/are exempted under GST (Goods and Service Tax)?

a) Only 2 and 3

b) Only 1, 2 and 4

c) Only 1

d) 1, 2, 3 and 4

Answer »