Sales Tax Act 1990 Pakistan Test Online

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Question 1

1. What is the "reverse charge mechanism" under the Sales Tax Act, 1990?

Answer

The tax is paid by the government directly

Answer

The buyer pays tax instead of the seller in specific cases

Answer

The seller collects tax from the government

Answer

Sales tax is waived for certain transactions

Question 2

2. What is the scope of the Sales Tax Act, 1990 in Pakistan?

Answer

It applies to all types of income generated in the country

Answer

It applies only to imported goods

Answer

It applies to sales and purchases of goods and services

Answer

It applies to capital gains only

Question 3

3. What is the procedure for obtaining sales tax registration under the Sales Tax Act, 1990?

Answer

Obtain permission from the provincial tax authority

Answer

Submit an application to the Ministry of Commerce

Answer

Pay the sales tax before registration

Answer

Register directly with the Federal Board of Revenue (FBR) online

Question 4

4. What is the penalty for evading sales tax under the Sales Tax Act, 1990 in Pakistan?

Answer

A reduction in the tax rate

Answer

A fine and possible imprisonment

Answer

A temporary suspension of tax registration

Question 5

5. Which of the following is required for registering for sales tax under the Sales Tax Act, 1990 in Pakistan?

Answer

A government license for importers

Answer

Proof of business profits

Answer

An annual tax clearance certificate

Answer

A unique Taxpayer Identification Number (TIN)

Question 6

6. Which of the following is considered a "taxable service" under the Sales Tax Act, 1990 in Pakistan?

Answer

Professional legal services

Answer

Services related to agriculture

Answer

Personal gifts

Answer

Healthcare services

Question 7

7. What is the deadline for filing monthly sales tax returns under the Sales Tax Act, 1990?

Answer

30th of each month

Answer

25th of each month

Answer

20th of each month

Answer

15th of each month

Question 8

8. What is the significance of "input tax adjustment" under the Sales Tax Act, 1990?

Answer

It eliminates tax liability for exporters

Answer

It allows businesses to pay sales tax in installments

Answer

It allows businesses to adjust the tax paid on inputs against their sales tax liabilities

Answer

It helps businesses claim tax deductions from their income tax returns

Question 9

9. Which of the following is subject to sales tax under the Sales Tax Act, 1990 in Pakistan?

Answer

Imports of goods

Answer

Agricultural products

Answer

Exports of goods

Question 10

10. Which of the following entities is responsible for the implementation and enforcement of the Sales Tax Act, 1990?

Answer

Provincial Tax Authority

Answer

Ministry of Finance

Answer

National Bank of Pakistan

Answer

Federal Board of Revenue (FBR)

Question 11

11. What is the purpose of "Sales Tax Refunds" under the Sales Tax Act, 1990?

Answer

To grant tax deductions for high-income earners

Answer

To reimburse businesses for taxes paid on raw materials used in production

Answer

To encourage the export of goods

Answer

To return overpaid taxes to consumers

Question 12

12. What is the effect of "taxable supplies" on sales tax under the Sales Tax Act, 1990?

Answer

Taxable supplies are taxed at a lower rate

Answer

Taxable supplies are subject to a flat tax rate of 17%

Answer

Taxable supplies determine whether a business must collect and remit sales tax

Answer

Taxable supplies are exempt from sales tax

Question 13

13. What is "output tax" under the Sales Tax Act, 1990?

Answer

Tax collected from customers on sales of goods or services

Answer

Tax levied on business profits

Answer

Tax on income

Answer

Tax paid on raw materials

Question 14

14. What is the purpose of the "Sales Tax Act, 1990" for exporters in Pakistan?

Answer

To reduce tax rates for exporters only

Answer

To provide exemptions and refunds for sales tax on exported goods

Answer

To impose additional taxes on exports

Answer

To collect sales tax on exported goods at the destination country

Question 15

15. Which of the following is an example of a "taxable service" under the Sales Tax Act, 1990?

Answer

Sale of agricultural produce

Answer

Dividend income from shares

Answer

Rental income from property

Answer

Legal services provided by a lawyer

Question 16

16. What is the "input tax" in the context of the Sales Tax Act, 1990?

Answer

Tax collected from customers on sales

Answer

Tax paid on goods and services purchased for business purposes

Answer

Tax levied on imports only

Answer

Tax paid on income

Question 17

17. Which of the following goods are subject to a reduced rate of sales tax under the Sales Tax Act, 1990 in Pakistan?

Answer

Basic food items like wheat and rice

Answer

Motor vehicles

Answer

Luxury goods

Question 18

18. What is the penalty for non-compliance with the Sales Tax Act, 1990?

Answer

A fine and imprisonment for non-filing of tax returns

Answer

A fine imposed by the Ministry of Commerce

Answer

Immediate suspension of business operations

Answer

No penalty for minor offenses

Question 19

19. What does the "Sales Tax (Special Procedure) Rules, 2007" aim to do in relation to the Sales Tax Act, 1990?

Answer

To introduce new tax rates for multinational companies

Answer

To eliminate tax compliance altogether

Answer

To set up an international tax system for imports

Answer

To simplify the tax filing process for small and medium enterprises

Question 20

20. Under the Sales Tax Act, 1990, which of the following is considered a taxable event?

Answer

Borrowing money from a bank

Answer

Receiving a loan

Answer

Sale or transfer of goods and services

Answer

Receiving a government grant

Question 21

21. Under the Sales Tax Act, 1990, how is the sales tax on imported goods calculated?

Answer

Based on the retail price in the country of origin

Answer

Only on the cost of production of the imported goods

Answer

It is not applied to imports

Answer

Based on the total value of goods and customs duty

Question 22

22. Which of the following taxes is regulated under the Sales Tax Act, 1990 in Pakistan?

Answer

Income tax

Answer

Capital gains tax

Answer

Sales tax on goods and services

Answer

Property tax

Question 23

23. What is the purpose of the "Sales Tax Special Procedure Rules, 2007" in Pakistan?

Answer

To simplify the tax registration process for new businesses

Answer

To outline the penalties for non-payment of taxes

Answer

To set out the procedure for taxing certain sectors like agriculture and retail

Answer

To regulate the payment of taxes on foreign goods

Question 24

24. Under the Sales Tax Act, 1990, how is "value addition" defined in the context of sales tax?

Answer

The tax paid on raw materials

Answer

The profits made by businesses after tax payments

Answer

The difference between the purchase price and the sales price of goods or services

Answer

The increase in the cost of production due to taxes

Question 25

25. Which of the following is the purpose of tax credits under the Sales Tax Act, 1990?

Answer

To allow businesses to avoid tax obligations

Answer

To provide refunds to consumers

Answer

To reduce tax liabilities by offsetting the input tax against the output tax

Answer

To eliminate sales tax for exporters

Question 26

26. Which of the following statements is true regarding "zero-rated" supplies under the Sales Tax Act, 1990?

Answer

Zero-rated supplies are subject to tax only for exporters

Answer

Zero-rated supplies are subject to the full sales tax rate

Answer

Zero-rated supplies are exempt from tax, and no tax is levied on them

Answer

Zero-rated supplies can only be exported to foreign countries

Question 27

27. What is the "Sales Tax Registration Certificate" issued under the Sales Tax Act, 1990?

Answer

A license to import goods into Pakistan

Answer

A document required to file income tax returns

Answer

A certificate confirming an individual’s eligibility for tax exemptions

Answer

A certificate issued to businesses registered under sales tax for collection purposes

Question 28

28. What is the "tax period" under the Sales Tax Act, 1990 in Pakistan?

Answer

A period of 12 months starting from January

Answer

A period determined by the Ministry of Finance

Answer

A period of one month for the calculation of sales tax liabilities

Answer

A period of 6 months for all taxpayers

Question 29

29. Which of the following goods is exempt from sales tax under the Sales Tax Act, 1990?

Answer

Mobile phones

Answer

Luxury vehicles

Answer

Alcoholic beverages

Answer

Educational books

Question 30

30. Which of the following goods or services is generally excluded from sales tax under the Sales Tax Act, 1990?

Answer

Electronics

Answer

Education services

Answer

Petroleum products

Question 31

31. Which of the following is an example of a taxable supply under the Sales Tax Act, 1990?

Answer

Educational services

Answer

Donation to charity

Answer

Sale of motor vehicles

Answer

Agricultural produce

Question 32

32. Under the Sales Tax Act, 1990, which of the following entities is responsible for auditing sales tax returns?

Answer

Ministry of Finance

Answer

Federal Board of Revenue (FBR)

Answer

Provincial Tax Authorities

Answer

State Bank of Pakistan

Question 33

33. What does the term "taxable turnover" refer to under the Sales Tax Act, 1990?

Answer

The total value of goods and services subject to sales tax during a tax period

Answer

The total amount of imports during a period

Answer

The total amount of tax collected from customers

Answer

The total sales revenue of a business without tax

Question 34

34. Which of the following goods is exempt from sales tax under the Sales Tax Act, 1990 in Pakistan?

Answer

Electronics

Question 35

35. What does "self-assessment" mean in the context of the Sales Tax Act, 1990?

Answer

A process where taxpayers determine their tax liabilities and file returns accordingly

Answer

The government assessing the income of each taxpayer

Answer

An audit process conducted by FBR

Answer

The process where the FBR calculates taxes on behalf of the taxpayer

Question 36

36. How often must businesses file sales tax returns under the Sales Tax Act, 1990?

Answer

Bi-annually

Question 37

37. What does the term "taxable person" refer to under the Sales Tax Act, 1990?

Answer

A person who only imports goods

Answer

A person who makes taxable supplies of goods or services

Answer

A government official responsible for tax collection

Answer

A person who is exempt from paying taxes

Question 38

38. What is the standard rate of sales tax on goods and services in Pakistan under the Sales Tax Act, 1990?

Question 39

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Total Questions:	38
Time Allowed:	20 Minutes
Total Marks:	38
How to Attempt Test:	Please choose the right Option in MCQ-type question.
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Sales Tax Act 1990 Pakistan Test Online

Sales Tax Act 1990 Pakistan Test Online

Sales Tax Act 1990 Pakistan Test

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Sales Tax Act 1990 Pakistan Test Online

Sales Tax Act 1990 Pakistan Test

Study Plan for Sales Tax Act 1990 Pakistan Test Online

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