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Sales Tax Act 1990 Pakistan Test Online

Mustansar KhanLast Updated: July 8, 2025

Sales Tax Act 1990 Pakistan Test Online

Sales Tax Act 1990 Pakistan Test

Total Questions:	38
Time Allowed:	20 Minutes
Total Marks:	38
How to Attempt Test:	Please choose the right Option in MCQ-type question.
Test Helpful For:	FBR Sub Inspector Test Customs Inspector Test FBR Interviews FBR Sepoy Test Preparation for Customs and Tax Related Questions

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

A person who is exempt from paying taxes

A government official responsible for tax collection

A person who only imports goods

A person who makes taxable supplies of goods or services

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

Services related to agriculture

Personal gifts

Professional legal services

Healthcare services

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

Borrowing money from a bank

Receiving a government grant

Receiving a loan

Sale or transfer of goods and services

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

Tax paid on raw materials

Tax levied on business profits

Tax on income

Tax collected from customers on sales of goods or services

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

15%

20%

10%

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

The buyer pays tax instead of the seller in specific cases

The tax is paid by the government directly

The seller collects tax from the government

Sales tax is waived for certain transactions

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

It applies only to imported goods

It applies to all types of income generated in the country

It applies to sales and purchases of goods and services

It applies to capital gains only

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

The government assessing the income of each taxpayer

An audit process conducted by FBR

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

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

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

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

Taxable supplies are taxed at a lower rate

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

Taxable supplies are exempt from sales tax

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

Zero-rated supplies are subject to tax only for exporters

Zero-rated supplies can only be exported to foreign countries

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

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

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

Gifts

Imports of goods

Exports of goods

Agricultural products

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

Income tax

Capital gains tax

Property tax

Sales tax on goods and services

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

To provide refunds to consumers

To allow businesses to avoid tax obligations

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

To eliminate sales tax for exporters

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

The total amount of imports during a period

The total amount of tax collected from customers

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

The total sales revenue of a business without tax

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

To grant tax deductions for high-income earners

To return overpaid taxes to consumers

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

To encourage the export of goods

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

Tax paid on goods and services purchased for business purposes

Tax paid on income

Tax levied on imports only

Tax collected from customers on sales

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

To eliminate tax compliance altogether

To introduce new tax rates for multinational companies

To simplify the tax filing process for small and medium enterprises

To set up an international tax system for imports

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

To collect sales tax on exported goods at the destination country

To impose additional taxes on exports

To reduce tax rates for exporters only

To provide exemptions and refunds for sales tax on exported goods

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

The profits made by businesses after tax payments

The tax paid on raw materials

The increase in the cost of production due to taxes

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

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

To simplify the tax registration process for new businesses

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

To outline the penalties for non-payment of taxes

To regulate the payment of taxes on foreign goods

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

A license to import goods into Pakistan

A certificate confirming an individual’s eligibility for tax exemptions

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

A document required to file income tax returns

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

A period of 6 months for all taxpayers

A period of 12 months starting from January

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

A period determined by the Ministry of Finance

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

Obtain permission from the provincial tax authority

Pay the sales tax before registration

Submit an application to the Ministry of Commerce

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

A reduction in the tax rate

A temporary suspension of tax registration

A fine and possible imprisonment

A warning

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

Textiles

Education services

Petroleum products

Electronics

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

A government license for importers

A unique Taxpayer Identification Number (TIN)

Proof of business profits

An annual tax clearance certificate

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

Petrol

Tobacco

Electronics

Wheat

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

Alcoholic beverages

Luxury vehicles

Educational books

Mobile phones

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

A fine and imprisonment for non-filing of tax returns

A fine imposed by the Ministry of Commerce

Immediate suspension of business operations

No penalty for minor offenses

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

Bi-annually

Monthly

Annually

Quarterly

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

It is not applied to imports

Based on the total value of goods and customs duty

Based on the retail price in the country of origin

Only on the cost of production of the imported goods

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

National Bank of Pakistan

Ministry of Finance

Provincial Tax Authority

Federal Board of Revenue (FBR)

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

Basic food items like wheat and rice

Luxury goods

Textiles

Motor vehicles

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

Sale of motor vehicles

Educational services

Donation to charity

Agricultural produce

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

Provincial Tax Authorities

Ministry of Finance

State Bank of Pakistan

Federal Board of Revenue (FBR)

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

It helps businesses claim tax deductions from their income tax returns

It allows businesses to pay sales tax in installments

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

It eliminates tax liability for exporters

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

30th of each month

25th of each month

20th of each month

15th of each month

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

Dividend income from shares

Rental income from property

Legal services provided by a lawyer

Sale of agricultural produce

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Mustansar KhanLast Updated: July 8, 2025

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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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