Home/FBR/Sales Tax Act 1990 Pakistan Test Online

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

Please wait...

Page 1 of 2

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

Imports of goods

Agricultural products

Gifts

Exports of goods

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

Proof of business profits

A government license for importers

A unique Taxpayer Identification Number (TIN)

An annual tax clearance certificate

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

A person who only imports goods

A person who makes taxable supplies of goods or services

A government official responsible for tax collection

A person who is exempt from paying taxes

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

To regulate the payment of taxes on foreign goods

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

To simplify the tax registration process for new businesses

To outline the penalties for non-payment of taxes

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

Capital gains tax

Income tax

Property tax

Sales tax on goods and services

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

To provide exemptions and refunds for sales tax on exported goods

To collect sales tax on exported goods at the destination country

To impose additional taxes on exports

To reduce tax rates for exporters only

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

Donation to charity

Sale of motor vehicles

Agricultural produce

Educational services

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

A warning

A fine and possible imprisonment

A reduction in the tax rate

A temporary suspension of tax registration

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

Bi-annually

Quarterly

Monthly

Annually

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

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

The total amount of tax collected from customers

The total sales revenue of a business without tax

The total amount of imports during a period

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

Mobile phones

Alcoholic beverages

Educational books

Luxury vehicles

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

Legal services provided by a lawyer

Dividend income from shares

Sale of agricultural produce

Rental income from property

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

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

An audit process conducted by FBR

The government assessing the income of each taxpayer

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

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

A period of 12 months starting from January

A period determined by the Ministry of Finance

A period of 6 months for all taxpayers

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

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

Pay the sales tax before registration

Submit an application to the Ministry of Commerce

Obtain permission from the provincial tax authority

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

A document required to file income tax returns

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

A license to import goods into Pakistan

A certificate confirming an individual’s eligibility for tax exemptions

17. 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 difference between the purchase price and the sales price of goods or services

The tax paid on raw materials

The increase in the cost of production due to taxes

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

Federal Board of Revenue (FBR)

National Bank of Pakistan

Ministry of Finance

Provincial Tax Authority

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

30th of each month

20th of each month

25th of each month

15th of each month

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

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

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 tax only for exporters

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

The buyer pays tax instead of the seller in specific cases

Sales tax is waived for certain transactions

The seller collects tax from the government

The tax is paid by the government directly

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

Sale or transfer of goods and services

Receiving a loan

Borrowing money from a bank

Receiving a government grant

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

Electronics

Petrol

Tobacco

Wheat

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

Petroleum products

Electronics

Education services

Textiles

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

Tax collected from customers on sales

Tax paid on goods and services purchased for business purposes

Tax levied on imports only

Tax paid on income

Page 2 of 2

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

It is not applied to imports

Only on the cost of production of the imported goods

Based on the retail price in the country of origin

Based on the total value of goods and customs duty

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

Tax on income

Tax levied on business profits

Tax paid on raw materials

Tax collected from customers on sales of goods or services

28. 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 eliminate sales tax for exporters

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

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

Ministry of Finance

Federal Board of Revenue (FBR)

Provincial Tax Authorities

State Bank of Pakistan

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

It applies to all types of income generated in the country

It applies only to imported goods

It applies to capital gains only

It applies to sales and purchases of goods and services

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

A fine imposed by the Ministry of Commerce

A fine and imprisonment for non-filing of tax returns

No penalty for minor offenses

Immediate suspension of business operations

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

To set up an international tax system for imports

To introduce new tax rates for multinational companies

To eliminate tax compliance altogether

To simplify the tax filing process for small and medium enterprises

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

To grant tax deductions for high-income earners

To encourage the export of goods

To return overpaid taxes to consumers

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

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

Motor vehicles

Textiles

Luxury goods

Basic food items like wheat and rice

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

It eliminates tax liability for exporters

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

It helps businesses claim tax deductions from their income tax returns

It allows businesses to pay sales tax in installments

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

Personal gifts

Healthcare services

Professional legal services

Services related to agriculture

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

10%

20%

15%

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

Taxable supplies are exempt from sales tax

Taxable supplies are taxed at a lower rate

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

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

You Can Learn and Gain more Knowledge through our Online Quiz and Testing system Just Search your desired Preparation subject at Gotest.

Basic Concepts of Taxation Test Online
Federal Board of Revenue (FBR) Function and Role Test Online
Pakistan Customs Role, Functions and Laws Test Online
Sales Tax and Federal Excise Duty Basic Concept Test Online
Key Economic Terms Test Online (Basic Economic Indicators)
Fiscal Policy of Pakistan Test Online
Tax Administration and Reforms in Pakistan Test Online
Federal Excise Act 2005 Pakistan Test Online
Income Tax Ordinance 2001 Pakistan Test Online
Basic Concepts of Auditing and Accounting Test Online

Mustansar KhanLast Updated: July 8, 2025

Facebook Twitter Reddit WhatsApp Share via Email Print

Sales Tax Act 1990 Pakistan Test Online

Sales Tax Act 1990 Pakistan Test Online

Sales Tax Act 1990 Pakistan Test

You Might Also Like

Mustansar Khan

Leave a Reply Cancel reply

Sales Tax Act 1990 Pakistan Test Online

Sales Tax Act 1990 Pakistan Test

You Might Also Like

Mustansar Khan

Your Related

Tax Administration and Reforms in Pakistan Test Online

Basic Concepts of Taxation Test Online

Fiscal Policy of Pakistan Test Online

Federal Excise Act 2005 Pakistan Test Online

Sales Tax and Federal Excise Duty Basic Concept Test Online

Basic Concepts of Auditing and Accounting Test Online

Leave a Reply Cancel reply