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 taxes is regulated under the Sales Tax Act, 1990 in Pakistan?

Capital gains tax

Property tax

Income tax

Sales tax on goods and services

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

A license to import goods into Pakistan

A document required to file income tax returns

A certificate confirming an individual’s eligibility for tax exemptions

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

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

A fine imposed by the Ministry of Commerce

No penalty for minor offenses

A fine and imprisonment for non-filing of tax returns

Immediate suspension of business operations

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

Borrowing money from a bank

Receiving a loan

Receiving a government grant

Sale or transfer of goods and services

5. 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

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

An annual tax clearance certificate

A unique Taxpayer Identification Number (TIN)

Proof of business profits

A government license for importers

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

To regulate the payment of taxes on foreign goods

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

8. 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

Motor vehicles

Textiles

Luxury goods

9. 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

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

Petrol

Electronics

Wheat

Tobacco

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

To reduce tax rates for exporters only

To provide exemptions and refunds for sales tax on exported goods

To impose additional taxes on exports

To collect sales tax on exported goods at the destination country

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

15%

20%

10%

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

To encourage the export of goods

To grant tax deductions for high-income earners

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

To return overpaid taxes to consumers

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

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

A period of 6 months for all taxpayers

A period determined by the Ministry of Finance

A period of 12 months starting from January

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

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

The profits made by businesses after tax payments

The tax paid on raw materials

The increase in the cost of production due to taxes

17. 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

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

Tax collected from customers on sales

Tax levied on imports only

Tax paid on income

Tax paid on goods and services purchased for business purposes

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

Bi-annually

Monthly

Quarterly

Annually

20. 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

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

Educational books

Mobile phones

Alcoholic beverages

Luxury vehicles

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

Provincial Tax Authority

Federal Board of Revenue (FBR)

National Bank of Pakistan

Ministry of Finance

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

To eliminate sales tax for exporters

To allow businesses to avoid tax obligations

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

To provide refunds to consumers

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

It is not applied to imports

Based on the retail price in the country of origin

Only on the cost of production of the imported goods

Based on the total value of goods and customs duty

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

Education services

Textiles

Petroleum products

Electronics

Page 2 of 2

26. 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 simplify the tax filing process for small and medium enterprises

To eliminate tax compliance altogether

To introduce new tax rates for multinational companies

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

A person who is exempt from paying taxes

A person who only imports goods

A government official responsible for tax collection

A person who makes taxable supplies of goods or services

28. 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 are subject to the full sales tax rate

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

Zero-rated supplies can only be exported to foreign countries

29. 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 to capital gains only

It applies only to imported goods

It applies to sales and purchases of goods and services

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

Services related to agriculture

Healthcare services

Professional legal services

Personal gifts

31. 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 warning

A fine and possible imprisonment

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

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

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

The government assessing the income of each taxpayer

An audit process conducted by FBR

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

Gifts

Exports of goods

Agricultural products

Imports of goods

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

Educational services

Sale of motor vehicles

Agricultural produce

Donation to charity

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

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

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

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

Tax on income

Tax paid on raw materials

Tax levied on business profits

Tax collected from customers on sales of goods or services

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

Sales tax is waived for certain transactions

The tax is paid by the government directly

The seller collects tax from the government

The buyer pays tax instead of the seller in specific cases

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

State Bank of Pakistan

Provincial Tax Authorities

Federal Board of Revenue (FBR)

Ministry of Finance

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

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

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

Related:

You Might Also Like

Mustansar Khan

Leave a Reply Cancel reply