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

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

To return overpaid taxes to consumers

To encourage the export of goods

To grant tax deductions for high-income earners

2. 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

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

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

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

No penalty for minor offenses

Immediate suspension of business operations

A fine and imprisonment for non-filing of tax returns

A fine imposed by the Ministry of Commerce

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

The total amount of tax collected from customers

The total amount of imports during a period

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

The total sales revenue of a business without tax

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

25th of each month

30th of each month

15th of each month

20th of each month

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 seller collects tax from the government

The tax is paid by the government directly

Sales tax is waived for certain transactions

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

To impose additional taxes on exports

To provide exemptions and refunds for sales tax on exported goods

To reduce tax rates for exporters only

To collect sales tax on exported goods at the destination country

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

Sales tax on goods and services

Income tax

Property tax

Capital gains tax

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

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

To allow businesses to avoid tax obligations

To provide refunds to consumers

To eliminate sales tax for exporters

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

The increase in the cost of production due to taxes

11. 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

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

Imports of goods

Exports of goods

Gifts

Agricultural products

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

Petrol

Tobacco

Electronics

Wheat

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

Agricultural produce

Sale of motor vehicles

Educational services

Donation to charity

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

Federal Board of Revenue (FBR)

State Bank of Pakistan

Ministry of Finance

Provincial Tax Authorities

16. 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

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

To introduce new tax rates for multinational companies

To simplify the tax filing process for small and medium enterprises

To eliminate tax compliance altogether

To set up an international tax system for imports

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

To outline the penalties for non-payment of taxes

To simplify the tax registration process for new businesses

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

To regulate the payment of taxes on foreign goods

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

Motor vehicles

Luxury goods

Basic food items like wheat and rice

Textiles

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

Annually

Bi-annually

Quarterly

Monthly

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

Receiving a loan

Sale or transfer of goods and services

Borrowing money from a bank

Receiving a government grant

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

Legal services provided by a lawyer

Sale of agricultural produce

Rental income from property

Dividend income from shares

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

A person who only imports goods

A person who is exempt from paying taxes

A government official responsible for tax collection

A person who makes taxable supplies of goods or services

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

20%

15%

10%

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

Tax levied on business profits

Tax collected from customers on sales of goods or services

Tax on income

Tax paid on raw materials

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

A period determined by the Ministry of Finance

A period of 12 months starting from January

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

A period of 6 months for all taxpayers

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

Electronics

Education services

Textiles

Petroleum products

28. 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

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

Tax paid on income

Tax paid on goods and services purchased for business purposes

Tax levied on imports only

Tax collected from customers on sales

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

It eliminates tax liability for exporters

It allows businesses to pay sales tax in installments

It helps businesses claim tax deductions from their income tax returns

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

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

A unique Taxpayer Identification Number (TIN)

An annual tax clearance certificate

A government license for importers

Proof of business profits

32. 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

33. 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 are exempt from tax, and no tax is levied on them

Zero-rated supplies can only be exported to foreign countries

Zero-rated supplies are subject to tax only for exporters

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

A fine and possible imprisonment

A reduction in the tax rate

A warning

A temporary suspension of tax registration

35. 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

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

Only on the cost of production of the imported goods

It is not applied to imports

Based on the retail price in the country of origin

Based on the total value of goods and customs duty

37. 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)

Ministry of Finance

National Bank of Pakistan

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

Mobile phones

Alcoholic beverages

Luxury vehicles

Educational books

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