Sales Tax and Federal Excise Duty Basic Concept Test Online

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Question 1

1. How does sales tax affect consumers?

Answer

It is only paid by businesses

Answer

It is not applicable to consumers in Pakistan

Answer

It is paid directly by the consumer to the government

Answer

It is included in the price of goods and services purchased by the consumer

Question 2

2. Which of the following is a primary objective of the federal excise duty in Pakistan?

Answer

To discourage the consumption of non-essential luxury goods

Answer

To exempt certain goods from taxation

Answer

To promote industrial growth

Answer

To encourage foreign investment

Question 3

3. Which of the following is an example of a luxury item subject to excise duty in Pakistan?

Answer

Mobile phones

Answer

Luxury cars

Question 4

4. Which of the following entities is eligible for sales tax refund in Pakistan?

Answer

Small retail businesses

Answer

Non-governmental organizations (NGOs)

Answer

Individuals filing income tax returns

Answer

Exporters of goods

Question 5

5. What is the term used for the tax paid on the production, sale, or consumption of goods in Pakistan?

Answer

Income tax

Answer

Property tax

Answer

Corporate tax

Question 6

6. Which of the following taxes are collected under the Federal Excise Act?

Answer

Corporate tax

Answer

Personal income tax

Answer

Excise duties on tobacco and alcohol

Question 7

7. Which of the following types of sales is exempt from sales tax in Pakistan?

Answer

Sales of property

Answer

Sales of alcoholic beverages

Answer

Sales of medicines

Answer

Sales of luxury goods

Question 8

8. Which of the following is NOT subject to sales tax in Pakistan?

Answer

Agricultural products

Answer

Luxury goods

Answer

Goods sold within the country

Answer

Exported goods

Question 9

9. Which of the following taxes is included in the sales tax collection system in Pakistan?

Answer

Value Added Tax (VAT)

Answer

Corporate tax

Answer

Property tax

Answer

Capital gains tax

Question 10

10. How does the FBR ensure compliance with federal excise duty payments?

Answer

By increasing the price of exempt goods

Answer

By offering discounts to compliant taxpayers

Answer

By reducing taxes for businesses

Answer

By conducting audits and inspections

Question 11

11. What is the purpose of the Sales Tax Refund System in Pakistan?

Answer

To return the entire sales tax paid to businesses

Answer

To reduce the tax rate for individuals

Answer

To refund sales tax paid on exported goods

Answer

To refund taxes paid on exempt goods

Question 12

12. Which of the following entities is responsible for the administration of sales tax and federal excise duty in Pakistan?

Answer

Ministry of Finance

Answer

State Bank of Pakistan

Answer

Federal Board of Revenue (FBR)

Answer

Provincial Revenue Authorities

Question 13

13. What is the primary basis for determining the value of goods subject to sales tax in Pakistan?

Answer

The weight of the goods

Answer

The market value or selling price of the goods

Answer

The origin of the goods

Answer

The cost of production

Question 14

14. How often must registered businesses submit their sales tax returns in Pakistan?

Answer

Semi-annually

Question 15

15. What is the rate of excise duty on petroleum products in Pakistan?

Answer

Varies by product

Question 16

16. What is the role of the FBR in implementing sales tax and federal excise duty?

Answer

To collect sales tax and federal excise duty from taxpayers

Answer

To eliminate all taxes on goods

Answer

To decide which goods should be taxed

Answer

To set tax rates only for importers

Question 17

17. Which of the following goods is typically exempt from federal excise duty in Pakistan?

Answer

Certain agricultural products

Answer

Tobacco products

Answer

Alcoholic beverages

Answer

Petroleum products

Question 18

18. Which of the following is a key feature of the Federal Excise Act, 2005?

Answer

It deals with the registration of businesses

Answer

It imposes duties on goods specified by the government

Answer

It regulates the foreign exchange market

Answer

It sets tax rates for all income earners

Question 19

19. Which of the following taxes is designed to discourage the consumption of harmful goods like tobacco and alcohol?

Answer

Corporate tax

Answer

Property tax

Answer

Federal excise duty

Question 20

20. What is the penalty for tax evasion related to sales tax in Pakistan?

Answer

A warning with no consequences

Answer

A fine equal to the tax amount evaded

Answer

Imprisonment without a fine

Answer

No penalty

Question 21

21. Which of the following is a key feature of the sales tax credit mechanism in Pakistan?

Answer

Sales tax credits can be used to offset the tax payable on sales

Answer

Sales tax credit is only available for imports

Answer

No credit is provided for services

Answer

Only exporters are eligible for tax credit

Question 22

22. What is the procedure for registering for sales tax in Pakistan?

Answer

Individuals need to register at their local bank

Answer

Businesses must apply online through the FBR portal

Answer

No registration is required for businesses under a certain income level

Answer

Only businesses importing goods need to register

Question 23

23. What is the standard rate of sales tax in Pakistan?

Question 24

24. What does the term "input tax credit" mean in the context of sales tax?

Answer

A special credit for foreign investors

Answer

A tax refund for taxpayers who make mistakes on their filings

Answer

A deduction available to businesses for tax paid on purchases

Answer

A tax rate reduction for low-income businesses

Question 25

25. Which of the following is a feature of federal excise duty in Pakistan?

Answer

It is applied to goods specified by the government, like tobacco

Answer

It is only applied to imported goods

Answer

It is collected by provincial authorities

Answer

It applies to all goods and services

Question 26

26. What is the main function of the Sales Tax Act, 1990?

Answer

To define the scope and procedures for sales tax collection

Answer

To regulate customs duties

Answer

To regulate income taxes

Answer

To impose tax on profits

Question 27

27. What does the term 'taxable event' refer to in the context of sales tax in Pakistan?

Answer

The sale or transfer of goods or services that are subject to tax

Answer

The importation of goods

Answer

The filing of a tax return

Answer

The export of goods

Question 28

28. Which of the following taxes is typically exempt from federal excise duty in Pakistan?

Question 29

29. What is the purpose of federal excise duty?

Answer

To collect taxes from individuals’ income

Answer

To increase government revenue from local businesses

Answer

To discourage the consumption of certain luxury goods

Answer

To encourage exports

Question 30

30. What is the process for registering for federal excise duty in Pakistan?

Answer

No registration is required for excise duty

Answer

Only multinational companies are eligible for excise duty registration

Answer

Businesses must apply for excise duty registration through the FBR

Answer

Any individual can register online

Question 31

31. Which of the following is an example of a taxable service under Pakistan's sales tax law?

Answer

Government healthcare services

Answer

Public education services

Answer

Agricultural production services

Answer

Legal services provided by a law firm

Question 32

32. How does Pakistan's Sales Tax Act define the term 'supply'?

Answer

The declaration of income by a taxpayer

Answer

The sale or transfer of goods or services

Answer

The import of goods from another country

Answer

The transportation of goods

Question 33

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

Answer

It only applies to the import of goods

Answer

It applies to both goods and services

Answer

It only applies to exports

Answer

It only applies to goods

Question 34

34. Which of the following is an essential document for sales tax registration in Pakistan?

Answer

National Identity Card

Answer

Sales Tax Registration Certificate

Answer

Birth certificate

Question 35

35. What is the FBR’s role in controlling tax evasion in the context of sales tax?

Answer

To reduce taxes for defaulters

Answer

To offer amnesty programs for evaders

Answer

To enforce penalties, audits, and investigations

Answer

To encourage tax avoidance strategies

Question 36

36. Which of the following goods is subject to excise duty in Pakistan?

Answer

Soft drinks

Question 37

37. Which of the following is an example of goods subject to federal excise duty?

Answer

Petroleum products

Answer

Exported machinery

Answer

Agricultural products

Answer

Public services

Question 38

38. Which of the following taxes is imposed on the sale of goods and services in Pakistan?

Answer

Income tax

Answer

Corporate tax

Answer

Wealth tax

Question 39

39. Which of the following is NOT considered taxable under the Sales Tax Act, 1990 in Pakistan?

Answer

Export of services

Answer

Import of goods

Answer

Manufacturing of goods

Answer

Retail sale of goods

Question 40

40. What is the role of the provincial tax authorities in relation to sales tax in Pakistan?

Answer

To handle the tax returns of large corporations

Answer

To administer sales tax on services at the provincial level

Answer

To set the sales tax rate for imported goods

Answer

To collect all federal sales taxes

Question 41

41. Which of the following goods is typically subject to federal excise duty in Pakistan?

Answer

Mobile phones

Answer

Exported goods

Question 42

42. How are goods that are not subject to sales tax categorized in Pakistan?

Answer

They are categorized as taxable supplies

Answer

They are categorized as exempt supplies

Answer

They are categorized as non-taxable

Answer

They are categorized as luxury items

Question 43

43. Which of the following best describes the application of sales tax in Pakistan?

Answer

Sales tax applies to agricultural products only

Answer

Sales tax is only applicable to exports

Answer

Sales tax applies to both goods and services in Pakistan

Answer

Sales tax only applies to goods imported from abroad

Question 44

44. How does the Federal Board of Revenue (FBR) assist in the implementation of sales tax in Pakistan?

Answer

By enforcing tax audits, processing returns, and ensuring compliance

Answer

By offering loans to businesses for tax payments

Answer

By granting tax amnesty programs for importers

Answer

By providing exemptions from tax for new businesses

Question 45

45. What does the term "exempt supplies" mean in the context of sales tax?

Answer

Goods sold with a discount

Answer

Goods and services that are not subject to sales tax

Answer

Services provided by government entities

Answer

Goods sold in bulk

Question 46

46. What happens when a taxpayer fails to submit their sales tax returns on time in Pakistan?

Answer

The taxpayer is liable for penalties and interest charges

Answer

No consequences, only a warning

Answer

The taxpayer is eligible for a tax rebate

Answer

The taxpayer is allowed to submit the return after a grace period

Question 47

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Total Questions:	46
Time Allowed:	20 Minutes
Total Marks:	46
How to Attempt Test:	Please choose the right Option in MCQ-type question.
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Sales Tax and Federal Excise Duty Basic Concept Test Online

Sales Tax and Federal Excise Duty Basic Concept Test Online

Sales Tax and Federal Excise Duty Basic Concept Test

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Sales Tax and Federal Excise Duty Basic Concept Test Online

Sales Tax and Federal Excise Duty Basic Concept Test

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