50 Important Economics Objective Questions on Indian Tax Structure

Dear Readers, We are present  50 Important Economics Objective Questions on Indian Tax Structure with answer for your forthcoming exams. We will more questions in forthcoming posts.

 

Sl NO

Questions

Answer

1)

The principal source of revenue to the state government in India is ….

Sales tax

2)

Which tax is levied by the Union Govt. & collected & appropriated by the states ?

Stamp duty

3)

Which tax is levied  & collected by the State Government ?

Professional tax

4)

State Government taxes are …

Land revenue, Entertainment tax,  stamp duty other than financial document, Agricultural Income tax ,State excise duty, Road Tax , Motor vehicle tax

5)

Which tax is levied  & collected by the Union Government ?

Wealth tax, Excise duty, Income tax ,corporation tax ,Service tax

6)

Which Taxes imposed by the Union Govt.?

Income tax , Corporate tax, Property tax, Succession tax, Wealth tax, Gift Tax, Custom Duty, Tax on agricultural wealth

7)

Which tax is not levied by the Union Government ?

Profession tax

8)

Which taxes is exclusively and totally assigned to the central Govt. by the Constitution ?

Corporation tax

9)

Which taxes shared by the Centre & the  states ?

Corporation tax, Income tax, Union Excise duty, Tax on income other than on agricultural income

10)

Which tax is levied and collected by the centre but their proceeds are wholly transferred to states?

Taxes on Advertisement

11)

Which tax is not shared by the centre & the states ?

Sales tax

12)

Give the example of An indirect tax .

Excise duty, Custom duties, Sales tax ,VAT, Import Duty, Service tax, GST

13)

Give the example of a Direct tax .

Corporation tax, wealth tax, Capital gain tax ,Income tax, tax on expenditure ,Land revenue, Estate tax, Gift Tax, Interest tax, Fringe Benefit Tax, Securities Transaction Tax

14)

Which tax is not related with income from corporate sector in India ?

Capital gain tax

15)

Give the example of Direct & progressive tax .

Income tax

16)

The largest revenue in India is obtained from which tax?

Excise Duty

17)

The tax collected by the State Government and given to  local bodies is ….

Professional tax

18)

Tax collection of central govt. was lowest as compare to GDP in which year ?

1999-2000

19)

In India, the service tax was first introduced in which year ?

1994-95

20)

When was the Wealth tax first introduced in India ?

1957

21)

Service tax was introduce for how many years ?

3 years

22)

What is VAT ?

It is an valorem tax on domestic final  consumption collected  at all stages between production & the point of sale

23)

How does the consumer benefit with VAT ?

It removes tax on tax and thus reduces price-rise

24)

Which Taxes is collected by the Government on sale of goods and services in the country ?

VAT

25)

Which tax is levied at every stage of production ?

VAT

26)

Which tax abolished by the GST ?

VAT

27)

What is the basis of An ad valorem duty ?

the price of a commodity

28)

What is difference between MODVAT & VAT?

Under MODVAT , excise is levied on final value and then rebate is given on inputs while under VAT, tax is levied only on vale addition

29)

CENVAT is associated with which tax ?

Rate of indirect tax

30)

MODVAT is associated with which tax ?

Excise Duty

31)

What is full form of STT ?

Securities Transaction tax

32)

Banking services offered to units set up in Special Economic Zones (SEZs) have been exempted for paying tax…

Capital Gains Tax

33)

Taxation and the government expenditure policy are dealt  under which policy ?

Fiscal policy

34)

Excise Duties are taxes on ….

Production of commodities

35)

Corporation tax are taxes on….

Income of company

36)

What is Progressive tax ?

If the tax rate increases with the higher level of income it shall be called progressive tax  Example –Income tax

37)

What is Custom Duty ?

The tax on import and export is known as Custom duty

38)

Service tax is a charge on….

Taxable service provided or to be provided

39)

The report of Vijay Kelkar Committee related to ..

Tax reforms

40)

Who had suggest an imposition of expenditure tax n India for first time ?

Klador

41)

Service tax was introduced in India on the recommendation of which committee ?

Dr. Raja J Challiah Committee

42)

Name the committee to recommend that granting relief to FIIs on Minimum Alternate Tax (MAT) will be a positive thing for the market?

AP Shah Committee

43)

Which commissions set up by the President of India decides the distribution of tax income between the Central & state Governments ?

Finance commission

44)

What is called Tax heaven ?

A country that gives foreign citizens the facility to invest in their country and do not pay any tax on the profit earned by the invested money. Mauritius and Cyprus provide this facility

45)

The provision elating to service tax are given in which act ?

Chapter V and VA of the Finance Act, 1994

46)

Education Cess was levied by which act ?

The Finance No. (2) Act, 2004

47)

Secondary and Higher Education Cess was levied by which act ?

The Finance Act, 2007

48)

Service tax is applicable to which part of India ?

Whole of India except Jammu and Kashmir

49)

Service tax is governed and administered by which body ?

CBEC

50)

Which states became the first state in the country to launch RBI’s e-payment system for commercial tax payers?

Karnataka

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