T4Tutorials .PK

MCQs on THE PUNJAB SALES TAX ON SERVICES ACT 2012

1. The Punjab Sales Tax on Services Act 2012 was enacted on which date?

(A) 27 June 2012


(B) 26 June 2012


(C) 21 June 2012


(D) 1 July 2012




2. The Act extends to which area?

(A) Punjab only


(B) Pakistan


(C) Islamabad


(D) Whole Pakistan




3. The Act applies to services provided in:

(A) KPK


(B) Sindh


(C) Punjab


(D) Balochistan




4. Tax under this Act is levied on:

(A) Goods


(B) Property


(C) Services


(D) Imports only




5. “Active taxpayer” means:

(A) Any registered person


(B) Unregistered person


(C) Government officer


(D) Registered person with conditions




6. “Authority” refers to:

(A) FBR


(B) Punjab Revenue Authority


(C) Local Government


(D) NAB




7. “Arrears” means:

(A) Paid tax


(B) Future tax


(C) Exempt tax


(D) Tax due but unpaid




8. “Assistant Commissioner” is:

(A) Court judge


(B) Authority officer


(C) Police officer


(D) Lawyer




9. “Associates” includes:

(A) Friends


(B) Related persons or controlled entities


(C) Employees only


(D) Customers




10. “Company” includes:

(A) Various corporate bodies and associations


(B) Only government companies


(C) Only private companies


(D) Individuals




11. “Banking company” is defined under:

(A) Income Tax Ordinance


(B) SECP Act


(C) Companies Act 2017


(D) Banking Companies Ordinance 1962




12. “Commissioner” is:

(A) Court judge


(B) Police officer


(C) Authority officer


(D) Auditor




13. “Commission agent” acts on behalf of:

(A) Government


(B) Himself


(C) NGO


(D) Another person for consideration




14. “Taxable service” means:

(A) Goods


(B) Salary


(C) Land


(D) Services listed in Second Schedule




15. Economic activity includes:

(A) Business activity


(B) Hobby


(C) Non-commercial activity only


(D) Sports only




16. “Service” does NOT include:

(A) Transport


(B) Consulting


(C) Goods


(D) Banking




17. “Tax period” means:

(A) One week


(B) One month


(C) One year


(D) Two years




18. “Standard rate” is:

(A) 10%


(B) 12%


(C) 18%


(D) 16%




19. “Taxpayer” is:

(A) Government


(B) Judge


(C) Person providing taxable services


(D) Bank only




20. “Due date” is generally:

(A) 10th of month


(B) End of year


(C) 20th of month


(D) 15th of month




21. “Economic activity” includes:

(A) Job only


(B) Business and trade


(C) Only farming


(D) Only imports




22. “Open market price” means:

(A) Fixed price


(B) Discount price


(C) Government price only


(D) Market-based price




23. Service provided over time is treated as:

(A) Multiple services


(B) One service


(C) Free service


(D) Exempt service




24. Tax is charged on:

(A) Profit


(B) Land value


(C) Salary


(D) Value of taxable service




25. Who collects tax generally?

(A) Registered service provider


(B) Police


(C) Army


(D) Courts




26. Tax liability may shift to:

(A) Government


(B) Service recipient


(C) Judge


(D) Auditor




27. Exemptions are granted by:

(A) Authority with government approval


(B) Court


(C) Police


(D) Parliament only




28. Tax is payable at:

(A) Service delivery time


(B) Demand notice only


(C) End of year


(D) Return filing time




29. Withholding tax means:

(A) Refund tax


(B) Ignore tax


(C) Deduct tax before payment


(D) Increase tax




30. Failure to deposit withheld tax results in:

(A) Exemption


(B) Bonus


(C) Refund


(D) Personal liability




31. Tax credit relates to:

(A) Input tax adjustment


(B) Sales only


(C) Salary


(D) Interest




32. Refund is allowed when:

(A) Paid in error or excess


(B) No tax paid


(C) Always


(D) Never




33. Excess tax collected must be:

(A) Kept by business


(B) Refunded by customer


(C) Paid to Government


(D) Ignored




34. Liability passes in case of business sale to:

(A) Buyer


(B) Government


(C) Court


(D) Employee




35. Tax liability of deceased person is on:

(A) Government


(B) Court


(C) Friend


(D) Estate




36. Bankruptcy tax is treated as:

(A) Loan


(B) Donation


(C) Current expenditure


(D) Penalty only




37. Assessment of tax is done by:

(A) Police


(B) Customer


(C) Bank


(D) Authority officer




38. Default surcharge is:

(A) Bonus


(B) Discount


(C) Penalty for late payment


(D) Refund




39. Tax fraud includes:

(A) False invoices


(B) Honest reporting


(C) Timely payment


(D) Registration




40. Registered person means:

(A) Only active taxpayer


(B) Person registered or liable to register


(C) Government


(D) Bank




41. “Goods” include:

(A) Services


(B) Movable property


(C) Salary


(D) Tax




42. “Person” includes:

(A) Only individual


(B) Only banks


(C) Only firms


(D) Companies and governments




43. Tax is charged on:

(A) Service value


(B) Income


(C) Property only


(D) Salary only




44. “Place of business” includes:

(A) Only office


(B) Any place of economic activity


(C) Only factory


(D) Only home




45. “Resident” includes:

(A) Only citizen


(B) Tourist


(C) Business presence in Punjab


(D) Visitor only




46. “Registered person” includes:

(A) Only registered


(B) Government


(C) Registered or liable to register


(D) Employee




47. “Return” means:

(A) Tax refund


(B) Invoice only


(C) Salary slip


(D) Tax declaration form




48. “Exempt service” means:

(A) Taxable service


(B) Illegal service


(C) Service free from tax


(D) Imported service




49. “Financial year” is:

(A) Jan–Dec


(B) March–Feb


(C) April–March


(D) July–June




50. “Firm” means:

(A) Government office


(B) School


(C) Profit-sharing business relation


(D) NGO




51. “Taxable service” includes:

(A) Only goods


(B) Land


(C) Salary


(D) Listed services




52. Value of taxable service is:

(A) Gross consideration


(B) Salary


(C) Net profit only


(D) Discount only




53. If payment is in kind, value is:

(A) Zero


(B) Open market price


(C) Half price


(D) Fixed rate




54. Associated persons deal includes:

(A) Family relation


(B) Government only


(C) Employees only


(D) Customers only




55. Economic activity does NOT include:

(A) Business


(B) Employment


(C) Hobby


(D) Trade




56. Open market price is based on:

(A) Free market transaction


(B) Government rate


(C) Fixed law


(D) Bank rate




57. Tax fraud requires:

(A) Mistake


(B) Delay only


(C) Intentional wrongdoing


(D) Refund




58. “Document” includes:

(A) Paper only


(B) Electronic records


(C) Cash only


(D) Goods




59. “Defaulter” means:

(A) Person who fails to pay tax


(B) Tax payer


(C) Employee


(D) Buyer




60. Tax on services is generally collected through:

(A) Courts


(B) Auction


(C) Police


(D) Return filing system




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