T4Tutorials .PK

THE PUNJAB SALES TAX ON SERVICES ACT 2012 MCQs

1. “Person” under the Act includes:

(A) Individual only


(B) Company only


(C) Various entities mentioned in the Act


(D) Government only




2. Which of the following is included in the definition of “person”?

(A) Individual


(B) Company


(C) All of these


(D) Federal Government




3. An association of persons is included in the definition of:

(A) Goods


(B) Service


(C) Firm


(D) Person




4. Federal Government is included in the definition of:

(A) Person


(B) Resident


(C) Company


(D) Taxpayer




5. A Provincial Government is included in the definition of:

(A) Person


(B) Service


(C) Company


(D) Tax period




6. Local authority or local government is included in:

(A) Goods


(B) Person


(C) Tax


(D) Firm




7. Foreign government is included in the definition of:

(A) Service


(B) Tax fraud


(C) Goods


(D) Person




8. The use of the word “he” in the Act refers to:

(A) Individual only


(B) Male persons only


(C) Any or all persons mentioned in clauses (a) to (f)


(D) Government only




9. “Place of business” means a person owns, rents or occupies space in:

(A) Punjab


(B) Pakistan


(C) Islamabad


(D) Sindh




10. Place of business is where a person carries on:

(A) Religious activity


(B) Economic activity


(C) Political activity


(D) Judicial activity




11. Economic activity may be carried on:

(A) Through government only


(B) Annually only


(C) Wholly or partially


(D) Inside court only




12. Place of business may include activity through:

(A) Agent


(B) Associate


(C) All of these


(D) Franchise




13. Place of business includes economic activity through:

(A) Website


(B) Web portal


(C) E-commerce


(D) All of these




14. “Prescribed” means prescribed by the:

(A) Government


(B) Court


(C) Rules


(D) Authority only




15. Registration number means the number allocated to a:

(A) Company only


(B) Registered person


(C) Government office


(D) Tax officer




16. “Registered person” means a person who is:

(A) Tax officer only


(B) Registered or liable to be registered


(C) Government employee only


(D) Resident only




17. A person liable to register but not registered shall:

(A) Receive full benefits


(B) Receive tax exemption


(C) Not be entitled to benefits of registered person


(D) Be treated as exempt




18. “Return” means any return furnished under:

(A) Chapter IV


(B) Chapter V


(C) Chapter VI


(D) Chapter VII




19. A resident individual may have a place of business in Punjab in:

(A) Any mode


(B) Any style


(C) Any manner


(D) All of these




20. An individual is resident if his permanent address on CNIC is in:

(A) Islamabad


(B) Sindh


(C) KP


(D) Punjab




21. A resident individual may have a permanent representative in:

(A) Karachi


(B) Lahore only


(C) Abroad only


(D) Punjab




22. A company is resident if it has its registered office in:

(A) Punjab


(B) Islamabad


(C) Foreign country


(D) Any province except Punjab




23. A company may be resident if it has a place of business in Punjab:

(A) Fully only


(B) Whole or part thereof


(C) Partly only


(D) Temporarily only




24. A company is resident if it has a permanent representative in:

(A) Punjab


(B) Foreign country


(C) Federal Government


(D) FBR




25. Control or management of affairs situated in Punjab makes which entity resident?

(A) Both A and B


(B) Company


(C) Association of persons


(D) Government only




26. “Rules” means rules made under the:

(A) Act


(B) Constitution


(C) Ordinance only


(D) Gazette only




27. “Schedule” means a Schedule appended to the:

(A) Budget


(B) Rules


(C) Court order


(D) Act




28. “Service” means anything which is:

(A) Goods


(B) Stocks only


(C) Securities


(D) Not goods




29. Services include those listed in the:

(A) Second Schedule only


(B) Third Schedule


(C) Fourth Schedule


(D) First Schedule




30. A service remains a service even if it involves:

(A) Use of goods


(B) All of these


(C) Consumption of goods


(D) Supply of goods




31. Service remains a service whether use of goods is:

(A) Essential or incidental


(B) Temporary only


(C) Illegal only


(D) Imported only




32. “Short-paid” means paying tax:

(A) More than due


(B) Equal to due


(C) Without assessment


(D) Less than due




33. Short payment may occur because of:

(A) Miscalculation


(B) Incorrect assessment


(C) Tax exemption


(D) Both A and B




34. “Similar service” means service closely resembling another in:

(A) Character


(B) Quality


(C) All of these


(D) Functionality




35. Similar service may resemble another in terms of:

(A) Materials


(B) Reputation


(C) Quantity


(D) All of these




36. “Special Judge” means a judge appointed under section:

(A) 40


(B) 42


(C) 41


(D) 43




37. “Standard Rate” under the Act means:

(A) 16%


(B) 15%


(C) 17%


(D) 18%




38. “Tax” includes:

(A) Additional tax


(B) Default surcharge


(C) All of these


(D) Fine or penalty




39. Tax includes any other sum payable or recoverable under the:

(A) Company law


(B) Constitution


(C) Court decree


(D) Act or rules




40. “Taxpayer” means a person who provides taxable services in course of:

(A) Economic activity


(B) Social work


(C) Charity


(D) Agriculture only




41. Taxable services must be provided for:

(A) Consideration


(B) Donation


(C) Penalty


(D) Interest only




42. “Tax fraud” means knowingly and dishonestly:

(A) Acting lawfully


(B) Complying with law


(C) Doing prohibited acts or omissions


(D) Paying taxes




43. Providing taxable services without registration may amount to:

(A) Tax fraud


(B) Exempt service


(C) Refund


(D) Compliance




44. Falsifying tax invoices may be treated as:

(A) Tax fraud


(B) Compliance


(C) Exemption


(D) Assessment




45. Tax fraud includes acting contrary to duties under:

(A) Act or rules


(B) Constitution only


(C) Court orders only


(D) Cabinet policy only




46. Tax fraud is committed with intention of:

(A) Increasing tax liability


(B) Filing appeal


(C) Paying bonus


(D) Understating tax liability




47. Tax fraud may involve:

(A) Underpaying tax liability


(B) Both A and B


(C) Not paying tax liability


(D) Overpaying tax




48. Tax period means a period of:

(A) One week


(B) One month


(C) Six months


(D) One year




49. Authority may specify another tax period through:

(A) Newspaper


(B) Official Gazette notification


(C) Court judgment


(D) Radio announcement




50. “Taxable service” shall have meaning given in section:

(A) 2


(B) 5


(C) 3


(D) 7




51. “Value of taxable service” shall have meaning given in section:

(A) 5


(B) 6


(C) 7


(D) 8




52. Taxable service is subject to exclusion mentioned in:

(A) First Schedule


(B) Third Schedule


(C) Second Schedule


(D) Fourth Schedule




53. A taxable service must be listed in the:

(A) First Schedule


(B) Fifth Schedule


(C) Third Schedule


(D) Second Schedule




54. Taxable service is provided by a person from his:

(A) Foreign office only


(B) Home only


(C) Office or place of business in Punjab


(D) Court office only




55. Taxable service includes commencement or termination of:

(A) Government office


(B) Court proceedings


(C) Economic activity


(D) Banking only




56. Services provided to a non-resident person are covered under subsection:

(A) 3(4)


(B) 3(2)


(C) 3(3)


(D) 3(1)




57. Services provided by a non-resident to a resident person are treated as:

(A) Exempt service


(B) Non-taxable income


(C) Imported goods


(D) Taxable service




58. Under subsection 3(3), offices inside and outside Punjab are treated as:

(A) Separate legal persons


(B) Branches only


(C) One unit


(D) Government offices




59. Authority may prescribe rules with prior approval of the:

(A) Government


(B) Court


(C) FBR


(D) Assembly




60. Providing of service includes rendering, supply, initiation, execution and:

(A) Consumption or termination


(B) Sale of land


(C) Court proceedings


(D) Criminal liability




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