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THE PUNJAB SALES TAX ON SERVICES ACT 2012 OFFENCES AND PENALTIES MCQs

1. Who is liable to penalty for failing to apply for registration before providing taxable services?

(A) Any person required to register


(B) Any registered importer


(C) Only government officer


(D) Only audit officer




2. Failure to apply for registration may result in penalty of:

(A) Rs. 1,000 only


(B) Rs. 5,000 only


(C) Rs. 50,000 or 5% tax whichever is higher


(D) No penalty




3. If compulsory registration is not done, minimum penalty for a company is:

(A) Rs. 100,000


(B) Rs. 25,000


(C) Rs. 10,000


(D) Rs. 500,000




4. Minimum penalty for non-company in compulsory registration failure is:

(A) Rs. 5,000


(B) Rs. 10,000


(C) Rs. 100,000


(D) Rs. 50,000




5. Failure to register within 90 days may lead to imprisonment up to:

(A) 6 months


(B) 2 years


(C) 1 year


(D) 5 years




6. Who may file return under the Act?

(A) Only officers


(B) Only courts


(C) Only banks


(D) Every registered person




7. Late filing of return penalty is:

(A) Rs. 1,000


(B) Rs. 10,000


(C) Rs. 5,000


(D) Rs. 20,000




8. Additional penalty for late return after 15 days is:

(A) Rs. 200/day


(B) Rs. 100/day


(C) Rs. 50/day


(D) Rs. 500/day




9. Failure to deposit tax results in penalty of:

(A) Rs. 10,000 or 5% whichever is higher


(B) Rs. 5,000 or 2%


(C) Rs. 1,000 or 1%


(D) No penalty




10. If tax is paid within 10 days, penalty per day is:

(A) Rs. 500


(B) Rs. 300


(C) Rs. 100


(D) Rs. 1,000




11. Failure to maintain records penalty range is:

(A) Rs. 1,000–5,000


(B) Rs. 5,000–10,000


(C) Rs. 10,000–100,000 or 5% tax


(D) No penalty




12. Failure to produce records after notice penalty first default is:

(A) Rs. 5,000


(B) Rs. 25,000


(C) Rs. 10,000


(D) Rs. 50,000




13. Subsequent failure to produce records penalty is:

(A) Rs. 50,000


(B) Rs. 75,000


(C) Rs. 100,000


(D) Rs. 150,000




14. Fraudulent submission of documents penalty includes:

(A) Warning only


(B) Rs. 1,000 fine


(C) No penalty


(D) Rs. 50,000 or 100% tax whichever higher




15. Fraud may also lead imprisonment up to:

(A) 5 years


(B) 2 years


(C) 1 year


(D) 10 years




16. Denying access to officer penalty includes:

(A) Rs. 5,000


(B) No penalty


(C) Rs. 10,000


(D) Rs. 25,000 or 100% tax




17. Tax fraud threshold minimum is:

(A) Rs. 5,000


(B) Rs. 10,000


(C) Rs. 1,00,000


(D) Rs. 25,000




18. Obstruction of officer penalty is:

(A) Rs. 1,000


(B) Rs. 50,000


(C) No penalty


(D) Rs. 1,00,000 or 100% tax




19. Computer system misuse penalty includes imprisonment up to:

(A) 6 months


(B) 5 years


(C) 2 years


(D) 1 year




20. Failure to issue tax invoice first default penalty:

(A) Rs. 5,000


(B) Rs. 20,000


(C) Rs. 10,000


(D) Rs. 50,000




21. Subsequent invoice failure penalty:

(A) Rs. 10,000


(B) Rs. 50,000


(C) Rs. 25,000


(D) Rs. 75,000




22. Failure to intimate registration changes penalty range:

(A) Rs. 1,000–5,000


(B) Rs. 50,000–100,000


(C) Rs. 10,000–50,000


(D) No penalty




23. Concealing business bank accounts penalty range:

(A) Rs. 10,000–50,000


(B) Rs. 50,000–100,000


(C) Rs. 100,000–500,000


(D) No penalty




24. Bypassing electronic invoicing penalty minimum:

(A) Rs. 5,000


(B) Rs. 25,000


(C) Rs. 10,000


(D) Rs. 1,000




25. Repeating an offence penalty is:

(A) Same penalty


(B) Half penalty


(C) Double penalty


(D) No penalty




26. Unauthorised invoice issuance penalty per invoice is:

(A) Rs. 10,000 or 5% tax


(B) Rs. 5,000


(C) Rs. 20,000


(D) Rs. 1,000




27. Bank failure to attach account penalty:

(A) Rs. 50,000


(B) Rs. 1,00,000 or 100% tax


(C) Rs. 10,000


(D) Rs. 5,000




28. Refusal to receive notice penalty:

(A) Rs. 10,000


(B) Rs. 25,000


(C) Rs. 50,000 or 100% tax


(D) No penalty




29. Default surcharge applies when:

(A) Tax is overpaid


(B) Only audit completed


(C) No return filed only


(D) Tax is not paid on time




30. Special audit may be conducted by:

(A) Police only


(B) Teachers


(C) Chartered accountants


(D) None




31. Audit officer may conduct audit electronically through:

(A) Video link


(B) SMS only


(C) Email only


(D) Phone call




32. Audit observation must be replied within:

(A) 7 days


(B) 21 days


(C) 14 days


(D) 30 days




33. Failure to reply audit observation leads to:

(A) No action


(B) Refund


(C) Audit report


(D) Closure only




34. After audit officer may pass:

(A) Arrest order


(B) No order


(C) Passport order


(D) Tax determination order




35. Records must be retained for:

(A) 2 years


(B) 5 years


(C) 1 year


(D) 6–8 years




36. Failure to comply with notification conditions penalty:

(A) Rs. 1,000


(B) No penalty


(C) Rs. 50,000


(D) Rs. 10,000 or 5% tax




37. Tax fraud penalty includes imprisonment up to:

(A) 1 year


(B) 2 years


(C) 10 years


(D) 5 years




38. Obstructing electronic invoice system penalty minimum:

(A) Rs. 10,000


(B) Rs. 50,000


(C) Rs. 25,000


(D) Rs. 1,000




39. Special judge handles:

(A) Civil cases


(B) Family cases


(C) Tax offences


(D) Land disputes




40. Failure to file return revised return time limit:

(A) 30 days


(B) 120 days


(C) 60 days


(D) 1 year




41. Electronic return is treated as:

(A) Fake document


(B) None


(C) Draft only


(D) Valid return




42. Return filing authority is:

(A) Court


(B) Police


(C) Authority


(D) Bank




43. Audit initiated by:

(A) Teacher


(B) Officer authorized


(C) Customer


(D) Supplier




44. Special audit includes:

(A) Forensic audit


(B) Medical audit


(C) School audit


(D) Traffic audit




45. Non-production of records after 3 notices is:

(A) Evidence of failure


(B) Allowed


(C) Refund case


(D) Exemption




46. Obstruction penalty may include:

(A) Prize


(B) Bonus


(C) Discount


(D) Fine + imprisonment




47. False statement penalty includes:

(A) Warning only


(B) Refund


(C) Rs. 50,000 or 100% tax


(D) No penalty




48. Special judge jurisdiction is:

(A) Unlimited civil


(B) Exclusive tax offences


(C) Military cases


(D) Banking only




49. Tax invoice must include:

(A) Weather report


(B) Tax amount


(C) School name


(D) Driver name




50. Audit includes examination of:

(A) Weather records


(B) Sports data


(C) Tax affairs


(D) Political data




51. Default surcharge is:

(A) Bonus


(B) Additional tax on delay


(C) Discount


(D) Refund




52. Electronic system misuse includes:

(A) Proper use


(B) Filing return


(C) Approved login


(D) Unauthorized access




53. Failure to register penalty is linked with:

(A) Salary


(B) Tax liability estimate


(C) Weather


(D) Export duty




54. Audit report is issued when reply is:

(A) Accepted


(B) Unsatisfactory


(C) Both B and C


(D) Ignored




55. Commissioner (Appeals) is:

(A) Junior officer


(B) Subordinate to Authority


(C) Private lawyer


(D) Judge only




56. Officers can be appointed by:

(A) Court


(B) Authority


(C) Police


(D) Bank




57. Return includes:

(A) Sports score


(B) Weather data


(C) Tax due


(D) Salary slip only




58. Failure to maintain records leads to:

(A) Promotion


(B) Exemption


(C) Bonus


(D) Penalty




59. Fraud penalty minimum includes:

(A) Rs. 25,000


(B) Rs. 10,000


(C) Rs. 1,000


(D) Rs. 100




60. Audit notice is issued before:

(A) Return filing


(B) Registration


(C) Bank opening


(D) Audit start




61. Electronic invoice monitoring system failure leads to:

(A) Reward


(B) Refund


(C) Penalty + sealing


(D) Discount




62. Tax invoice is issued by:

(A) Buyer


(B) Court


(C) Bank


(D) Service provider




63. Return filing can be:

(A) Manual only


(B) Oral


(C) Electronic


(D) Telephonic




64. Audit may be conducted based on:

(A) Random guess


(B) News


(C) Weather


(D) Returns and records




65. Authority may prescribe invoice format by:

(A) Gazette notification


(B) Newspaper


(C) SMS


(D) Email




66. Records include:

(A) Songs


(B) Bank statements


(C) Movies


(D) Games




67. Special audit authority includes:

(A) Doctors


(B) Drivers


(C) Chartered accountants


(D) Teachers




68. Fraud includes:

(A) Correct filing


(B) Timely payment


(C) False declaration


(D) Proper records




69. Obstruction includes:

(A) Cooperation


(B) Filing return


(C) Denying access


(D) Paying tax




70. Final return is filed at:

(A) Registration


(B) De-registration


(C) Audit


(D) Appeal




71. Return deemed made by:

(A) Authorized agent


(B) Stranger


(C) Customer


(D) Officer




72. Failure to maintain records penalty may reach:

(A) Rs. 1,000


(B) Rs. 100,000


(C) Rs. 10,000


(D) Rs. 500




73. Audit officer rank includes:

(A) Clerk


(B) Driver


(C) Assistant Commissioner


(D) Student




74. Audit includes:

(A) Only inspection


(B) Tax determination


(C) Cooking check


(D) Driving test




75. Electronic filing requires:

(A) Paper only


(B) Digital transmission


(C) Oral report


(D) Phone call




76. Failure to pay tax leads to:

(A) Penalty + imprisonment


(B) Reward


(C) Exemption


(D) None




77. Special judge can:

(A) Ignore offence


(B) Make laws


(C) Try tax offence


(D) Collect tax only




78. Audit report includes:

(A) Tax evasion details


(B) Weather info


(C) Sports stats


(D) Banking ads




79. Records must be available for:

(A) Sale


(B) Decoration


(C) Inspection


(D) Donation only




80. Main purpose of audit is:

(A) Entertainment


(B) Education only


(C) Tourism


(D) Determine tax liability




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