T4Tutorials .PK

THE PUNJAB SALES TAX ON SERVICES ACT 2012 PDF MCQs

1. The First Schedule services are considered:

(A) Exhaustive


(B) Not exhaustive


(C) Final list


(D) Optional only




2. Services mentioned in Second Schedule are considered:

(A) Taxable services


(B) Non-taxable


(C) Exempt only


(D) Private services




3. Services mentioned in rules and circulars are also:

(A) Exempt


(B) Free services


(C) Taxable services


(D) Optional services




4. Where recipient is resident of Punjab and tax is charged, provider shall pay tax to:

(A) Federal Government


(B) Government of Punjab


(C) Authority


(D) Court




5. Reverse charge applies when recipient is:

(A) Unregistered person


(B) Employee


(C) Foreign person


(D) Registered person




6. Registered recipient must deduct tax:

(A) Partially


(B) Half


(C) None


(D) Whole amount




7. Tax deducted under reverse charge is paid to:

(A) Police


(B) Bank


(C) Government


(D) Court




8. If services are provided in more than one province, tax is payable to Punjab for services:

(A) Imported


(B) Free services


(C) Charged to Punjab residents


(D) Government services only




9. Services originating from Punjab but ending outside Pakistan are:

(A) Exempt


(B) Not taxable


(C) Free


(D) Taxable




10. Services originating outside Pakistan but received in Punjab are taxable to:

(A) Recipient


(B) Provider


(C) Government employee


(D) Bank




11. Persons liable under reverse charge must also be:

(A) Government officers


(B) Judges


(C) Lawyers


(D) Registered persons




12. Disputes on origin principle are resolved under:

(A) Supreme Court


(B) Federal agreement understanding


(C) Police rules


(D) Bank policy




13. Tax must still be deposited even if dispute is:

(A) Solved


(B) Pending


(C) Ignored


(D) Withdrawn




14. Government may regulate origin principle through:

(A) Court order


(B) Police rules


(C) Special procedure


(D) Constitution amendment




15. Government may amend Second Schedule by:

(A) Adding entries


(B) All of these


(C) Modifying entries


(D) Deleting entries




16. Amendment in Second Schedule is issued by:

(A) Court


(B) Police order


(C) Notification


(D) FBR only




17. Amendment notification becomes effective from:

(A) Previous date


(B) Future date only


(C) Court date


(D) Date specified in notification




18. Notification date cannot be prior to:

(A) Court order


(B) Budget speech


(C) Tax year


(D) Gazette publication




19. Government must present amendments before:

(A) Supreme Court


(B) Police


(C) Provincial Assembly


(D) Banks




20. Economic activity includes:

(A) Charity only


(B) Social work only


(C) Religious activity only


(D) Business or profession




21. Economic activity includes supply of:

(A) Salary only


(B) Gold only


(C) Cash only


(D) Immovable property by lease




22. Economic activity includes:

(A) Government order


(B) One-time transaction


(C) Court judgment


(D) Police action




23. Economic activity excludes:

(A) Employee services


(B) Business


(C) Trade


(D) Profession




24. Private hobby is part of:

(A) Excluded activity


(B) Economic activity


(C) Taxable service


(D) Business




25. Value of taxable service is based on:

(A) Gross consideration


(B) Profit


(C) Loss


(D) Salary




26. Value of service excludes:

(A) Tax amount


(B) Price


(C) Charges


(D) Fees




27. If payment is in kind, value is:

(A) Book value


(B) Cost price


(C) Open market price


(D) Minimum price




28. Associated persons value is based on:

(A) Discount


(B) Market price


(C) Salary


(D) Profit only




29. Trade discounts are allowed if shown in:

(A) Invoice


(B) Court order


(C) Bank statement


(D) Contract only




30. Value may be fixed by Authority through:

(A) Bank rule


(B) Court order


(C) Police order


(D) Notification




31. Utilities ancillary to service are included in:

(A) Value of service


(B) Salary


(C) Loss


(D) Tax exemption




32. Open market price means price in:

(A) Free market transaction


(B) Controlled market


(C) Government auction only


(D) Court sale




33. Open market price is between:

(A) Associates


(B) Employees only


(C) Government officers


(D) Non-associated persons




34. If price cannot be determined, Authority uses:

(A) Guess


(B) Bank rate


(C) Random value


(D) Formula or method




35. Provision of service over time is treated as:

(A) Single service


(B) Free service


(C) Separate services


(D) Tax-free service




36. Semi-annual payment creates how many services?

(A) Two


(B) One


(C) Three


(D) Four




37. Insurance premium annually is treated as:

(A) One service


(B) Separate service each year


(C) Free service


(D) Gift




38. Illustrations in law are:

(A) Explanatory only


(B) Binding rules


(C) Penal provisions


(D) Tax rules




39. Installment payments are:

(A) Excluded from section 9


(B) Included in section 9


(C) Always taxable separately


(D) Always exempt




40. Reverse charge applies when recipient is:

(A) Government


(B) Student


(C) Tourist


(D) Registered person




41. Tax under origin principle is paid by:

(A) Provider


(B) Bank


(C) Customer only


(D) Court




42. Services from outside Pakistan but used in Punjab are paid by:

(A) Supplier


(B) Police


(C) Recipient


(D) Court




43. Place of origin rules apply:

(A) Only Punjab


(B) Across provinces


(C) Only cities


(D) Only rural areas




44. Government may specify special procedure by:

(A) Oral order


(B) Gazette notification


(C) Newspaper


(D) SMS




45. Economic activity includes profession, trade and:

(A) Hobby


(B) Undertaking


(C) Charity


(D) Donation




46. Lease of immovable property is:

(A) Not economic activity


(B) Economic activity


(C) Illegal activity


(D) Exempt activity




47. Termination of economic activity is:

(A) Excluded


(B) Illegal


(C) Included


(D) Free




48. Taxable service originates from Punjab is:

(A) Taxable


(B) Always exempt


(C) Free


(D) Optional




49. Open market price depends on:

(A) Court decision


(B) Market conditions


(C) Bank rate


(D) Police report




50. Value determination ensures:

(A) Tax evasion


(B) Free services


(C) Fair taxation


(D) No tax




51. Authority may prescribe valuation:

(A) Bank only


(B) Customs only


(C) Rules


(D) Police only




52. Tax applies even if service involves:

(A) Charity


(B) No goods


(C) Goods usage


(D) Donation




53. Non-resident providing service to resident is:

(A) Exempt


(B) Free


(C) Taxable


(D) Illegal




54. Reverse charge ensures tax is collected from:

(A) Government


(B) Police


(C) Recipient


(D) Court




55. Economic activity includes one-time:

(A) Donation


(B) Business transaction


(C) Gift


(D) Reward




56. Associated persons valuation uses:

(A) Discounted value


(B) Random value


(C) Market value


(D) Book value only




57. Tax includes fines, penalties and:

(A) Donations


(B) Grants only


(C) Gifts


(D) Any payable sum




58. Taxable service means service listed in:

(A) First Schedule


(B) Second Schedule


(C) Third Schedule


(D) Fourth Schedule




59. Service definition excludes:

(A) Goods


(B) Services


(C) Trade


(D) Business




60. Value of service excludes:

(A) Tax amount


(B) Price


(C) Charges


(D) Fees




61. Economic activity includes commencement and:

(A) Delay


(B) Suspension only


(C) Ending


(D) Audit




62. Open market price is adjusted for:

(A) Inflation only


(B) Bank rate


(C) Salary changes


(D) Differences between services




63. Place of business includes:

(A) Bank only


(B) Court presence


(C) Police office


(D) Virtual presence




64. Service includes initiation, execution and:

(A) Goods


(B) Salary


(C) Termination


(D) Land




65. Authority fixes value when declaration is:

(A) Incorrect


(B) Correct


(C) Verified


(D) Approved




66. Associated persons include pricing at:

(A) No price


(B) Higher market price only


(C) Lower market price


(D) Zero value




67. Installments basis is:

(A) Included in section 9


(B) Illegal


(C) Tax-free


(D) Excluded from section 9




68. Economic activity does NOT include:

(A) Employee services


(B) Business


(C) Trade


(D) Profession




69. Service value includes:

(A) Salary only


(B) Only tax


(C) No charges


(D) All taxes except tax itself




70. Reverse charge mechanism mainly shifts liability to:

(A) Supplier always


(B) Recipient in certain cases


(C) Government


(D) Bank




Exit mobile version