T4Tutorials .PK

Most Important MCQs THE PUNJAB SALES TAX ON SERVICES ACT 2012

1. The short title of the Act is?

(A) Punjab Sales Tax Act 2012


(B) Punjab Tax Act 2012


(C) Punjab Revenue Act 2012


(D) Punjab Sales Tax on Services Act 2012




2. The Act extends to?

(A) Whole Pakistan


(B) KPK only


(C) Sindh only


(D) Punjab only




3. The Act was enacted on?

(A) 21 June 2012


(B) 30 June 2012


(C) 1 July 2012


(D) 27 June 2012




4. Tax under the Act is levied on?

(A) Goods


(B) Exports


(C) Imports


(D) Services




5. Tax applies on services provided, rendered and?

(A) Received, executed or consumed


(B) Imported


(C) Exported


(D) Stored




6. The Act comes into force on?

(A) Government notification


(B) Fixed date by law


(C) Court order


(D) Federal law




7. Active taxpayer means a person whose registration is?

(A) Suspended


(B) Not suspended or blacklisted


(C) Blacklisted


(D) Cancelled




8. Arrears means?

(A) Paid tax


(B) Refund tax


(C) Due but unpaid tax


(D) Future tax




9. Appellate Tribunal is established under?

(A) Punjab Revenue Authority Act 2012


(B) Income Tax Act


(C) Sales Tax Act 1990


(D) Customs Act




10. Assistant Commissioner means?

(A) Bank officer


(B) Lawyer


(C) Judge


(D) Authority officer




11. Associates relationship is based on?

(A) Friendship


(B) Employment only


(C) Control or influence


(D) Location




12. Authority means?

(A) FBR


(B) Police


(C) Court


(D) Punjab Revenue Authority




13. Banking company includes?

(A) Insurance company


(B) Any bank business body


(C) School


(D) Hospital




14. Commissioner is?

(A) Police officer


(B) Authority officer


(C) Judge


(D) Teacher




15. Company includes?

(A) Only firm


(B) Body corporate and others


(C) Only individual


(D) Only shop




16. Computerized system means?

(A) Manual system


(B) IT system of Authority


(C) Paper register


(D) Cash system




17. Default surcharge means?

(A) Discount


(B) Refund


(C) Extra tax for delay


(D) Bonus




18. Defaulter means?

(A) Honest taxpayer


(B) Officer


(C) Auditor


(D) Person who fails to pay tax




19. Document includes?

(A) Electronic records


(B) Only paper


(C) Only books


(D) Only invoices




20. Due date for return is usually?

(A) 1st of month


(B) 10th of month


(C) 15th of next month


(D) End of year




21. Economic activity includes?

(A) Only job


(B) Only farming


(C) Business, trade or profession


(D) Only salary




22. Exempt service means?

(A) Free from tax service


(B) Taxable service


(C) Imported service


(D) Export service




23. Financial year is?

(A) Jan–Dec


(B) July–June


(C) April–March


(D) March–April




24. Goods do NOT include?

(A) Movable property


(B) Shares


(C) Services


(D) Machinery




25. Government means?

(A) Punjab Government


(B) Federal Government


(C) Local Government


(D) Court




26. Inter-bank rate refers to?

(A) Stock rate


(B) Karachi inter-bank rate


(C) Dollar price only


(D) Gold rate




27. Non-banking financial institution includes?

(A) Leasing company


(B) School


(C) College


(D) Hospital




28. Place of business includes?

(A) Only office


(B) Only factory


(C) Virtual presence


(D) Only shop




29. Person includes?

(A) Only individual


(B) Government and others


(C) Only company


(D) Only firm




30. Registered person means?

(A) Only taxpayer


(B) Registered or liable to be registered person


(C) Only employee


(D) Only company




31. Resident includes?

(A) Only outsider


(B) Only student


(C) Only tourist


(D) Presence or control in Punjab




32. Service means?

(A) Anything other than goods


(B) Goods


(C) Only transport


(D) Only trade




33. Standard rate is?

(A) 10%


(B) 16%


(C) 15%


(D) 20%




34. Tax includes?

(A) Only tax


(B) Only fee


(C) Only income


(D) Tax, penalty and surcharge




35. Tax fraud means?

(A) Mistake


(B) Intentional wrongdoing


(C) Delay


(D) Refund




36. Tax period is?

(A) 1 year


(B) 6 months


(C) 1 month


(D) 5 years




37. Taxable service is defined in?

(A) Section 2


(B) Section 3


(C) Section 10


(D) Section 15




38. Tax is charged on?

(A) Profit


(B) Salary


(C) Value of service


(D) Property




39. Liability to pay tax is mainly on?

(A) Buyer


(B) Service provider


(C) Court


(D) Bank




40. Exemptions are given by?

(A) Authority with Government approval


(B) Court


(C) Police


(D) Bank




41. Rate of tax applies at?

(A) Service provided time


(B) Contract time


(C) Invoice time


(D) Payment time




42. Withholding tax is collected by?

(A) Government


(B) Buyer


(C) Seller


(D) Police




43. Failure to withhold tax makes person?

(A) Free


(B) Exempt


(C) Personally liable


(D) Ignored




44. Input tax requires?

(A) Fake invoice


(B) No record


(C) Valid tax invoice


(D) Cash only




45. Input tax claim limit is?

(A) 1 month


(B) 3 months


(C) 1 year


(D) 6 tax periods




46. Payment above threshold must be?

(A) Cash


(B) Credit only


(C) Barter


(D) Banking instrument




47. Business bank account means?

(A) Declared business account


(B) Personal account


(C) Loan account


(D) Foreign account




48. Capital goods input tax is?

(A) Always allowed


(B) Doubled


(C) Always refundable


(D) Not allowed if not used




49. Utilities bill must be in name of?

(A) Registered person


(B) Friend


(C) Bank


(D) Government




50. Vehicles input tax is?

(A) Allowed


(B) Not allowed


(C) Refundable


(D) Doubled




51. Taxable service is listed in?

(A) First Schedule


(B) Second Schedule


(C) Third Schedule


(D) Fourth Schedule




52. Economic activity does NOT include?

(A) Business


(B) Trade


(C) Hobby


(D) Profession




53. Open market price is based on?

(A) Government rate


(B) Guess


(C) Fixed rate


(D) Market transaction




54. Service over time is treated as?

(A) Separate services


(B) Single service


(C) Free service


(D) Goods




55. Non-resident service tax is paid by?

(A) Recipient


(B) Provider


(C) Government


(D) Bank




56. Tax exemption is granted by?

(A) Court


(B) Police


(C) Notification


(D) Bank




57. Standard rate option is?

(A) Permanent


(B) Irrevocable (with conditions)


(C) Temporary


(D) Illegal




58. Reverse charge means?

(A) Buyer pays tax


(B) Seller pays


(C) No tax


(D) Refund




59. Tax fraud includes?

(A) Honest mistake


(B) Refund claim


(C) Delay


(D) Intentional suppression




60. Authority means?

(A) Punjab Revenue Authority


(B) FBR


(C) Court


(D) Police




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