TAXATION : PREVIOUS YEAR QUESTIONS :: ECONOMICS

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2011

Which one of the following is not a feature of “Value Added Tax”?

(a) It is a multi-point destination-based system of taxation .

(b) It is a tax levied on value addition at each stage of transaction in the production-distribution chain.

(c) It is a tax on the final consumption of goods or services and must ultimately be borne by the consumer.

(d) It is basically subject of the Central Government and the State Governments are only a facilitator for its successful implementation.

d

 

2014

The sales tax you pay while purchasing a toothpaste is a

(a)Tax imposed by the Central Government.

(b)Tax imposed by the central Government but collected by the State Government.

(c)Tax imposed by the State Government but collected by the Central Government.

(d)Tax imposed and collected by the State Government.

d

 

2016

  1. The term ‘Base Erosion and Profit Shifting’ is sometimes seen in the news in the context of

(a) mining operation by multinational companies in resource-rich but backward areas

(b) curbing of the tax evasion by multinational companies

(c) exploitation of genetic resources of a country by multinational companies

(d) lack of consideration of environmental costs in the planning and implementation of developmental projects

Solution: B

 

2017

What is/are the most likely advantages of implementing ‘Goods and Services Tax (GST)’?

  1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India.
  2. It will drastically reduce the ‘Current Account Deficit’ of India and will enable it to increase its foreign exchange reserves.
  3. It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future.

Select the correct answer using the code given below:

(a)1 only

(b)2 and 3 only

(c)1 and 3 only

(d)1, 2 and 3

ANS:A

 

2018

With reference to India’s decision to levy an equalization tax of 6% on online advertisement services offered by non-resident entities, which of the following statements is/are correct?

  1. It is introduced as a part of the Income Tax Act.
  2. Non-resident entities that offer advertisement services in India can claim a tax credit in their home country under the “Double Taxation Avoidance Agreements”.

Select the correct answer using the code given below:

(a)1 only

(b)2 only

(c)Both 1 and 2

(d)Neither 1 nor 2

ANS:D

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