Tag: government and taxes

Quizzes (12) Questions (131)

Questions Related to government and taxes

Multiple choice meaning and importance of taxes government and taxes tax civics economics

Which one of the following sources of Central revenue belongs to the category of Indirect taxes?

  1. Corporation tax

  2. Customs

  3. Wealth tax

  4. Interest Receipts
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Custom Duty is a indirect tax for goods when import or export. The tax is collected by Central Board of Indirect Taxes and Customs.

Multiple choice meaning and importance of taxes government and taxes tax civics economics

If final goods attracts an excise duty of Rs. 8000 and Rs. 1050 has already been paid on inputs then the firm will pay the 7000 towards excise duty. It is paying tax according to

  1. VAT

  2. CENVAT

  3. MODVAT

  4. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The firm pays tax according to the MODVAT system. MODVAT means Modified Value added tax.This was an excise duty scheme introduced in 1986 for allowing relief to final manufacturers on the excise duty borne by their suppliers of raw material. This scheme has now been replaced by the CENVAT Scheme.

Multiple choice meaning and importance of taxes government and taxes tax civics economics

From the following information calculate interest coverage ratio: Profit after Tax Rs. 2,70,000; Tax Rs. 30,000; Interest on long term funds Rs.50,000

  1. 5 times

  2. 8 times

  3. 7 times

  4. 5.5 times
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Interest coverage ratio is given by =EBIT/Interest Expense

Therefore in this case EBIT= 270000+30000+50000=350000
Interest expenses= 50000
Interest coverage ratio will be 7 times

Multiple choice meaning and importance of taxes government and taxes tax civics economics

$NDP _{MP}$ - Indirect Taxes+ Subsides =

  1. $NNP _{MP}$

  2. $NDP _{FC}$

  3. $NNP _{FC}$

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

NDPMP is defined as the market value of final goods and services produced in the domestic territory of a country by its residents and non residents in an accounting year less depreciation. NDPMP= GDPMP-Depreciation

NNPFC= NDPMP-Indirect taxes+Subsidies
NNPFC is defined by total factor incomes earned by the factors of production.

Multiple choice meaning and importance of taxes government and taxes tax civics economics

MODVAT is:

  1. Modern Value Added Tax

  2. Modified Value Added Tax

  3. Monopoly Value Added Tax

  4. Method of Deduction of VAT
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

MODVAT (modified value added tax) was introduced in India in 1986. MODVAT was re-named as CENVAT. The system was termed as MODVAT, as it was restricted upto manufacturing stage and credit of only excise duty paid on manufacturing products (and corresponding CVD paid on imported goods) was available.

Multiple choice meaning and importance of taxes government and taxes tax civics economics

The following section/s of the Indian Income Tax govern the receipt of income by way of dividend by companies

  1. SEc 80k

  2. Sec. 80M

  3. Sec. 80N

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Sections 80K, 80M, and 80N of the Income Tax Act all relate to deductions or provisions concerning dividends received by companies, making 'All of the above' the correct choice.

Multiple choice meaning and importance of taxes government and taxes tax civics economics

If final good attracts an excise duty of Rs. 8000 and Rs. 1000 has already been paid on inputs then the firm will pay the Rs. 7,000 towards excise duty. It is paying tax according to________.

  1. VAT

  2. CENVAT

  3. MODVAT

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Under CENVAT scheme the credit of the excise duty/additional duty of customs paid on inputs and capital goods and service tax paid on input services allowed to be utilized for the payment of the excise duty on the final products or service tax on output services in order to avoid cascading effect of the duty/tax. 

Multiple choice commercial applications public sector enterprises role of government and development policies government companies government and taxes

The Registrar of Companies is appointed by the Central Government.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
Sub-section 75 of Section 2 of the Companies Act 2013 defines "Registrar" as : "Registrar" means a Registrar, or an Additional, a Joint, a Deputy or an Assistant Registrar, having the duty of registering companies under this Act (i.e. the companies act 2013). 
With the power vested under section 396 of the companies act 2013 (earlier section 609 of the companies act 1956), the Central Govt. appoints Registrars, and Additional, Joint, Deputy and Assistant Registrars for various States and Union Territories in India. 
Apart from the primary duty of registering companies incorporated in the respective states and the Union Territories, ROC’s are also responsible for ensuring that the Companies comply with statutory requirements under the said Act.
Multiple choice commercial applications public sector enterprises role of government and development policies government companies government and taxes

NCLT was established in year ______________.

  1. 2010

  2. 2011

  3. 2012

  4. 2016
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The National Company Law Tribunal (NCLT) is a quasi-judical body in India that adjudicates issues relating to Indian companies.The NCLT was established under the Companies act 2013 and was constituted on 1 June 2016 by the government of India and is based on the recommendation of the justice eradi committee on law relating to insolvency and winding up of companies.