Note: The Federal Excise Act 2005 MCQs (Up to date). These MCQs publish accordingly to the pattern and syllabus of the Inspector Inland Revenue test in the Federal Board of Revenue Department. If you don’t know about the Syllabus, then first check the syllabus Click Here. In case of any error, mentioned it in the comment box below.

 

1. The purpose of the Federal Excise Act 2005 is/are:

A. Whereas it is expedient to consolidate
B. Amend the law relating to duties of excise on goods manufactured produced exported or consumed
C. Services provided or rendered in Pakistan
D. All of these

Answer

Correct Answer: D. All of these

 

2. Federal Excise Act 2005 extent to?

A. The whole of Pakistan
B. It shall into force on 1st day of July 2005
C. Both A & B
D. None of these

Answer

Correct Answer: C. Both A & B 

 

3. Adjudicating Authority means?

A. Any authority competent to pass any order or decision under this Act
B. The rules made thereunder but does not include the Board or Appellate Tribunal
C. Both A & B
D. None of these

Answer

Correct Answer: C. Both A & B 

 

4. The Appellate Tribunal Inland Revenue was established under Section __ of the Income Tax Ordinance 2001 (XLIX of 2001).

A. Section 130
B. Section 120
C. Section 110
D. Section 150

Answer

Correct Answer: A. Section 130 

 

5. The Federal Board of Revenue was established under the Central Board of Revenue Act ___(IV of 1924).

A. 1920
B. 1924
C. 1928
D. 1932

Answer

Correct Answer: B. 1924 

 

6. A person appointed as Chief Commissioner Inland Revenue under Section ___.

A. Section 29
B. Section 30
C. Section 31
D. Section 32

Answer

Correct Answer: A. Section 29 

 

7. Conveyance means?

A. Any means of transport used for carrying goods or passengers
B. Such as vessel aircraft vehicle or animal etc
C. Both A & B
D. None of these

Answer

Correct Answer: C. Both A & B 

 

8. Under which Section of the Said Act Surcharge levied defined?

A. Section 7
B. Section 8
C. Section 9
D. Section 10

Answer

Correct Answer: C. Section 9 

 

9. Distributor means?

A. A person appointed by manufacture in or for a specified area to purchase goods from him for sale to a wholesale dealer
B. Any sum payable under the provisions of this Act or the rules made thereunder as includes the default surcharge and the duty chargeable at the of zero percent
C. Both a & b
D. None of these

Answer

Correct Answer: A. A person appointed by manufacture in or for a specified area to purchase goods from him for sale to a wholesale dealer 

 

10. Established Includes?

A. An undertaking firm or company
B. Whether incorporated or not
C. An association of persons and in individual
D. All of the above

Answer

Correct Answer: D. All of the above 

 

11. Factory means?

A. Any premises including the precincts thereof
B. Wherein or in any part of which goods are manufactured
C. Wherein or in any part of which any manufacturing process connected with the Production of the goods is being carried on or is ordinarily carried on
D. All of these

Answer

Correct Answer: D. All of these 

 

12. Officer of Inland Revenue means?

A. Any person appointed by the Board as Officer of Inland Revenue Section 29
B. Any person ( Including an officer of the provincial government) engraved by the Board with any of the powers of an officer of Inland Revenue under This Act or rules made hereunder
C. Both A & B
D. None of these

Answer

Correct Answer: C. Both A & B 

 

13. Goods means?

A. Goods leviable to excise duty under this Act or as specified in the First Schedule and
B. Goods manufactures or products in the non-tariff area and brought for use or consumption to tariff area
C. Both a & b
D. None of these

Answer

Correct Answer: C. Both A & B 

 

14. Manufacture includes?

A. Any process is incidental or ancillary to the completion of a manufactured product
B. Any process of re-manufacture, remaking, reconditioning, or repair and the process of packing or repacking such product
C. In relation to tobacco includes the preparation of cigarettes, cigars, cheroots, iris cigarettes, and pipe or hookah tobacco chewing tobacco or snuff or preparation of un-manufactured tobacco by drying cutting, and thrashing of raw
tobacco
D. All of these

Answer

Correct Answer: D. All of these 

 

15. Sale and Purchase means?

A. With their grammatical variations and cognate expressions
B. Any transfer of the possession of goods or rendering and providing of services by one person to another in the ordinary course of trade or business for cash or deferred payment or other considerations
C. Both A & B
D. None of these

Answer

Correct Answer: C. Both A & B 

 

Levy Collection and Payment of Duty

16. Duties specified in the First Schedule to be levied (Section 3) means?

A. Subject to the provisions of this Act and rules made thereunder there shall be levied and collected in such manner as may be prescribed duties of excise on –
(i) Goods produced or manufactured in Pakistan
(ii) Goods Imported into Pakistan
(iii) Services provided in Pakistan including the services that originated outside but rendered in Pakistan
B. At the rate of fifteen percent advaloren except the goods and services specified in the first schedule
C. Which shall be charged to Federal excise duty as and at the rates set forth therein
D. All of these

Answer

Correct Answer: D. All of these 

 

17. Filling of return and payment of duty etc (Section 4) means?

A. For every month a registered person
B. Shall furnish not later than the due date a true and correct return in such manner
C. Form as may be prescribed by the Board by notification in the Official Gazette
D. All of these

Answer

Correct Answer: D. All of these 

 

18. “Zero rates of duty and drawback of duty etc” (Section 5) means?

A. Notwithstanding the provision of Section 3
B. The goods exported out of Pakistan or such goods as may be by notification in Official Gazette
C. Adjustment of duty in terms of Section 6 shall be admissible on such goods
D. Specified by the Federal Government shall be deducted from the amount of duty calculated on such goods
E. All of these

Answer

Correct Answer: E. All of these 

 

19. Adjustment of duties of excise means?

A. For the purpose of determining the net liability of duty in respect of any goods
B. The duty already paid on goods specified in the First Schedule and used directly as input goods for the manufacture
C. Production of such goods shall be declared from the amount of duty calculated on such goods
D. All of these

Answer

Correct Answer: D. All of these 

 

20. Applications of the provisions of the Sales Tax Act 1990 (Section 7 means)?

A. In case of goods specified in the Second Schedule
B. Such services as may be specified by the Board through a notification in the Official Gazette
C. The duty shall be payable in Sales tax mode whereby__
(i) A registered person manufacturing or producing such goods or providing or rendering such services shall be entitled to deduct input tax paid during the tax period from the amount of duty of excise due from him on such goods or services in respect of that tax period
(ii) A registered person shall be entitled to deduct the amount of duty of excise paid or payable by him on such goods or services as are acquired by him during a tax period from the output tax due from him in respect of that tax period
D. All of these

Answer

Correct Answer: D. All of these 

 

21. Default Surcharge (Section 8) means?

A. If a person does not pay the duty due or any part thereof within the prescribed time
B. Receives a refund of duty or drawback or makes an adjustment that is not admissible to him he shall in addition to the duty due
C. Pay default surcharge at the rate of (KIBOR, plus three per annum) of the duty due refund of duty or drawback
D. All of these

Answer

Correct Answer: D. All of these 

 

22. For the purpose of Section 8 is:

A. The period of default shall be reckoned from the date following the due date on which the duty was payable to the preceding day on which the duty is actually paid
B. In case of inadmissible adjustment or refund of duty or drawback the period of default shall be reckoned from the date of such adjustment or as the case may be a refund of duty or drawback is received
C. Both a & b
D. None of these

Answer

Correct Answer: C. Both A & B 

 

23. Liability for payment of duty in the case of private companies or business enterprises or in case of sale of business ownership (Section 9) means:

A. Notwithstanding anything contained in any other law for the time being in force
B. Where any private company or business enterprise is closed or discontinued
C. Otherwise ceases to exist and any amount of duty chargeable on the company or business enterprise
D. Whether before or in the course of or after its liquidation cannot be recovered from the company or business enterprise
E. Every person who was an owned of or partner in or direct of or partner In or Director of the company or business enterprise shall jointly and severally with such persons be liable for the payment of such duty
F. All of these

Answer

Correct Answer: F. All of these 

 

24. (Section 10) The value and the rate of duty applicable to any goods or services shall be the value retail price tariff value and the rate of duty in force __.

A. In the case goods on the date on which the goods are supplies for export or for home consumption
B. In the case of service on the date on which the services are provided or rendered
C. In the case of goods produced or manufactures outside the area to which this Act has been applied and brought to such areas for sale or consumption therein the date on which the goods are brought to those areas
D. All of these

Answer

Correct Answer: D. All of these 

 

25. Collection of excess duty etc. (section11) means:

A. Every person who for any reason whatever has collected or collected any duty
B. Which is not payable as a duty or which is in excess of the duty actually consumer
C. Shall pay the amount so collected to the Federal Government and all the provisions of this Act or rules made thereunder shall apply for the recovery of such amount and claim for refund of any such amount paid or recovered shall not be admissible on any ground whatever
D. All of these

Answer

Correct Answer: D. All of these 

 

26. Determination of value for the purpose of duty (Section 12) means:

A. Where any goods are liable to duty under this Act at a rate dependent on their value
B. Duty shall be Assessed and paid on the basis of value as determined in accordance
with sub-section(46) of Section 2 of the Sales Tax Act 1990 excluding the amount of duty payable thereon
C. Both A & B
D. None of these

Answer

Correct Answer: C. Both A & B 

 

27. Registration (Section 13) means:

A. Any person engaged in the production or manufacture of goods or providing or rendering services liable to a duty of excise under this Act shall
B. Unless otherwise specified be required to obtain registration in the prescribed manner regardless of his annual turnover or volume of Sales of such goods or services
C. Where a person who is already registered under the Sales Tax Act 1990 shall not be required to take separate registration for the purpose and his sales tax registration shall be deemed to be a registration for the purpose of this Act
D. All of these

Answer

Correct Answer: D. All of these 

 

28. Recovery of unpaid duty or of erroneously refunded duty or arrears of duty etc (Section 14) means?

A. Where any person has not levied or paid any duty or his short levied or short paid such duty
B. Where any amount of duty has been refunded erroneously
C. Such person shall be serviced with a notice requiring him to show cause for payment of such duty provided that such notice shall be issued within five years from the relevant date
D. The officer of Inland Revenue empowered on this behalf shall after considering the objections of the person served with a notice to show cause under subsection (1)
E. All of these

Answer

Correct Answer: D. The officer of Inland Revenue empowered on this behalf shall after considering the objections of the person served with a notice to show cause under subsection (1) 

 

29. Short paid amounts recoverable (Section 14A) means:

A. Notwithstanding the provisions of this Act or the rules made thereunder
B. Where a registered person pays the amount of duty less than the duty due as indicated in his return
C. The Short paid amount of duty along with default surcharge shall be recovered from such person by stopping the removal of any goods from his business premises
D. Through attachment of his business bank accounts without prejudice to any other action under this Act or the rules made thereunder
E. All of these

Answer

Correct Answer: E. All of these 

 

30. Application of the Customs Act 1969 (IV of 1969) to federal excise duties (Section 15) means:

A. The Federal Government may be notification in the Official Gazette
B. Declare that any or all of the provisions of the Customs Act 1969 (IV of 1969 )
C. Shall with such modifications and alterations it may specify consider necessary or desirable to adapt them to the circumstances be applicable in regard to like matters in respect of the duties levied by Section 3 and 8
D. All of these

Answer

Correct Answer: D. All of these 

 

31. Exemptions (Section 16) means:

A. All goods imported produced or manufactured in Pakistan
B. Services provided or rendered accept such goods and services as are specified in the
First Schedule shall be exempt from the whole of excise duties levied under Section 3
C. Both A & B
D. None of these

Answer

Correct Answer: C. Both A & B 

 

32. Records (Section 17) means:

A. Every person registered for the purpose of this Act shall maintain and keep for a period of six years
B. Till such further period the final decision in any proceedings including proceedings For assessment, appeal, revision, reference, petition, any proceedings before an Alternative Dispute Resolution Committee is finalized
C. At his business premises or registered office in English or Urdu language the following records of excisable goods purchased manufactured and cleared
D. All of these

Answer

Correct Answer: D. All of these 

 

33. Under Section 17 (2) for any goods or class of goods the Board may specify or prescribe?

A. To keep any other records for the purposes of this Act
B. To use such electronic fiscal cash registers as may be approved by the Board
C. The Procedure or software for electronic maintenance of records and filing of statements documents or information by any person or class of persons
D. All of these

Answer

Correct Answer: D. All of these 

 

34. Invoice means:

A. A person registered this Act shall issue for each transaction a serially numbered invoice at the time of clearance or sale of goods
B. Goods chargeable to duty at the rate of zero percent
C. Providing or rendering services containing the following particulars
D. All of the above

Answer

Correct Answer: D. All of these 

 

Offenses and Penalties

35. Offences penalties fines and allied matters (Section 19) means:

A. Any person who fails to file or files an incorrect return within the period specified in Sun-Section (1)
B. Fails to make a payment or makes short payment duty on any account
C. Shall pay a penalty of five thousand rupees in case of non-filing of return and ten thousand rupees or five percent of the duty involved whether is higher in case of short payment duty due
D. In addition to the amount due from him and without prejudice to other liabilities which may be determined against him or action which may be taken against him under this Act and rules made thereunder
E. All of these

Answer

Correct Answer: E. All of these 

 

36. Appointment of Special Judges for the trial of offenses (Section 20) means:

A. The Federal Government may be by notification its official Gazette
B. Appoint as many Special Judges as it may consider necessary
C. Where it appoints more than one Special Judge shall specify in the notification the territorial limits within which each one of them shall exercise jurisdiction
D. A Special Judge shall be a person who is or has been or is qualified to be a Sessions judge
E. All of these

Answer

Correct Answer: E. All of these 

 

37. Trial offenses by Special Judge (Section 21) means:

A. On the appointment of Special Judge for any area
B. An offense punishable under this Act shall be tried exclusively by the Special Judge and all cases pending in any other Court in such area immediately before such appointment shall stand transferred to such Special Judge
C. The provisions of the Code of Criminal Procedure, 1898 (Act V of 1898), except those of Chapter XXXVIII of that Code shall apply to the proceedings of the Court of a Special Judge
D. For the purpose of the Said provisions the court of a Special Judge shall be deemed to be a Public Prosecutor
E. All of these

Answer

Correct Answer: E. All of these 

 

38. Appeal against the order of Special Judge (Section 21A) means:

A. An appeal against the order of a Special Judge in respect of the trial of the offense shall lie to the respective High Court of the Province within thirty days of the passing of the order
B. It shall be bend as an appeal under the Code of Criminal Procedure 1898 ( Act V of 1898) by a single Judge of the High Court
C. Both A & B
D. None of these

Answer

Correct Answer: C. Both A & B 

 

39. Power to arrest and prosecute (Section 22) means:

A. Officer of Inland Revenue authorized by the Board on this behalf who had reason to believe that any person who has committed an offense under this Act may arrest such persons
B. Notwithstanding anything contained in the proviso to sub-section (1) any person arrest under this Act shall be produced before the Special judge or if there is no Special Judge within a reasonable distance to the nearest Judicial Magistrate within twenty-four hours of such arrest
C. The time necessary for the journey from the place of arrest to the Court of the Special Judge or as the case may be of such Magistrate
D. All of these

Answer

Correct Answer: D. All of these 

 

40. Power to summons persons to give evidence and produce documents in inquiries (Section 23) means:

A. Any Officer of Inland Revenue duty empowerment by the Board in this behalf shall have the power to summon
B. Any person whose attendance he considers necessary either to give evidence or it produces a document
C. Any other thing or information in any inquiry which such officer is making for any of the purposes of this Act
D. All of these

Answer

Correct Answer: D. All of these 

 

41. Officers required assisting [Officer of Inland Revenue] (Section 24) means:

A. All officers of Police and Customs Sales tax the civil armed forces and all officers of Government engaged in the collection of Land Revenue
B. All village officers shall assist the Officer of Inland Revenue in the execution of this Act as and when required by such officer
C. Both A & B
D. None of these

Answer

Correct Answer: C. Both A & B 

 

Searches, Arrests, and Seizures

42. Searches and arrests how to be made (Section 25)?

A. All Searches or arrests made under this Act or any rules made thereunder
B. All arrests made under this Act shall be carried out in accordance with the relevant provisions of the Code of Criminal Procedure 1898 (V of 1898)
C. Both a & b
D. None of these

Answer

Correct Answer: C. Both A & B 

 

43. Power to seize (Section 26) means:

A. The Counterfeited cigarettes or beverages which have been manufactured
unlawfully or on which duty has not been paid as required under this Act and rules made thereunder
B. Shall be liable to seizure besides the conveyance which has been used for the movement carriage or transportation of such cigarettes or beverages
C. For the purpose of this section conveyance shall include all of its fixtures filing and accessories etc
D. All of these

Answer

Correct Answer: D. All of these

 

44. Confiscation of cigarettes or beverages (Section 27) means:

A. The cigarettes or beverages seized for the reason of counterfeiting shall be liable to outright confiscation and shall be destroyed in the manner prescribed in sub-section (1) of Section 19
B. In case of cigarettes or beverages seized on account of evasion of duty the owner shall be given an option to pay penalties and fines as provided under Section 19 and meet other obligations as provided under other relevant provisions of the Act and rules thereunder
C. For the release of such cigarettes or beverages in lieu of confiscation provided that if such release is not claimed or availed no reduction or abatement in respect of the number of duty penalties and fine shall be admissible in case such cigarettes or beverages are auctioned
D. All of these

Answer

Correct Answer: D. All of these

 

45. Power to release seized conveyance (Section 28) means:

A. Where any conveyance is seized which is liable to confiscation the adjudicating authority may be subject to such conditions as may be prescribed
B. Order its release pending adjudication of the case and on furnishing a guarantee by the owner of the seized conveyance
C. From a scheduled bank valid for at least one year equal to the value of such conveyance
D. All of these

Answer

Correct Answer: D. All of these

 

Powers Adjudication and Appeals

46. Appointment of Officer of Inland Revenue and delegation of powers Section 29 means:

A. For the purpose of his Act the Board may appoint any person in respect of any area person class of persons
B. The chief Commissioners Inland Revenue and Commissioners Inland Revenue shall be subordinate to the Chief Commissioner Inland Revenue
C. Additional Commissioners, Inland Revenue Deputy Commissioners, Inland Revenue Inland Revenue Officers, Superintendents Inland Revenue, Inland Revenue Audit Officers, Inspectors Inland Revenue and Officers of Inland Revenue with any other Designation shall be subordinate to the Commissioners Inland Revenue
D. Shall perform their function in respect of such person or classes of persons or such areas as the Commissioners to whom they are subordinate may direct
E. All of these

Answer

Correct Answer: E. All of these

 

47. Use of powers of subordinate officer (section 30) means:

A. An officer appointed under this Act shall exercise such powers and discharge such duties as are conferred or imposed on him under this Act and he shall also be competent to exercise all powers and discharge all duties or functions conferred or imposed upon any officer subordinate to him
B. Notwithstanding anything contained in this Act or the rules there under the Board may by general or special order impose such limitations or conditions on the exercise of such powers and discharge of such duties by any officer of Inland Revenue as it deems fit
C. Both A & B
D. None of these

Answer

Correct Answer: C. Both A & B

 

48. Option to pay fine in lieu of confiscation of conveyance Section 32 means:

A. Wherever confiscation is adjudged under this Act or the rules thereunder
B. The officer adjudging it may give the owner of the conveyance an option to pay in lieu of confiscation such fine as the officer thinks fit
C. Both A & B
D. None of these

Answer

Correct Answer: C. Both A & B

 

49. Appeals to Commissioner (Appeals) Section 33 means:

A. Any person other than Federal Excise officer aggrieved by any decision or under passed under this Act
B. The rules thereunder by an officer of Inland Revenue up to the rank of Additional Commissioner Inland Revenue
C. Other than a decision or order or notice given or action taken for recovery of the arrest of duty under this Act
D. Rules made thereunder may within thirty days of receipt of such decision or order prefer appeal therefrom to the Commissioner (Appeals)
E. All of these

Answer

Correct Answer: E. All of these 

 

50. Appeals to the Appellate Tribunal and Reference to High Court Section 34 means:

A. Any person or officer of Inland Revenue aggrieved by any of the following orders may within sixty days of the receipt of such orders file appeal to the Appellate Tribunal against such orders
B. An order passed by the Commissioner (Appeals) and order passed by the Board or the Commissioner Inland Revenue under Section 35
C. Both A & B
D. None of these

Answer

Correct Answer: C. Both A & B 

 

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