Note: The Sales Tax Rules 2006 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 Sales Tax Rules, 2006 was passed in:

A. 5th June 2006
B. 10th June 2006
C. 15th June 2006
D. 20th June 2006

Answer

Correct Answer: A. 5th June 2006

 

2. Adjudicating Authority means:

A. Any Officer appointed to ‘Adjudicate’ and decides casks Under $.179 of the Customer Act 1969 (IV of 1969)
B. $.45 of the Sales Tax Act 1990 and $.31 of the Federal Excise Act 2005
C. Both A & B
D. None of these

Answer

Correct Answer: C. Both A & B 

 

3. Agreement means?

A. The agreement executed between the Floated and the Bank for the purpose of Payment of tax and submission of tax relates
B. Any registered person who files a claim for refund of Sales Tax under these rules
C. Both A & B
D. None of these

Answer

Correct Answer: A. The agreement executed between the Floated and the Bank for the purpose of Payment of tax and submission of tax relates 

 

4. Attachment Officer means:

A. An Officer not below the rank of Principal Appraiser or Superintendent or Senior Auditor
B. Authorized by the Recovery Officer to perform any of the functions under these rules
C. Both A & B
D. None of these

Answer

Correct Answer: C. Both A & B 

 

5. Bank means:

A. The National Bank of Pakistan or any of its branches designated, by notification in the Official Gazette
B. For the purpose of filing of returns and payment of Sales Tax
C. Both A & B
D. None of these

Answer

Correct Answer: C. Both A & B 

 

6. Claimant means:

A. Any Registered person who files a claim for refund of Sales Tax under these Rules
B. A person mentioned in the demand note who has failed to discharge his liabilities in payment of Govt dues
C. Both A & B
D. None of these

Answer

Correct Answer: A. Any Registered person who files a claim for refund of Sales Tax under these Rules 

 

7. Collector means:

A. The of the Sales Tax having jurisdiction
B. The office of the collector of Sales Tax having jurisdiction and includes the large Taxpayers Unit (LTU) and the Regional Tax Office (RTO) where the offices of Income Tax, Sales Tax, and Federal Excise are co-located
C. Both a & b
D. None of these

Answer

Correct Answer: A. The of the Sales Tax having jurisdiction

 

8. Collectorates means?

A. The office of the Collector of Sales Tax having Jurisdiction
B. Includes the Large Taxpayers Unit (LTU) and the Regional Tax Office (RTO)
C. Where the offices of Income Tax, Sales Tax, and Federal Excise are co-located
D. All of these

Answer

Correct Answer: D. All of these 

 

9. Commercial Exporter means?

A. A person registered as an Exporter, who does not have his own manufactured Facility and is exporting the goods
B. Whether in the same state or after getting them processing, manufactured from one or more registered persons
C. Holds a valid Sales Tax invoice for such processing, manufacturing, or conversion
D. All of these

Answer

Correct Answer: D. All of these 

 

10. Committee means:

A. A Committee constituted under Sub-Section (2) of section 47A of the Act
B. A Committee constituted under Sub-Section (3) of section 48 of the Act
C. A Committee constituted under Sub-Section (4) of section 49 of the Act
D. None of these

Answer

Correct Answer: A. A Committee constituted under Sub-Section (2) of section 47A of the Act 

 

11. Foreign Currency means:

A. As defined in clause (c) of Section 2 of the Foreign Exchange Regulation Act 1947 (VII of 1947)
B. Automated Risk-based system for processing of claims filed by the registered persons covered takes clause (b) of rule 26
C. Both A & B
D. None of these

Answer

Correct Answer: A. As defined in clause (c) of Section 2 of the Foreign Exchange Regulation Act 1947 (VII of 1947) 

 

12. Fast Track Chased means?

A. Automated Risk-based system for processing of claims filed by the registered persons covered under clause (b) of rule 26
B. Steps taken for the recovery of Government does in pursuance of a demand
C. Both A & B
D. None of these

Answer

Correct Answer: A. Automated Risk-based system for processing of claims filed by the registered persons covered under clause (b) of rule 26 

 

12. Government dues means?

A. Recoverable amounts of Sales Tax default Surcharge penalty or any other tax duty or other levy collected
B. In the same manner as Sales Tax is collected an adjudged penalty or fine or any Amount unpaid which may be payable under any bond guarantee or instrument Executed under Act
C. Such other laws or the rule made thereunder and against the recovery of which there is no bar or valid stay order from the competent Court
D. All of these

Answer

Correct Answer: D. All of these 

 

13. ICRC means?

A. International Committee of the Red Cross
B. International Committee of the Royal Corporation
C. Both a & b
D. None of these

Answer

Correct Answer: A. International Committee of the Red Cross 

 

14. Immovable property means?

A. Has the same meaning assigned to it in clause (2) of S.3 of the General Clauses Act 1897 (X of 1897)
B. Has the same meaning assigned to it in clause (3) of S.6 of the General Clauses Act 1897 (X of 1897)
C. Both A & B
D. None of these

Answer

Correct Answer: A. Has the same meaning assigned to it in clause (2) of S.3 of the General Clauses Act 1897 (X of 1897) 

 

15. LRO means?

A. Local Registration Office
B. Established in the Collectorate of Sales Tax or Regional Tax Office (RTO) having Jurisdiction
C. Both A & B
D. None of these

Answer

Correct Answer: C. Both A & B 

 

16. LTU means?

A. Large Taxpayer Unit
B. Having Jurisdiction
C. Both A & B
D. None of these

Answer

Correct Answer: C. Both A & B 

 

17. Misconduct means?

A. Conduct prejudicial to good order, unbecoming of a gentleman and includes any act on his part to bring or attempt to bring outside or any sort of influence, directly or Indirectly
B. To bear on the officer of customs, Federal Excise and Sales Tax in respect of any matter relating to the discharge of his duties under the relevant Acts
C. Crating hindrance in the discharge of such duties or impersonation or submission of fake document
D. All of these

Answer

Correct Answer: D. All of these 

 

18. Movable Property means:

A. A property that can be taken into custody for removal without physically knocking it down
B. Includes Currency and Coin shares documents and Instruments
C. Both A & B
D. None of these

Answer

Correct Answer: C. Both A & B 

 

19. Nil Return means:

A. A return indicating that no Sales Tax is payable
B. By the registered person in respect of the Sales Tax period to which the tax return rules
C. Both A & B
D. None of these

Answer

Correct Answer: C. Both A & B 

 

20. PACCS means?

A. Pakistan Automated Customs Clearance System
B. Punjab Automated Customs Clearance System
C. Peshawar Automated Customs Clearance System
D. None of these

Answer

Correct Answer: A. Pakistan Automated Customs Clearance System 

 

21. Privileged Organization means?

A. United Nations and the Organization working under it and shall include Organization which the Board may
B. By notification in the Official Gazette, Recognize to be a privileged Organization
C. Both A & b
D. None of these

Answer

Correct Answer: C. Both A & b 

 

22. Privileged Person means?

A. For the purpose of rule 53 means a person covered by United Nations (Privileged Mand Immunities) Act 1948 ( XX of 1948) Shall include persons entitled to concession and exemptions under the Model Rules for Custom concession to
privileged personnel arriving under the various foreign and programs or projects issued by the Board under C.No.10 (34)-Cus-III/58, dated the 18th April 1963
B. For the purpose of rule 54 means the person so declared under the President’s Salary, Allowances and Privileges Act 1975 (LVIII of 1975) and the Prime Minister’s Salary, Allowance and Privileges Act 1975 (LIX of 1975)
C. Both A & B
D. None of these

Answer

Correct Answer: C. Both A & b 

 

23. Processing Officer means?

A. Audit Staff Authorized to process a refund claim
B. A person appointed by the Recovery Officer to manage run and account for any
attached business or property
C. Both A & B
D. None of these

Answer

Correct Answer: A. Audit Staff Authorized to process a refund claim 

 

24. RCPS means?

A. The Refund Claim Preparation Software prescribed by the Board
B. An officer, not below the rank of an Assistant Collector, desiring to recover Govt dues through Recovery Officer
C. Both A & B
D. None of these

Answer

Correct Answer: A. The Refund Claim Preparation Software prescribed by the Board  

 

25. Receiver means?

A. A person appointed by the Recovery Officer to manage run and account for any attached is business or property
B. Audit staff authorized to process a refund claim
C. Both A& B
D. None of these

Answer

Correct Answer: A. A person appointed by the Recovery Officer to manage run and account for any attached is business or property   

 

26. Recovery Officer means?

A. An Inland Revenue Officer as appointed by the Collector to exercise powers as contained in sub-section (2) of S.48 of the Act
B. Who shall not be below the rank of Assistant Collector
C. Both A & B
D. None of these

Answer

Correct Answer: C. Both A & B 

 

27. Reciprocity means?

A. Extension of the same privileges and facilities to a diploma or diplomatic mission of a country in Pakistan as is extended by such Country diplomats and the diplomatic mission of Pakistan in the country
B. Conduct prejudicial to good order unbecoming of a gentleman and includes any tax on his part to bring or attempt to bring outside or any sort of influence directly or Indirectly
C. Both A & B
D. None of these

Answer

Correct Answer: A. Extension of the same privileges and facilities to a diploma or diplomatic mission of a country in Pakistan as is extended by such Country diplomats and the diplomatic mission of Pakistan in the country 

 

28. Record means?

A. An officer not below the rank of an Assistant Collector
B. Desiring to recover Government dues through Recovery Officer
C. Both A & B
D. None of these

Answer

Correct Answer: C. Both A & B 

 

29. Relevant Acts means?

A. The Act the Federal Excise Act 2005
B. The Custom Act 1969 (IV of 1969)
C. Both A & B
D. None of these

Answer

Correct Answer: C. Both A & B 

 

30. Residual Input means?

A. The Amount of Tax paid on raw materials components and capital goods being used for making taxable as well as exempt supplies
B. But does not include the input tax paid on raw materials used wholly for making taxable or exempt supplies
C. Both A & B
D. None of these

Answer

Correct Answer: C. Both A & B 

 

31. RTO means?

A. The Regional Tax Office having jurisdiction
B. The Refund Tax Office
C. Both a & b
D. None of these

Answer

Correct Answer: A. The Regional Tax Office having jurisdiction  

 

32. Same-State-Goods means:

A. Goods Purchased by a commercial exporter against tax invoice for export as such
B. The amount of tax paid on raw materials components and capital goods being used for making taxable as well as exempt supplies
C. Both A & B
D. None of these

Answer

Correct Answer: A. Goods Purchased by a commercial exporter against tax invoice for export as such  

 

33. Share means:

A. Share in a corporation and private limited or public limited company
B. Stock debenture stock, debentures or bonds
C. Both A & B
D. None of these

Answer

Correct Answer: C. Both A & B 

 

34. Taxpayer means:

A. Any person who is required or liable to pay or is paying duty or any sumunder any or all of the relevant Acts
B. The rules and includes any person, other than a government employee, who is assigned any duty or responsibility under any of the relevant Acts or the rules
C. Both A & B
D. None of these

Answer

Correct Answer: C. Both A & B 

 

35. UNDP is the abbreviation of:

A. United Nations Development Program
B. United National Development Program
C. Both A & B
D. None of these

Answer

Correct Answer: A. United Nations Development Program 

 

36. UNICEF is the abbreviation of:

A. United Nations International Children’s Emergency Fund
B. United Nations International Children’s Education Fund
C. Both A & B
D. None of these

Answer

Correct Answer: A. United Nations International Children’s Emergency Fund 

 

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