Multiple Choice Questions For Economics with Answers, which are covered in this chapter, relate to the topic, Tax System. Multiple Choice Questions For Economics with Answers Test contains 10 questions. Answers to Multiple Choice Questions For Economics with Answers are available after clicking on the answer.
Multiple Choice Questions For Economics with Answers – Tax System
1.Which of the following is an Indirect tax:
(a) Value Added Tax
(b) Gift Tax
(c) Wealth Tax
(d) Income Tax
Answer
Answer: (A) Value added Tax
2.MODVAT was introduced in India in union budget of:
(a) 1985-86
(b) 1986 – 87
(c) 1987 – 88
(d) 1988-89
Answer
Answer: (b) 1986 – 87
3.Wealth tax on annual basis was introduced in:
(a) 1947
(b) 1957
(c) 1967
(d) 1977
Answer
Answer: (b) 1957
4.VAT was introduced in 1999 and was implemented in _____ some states:
(a) April 2000
(b) April 2002
(c) April 2005
(d) April 2006
Answer
Answer: (c) April 2005
5.Highest Tax revenue is earned by:
(a) Excise duty
(b) VAT
(c) CENVAT
(d) Income Tax
Answer
Answer: (d) Income Tax
Multiple Choice Questions For Economics with Answers – Tax System
6.Cenvat is related to :
(a) Sales
(b) Excise
(c) Income
(d) All of these
Answer
Answer: (b) Excise
7.Income tax in India is ______ in nature:
(a) Direct Progressive
(b) Direct regressive
(c) Direct Degressive
(d) Indirect progressive
Answer
Answer: (A) Direct Progressive
8.CENVAT was introduced in:
(a) 2000-01
(b) 2004-05
(c) 2006-07
(d) 2003-04
Answer
Answer: (d) 2003-04
9.Service Tax was introduced in:
(a) 1993-94
(b) 1995-96
(c) 1994-95
(d) 1996-99
Answer
Answer: (c) 1994-95
10.Which one is the merit of VAT?
(a) Cascading
(b) Non – Cascading
(c) Progressive
(d) None of these
Answer
Answer: (b) Non – cascading