Multiple Choice Questions For Economics with Answers – Tax System

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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 at the end of the last question.

1. Which of the following is an Indirect tax:

(a)    Value Added Tax

(b)    Gift Tax

(c)     Wealth Tax

(d)    Income Tax

2. MODVAT was introduced in India in union budget of:

(a)    1985-86

(b)    1986 – 87

(c)     1987 – 88

(d)    1988-89

3. Wealth tax on annual basis was introduced in:

(a)    1947

(b)    1957

(c)     1967

(d)    1977

4. VAT was introduced in 1999 and was implemented in _____ some states:

(a)    April 2000

(b)    April 2002

(c)     April 2005

(d)    April 2006

5. Highest Tax revenue is earned by:

(a)    Excise duty

(b)    VAT

(c)     CENVAT

(d)    Income Tax

6. Cenvat is related to :

(a)    Sales

(b)    Excise

(c)     Income

(d)    All of these

7. Income tax in India is ______ in nature:

(a)    Direct Progressive

(b)    Direct regressive

(c)     Direct Degressive

(d)    Indirect progressive

8. CENVAT was introduced in:

(a)    2000-01

(b)    2004-05

(c)     2006-07

(d)    2003-04

9. Service Tax was introduced in:

(a)    1993-94

(b)    1995-96

(c)     1994-95

(d)    1996-99

10. Which one is the merit of VAT?

(a)    Cascading

(b)    Non – Cascading

(c)     Progressive

(d)    None of these


1. (a) Value Added Tax

2. (b) 1986 – 87

3. (b) 1957

4. (c) April 2005

5. (a) Excise duty

6. (b) Excise

7. (a) Direct Progressive

8. (a) 2000-01

9. (c) 1994-95

10 (b) Non – Cascading

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