Practice Test

Q1) Value added tax is levied at: Show Answer

Q2) A trader purchases raw material from the local market worth Rs.20,000 and pays VAT @ 12.50% i.e. Rs.2,500/-. He also imports the material worth Rs. 10,000/- on which he pays the duty of Rs. 1250. He can avail the input credit of: Show Answer

Q3) Which was the first country to introduce VAT? Show Answer

Q4) The method for computation of tax in which all the factor payments including profits are aggregated to arrive at the total value addition on which the rate is applied to calculate the tax is: Show Answer

Q5) In India, the State - Level VAT has replaced: Show Answer

Q6) Which variant/variants is/are widely used among the three variants of VAT? Show Answer

Q7) Input tax is Show Answer

Q8) Output tax is Show Answer

Q9) Input tax credit in relation to any period means Show Answer

Q10) For stock transfer/consignment transfers/branch transfer of goods out of the State, input tax paid in excess of____will be eligible for tax credit. Show Answer

Q11) Which of the following purchases is not eligible for input tax credit? Show Answer

Q12) Which of the following statement is true? Show Answer

Q13) As per the white paper, which of the following dealer may opt for composition scheme? Show Answer

Q14) Which of the following statement is false? Show Answer

Q15) Which of the following dealer cannot opt for composition scheme? Show Answer

Q16) Which of the following statement is true? Show Answer

Q17) Who should obtain registration under VAT laws? Show Answer

Q18) The registration can be cancelled on Show Answer

Q19) The taxpayer's identification number will consist of ________digit numerals throughout the country Show Answer

Q20) The tax invoices shall be dated and signed: Show Answer

Q21) Under VAT system: Show Answer

Q22) In case of an agent of a non resident dealer turnover for the purpose of registration will not include Show Answer

Q23) VAT does not apply to Show Answer

Q24) In VAT laws Show Answer

Q25) A tax invoice is to issued Show Answer

Q26) The rate of VAT depends upon Show Answer

Q27) Dealer as defined under MVAT 2002 does not include Show Answer

Q28) Goods as defined under MVAT 2002 do not include Show Answer

Q29) Goods as defined under MVAT 2002 include Show Answer

Q30) Sale as defined under MVAT 2002 includes Show Answer

Q31) Sale price as defined under MVAT 2002 includes Show Answer

Q32) Tax free goods Show Answer

Q33) Tax at nil rate Show Answer

Q34) Tax at 1% Show Answer

Q35) Tax at 12.5% Show Answer

Q36) Tax at 4% Show Answer

Q37) Tax on material used for packing goods specified in schedule A Show Answer

Q38) VAT is charged Show Answer

Q39) Taxable purchases for the purpose of registration include Show Answer

Q40) Taxable sales for the purpose of registration exclude Show Answer

Q41) An auctioneer is liable to pay tax when he crosses the turnover limits even if Show Answer

Q42) An importer is liable to registered under MVAT Act 2002 if Show Answer

Q43) A non importer is liable to be registered under MVAT act 2002 if Show Answer

Q44) A person wishing to obtain voluntary registration Show Answer

Q45) The composition amount in case of a dealer of second hand vehicles shall be calculated @ Show Answer

Q46) Under a Composition Schemes under section 42 rates of 1.5% is applicable to Show Answer

Q47) The composition amount for an eligible restaurant is Show Answer

Q48) If the option to join or to opt out of the composition scheme is exercised in any year then it can be changed Show Answer

Q49) The composition amount for an eligible Baker is Show Answer

Q50) Under a Composition Schemes under section 42 rates of 5% is applicable to Show Answer

Q51) Under a Composition Schemes under section 42 rate of 8% is applicable to Show Answer

Q52) Composition Schemes under section 42 can be availed by Show Answer

Q53) For the purpose of section 42, a dealer shall be considered to be engaged in the business of selling at retail if ___ if his turnover of sales consists of sales made to persons who are not dealers. Show Answer

Q54) Export sales are Show Answer

Q55) No set-off or refund shall be granted to any dealer in respect of any purchase made from a registered dealer after 1-4-2005, unless the claimant dealer produces Show Answer

Q56) The set off can be adjusted or Show Answer

Q57) Which of the following options is correct for computing tax liability under the Composition Scheme for a retailer if the rate of Tax is 8% ? Show Answer

Q58) As per composition scheme for retailers, 8% tax is payable on Show Answer

Q59) The minimum turnover of sales required for registration by an importer is ________ Show Answer

Q60) The minimum turnover of sales required for registration by a non-importer is Rs.________ Show Answer

Q61) The minimum turnover of taxable sales or purchases required for registration is _______.S Show Answer

Q62) Any person who has been voluntarily registered under MVAT Act shall be liable to pay tax from the date of ________. Show Answer

Q63) Sales of goods not failing under any of schedules A, B, C or D fall under schedule ___ and are taxed at ______% rate Show Answer

Q64) Only a retailer selling at least______ of goods to direct consumers can opt to the composition scheme Show Answer

Q65) The rate of tax on goods specified in schedule A is ______. Show Answer

Q66) The rate of tax on goods specified in schedule B is _______. Show Answer

Q67) The rate of tax on goods specified in schedule C is_____ or ________.. Show Answer

Q68) The rate of tax on goods specified in schedule E is _______ Show Answer

Q69) The deduction of set off on a/c of branch transfer would not be applicable if the dispatched goods are brought back to the state within _______ months of the date of dispatch. Show Answer

Q70) If the claimant dealer has opted for composition scheme for works contract by paying 8% tax on the total contract value then the set off shall be reduced by the fraction _________. Show Answer

Q71) _____ of the purchase price of fuel shall be reduced from the amount of set off otherwise available in respect of such purchase. Show Answer

Q72) Set off or refund is allowed only to a ________ dealer. Show Answer

Q73) The composition amount in case of a dealer in second hand vehicle shall be calculated @ ______ on ________ of the sale price of the vehicle. Show Answer

Q74) Under a scheme of composition for the dealer liable to pay tax on leasing of mandap the rate of composition shall be ______of the turnover. Show Answer

Q75) Under the scheme of composition a dealer involved in the execution of a works contract other than construction contracts may pay lump sum tax at_________ of the total contract value of the works contract after deducting from the total contract value of the works contract the amount payable to a sub contractor. Show Answer

Q76) Every dealer who has become liable to pay tax under this act, shall continue to be so liable until his registration is duly ________. Show Answer

Q77) Turnover for the purpose of registration means turnover of sales of taxable or _______ goods. Show Answer

Q78) if gross turnover of a retailer inclusive of tax @ 4% is Rs.1,04,000 the amount of tax is Rs._______ Show Answer

Q79) if the gross turnover of a retailer inclusive of tax @ 12.5% is Rs.90,000 the amt of tax comes of Rs._______ Show Answer

Q80) if the gross turnover of a retailer inclusive of tax @ 1% is Rs.2,02,000 the net taxable turnover is Rs _________ Show Answer

Q81) An importer is liable for registration under MVAT,02 only if his sales turnover exceeds Rs. 5,00,000 Show Answer

Q82) An importer is liable for registration under MVAT 2002 only if his exports exceed Rs.10,000 Show Answer

Q83) Turnover of non taxable purchases is not important for deciding whether a person is liable for registration under MVAT 2002 Show Answer

Q84) An importer is liable for registration under MVAT 2002 only if his imports exceed Rs.1,00,000 Show Answer

Q85) Turnover of imports is not important for deciding whether a person is liable for registration under MVAT 2002 Show Answer

Q86) Whether the turnover of goods sold on cash or on credit is not important for deciding whether a person is liable for registration under MVAT 2002 Show Answer

Q87) A non importer is liable for registration under MVAT 2002 if his sales turnover of schedule A goods exceeds Rs.10, 000 Show Answer

Q88) A registered dealer dies and is succeeded by his son. The son is liable to pay tax only when the sales after the date of death exceed the prescribed limits of turnover. Show Answer

Q89) VAT is charged in addition to sales tax. Show Answer

Q90) Mumbai Municipal Corporation is covered under the definition a ?dealer? under the MVAT Act, Show Answer

Q91) Technical know-how being intangible goods, is not ?goods? under the MVAT Act, 2002. Show Answer

Q92) Sale of goods under works contracts is governed by a separate Act viz. The Maharashtra Sales Tax on the Transfer of Property in Goods involved in Execution of Works Contract Act, 1989. Show Answer

Q93) Giving a vehicle on lease in treated as ?sale? under the MVAT Act. Show Answer

Q94) All sales returns are to be deducted while arriving at the Sales Turnover under MVAT. Show Answer

Q95) Business as defined under MVAT, 2002 includes the activity of raising of man-made forest. Show Answer

Q96) Business as defined under MVAT, 2002 excludes the activity of rearing of seedlings. Show Answer

Q97) Business? as defined under MVAT, 2002 includes the activity of rearing of plants, Show Answer

Q98) Business? as defined under MVAT,02 excludes any transaction of sale or purchase of-capital assets. Show Answer

Q99) Sale of capital assets is to be treated as part of business transaction for the purpose of VAT. Show Answer

Q100) Sale of scrap is not treated as a business transaction for the purpose of VAT. Show Answer

Q101) Sale of asset by firm to partner by book entry in his capital account is not treated as a business transaction for the purpose of VAT. Show Answer

Q102) A person who purchases goods for household consumption is not a dealer under MVAT, 2002. Show Answer

Q103) An artist is not a dealer under MVAT, 2002. Show Answer

Q104) A lawyer is not a dealer under MVAT, 2002. Show Answer

Q105) An auctioneer is not a dealer under MVAT, 2002. Show Answer

Q106) Air Transport Company is not a dealer under MVAT, 2002. Show Answer

Q107) Advertising Agency is a dealer under MVAT, 2002 Show Answer

Q108) An educational institution buying educational materials and selling them to students is a dealer under MVAT, 2002. Show Answer

Q109) A Business man in Karnataka sells goods in Mumbai, but has no fixed place of business in Maharashtra. He is not a ?dealer? as defined under MVAT, 2002. Show Answer

Q110) Polishing furniture amounts to ?Manufacture?, as defined under MVAT, 2002. Show Answer

Q111) Livestock held as assets are ?goods? as defined under MVAT, 2002. Show Answer

Q112) Sale of old newspaper (sold as ?junk?) is sale of goods as defined under MVAT, 2002. Show Answer

Q113) Notified intangible assets are ?goods? as defined under MVAT, 2002. Show Answer

Q114) VAT is known as value Added Tax. Show Answer

Q115) VAT is single point tax. Show Answer

Q116) Manufacturer?, is defined under MVAT, 2002 to include ornamenting. Show Answer

Q117) Rethreading of old tyres does not amount to ?Manufacture?, as defined under MVAT, 2002. Show Answer

Q118) Immovable property such as land, building are not ?goods? as defined under MVAT, 2002. Show Answer

Q119) ?Importer? is defined under MVAT, 2002 to mean a dealer who brings any goods into the Country or to whom any goods are dispatched from any place outside the Country. Show Answer

Q120) A chartered accountant is not a dealer under MVAT, 2002. Show Answer

Q121) ?Business? as defined under MAVT,02 includes a service only if any profit or gain accrues from such service. Show Answer

Q122) ?Business? as defined under MVAT, 2002 includes a concern in the nature of commerce whether or not the engagement in such commerce is with a motive to make gain or profit. Show Answer

Q123) ?Business as defined under MVAT, 2002? excludes any transaction in connection with the commencement or closure of business . Show Answer

Q124) All services are subject to MVAT. Show Answer

Q125) Sale Price is defined under the MVAT Act as the Minimum retail Price (MRP) Show Answer

Q126) Transfer of goods from Head Office to Branch is not ?sale? as defined under MVAT, 2002. Show Answer

Q127) The amount of excise duties on goods shall be deemed to be part of the sale price of such goods, under MVAT, only if such duties are paid by the seller. Show Answer

Q128) The amount of customs duties on goods shall be deemed to be part of the sale price of such goods, under MVAT, ever if such duties paid by the purchaser. Show Answer

Q129) Sale price under MVAT shall include tax paid or payable to a seller in respect of such sale. Show Answer

Q130) Deposits in respect of any goods sold by the dealer included in sale price as per s. 2(25) can be deducted from the gross turnover of sales, if refunded within 6 months. Show Answer

Q131) An agent shall be liable to pay tax under this Act, if the satisfies the prescribed condition of turnover of sales etc. only if the principal is a registered dealer under the MVAT Act, 2000. Show Answer

Q132) The turnover of sales of both taxable and tax-free goods considered for deciding whether a person is liable for registration under MVAT, 2002. Show Answer

Q133) A non-importer is liable for registration under MVAT, 2002 if his sales turnover exceeds Rs.1,00,000. Show Answer

Q134) Turnover of goods sold in cash or on credit is important for deciding whether a person is liable for registration under MVAT, 2002 Show Answer

Q135) An importer is liable for registration under MVAT, 2002 only if his sales turnover exceeds his imports by Rs.10,000. Show Answer

Q136) Sales of goods falling under Schedule A are taxed at Nil rate. Show Answer

Q137) A retailer selling liquor to consumers can opt for composition scheme. Show Answer

Q138) VAT paid on goods debited to trading account after 1-4-2007 is eligible for set-off. Show Answer

Q139) VAT paid on purchase of car can be claimed as Set-off by a Car Hire Agency. Show Answer

Q140) The rate of tax on packing material used for exporting goods is Nil. Show Answer

Q141) Export sales, which are not liable to tax u/s 8, are known as tax-free sales. Show Answer

Q142) Central; Sales Tax paid on inter-state purchases is eligible for set-off under Show Answer

Q143) VAT paid on fuel is eligible for full set-off. Show Answer

Q144) In composition scheme for retailers, rate of tax is 8% on the difference of all sales and all purchases. This includes tax free sales and purchases of a dealer. Show Answer

Q145) While calculating the difference between Sales turnover and purchase for ascertaining 8% tax liability under the composition scheme for a retailer, the sales value should be inclusive of VAT charged. Show Answer

Q146) While calculation the difference between Sales turnover and purchases for ascertaining 8% tax liability under the composition scheme for a retailer, the Purchase value should be Inclusive of VAT paid. Show Answer

Q147) Under the scheme of composition, a dealer Involved in the execution of a works contract other than construction contracts may pay lump sum tax at 8% of the total contract value of the works contract including the amount payable to a sub contractor. Show Answer

Q148) Under the scheme of composition a dealer involved in the execution of a works contract in the nature of a construction contract, any pay lump sum tax at 8% of total contract value of the works contract after deduction from the total contract value of the works contract the amount payable to a sub contractor. Show Answer

Q149) A dealer who has opted for a composition scheme is not eligible to claim set-off in respect of the concerned goods. Show Answer

Q150) The composition amount for an eligible baker is 6 per cent of the first 30 Lakhs of specified turnover of sales in the case of a registered dealer. Show Answer

Q151) The composition amount for an eligible Baker is 6 per cent of the specified turnover of sales in the case of an unregistered dealer. Show Answer

Q152) The composition amount in case a dealer of second hand vehicles shall be calculated @ 12.5% on the sale price of the vehicle. Show Answer

Q153) The composition amount in case of a dealer of second hand vehicles shall be calculated @ 15% of the sale price of the vehicle. Show Answer

Q154) The Composition amount in case of a dealer of second hand vehicles shall lie calculated @ 15% on 12.5% of the sale price of the vehicle. Show Answer

Q155) A dealer who has opted for a composition scheme is not eligible to issue ?Tax Invoice? in respect of sales of concerned goods. Show Answer

Q156) The composition amount for an eligible Baker is 4 per cent of the specified turnover of sales in the case of a registered dealer. Show Answer

Q157) The composition amount for an eligible Baker is 4 per cent of the first 30 Lakhs of specified turnover of sales in the case of an unregistered dealer. Show Answer

Q158) Set-off and refund are one and the same. Show Answer

Q159) Contractees can claim set off of composition amount charged by works contractors. Show Answer

Q160) If the claimant dealer is opted for composition scheme for works contract by paying 5% tax on the total contract value, then the set off shall be reduced by the fraction 16/25,, i.e. 64%. Show Answer

Q161) A works contractor carrying out a construction contract, paying composition tax at 5% of the total contract value, has to forgo 64% of the purchase price of the good in which property is transferred to the contractee. Show Answer

Q162) A works contractor carrying out a construction contract, paying composition tax at 5% of the total contract value, has to forgo 5% of the purchase price of the goods in which property is transferred to the contractee. Show Answer

Q163) If the climant dealer has opted for composition scheme for works contract by paying 8% tax on the total contract value, then the set-off will be allowed at the normal rates in case of capital goods and the goods in which property is not transferred. Show Answer

Q164) A-works contractor, paying composition tax at 8% of the total contract value, has to forgo 4% of the purchase price of the goods in which property is transferred to the contractee. Show Answer

Q165) To avail set-off, the dealer has to maintain chronological record of all the sale of goods made by him. Show Answer

Q166) A dealer successding the business can take credit of any set off that is carried forward in event of death, transfer, or disposal of the business. Show Answer

Q167) Sales of goods falling under Schedule A are known as exempt sales. Show Answer

Q168) If goods specified in schedule B are exported, the rate of tax is 1%. Show Answer

Q169) If goods specified in schedule C are exported, the rate of tax is Nil. Show Answer

Q170) If goods specified in schedule E are exported, the rate of tax is 12.5%. Show Answer

Q171) The rate of tax on packing material used for exporting goods in Nil. Show Answer

Q172) For purpose of section 42, a dealer shall be considered to be engaged in the business of selling at retail if 50% of his turnover of sales consists of sales made to persons who are not dealers. Show Answer

Q173) For the purpose of section 42, a dealer shall be considered to be engaged in the business of selling at retail if 90% of his turnover of sales consists of sales made to persons who are dealers. Show Answer

Q174) Composition Schemes under section 42 can be availed by a manufacturer. Show Answer

Q175) Composition Schemes under section 42 can be availed by an importer. Show Answer

Q176) Composition Schemes under section 42 can be availed by a wholesaler who sells 90% of his goods to retailers. Show Answer

Q177) A retailer under composition scheme can deduct exempted purchases / sales for calculating the composition amount. Show Answer

Q178) A petrol pump is eligible to opt for composition scheme. Show Answer

Q179) In composition scheme for retailers, rate of tax is 8% on the difference of all sales and all purchase. This includes tax free sales and purchases of a dealer. Show Answer

Q180) A retailer who imports good below Rs.50,00,000 is eligible to opt for Composition Scheme. Show Answer