MULTIPLE CHOICE QUESTIONS

MULTIPLE CHOICE QUESTIONS

1. Service tax liability arises only when the taxable turnover of the previous year exceeds
2. Rs. 15,00,000
3. Rs. 9,00,000
4. Rs. 8,00,000
5. Rs 10,00,000
6. Adjustment of excess of service tax can be allowed on the basis of_____.
7. Pro-rata
8. Total amount at one time
9. Only 80%
10. Only 50%
11. Service tax is not applicable to the state of
12. Maharashtra
13. Himachal Pradesh
14. Jammu and Kashmir
15. Mizoram
16. What is the due date for payments of service tax in the case of a partnership firm which has a turnover below 10 Lacs in preceding year?
17. 25th October.
18. 25th  September.
19. 25th day of the month immediately following every month
20. 5th day of the month immediately following every quarter
21. The provisions relating to service tax are contained in:
22. Service tax Act, 1992
23. Finance Act, 1994
24. Finance Act, 1992
25. Income-tax Act, 1961
26. 3 List under Constitution of India are
27. List 1 & List 2 & List 7
28. Union List & State List & Concurrent List
29. Central List & State List & Concurrent List
30. Country List & State List & Concurrent List
31. ‘Snowhite Ltd’ provides management consultancy services to ‘Swift Ltd’ for a consideration of Rs. 27,000. Snowhite Ltd’ raises the bill on ‘Swift Ltd’ on 20-08-2010. ‘ Snowhite Ltd.’ receives the payment from ‘Swift Ltd’ on 16-09-2010. When should ‘Snowhite Ltd.’ pay the service tax?
32. on or before 30-6-2010
33. on or before 5-7-2010
34. on or before 05-10-2010
35. on or before 31-07-2010
36. Full form of CBEC is
37. Central Board of Excise and Customs       
38. Common Board of Excise and Customs    
39. Central Board of Excise and Customs and Service Tax
40. Central Board of Excise and Customs       
41. One of the following services is a “reverse charge”
42. Goods Transport Agency services
43. Management consultancy services
44. Telecommunication services
45. Information Technology services
46. An assessee is allowed to rectify mistakes and file revised return
47. Within 90 days from the date of filing of the original return
48. Within 180 days from the date of filing of the original return
49. Without any time limit
50. He can’t revise the return
51. A CA firm had a turnover of Rs. 17 lakhs(including 10 lacs which was not taxable) in Year 1. Its turnover was Rs. 5 lakhs in Year 2, Rs. 18 lakhs in Year 3 and Rs. 0 lakhs in Year 4. In which year is the firm liable to pay service tax?
52. Year 3
53. Year 1, Year 2 and Year 3
54. Year 2 and Year 3
55. Year 1
56. Which of the following is not a function of DGST?
57. To ensure that proper establishment and infrastructure has been created under different Central Excise Commissionerates to monitor the collection and assessment of service tax.
58. To study the staff requirement at field level for proper and effective implementation of service tax.
59. To study as to how the service tax is being implemented in the field and to suggest measures as may be necessary to increase revenue collection or to streamline procedures.
60. Maintain and publish case laws decided by High Court of India on Service tax only.
61. Services rendered to the Reserve Bank of India is
62. taxable service
63. partly exempted
64. exempted service
65. none of the above
66. How much abatement will be allowed to Mandap Keeper, Hotels and Convention Services providing full catering services.
67.          40%
68.          60%
69.          100%
70.          50%
71. Income tax is an example of :
72. Direct tax
73. Indirect tax
74. Service tax
75. None
76. Which of the following is not a function of DGST?
77. To ensure that proper establishment and infrastructure has been created under different Central Excise Commissionerates to monitor the collection and assessment of service tax.
78. To study the staff requirement at field level for proper and effective implementation of service tax.
79. To study as to how the service tax is being implemented in the field and to suggest measures as may be necessary to increase revenue collection or to streamline procedures.
80. To undertake study of law and procedures in relation to service tax with a view to simplify the service tax collection and assessment and make suggestions thereon.
81. To form a data base regarding the collection of service tax from the date of its inception in 1994 and to monitor the revenue collection from service tax.
82. To inspect the service tax cells in the Commissionerate to ensure that they are functioning effectively.
83. To undertake any other functions as assigned by the Board from time to time.
84. None
85. CENVAT credit is not allowed if the input services are exclusively used in the output services
86.           Exempted service
87.           Export of services
88.           Taxable export of services
89.           None of the above
90. Indian Territorial Waters extend up to _____________ nautical miles from the Indian land mass.
91. 200
92. 24
93. 12
94. none of the above
95. 3 Lists in Constitution are:
96. List 1 & list 2 & List 4
97. Union List & State List & Concurrent List
98. Country  List & State List & Parallel List
99. Union List & State List & Parallel List
100. What are the 2 to approaches for coverage of service tax?
101. Selective coverage & Comprehensive coverage
102. Comprehensive coverage & Income variant
103. Consumption Variant & Selective coverage & Comprehensive coverage
104. None
105. Director General (Service tax) coordinates between ________________ and ________.
106. CBEC and CBDT
107. Chief Commissioner of Central Excise and Commissioner of Central Excise
108. Department of Revenue and CBEC
109. CBEC and Central Excise Commissionerates
110. Power to issue notification under Service Tax provision lies with.
111. Central Government
112. State Government
113. CBEC
114. CBDT
115. Which of the following is false?
116. As per Rule 3 of Service Tax Rules, 1994, CBEC may appoint Central Excise Officers as it thinks fit for exercising the powers under Chapter V of Finance Act, 1994.
117. India is divided into several ‘Zones’. Each zone is headed by a Chief Commissioner of Central Excise.
118. ‘Zone’ is further divided into Commissionerate.
119. India is divided into several ‘Commissionerates’. Each Commissionerate is headed by a Chief Commissioner of Central Excise.
120. What is the name of this approach? “All services are made taxable and a negative list is given in case some services are to be exempted.”
121. Selective coverage & Comprehensive coverage
122. Comprehensive coverage & Income variant
123. Comprehensive coverage
124. Selective coverage
125. Power to issue notification under Service Tax provision lies with.
126. Central Government
127. State Government
128. Finance Minister
129. ICAI
130. E-payment of service tax is mandatory only when the payment of service tax exceeds
131. Rs. 5 Lakhs
132. Rs. 55 Lakhs
133. Rs. 10 Lakhs
134. Rs. 50 Lakhs
135. All the taxable services provided by any person to the United Nations or an International Organisation, are exempt from levy of service tax.
136. True
137. False
138. May be
139. Service tax is calculated on
140. Gross amount charged
141. 50% of Gross amount charged
142. Which of the following is not a function of DGST?
143. To study as to how the service tax is being implemented in the field and to suggest measures as may be necessary to increase revenue collection or to streamline procedures.
144. To undertake study of law and procedures in relation to service tax with a view to simplify the service tax collection and assessment and make suggestions thereon.
145. To form a data base regarding the collection of service tax from the date of its inception in 1994 and to monitor the revenue collection from service tax.
146. To inspect the service tax cells in the Commissionerate to ensure that they are functioning effectively.
147. To collect and pay service tax on certain goods as specified in Schedule.
148. Service tax was introduced in India in the year:
149. 1994
150. 1996
151. 1995
152. 1991
153. Which of the following rules apply to service tax?
154. Services Tax Rules, 1994
155. Service Tax (Advance Rulings) Rules, 2003
156. Export of Service Rules, 2005
157. Service Tax (Registration of Special Category of Persons) Rules, 2005
158. All of above
159. Which of the following is not applicable to service tax provisions only?
160. Services Tax Rules, 1994
161. Service Tax (Advance Rulings) Rules, 2003
162. CENVAT Credit Rules, 2004
163. Export of Service Rules, 2005
164. Service Tax (Registration of Special Category of Persons) Rules, 2005
165. Service Tax (Determination of Value) Rules, 2006; and
166. Taxation of Services (Provided from Outside India and Received in India) Rules, 2006
167. Circulars are issued by:
168. Central Government
169. State Government
170. Finance Minister
171. CBEC
172. No service tax is levied on ________ Bank
173. Reserve
174. State
175. HDFC
176. None
177. Which of the following is not a role of chartered accountant in service tax regime?
178. Service Tax planning
179. Service Return filing
180. Service Tax manipulation
181. Representation before authorities.
182. Power to issue Rules under Service Tax provision lies with.
183. Central Government
184. Finance Minister
185. CBEC
186. CBDT
187. “Service Tax extends to the whole of India except the State of Jammu and Kashmir” is written in.
188. Section 64 of Finance Act, 1994
189. Section 64 of Service Tax Act, 1994
190. Section 66 of Excise Act, 1944
191. None
192. Article 265 of the Constitution of India read as:
193. "No tax shall be levied or collected except by authority of law"
194. "Tax shall be levied or collected by authority of law"
195. "No tax shall be levied or collected"
196. Notifications are issued by:
197. Central Government
198. State Government
199. Finance Minister
200. CBEC
201. Service tax is levied in continental shelf and exclusive economic zone of India on
202. All services
203. Any service provided for all activities pertaining to construction of installations, structures and vessels for the purposes of prospecting or extraction or production of mineral oil and natural gas and supply thereof.
204. Any service provided for all activities pertaining to construction of installations, structures and vessels for any purpose.
205. Office Letters are issued by:
206. Central Government
207. State Government
208. Finance Minister
209. CBEC
210. The value of any taxable service, as the case may be, does not include
211. None of the below
212. Value of services collected by rail travel agent
213. Services provided by the consultant
214. The rail fare collected by rail travel agent

43. Power to issue departmental circulars under Service Tax provision lies with.
44. Government
45. Finance Minister
46. CBEC
47. CBDT
48. Indian territorial waters extend upto __ nautical miles from the Indian land mass.
49. 12
50. 112
51. 200
52. None
53. Which of these is a not new service introduced vide Finance Act, 2010.
54. Health care service
55. Services provided for maintenance of medical records of employees of a   business entity.
56. Service of permitting commercial use or exploitation of any event organized by a person or an         organization.
57. Services provided by Electricity Exchanges.
58. Services related to copyrights on cinematographic films and sound              recording.
59. Commercial Coaching Services
60. Service provided within the territorial waters will be liable to service tax.
61. True
62. False
63. May be
64. Under Service Tax (Determination of Value) Rules, 2006, Act means
65. The Finance Act, 1994
66. The Central Excise Act, 1944
67. Central Excise Tariff Act, 1985
68. Central Sales Tax Act. 1956
69. Service tax is applicable to the state of
70. Maharashtra
71. Karachi
72. Jammu and Kashmir
73. Angola
74. Trade Notices are issued by:
75. Central Government
76. State Government
77. Finance Minister
78. Commissionerates
79. Exemption notification available to Small Service Providers is ______.
80. Optional
81. Mandatory
82. None
83. Which of these is a not new service introduced vide Finance Act, 2010.
84. Health care service
85. Services provided for maintenance of medical records of employees of a business entity.
86. Service of promoting a ‘brand’ of goods, events, business entity etc.
87. Service of permitting commercial use or exploitation of any event organized by a person or an organization.
88. Services provided by Electricity Exchanges.
89. Services related to copyrights on cinematographic films and sound              recording.
90. Legal Services
91. No service tax will be levied on value of goods and material supplied to the service recipient while providing service, provided that CENVAT Credit on such goods and material is
92. taken
93. not taken
94. partly reversed
95. none of the above
96. Notifications are issued by:
97. None of below
98. State Government
99. Finance Minister
100. CBEC
101. Importer of service is liable to pay service tax only when
102. import of service is not taxable in India.
103. provider of service has place of business in India
104. provider of service has no place of business in India
105. provider of service is related to the importer
106. Power to issue departmental circulars under Service Tax provision lies with.
107. Central Government
108. State Government
109. CBEC
110. CBDT
111. Exemption for small service providers are given in
112. Notification No.6/2005 ST dated 01.03.2005
113. Notification No.6/2006 ST dated 01.03.2006
114. Notification No.6/2007 ST dated 01.03.2007
115. Notification No.6/2008 ST dated 01.03.2008
116. Which one of the following service is called reverse charge?
117. Service provider is liable to pay service tax
118. Service receiver is liable to pay service tax
119. No one is liable to pay service tax
120. Whose services are exempted from service tax
121. “Service Tax extends to the whole of India except the State of Jammu and Kashmir” is written in.
122. Section 64 of Finance Act, 1994
123. Section 65 of Finance Act, 1994
124. Section 66 of Finance Act, 1994
125. Section 67 of Finance Act, 1994
126. Services provided to United Nations employees for their personal purposes is
127. None of the below
128. Not liable to pay service tax
129. Partly liable to pay service tax
130. Liable to pay service tax
131. A person who neither intends to hold nor holds any title to the goods or services is called
132. Dealer
133. Pure Agent
134. Service tax provider
135. None of the above
136. Service tax exemption to small scale service providers is ____
137. Rs. 10 Lacs
138. Rs. 8 Lacs
139. Rs. 12 Lacs
140. A CA firm had a turnover of Rs. 17 lakhs(excluding 10 lacs which was not taxable) in Year 1. Its turnover was Rs. 5 lakhs in Year 2, Rs. 8 lakhs in Year 3 and Rs. 110 lakhs in Year 4. In which year is the firm liable to pay service tax?
141. Year 1 and Year 2 and year 4
142. Year 1, Year 3 and Year 4
143. Year 3 and Year 1
144. Year 4
145. Service tax is payable to the credit of the Central Government in:
146. Form ST-3
147. GAR-7 challan
148. Form F
149. Form ST-2
150. None of the above
151. Central Board of Direct Taxes is responsible for managing.
152. Income tax, Wealth tax and Service Tax  
153. customs duties, central excise duties and Income tax,
154. Income tax.
155. Income tax and Wealth tax
156. Service tax can be levied on the
157. Taxable services
158. Exempted services
159. Cost of Production
160. On purchase of input goods
161. Penalty for not maintaining the proper books of accounts may extend to
162. Rs. 5,000 + Imprisonment
163. Rs. 50,000
164. Rs. 5,000
165. Rs. 1,000
166. A CA firm had a turnover of Rs. 17 lakhs in Year 1. Its turnover was Rs. 5 lakhs in Year 2, Rs. 8 lakhs in Year 3 and Rs. 5 lakhs in Year 4. In which years is the firm liable to pay service tax?
167. Year 1 and Year 2
168. Year 1, Year 2 and Year 3
169. Year 2 and Year 3
170. None of the above
171. Which entry of the Union List of the Constitution provides for levy of service tax?
172. 92C
173. 97
174. 84
175. none of the above
176. Service tax rate in India is ____
177. 8%
178. 12%
179. 10%
180. 10.30%
181. Services are taxable only when defined under
182. Section 65(105) of Finance Act, 1994
183. Section 64(105) of Finance Act, 1994
184. Section 67 of Finance Act, 1994
185. Section 4 of the Central Excise Act, 1944
186. In which of the following cases service tax will not be attracted?
187. a person from Jammu provides service at New Delhi
188. a person having office at Srinagar provides service at New Delhi
189. a person from New Delhi provides service at Jammu
190. all of the above
191. Over the years no. of service tax assessees has been ______
192. Rising
193. Falling
194. Constant
195. Which of the following statement is true?
196. Rules can override the provisions of the Act.
197. Only in certain exceptional circumstances can the rules override the            provisions of the Act.
198. Rules can never override the provisions of the Act.
199. none of the above
200. Which of the following rules does not only apply to service tax?
201. Services Tax Rules, 1994
202. Service Tax (Advance Rulings) Rules, 2003
203. CENVAT Credit Rules, 2004
204. Export of Service Rules, 2005
205. Service Tax (Registration of Special Category of Persons) Rules, 2005
206. Sections ________ and _______ of the Finance Act, 1994 empower the Central Government to make rules.
207. 64 and 65
208. 94 and 96-I
209. 93 and 94
210. none of the above
211. Exclusive economic zone extend upto __ nautical miles from the Indian land mass.
212. 200
213. 12
214. 220
215. 120
216. 230
217. Taxes can broadly be classified into ____ categories:
218. 1
219. 2
220. 3
221. 5
222. Power to make or issue departmental circulars under Service Tax provision lies with.
223. Government
224. Finance Minister
225. CBEC
226. CBDT
227. Service tax can be levied on the
228. Taxable services
229. Exempted services
230. Cost of Production
231. Taxable services referred in section 65(105)
232. Article 265 of the Constitution of India read as:
233. "No tax shall be levied or collected except by authority of law"
234. " Service Tax cannot be levied except by authority of law"
235. “List – I is also known as Union List”
236. Orders under section 93 of finance act, 1994 are issued by:
237. Central Government
238. State Government
239. Finance Minister
240. CBEC or Central Government
241. What is the due date for payments of service tax in the case of a partnership firm?
242. 5th day of the month immediately following every month
243. 25th day of the month immediately following every quarter
244. 25th day of the month immediately following every month
245. 5th day of the month immediately following every quarter

Answers

(1)          d             (2)          a             (3)          c             (4)          d             (5)          b             (6)          b             (7)               c

(8)          a             (9)          a             (10)        a             (11)        a             (12)        d             (13)       c               (14)        a        

(15)        a             (16)        h             (17)        b             (18)        c             (19)        b             (20)        a             (21)               d

(22)        a             (23)        d             (24)        c           (25)          a             (26)        d             (27)        a             (28)       a            

(29)        e             (30)        a             (31)        f              (32)        c             (33)       d              (34)        a             (35)               c

(36)        a             (37)        a             (38)        a             (39)        a             (40)        b             (41)        d             (42)               d

(43)        b             (44)        a             (45)        g             (46)        a             (47)        a             (48)        a             (49)               d

(50)        a            (51)        g             (52)       b              (53)    a                 (54)        c             (55)        c             (56)               a

(57)        b             (58)        a             (59)        b             (60)        b             (61)        a             (62)        a             (63)        b

(64)        d             (65)        a             (66)        c             (67)        a             (68)        a             (69)        d             (70)               a

(71)        c             (72)        a             (73)        c             (74)        c             (75)        b             (76)        a             (77)               b

(78)        c             (79)        d             (80)        a             (81)        d             (82)        d

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