Sales Tax Act Test 1……………………………

1. Sales tax Act was promulgated in ________ year.

A. 1990 B. 1991
C. 1992 D. 1993
2. Sales Tax Act 1990, extends to the whole of ________.
A. Punjab B. Sindh
C. Pakistan D. Internationally
3. Sales Tax Act 1990, comprises ________ number of sections.
A. 86 B. 75
C. 76 D. 73
*Note: Section 76 was inserted by the Finance Act, 2019
4. Sales Tax Act 1990, has ________ number of chapters.
A. 13 B. 17
C. 12 D. 10
5. Sales Tax Act 1990, has ________ number of schedules.
A. 15 B. 13
C. 10 D. 17
6. “Sales tax” is defined under section ________ of Sales Tax Act 1990,.
A. 2(29) B. 2(28)
C. 2(29A) D. 2(29AA)
7. Sales Tax means any sum which is payable under the provisions of Sales Tax Act or ________.
A. Fine, Penalty or fee imposed or charged under Sales Tax Act
B. The Tax, additional Tax or default surcharge levied under Sales Tax Act
C. Both A and B D. None of these
8. “Sales Tax Account” is defined under section ________ of Sales Tax Act 1990,.
A. 2(29) B. 2(28)
C. 2(29A) D. 2(29AA)
9. An account representing the double entry recording of Sales Tax transaction in the books of account is
called ________.
A. Purchase Tax Account B. Sales Tax
C. Sales Tax Account D. All of these
10. Section 2 of Sales Tax Act 1990, deals with ________.
A. Short title and extent B. Definitions
C. Scope of Sales Tax D. All of these
11. Active Taxpayer is a person who does not fall in following categories like as________.
A. Who is blacklisted or whose registration is suspended
B. Fails to file withholding tax return quarterly or annually under section 165 of ITO, 2001
C. Fails to file an Income Tax return under section 114 of ITO, 2001
D. All of these
12. The Appellate tribunal Inland Revenue is established under section ________.
A. 128 of ITO, 2001 B. 129 of ITO, 2001
C. 75 of Sales Tax Act 1990, D. 130 of ITO, 2001
13. Appropriate officer means an officer of ________ authorized by the board by notification in official
gazette to perform certain functions under Sales Tax Act 1990,.
A. FBR B. Inland Revenue
C. Excise Duty D. All of these
14. The Sales Tax due and payable by the person under this Sales Tax Act which has not yet been paid
shall be called as ________.
A. Default surcharge B. Penalty
C. Arrears D. None of these
15. ________ shall be treated as associates under section 2(3) of Sales Tax Act 1990,.
 A. Govt. and opposition B. An individual and a relative of individual
C. Owner and buyer D. All of these
16. Associates (associated persons) means ________.
A. Where two persons associate and the relationship between the two is such that one may reasonably
be expected to act in accordance with the intentions of the other, or both persons may reasonably be
expected to act in accordance with the intentions of a third person;
B. Two persons shall not be associates solely by reason of the fact that one person is an employee of
the other or both persons are employees of a third person;
C. A trust and any person who benefits or may benefit under the trust;
D. All of these
17. Two persons shall not be associates solely by the reason of the fact that ________.
A. Both are the partners in a concern B. Both hold shares in a partner concern
C. Both are employing same staff for a task
D. One person is an employ of other or both persons are employees of third person
18. An AOP i.e. association of persons can be ________.
A. Company B. A firm or hindu undivided family
C. Anybody of persons formed under a foreign law
D. Both B and C
19. Banking company‟ means a banking company as defined in the Banking Companies Ordinance
________.
A. 1960 B. 1961
C. 1962 D. 1956
20. “Board” means the Federal Board of Revenue established under section 3 of the Federal Board of
Revenue Act, ________.
A. 1900 B. 2007
C. 2009 D. None of these
21. “Chief Commissioner” means a person appointed as the chief commissioner Inland Revenue under
section ________.
A. 30 B. 31
C. 32 D. 33
22. „What is the meaning of Commissioner, ________ appointed under Section 30.
A. The commissioner of FBR B. The commissioner of Management
C. The commissioner of Inland Revenue D. None of these
23. “Common taxpayer identification number” means the registration number or any other number
allocated to a ________ person.
A. Common B. Foreigner
C. Registered D. None of these
24. A company means ________.
A. A body corporate formed by of under any law in force in Pakistan
B. A body incorporated by or under the law of a country outside Pakistan relating to incorporation
C. A Modaraba D. All of These
25. “Computerized system” means any comprehensive ________ system to be used by the Board or any
other office as may be notified by the Board, for carrying out the purposes of this Act.
A. Information technology B. Computer system
C. Both A and B D. None of these
26. Customs Act, means the customs Act, ________ and were appropriate all rules and notifications made
under that Act.
A. 1967 B. 1968
C. 1969 D. None of these
27. “Defaulter‟ means a person and , in the case of company of firm, every director, of partner of the
company, or as the case may be, of the firm, of which he is a director of partner of a proprietor and
includes guarantors or successors, who fail to pay the ________.
A. Tax B. Excise duty
C. Arrears D. All of These
28. “Default surcharge” may be levied under ________ section of Sales Tax Act, 1990.
A. 34 B. 32
C. 36 D. 38
29. “________” means the registration number or any other number allocated to a registered person under
section 2(5A) of Sales Tax Act 1990,.
A. NTN B. CNIC
C. Common taxpayer identification number D. All of above
30. The term “company” under the Sales Tax Act 1990, does not include ________.
A. Provincial government B. Local government
C. Individual D. All of these
31. Cottage industry" means a manufacturer whose annual turnover from taxable supplies made in any tax
period during any last twelve months ending any tax period does not exceed ________.
A. Rs. 10,000,000 B. Rs. 6,000,000
C. Rs. 1,000,000 D. Rs. 100,000
32. ________ means any comprehensive information technology system to be used by the Board or any
other office as may be notified by the Board, for carrying out the purposes of this Act.
A. Electronic tax register B. Computerized system
C. ERP D. SAP
33. Defaulter means ________ in case of firm.
A. Partner B. Director
C. Guarantors of Successors D. All of these
34. Federal Board or Revenue was established Under Section __________.
A. 3 of Sales Tax Act B. 5 of Federal Excise Act
C. 5 of Income Tax Ordinance
D. 3 of Federal Board of Revenue Act, 2007
35. A Document which is required to be issued under section 23 of Sales Tax Act, 1990 is
called__________.
A. Tax certificate B. Tax invoice
C. Unit trust D. None of these
36. According to Section 2(5AA) a company can be any of following except ________.
A. A company defined in the Companies Ordinance, 1984
B. A body corporate formed by or under any law in force in Pakistan
C. A joint-venture of two companies D. All of these
37. Cottage industry is defined exclusively for ________ under section 2(5AB) of Sales Tax Act, 1990.
A. Wholesaler B. Distributor
C. Manufacturer D. All of these
38. A manufacturer is said to be a cottage industry if its annual turnover from taxable supplies made in
eight million rupees
any tax period during the last 12 months, ending any tax period does not exceed ________.
A. Five Million Rupees B. Ten Million rupees
C. Twenty million rupees D. 2.5 Million rupees
39. All of the following may fall in the category of defaulter according to the section 2(6A) in case of
company or firm except ________.
A. Guarantors or successors B. Director
C. Partner D. Employee
40. According to section 2(6B) default surcharge can be levied under section ________ of Sales Tax Act
1990,.
 A. 38 B. 36
C. 34 D. 32
41. A person who is appointed by a manufacturer or importer for specified area to purchase goods from
him for further supply is called ________.
A. Franchiser B. Wholesaler
C. Distributor D. All of these
Manufacturer, importer and
42. According to section 2(7) of Sales Tax Act 1990, a distributor can be appointed by ________.
A. Manufacturer B. Importer any other person
C. Any other person D. All of these
43. A distributor can be appointed to operate in ________.
A. Specified area B. General area
C. No need to mention area D. None of these
44. An electronic data, computer disks or micro films which are used as medium for storage of data is
called ________.
A. Ledger B. Report
C. Document D. Account Book
45. Document is defined under section ________ of Sales Tax Act, 1990.
A. 2(8) B. 2(9)
C. 2(7) D. 2(5)
46. Document includes any ________ or any other medium for the storage of such data.
A. Electronic data B. Computer programmes
C. Computer tapes D. All of These
47. Due date in relation to the furnishing of a return under section 26 and section 26AA means the
________ day of the month following the end of the tax period.
A. 10th B. 15th
C. 20th D. None of these
48. Distributor may be appointed by ________ for specified area to purchase goods from him.
A. Wholesaler B. Manufacturer
C. Importer D. Either B or C
49. E-intermediary has been defined under section ________ of Sales Tax Act 1990,.
A. 2(9A) B. 2(9AA)
C. 2(8) D. 2(10)
50. Establishment means an undertaking, firm or __________.
A. An Individual B. An Association of persons
C. Company D. All of thee