Economics (Part – VII)

41. Which of the following sets of taxes belongs to Central Government? [S.S.C. Online C.G.L. (T-I) 9.09.2016 (Shift-III)]

(a) Excise duty, Sales tax and Custom duty
(b) Income tax, Custom duty and House tax
(c) Excise duty, Custom duty and Income tax
(d) Custom duty, Entertainment tax and Income tax

Correct Answer: (c) Excise duty, Custom duty and Income tax

Solution:

The taxing powers of the central government encompass taxes on income (except agricultural income), excise on goods produced (other than alcohol), customs duties, and inter-state sale of goods. The authority to levy a tax is coming from the Constitution which allocates the power to levy various taxes between the Centre and the State.

42. Which of the following is a direct tax? [S.S.C. Online CHSL (T-I) 25.01.2017(Shift-I)]

(a) excise duty
(b) Custom duty
(c) Service Tax
(d) property tax

Correct Answer: (d) property tax

Solution:Income tax, corporation tax, property tax, inheritance tax and gift tax are examples of direct tax.

43. Among the following taxes, which one is NOT a Direct Tax in India? [S.S.C. JE Civil Exams 30.10.2020 (Shift-I)]

(a) Goods and Services Tax
(b) Income Tax
(c) Minimum Alternate Tax
(d) Corporation Tax

Correct Answer: (a) Goods and Services Tax

Solution:The tax that is directly paid to the Government, is directly imposed on the taxpayer and the liability of tax cannot be passed on to other taxpayers. Some of the examples of Direct taxes are Income-tax, Corporate tax, Minimum Alternate Tax, Dividend Distribution Tax, Securities Transaction Tax, Capital gains Tax etc. Whereas, Goods and Service tax are indirect tax.

44. This tax is entirely borne by the entity it is levied upon and cannot be passed. [S.S.C. Online CHSL (T-I) 16.01.2017(Shift-II)]

(a) Direct tax
(b) Indirect tax
(c) Straight tax
(d) Advance tax

Correct Answer: (a) Direct tax

Solution:Direct tax is a type of tax where the incidence and impact of taxation fall on the same entity. In the case of direct tax, the burden can't be shifted by the taxpayer to someone else.

45. Which one of the following is not a direct tax? [S.S.C. Online C.G.L. (T-I) 11.08.2017 (Shift-III)]

(a) Income tax
(b) Property tax
(C) Corporate Tax
(d) none of these

Correct Answer: (d) none of these

Solution:Examples of Direct taxes are Income-tax, property tax, Corporate tax, Minimum Alternate Tax, Dividend Distribution Tax, Securities Transaction Tax, Capital gains Tax etc.

46. Which type of tax does not come under indirect tax? [C.P.O. S.I. 4.06.2016 (Shift-I)]

(a) sales tax
(b) Excise Duty
(c) Octroi
(d) house tax

Correct Answer: (d) house tax

Solution:Taxes whose actual burden can be diverted are called indirect taxes, e.g. Income tax, house tax is a direct tax, because it cannot be passed on to any other person whereas sales tax, excise tax and value added tax etc. are examples of indirect taxes.

47. What is GST? [S.S.C. Online Stenographer, 14.09.2017 (Shift-II)]

(a) a direct tax
(b) an indirect tax
(c) a corporate tax
(d) a municipal tax

Correct Answer: (b) an indirect tax

Solution:

GST is one indirect tax for the whole nation, which will make India one unified common market. GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer.

48. When was GST implemented in India? [S.S.C. Online Constable GD 22.02.2019 (Shift-II)]

(a) 1st July, 2017
(b) 15th August, 2014
(c) November 8, 2016
(d) October 2, 2015

Correct Answer: (a) 1st July, 2017

Solution:Goods and Service Tax (GST) was implemented in India on 1st July 2017 by the then Finance Minister Arun Jaitely.

49. Under which Amendment to the Constitution of India was Goods and Services Tax imposed? [S.S.C. Online C.G.L. (T-I) 9.03.2020 (Shift-II)]

(a) 103ʳᵈ
(b) 99ᵗʰ
(c) 101ˢᵗ
(d) 97ᵗʰ

Correct Answer: (c) 101ˢᵗ

Solution:The 101ˢᵗ Constitution Amendment Act, 2016 introduced the Goods and Services Tax. The GST Bill was first introduced in 2014 as The Constitution (122nd Amendment) Bill. Goods and Services Tax is a widespread indirect tax on the manufacture, sale, and consumption of goods and services throughout India. GST replaced respective taxes levied by the central and state governments.

50. What is the uniform GST rate that has been fixed up for lottery prizes by the GST Council? [S.S.C. Online C.G.L. (T-I) 3.03.2020 (Shift-I)]

(a) 18%
(b) 28%
(c) 32%
(d) 10%

Correct Answer: (b) 28%

Solution:On February 24, 2020, through a notification of the Central Board of Indirect Taxes, all the lotteries were brought under the tax slab of 28%. All the lotteries whether State-run or with private ownership will now fall under this uniform tax rate.