1.

The Central Board of Revenue became Federal Board of Revenue by the

enactment of
(A) FBR Act 2006
(B) FBR Act 2007
(C) FBR Act 2008
(D) FBR Act 2009

2. The current chairman of FBR is

(A) Qamar Zaman Chaudhry
(B) Absar Alam
(C) Nisar Muhammad Khan
(D) Usman Yousaf Mobeen

3. The Chairman FBR is

I. Executive head of the Board
II. Secretary of the Revenue Division
III. Chief Commissioner Inland Revenue
(A) I only
(B) II only
(C) I and II
(D) I, II and III

4. To provide convenience to the Large Taxpayers, the posts of Chief Commissioner

Inland Revenue Large Taxpayers Unit (LTUs) were established in
(A) Islamabad, Lahore and Karachi
(B) Islamabad, Karachi and Peshawar
(C) Islamabad, Lahore, Karachi, Peshawar and Quetta
(D) Islamabad, Lahore, Karachi, Peshawar, Quetta and Muzaffarabad

5. The Chief Collectors Southern region include Chief Collectors:

(A) Karachi, Lahore and Hyderabad
(B) Karachi, Hyderabad and Quetta
(C) Lahore, Rawalpindi and Peshawar
(D) Karachi, Hyderabad, Quetta and Gwadar

6. The Chief Collectors Northern region include Chief Collectors:

(A) Lahore, Rawalpindi and Peshawar
(B) Lahore, Rawalpindi, Peshawar and Multan
(C) Lahore, Rawalpindi, Peshawar, Multan and Faisalabad
(D) Lahore, Rawalpindi, Peshawar, Multan, Faisalabad and Sambrial

7. Which from the following are the responsibilities of FBR chairman?

I. Formulation and administration of fiscal policies
II. Levy and collection of federal taxes
III. All matter relating to administrative control
(A) I and II
(B) I and III
(C) II and III
(D) I, II and III

8. Which from the following are called domestic taxes?

(A) Income Tax
(B) Sales Tax
(C) Federal Excise Duty
(D) All of the above

9. The Inland Revenue Wing of the FBR is responsible to collect

(A) Income Tax
(B) Sales Tax
(C) Federal Excise Duty
(D) All of the above taxes

10. Domestic Taxes constitute about __________ of the Revenue collected by FBR.
(A) 80%
(B) 85%
(C) 90%
(D) 95%

ANSWERS: FEDERAL BOARD OF REVENUE (FBR) MCQS

1(B) 2(C) 3(C) 4(A) 5(D)
6(D) 7(A) 8(D) 9(D) 10(C)

11. Which from the following is the direct responsibility of chairman FBR?
(A) All matter relating to administrative control
(B) All legal issues pertaining to the jurisdiction
(C) Quasi-judicial function of hearing of appeals
(D) Generation of revenue within jurisdiction

12. Which from the following is NOT the responsibility of Chief Commissioners
LTUs?
(A) Enforcement/collection of revenue
(B) Facilitation of Taxpayer
(C) Generation of revenue within jurisdiction
(D) Interaction with the concerned ministries

13. Which from the following is the responsibility of Chief Commissioners LTUs?
(A) All matter relating to administrative control
(B) Generation of revenue within jurisdiction
(C) All legal issues pertaining to the jurisdiction
(D) All of the above

14. The total number of Inland Revenue Wings chiefs at the FBR Headquarter is
(A) 3
(B) 4
(C) 5
(D) 6

15. Which from the following sections work under Chief Inland Revenue (IR)
Headquarter?
(A) IR General and IR Judicial section
(B) IR General, IR Judicial section and IR coordination section
(C) IR General, IR Judicial section, IR coordination section and IR Revenue Budget
(D) IR General, IR Judicial section, IR coordination section, IR Revenue Budget and
IR ST/FED section

16. Valuation of goods and tariff values is the responsibility of

(A) Chief IR (HQs)
(B) Chief (ST/FED Policy)
(C) Chief (Income Tax Policy)
(D) Chief IR (Operations)

17. Post budget clarifications and issuance of SROs is the responsibility of

(A) Chief IR (HQs)
(B) Chief (ST/FED Policy)
(C) Chief (Income Tax Policy)
(D) Chief IR (Operations)

18. Taxpayers Registration for Income Tax and Sales Tax is the responsibility of
Inland Revenue
(A) General Section
(B) Judicial Section
(C) Coordination Section
(D) Revenue Budget Section

19. Assignment and monitoring of collection targets of Income Tax, Sales Tax and
Federal Excise duty is the responsibility of IR
(A) General Section
(B) Judicial Section
(C) Coordination Section
(D) Revenue Budget Section

20. Matters pertaining to Income Tax, Sales Tax and Federal Excise duty Jurisdiction
is the responsibility of IR
(A) General Section
(B) Judicial Section
(C) Coordination Section
(D) Revenue Budget Section

ANSWERS: FUNCTIONS OF FBR MCQS

11(C) 12(D) 13(D) 14(D) 15(C)
16(B) 17(B) 18(C) 19(D) 20(D)
21. All budget and policy matters relating to dutiable / taxable goods and services is
the responsibility of
(A) Chief IR (HQs)
(B) Chief (ST/FED Policy)
(C) Chief (Income Tax Policy)
(D) Chief IR (Operations)

22. The each chief of the three Chiefs Inland Revenue (IR) is assisted by Secretary
and Second Secretary and _____ RTOs/LTUs offices.
(A) 5
(B) 6
(C) 7
(D) 8

23. Which from the following sections work under the Chief (Income Tax Policy)?
(A) Secretary (ITP) and Secretary (WHT)
(B) Secretary (ITP) , Secretary (WHT) and Secretary (Exemptions)/(I.T Rules)
(C) Secretary (ITP) , Secretary (WHT) and Secretary (International Taxes)
(D) Secretary (ITP) , Secretary (WHT), Secretary (Exemptions)/(I.T Rules) and
Secretary (International Taxes)

24. Matters pertaining to reforms/ restructuring/ reorganization is the responsibility of

IR
(A) General Section
(B) Judicial Section
(C) Coordination Section
(D) Revenue Budget Section

25. Matters related to parliament business, cabinet matters and ADR, FTO matters
(Income Tax/ Sales Tax) is the responsibility of IR
(A) General Section
(B) Judicial Section
(C) Coordination Section
(D) Revenue Budget Section

26. A tax that takes a larger percentage from high-income earners than it does from
low-income earners is called
(A) proportional tax
(B) progressive tax
(C) regressive tax
(D) suppressive tax

27. Which from the following is NOT an indirect type of tax?

(A) Income Tax
(B) Sales Tax
(C) Custom Tax
(D) Federal Excise Duty
28. The sales tax paid at any stage does not exceed _____ of the total sales price of
the supplies.
(A) 15%
(B) 16%
(C) 17%
(D) 18%

29. Income tax is levied generally on the

(A) net income
(B) gross income
(C) gross income net income
(D) any from the above

30. Capital Value Tax is levied on transaction of

(A) movable property
(B) immoveable property
(C) perishable property
(D) damaged goods

ANSWERS: INLAND REVENUE MCQS

21(B) 22(C) 23(D) 24(A) 25(B)
26(B) 27(A) 28(C) 29(A) 30(B)

Which from the following is NOT among the heads of Total Income?
(A) Salary
(B) Income from property/business
(C) Income from sales
(D) Capital gains

32. Custom duty is levied on goods

I. imported into Pakistan
II. exported from Pakistan
III. transported through Pakistan
(A) I only
(B) II only
(C) I and II
(D) I and III

33. Excise duties are levied on a limited number of goods manufactured, and
services provided _____ Pakistan.
(A) in
(B) outside
(C) both A and B
(D) None of these

34. All exports are liable to _____ Federal Excise Duty.

(A) 0%
(B) 5%
(C) 10%
(D) 17%

35. Which from the following is/are considered as Good(s)?

(A) Actionable claims
(B) Money
(C) Stocks, Shares and Securities
(D) None of these

36. Which Section of the Sales Tax Act 1990 stipulates the goods that are exempt
from levy of sales tax?
(A) Section 4
(B) Section 10
(C) Section 13
(D) Section 15

37. Which Schedule of Section 13 of the Sales Tax Act 1990 includes a list of items
on which no sales tax is levied?
(A) Third Schedule
(B) Fourth Schedule
(C) Fifth Schedule
(D) Sixth Schedule

38. Sales Tax is levied at the rate of _____ on all goods imported into Pakistan.
(A) 0%
(B) 5%
(C) 10%
(D) 17%

39. The sales tax on goods imported into Pakistan is paid by the
(A) importers
(B) exporters
(C) both A and B
(D) None of these

40. All supplies made in Pakistan by a registered person in the course of any
business carried on by him, is liable to pay __________ sales tax.
(A) 0%
(B) 5%
(C) 10%
(D) 17%

ANSWERS: TAXATION QUIZ

31(C) 32(C) 33(A) 34(A) 35(D)
36(C) 37(D) 38(D) 39(A) 40(D)

41. Taxable supply means a supply of taxable goods. The supply of taxable goods
does not include taxable supply made by a/an
(A) importer
(B) transporter
(C) retailer
(D) manufacturer

42. Which from the following transactions do not constitute taxable supply?
(A) Supply of exempt goods
(B) Supply of goods chargeable to tax at the rate of zero per cent
(C) Supply made by an importer
(D) Supply made by a banker

43. Zero-rated supply means a taxable supply which is charged to tax at the rate of
0% . Which Section of the Sales Tax Act 1990 elucidates the goods that are
chargeable to tax at the rate of 0 percent?
(A) Section 4
(B) Section 10
(C) Section 13
(D) Section 17

44. Which Schedule of Section 4 of the Sales Tax Act 1990 includes a list of items
on which 0% sales tax is levied?
(A) Third Schedule
(B) Fourth Schedule
(C) Fifth Schedule
(D) Sixth Schedule

45. Under which section of the Sales Tax Act 1990, the Federal Government is
empowered to prescribe any specified taxable goods which can be imported without
payment of whole or part of sales tax?
(A) Section 30
(B) Section 40
(C) Section 50
(D) Section 60

46. Retailer means a person supplying goods to __________ for the purpose of
consumption.
(A) departmental stores
(B) general public
(C) wholesaler
(D) shops

47. Which from the following taxes is not included in the Retail Price?
(A) Sales tax
(B) Excise duty
(C) Utilities
(D) Capital value tax

48. Registered Person means a person who is:

I. Registered
II. Liable to be registered
III. Tax avoider or Tax escaper
(A) I only
(B) II only
(C) I and II
(D) I, II and III

49. Which from the following activity is not considered as a taxable activity?
(A) An economic activity carried on for profit
(B) An economic activity carried on not for profit
(C) Rendering services
(D) Employee work and services

50. Value of supply is equal to

(A) Taxable Supply
(B) Taxable supply + All Taxes
(C) Taxable Supply + All taxes + Duty Paid
(D) Taxable Supply + All taxes Duty Paid

ANSWERS: TAXATION QUIZZES

41(B) 42(D) 43(A) 44(C) 45(D)
46(B) 47(A) 48(C) 49(D) 50(C)

51. In general, according to Sales Tax Act 1990, tax period is a period of
(A) one month
(B) six months
(C) nine months
(D) one year

52. The due date to furnish a return at the end of the tax period is the _____ day of
the following month.
(A) 7th
(B) 10th
(C) 15th
(D) 18th

53. A computerized program for analysing and cross-matching of sales tax returns is
called
(A) Matlab
(B) SPSS
(C) SAS
(D) CREST

54. Cottage industry means a manufacturer whose annual turnover from taxable
supplies made in any tax period during the last twelve months ending any tax period
does not exceed
(A) Rs. 1.00 million
(B) Rs. 5.00 million
(C) Rs. 10.0 million
(D) Rs. 100 million
55. Local supplies of goods made by a cottage industry are exempt from
(A) Income Tax
(B) Sales Tax
(C) Capital Value Tax
(D) Federal Excise Duty

56. General Sales Tax (GST) is charged on

(A) Selling Price
(B) Retail Price
(C) Manufacturing Cost
(D) None of these

57. Selling Price is equal to

(A) Retail Price + GST
(B) Retail Price GST
(C) Manufacturing Cost + GST
(D) Manufacturing Cost GST

58. According to Income Tax Ordinance 2001, the Normal tax year is a period of
twelve months from _____ to _____.
(A) 1 January, 31 December
(B) 1 April, 30 March
(C) 1 July, 30 June
(D) 1 September, 31 August

59. The income of a resident person is computed by taking into account amounts
that are:
I. Pakistan-source income
II. Foreign-source income
(A) I only
(B) II only
(C) I + II
(D) I II

60. The income of a non-resident person is computed by taking into account

amounts that are:
I. Pakistan-source income
II. Foreign-source income
(A) I only
(B) II only
(C) I + II
(D) I II

ANSWERS: TAXATION MCQS

51(A) 52(C) 53(D) 54(C) 55(B)
56(B) 57(A) 58(C) 59(C) 60(A)