ECONOMY MCQS SET 106

ECONOMY MCQS SET 106

1051) RN Malhotra committee is associated with
A) Sick industries
B) tax reforms
C) insurance sector
D) Banking sector
Correct Answer: insurance sector
    
1052) Value-added tax is
A) an ad valorem tax on domestic final consumption collected at all stages between production and point of final sale
B) an ad valorem tax on final consumption collected at the manufacturing level
C) tax on final consumption collected at the consumption stage
D) a special tax levied by the states on products from other states
Correct Answer: an ad valorem tax on domestic final consumption collected at all stages between production and point of final sale
   
1053) Consider the following statements
1. Revenue budget deals with receipts from taxation and non-tax sources and the expenditure met out from these sources.
2. Net recoveries of loans and advances to states and public sector enterprises form the revenue receipts of the government.
Which of the statements given above is/are correct?
A) Only 1
B) Only 2
C) Both 1 and 2
D) Neither 1 nor 2
Correct Answer: Only 1
   
1054) Which one of the following forms the important receipts of the Capital Budget?
A) Net market borrowing
B) Net small savings
C) Provident funds collections
D) All of the above
Correct Answer: All of the above
   
1055) MODVAT is different from VAT in the sense that
1. Under MODVAT, tax is levied only on value addition while under VAT, excise is imposed on final value and then rebate is given on inputs.
2. MODVAT is only at the production stage while VAT extends both to production and distribution stage.
3. Under MODVAT, excise is levied on final value and then rebate is given on inputs while under VAT, tax is levied only on value addition.
4. MODVAT implies rationalisation of excise duty only while VAT implies rationalisation of excise sales and turnover taxes etc also.
Which of the statements given above are correct?
A) 2, 3 and 4
B) 1, 2 and 3
C) 2 and 3
D) 3 and 4
Correct Answer: 2, 3 and 4

1056) Consider the following statements
1. The proceed of personal income tax is shared between the Central and State Governments.
2. The proceeds of the central excise duty is not shared between the Central and State Governments.
Which of the statements given above is/are correct?
A) Only 1
B) Only 2
C) Both 1 and 2
D) Neither 1 nor 2
Correct Answer: Only 1
   
1057) Fiscal deficit in the Union Budget means
A) Difference between current expenditure and current revenue
B) Net increase in Union Government's borrowings from the Reserve Bank of India
C) The sum of budgetary deficit and net increase in internal and external borrowing
D) The sum of monetised deficit and budgetary deficit
Correct Answer: The sum of budgetary deficit and net increase in internal and external borrowing
   
1058) Match List I with List II and select the correct answer using the codes given below the lists
List I      List II
(Term)      (Explanation)
A. Fiscal deficit      1. Excess of total expenditure over receipts
B. Budget deficit       2. Excess of revenue expenditure
C. Revenue deficit       3. Excess of total expenditure over total receipts less borrowings
D. Primary deficit       4. Excess of total expenditure over total receipts less borrowings and interest payments
Below the codes are given in A B C D order
A) 3 1 2 4
B) 2 3 4 1
C) 4 3 1 2
D) 4 1 3 2
Correct Answer: 3 1 2 4
   
1059) Which one of the following acts is going to be replaced by the Direct Taxes Code (DTC) in India?
A) Income Tax Act 1961
B) Wealth Tax Act 1957
C) Custom Duty Act 1956
D) Both 'a' and 'b'
Correct Answer: Both 'a' and 'b'
   
1060) Fiscal deficit in the budget means
A) revenue deficit plus the net borrowings of the governments
B) budgetary deficit plus the net borrowings of the government
C) capital deficit plus revenue deficit
D) primary deficit minus capital deficit
Correct Answer: budgetary deficit plus the net borrowings of the government