ServiceTaxobjective Questions

SERVICE TAX OBJECTIVE QUESTIONS

1. Service Tax was introduced in India in the Year

(A) 1993 (B) 1995

(C) 2004

(D) 1994

(D)

2. Service Tax was introduced first time on

(A) 5 services (B) 3 Services

(C) 4 services

(D) 7 services

(B)

3. Service tax was initially levied in India by the Constitution vide entry

No:

(A) 92C of the Union List (B) 54 of the State List

(C) 92C of the concurrent List

(D) 97 of the Union List.

(D)

4. The provisions relating to Service tax are given in:

(A) Chapter V of the Finance Act, 1994 (B) Chapter V and VA of the Finance Act, 1994

(C) Chapter VII and VIII of the Finance Act, 2004

(D) The Service Act, 1994

(B)

5. The power to levy service tax is now provided by the Constitution vide

entry No.

(A) 92C of the Union List (B) 97 of the Union List

(C) 54 of the State List

(D) 93 of the Union List

(A)

6. Service tax is applicable to

(A) Whole of India (B) Whole of India except Jammu and Kashmir

(C) Whole of India, except Jammu and Kashmir and Union

Territories of Dadra, Nagar Haveli, Daman and Diu

(B)

7. Service tax was introduced in India on the recommendation of

(A) Kelkar Committee (B) Dr. Raja J Challaiah Committee

(C) Dr. Man Mohan Singh Committee

(D) Dr. Yashwant Sinha Committee

(B)

8. Service tax is levied in India by following the

(A) Comprehensive approach (B) Selective approach

(B)

9 Service tax is governed and administered by

(A) CBDT (B) CBEC

(C) Service Tax Department

(B)

10. The power to make rules for service tax is given to Central

Government by

(A) Section 66 and 67 of the Finance Act, 1994 (B) Section 94 of the Finance Act, 1994

(C) Section 94 and 96-I of the Finance Act, 1994

(D) Section 93 and 94 of the Finance Act, 1994

(C)

11. Service tax is payable on the value of taxable service @

(A) 12% (B) 12.24%

(C) 12.36%

(D) 10.3%

(C)

12. Service tax is a charge on:

(A) Taxable service provided (B) Taxable service to be provided (C) Taxable service provided or to be provided (D) Any service provided or to be provided

(C)

13. Education Cess was levied by

(A) The Finance Act, 1994 (B) The Finance No.(2) Act, 2004 (C) The Finance Act, 2006

(C)

14. Where service is received from outside India, such service shall be

(A) taxable in the hands of service provider (B) taxable in the hands of service recipient (C) exempt from service tax

(B)

15. Service tax is not payable if the aggregate value of taxable service does

not exceed:

(A) Rs 8 lakhs (B) Rs 10 lakhs (C) Rs 4 lakhs (D) Rs 6 lakhs

(B)

16. If the aggregate value of taxable service in the preceding financial year

exceeds Rs 10 lakhs, service tax shall be payable during the current

financial year-

(A) if the aggregate value of taxable service exceeds Rs 10 lakh during the current year

(B) on the entire aggregate value of service (C) if the aggregated value of taxable service exceeds Rs 10 lakh

during the current financial year

(B)

17. If the aggregate value of taxable service in the preceeding previous

year is less than Rs 10 lakh, service tax in the current financial year

shall be payable :

(A) on the entire aggregate value of service (B) on the amount which is in excess of Rs 10 lakh

(B)

18 Service tax is not payable on any service provided to

(A) an undertaking in a free trade zone (B) an undertaking in a software technological park

(C) an undertaking in a special economic zone

(D) a developer or unit in a special economic zone even if such services are not wholly consumed within the special

economic zone

(E) a developer or unit in a special economic zone provided such services are wholly consumed within the special

economic zone

(E)

19 Secondary and Higher Education Cess was levied by

(A) The Finance(2) Act, 2004 (B) The Finance Act, 2006 (C) The Finance Act, 2007

(C)

20 The provisions relating to valuation of taxable services are contained

in:

(A) Section 65 of the Finance Act, 1994 (B) Section 67 of the Finance Act, 1994

(C) Section 65A of the Finance Act, 1999

(D) None of the above

(B)

21. State Whether True or False

(A) Service Tax is payable on the gross amount

(B) Charge of service tax is in relation to service provided or to be

provided

(T)

(T)

22. The liability of service tax, in case payment is not received in advance,

shall arise on the date of

(A) Completion of service whether invoice is raised within 14 days or not

(B) Raising of invoice if the invoice is raised within 14 days

of completion of service

(C) Raising of invoice if the invoice is raised within 14 days

of completion of service or the date of completion of

service, if invoice is raised after 14 days of completion of

service

(C)

23 The liability of service tax in case payment is received before rendering

the service shall arise on the date of

(A) Completion of service (B) Receipt of advance payment

(C) On the date of raising of invoice of the receipt of advance

payment

(B)

24 Due date of e-payment of service tax, other than for the month of

March, in case of a company is :

(A) 6th day of the month immediately following each quarter (B) 6

th day of month immediately following the calendar

month

(C) 5th

day of month immediately following the calendar

month

(B)

25 Due date of payment (not e-payment) of service tax other than for the

quarter ending March in case of a partnership firm is:

(A) 5th day of the month immediately following each quarter (B) 5

th day of the month immediately following the calendar

month

(C) None of the above

(A)

26 Due date of payment (whether e-payment or otherwise) of service tax

for the month/quarter ending 31st March is:

(A) 31st March (B) 5

th day of the month immediately following March

(C) None of the above

(A)

27 State whether True or False

(A) Service tax is always paid by the service provider (B) Service tax is payable on accrual basis in all cases

(C) Service Tax is payable on the money which is received in

advance

(D) In case the payment of service tax is made by cheque, the date of payment is the date on which the cheque is

encashed by the bank

(E) Service tax has to be rounded off to nearest rupees ten (F) Service tax is not payable if it has not been charged in bill

(F)

(F)

(T)

(F)

(F)

(F)

28 Return of service tax has to be filed:

(A) monthly (B) Quarterly (C) Half-yearly (D) Yearly

(C)

29 Due date of filing return is:

(A) 5th of the month following the particular half-year (B) 15

th of the month following the particular half-year

(C) 25th

of the month following the particular half-year

(D) 30 days of the month following the particular half-year

(C)

30 Return of Service Tax is to be filed in

(A) Form ST-1 (B) Form ST-3

(C) Form ST-2

(B)

31. State whether True of False

(A) There is no need to file a nil return (B) Separate returns will have to be filed if multiple services are

provided

(C) If due date of filing return happens to be a holiday, the return can be filed on the next working day immediately following the

holiday

(F)

(F)

(T)

32 Service tax provisions are not applicable to

(A) Continental Shelf (B) Inland Territorial Waters

(C) State of Jammu and Kashmir

(D) Assam

(C)

33 Payment of service tax on :

(A) Receipt basis (B) Accrual basis (C) Receipt or accrual whichever is earlier (D) Receipt or accrual whichever is later

(C)

34 The relevant form for payment of Service Tax:

(A) GAR-7 (B) GAR-6 (C) TG-6 (D) None of the above

(A)

35 Non payment or delayed payment of service tax shall attract

(A) interest (B) penalty (C) interest as well as penalty

(C)

36 Rate of interest for delayed payment of service tax shall be

(A) 13% p.a (B) 18% p.a (C)15% p.a for small scale sector assessee and 18% p.a in case of

any other assessee

(C)

37 Penalty for failure to make payment of service tax by due date for any

reason other than some compelling reasons shall be-

(A) Rs 100 per day for each day of default (B) Rs 100 per day for each day of default or @1% of such tax per

month whichever is higher

(C) Rs 100 per day for each day of default or @ 1% such tax per month whichever is higher subject to maximum of 50% of the

service tax payable

(C)

38 If the advance payment is received but the service is not provided, the

assessee can take the credit of service tax period

(A) for any such amount (B) upto Rs 2 lakh (C) upto Rs 1 lakh (D) for any such amount provided the assessee has refunded the

amount to the person from whom he had received such advance

payment

(D)

39 Where the assessee could not correctly estimate his service tax liability

and has deposited excess amount of service tax, he can make self

adjustment of excess amount service tax liability for succeeding

month/quarter

(A) upto maximum limit of Rs 1 lakh (B) upto maximum limit of Rs 2 lakh (C) without any non-monetary limit if excess amount was deposited

due to delayed receipt of details of payments in case of

centralized registration and upto Rs 2 lakh in any other case

(C)

40 If the period of delay of filing service tax returns is 12 days, the amount

of penalty is;

(A) Rs 500 (B) Rs 750 (C) Rs 100 for every day of default (D) Rs 1000

(A)

41 If the period of delay of filing service tax return is 94 days, the amount

of penalty shall be

(A) Rs 2000 (B) Rs 20000 (C) Rs 7400 (D) Rs 9400

(C)

42 The service tax limit for mandatory e-payment is

(A) Rs 50 lakhs (B) Rs 10 lakhs (C) Rs 100 lakhs

(B)

(D) No limit 43 Failure to pay service tax electronically, when a person is required to

do so, shall attract a penalty of

(A) Rs 1000 (B) Rs 5000 (C) Rs 10000

(C)

44 In which of the following cases, service receiver is liable to get

registered and pay Service Tax:

(A) Imports (B) Exports (C) Advertising Agencys Services (D) Broadcasting Agencys Services

(A)

45 The amount of Service tax payment is rounded off to:

(A) Nearest Rupee (B) Nearest Tenth Rupee

(A)

46 Service provided by organizer of business exhibition for holding

business exhibition outside India shall be

(A) liable for service tax (B) not liable for service tax

(B)

47 An educational institution invites many organizations for campus

interview for the purpose of placement of students and charges certain

amount from such organizations, the amount charged shall

(A) be liable to service tax (B) not be liable to service tax

(A)

48. Display of consumer goods in shops by the shop keepers for displaying

such goods for customers to select and purchase, will

(A) be covered under service tax (B) not be covered under service tax

(C) not be covered under service tax if no money is collected

for such display

(C)

49. Imparting skill, knowledge, lesson in relation to sports shall be

(A) liable for service tax (B) not liable for service tax

(B)

50. A Chartered Accountant in practice is liable to service tax

(A) for all kinds of services rendered by him

(B) for all kinds of services rendered by him in professional capacity

(C) for all kinds of services rendered by him except services rendered

for representing the client before any statutory authority

(D) for all kinds of services rendered by him except services rendered

for representing the client before any statutory authority in case of

proceeding initiated under any law by way of issue of notice.

(B)

51. If any recognized institute or establishment is providing any coaching

or training that is not recognized by law, it will

(A) be liable to service tax (B) not be liable to service tax

(B)

52. Mandap Keeper service provided by temples, gurudwara, churches etc.,

in their religious precinct for hosting

(A) any function is liable to service tax (B) any social/or marriage functions is liable for service tax

(C) any marriage function is liable to service tax

(C)

53 Water quality testing by Government owned State and District Level

Laboratories is

(A) liable for service tax under the category of Technical Testing an Analysis service

(B) not liable for service tax under the category of Technical Testing and Analysis services

(B)

54. Representation services before statutory authorities provided by

practicing Chartered Accountants Shall

(A) be liable for service tax (B)not be liable for service

(A)

55 Which of the following persons are not required to take registration

under Finance Act 1994

(A) Service provider (B) Service receiver

(C) IPS Distributor

(D) Small scale service provider whose turn over is less than Rs 9 lakh

(D)

56 Can taxable service be provided without registration?

(A) No (B) Yes but registration should be applied for within 30 days

(B)

57 The Registration certificate should be issued by the department within:

(A) one month (B) 17 days

(C) 7 days

(D) 15 days

(C)

58 If an assessee providing multiple services. How many Registration

certificates are required:

(A) Multiple (B) One

(C) Two

(D) Four

(B)

59 What is the time limit for raising an invoice?

(A) one month (B) 15 days

(C) 14 days

(D) 16 days

(C)

60 Due date for payment of service tax by Individual and Firm:

(A) 5th of the month following the quarter(6th for e-payment) (B) 5

th of the following month(6

th for e-payment)

(C) 15th

of the month following the quarter(6th for e-payment)

(D) 15th of the following month(6th for e-payment)

(A)

61 Due date for payment of service tax by HUF, AOP

(A) 5th of the month following the quarter(6th for e-payment) (B) 5th of the following month(6th for e-payment) (C) 15th of the month following the quarter(6th for e-payment) (D) 15th of the following month(6th for e-payment)

(B)

62 What is the monetary limit for making self adjustment of tax paid in

excess?

(A) Multiple RC Rs 1,00,000 and for Single RC(Centralised accounting or billing) No monetary limit

(B) Rs 2,00,000

(C) Self adjustment is not available

(A)

63. A revised return can be filed within ____ days

(A) 180 days

(B) within one year

(C) 90 days

(D) within 30 days

(C)

64 Which service is not qualifying for export service?

(A) Business Auxiliary Services (B) Cruise Ship Service (C) Exhibition Service (D) Business Support Servie

(B)

65 In which form Application for Registration to be submitted to the

Government

(A) ER-1 (B) ST-4 (C) ER-3 (D) ST-1

(D)

66 What is full form CESTAT?

(A) Central Excise and Service Tax Appellate Tribunal (B) Customs Excise and Service Tax Appellate Tribunal

(B)

(C)Central Service Tax Appellate Tribunal

67 Half yearly return should be submitted in the form

(A) ER-3 (B) ST-4 (C) ST-3 (D) ST-1

(C)

68 If a service provider providing multiple services, how may returns has

to be submit:

(A) Service wise separate Return (B) Single Return

(B)

69. Under which Section Service Receiver is liable to pay service tax on

behalf of foreign service providers

(A) Section 65 (B) Section 66

(C) Section 65A

(D) Section 66A

(D)

70. Services are defined under which Section

(A) Section 65(105) (B) Section 63(105)

(C) Section 64(105)

(D) Section 61(105)

(A)

71. If a service is fall under more than one service under which service it

will be classified :

(A) First among the Sub-clauses of 65(105) (B) Last among the Sub-Clauses of 65(105)

(C) As per the CE officer decision

(A)

72. Section 67 of the Finance Act deals with

(A) Registration (B) Exemption from service tax (C) Valuation of service (D) None of the above

(C)

73. Under which Section assessee is required to submit ST-3 Returns:


(C) Section 73

(D) Section 61

(B)

74. Application for Registration is submitted to the

(A) Superintendent of Service Tax (B) Superintendent of Customs

(C) Superintendent of Central Excise

(C)

75 Where Service tax has not been levied/paid, has been short levied or

short paid or erroneously refunded, the Central Excise officer Shall

issue SCN Under:

(A) Section 70 (B) Section 73(1)

(C) Section 70(2)

(D) Section 73(3)

(B)

76 Time limit for issue of SCN in suppression cases

(A) one year (B) five years

(C) three years

(D) four years

(B)

77 Under which section assessee is required to get registration


(C) Section 69


(C)

78 What is the interest rate on amount collected excess

(A) 15% (B) 18%

(C) 24%

(D) 10%

`(C)

79 Which Section enables attachment of property under Finance Act

1994

(A) 73-C (B) 73-A

(C) 73-B

(D) 73(1)

(A)

80 Penalty for failure to take Service Tax Registration

(A) Not more than Rs 2000 or Rs 100 perday whichever is higher (B) Not more than Rs 5000 or Rs 200 per day whichever is higher (C) Not more than Rs 3000 or Rs 200 per days whichever is higher

(B)

81 Penalty for offences not listed in Finance Act 1994

(A) Rs 10000 (B) Rs 3000 (C) Rs 1000 (D) Rs 5000

(D)

82 Which section gives power to Central Excise Officers to search

premises of the service provider


(A)

(C) Section 83

(D) Section 79 83 Amendments made by Parliament shall have

(A) prospective effect (B) retrospective effect

(B)

84. Under which section of Finance Act 1994 Central Government make

Rules

(A) Section 94 (B) Section 94(1)

(C) Section 94(3)

(D) Section 95

(A)

85 As per Rule 5 of Service Tax Rule 1994, the service provider should

preserve records for a period of

(A) 10 years (B) 7 years

(C) 5 years

(D) 2 years

(C)

86 Which rule permits officials of C&AG to visit assesses registered

premises for conduction audit

(A) Rule 6 of Service Tax Rules 1994 (B) Rule 5-A of Service Tax Rules 1994 (C) Rule 6-A of Service Tax Rules 1994

(B)

87 Under which section of the Finance Act 1994, Rebate of tax suffered

by IPS may be sanctioned by Central Government, where the

corresponding goods/services are exported

(A) Section 91-A (B) Section 92-A

(C) Section 93-A


(C)

88 Service provider can opt provisional assessment under

(A) Rule 6(4) of S.Tax Rules 1994 (B) Rule 6(3) of S.Tax Rules 1994 (C) Rule 6(1) of S.Tax Rules 1994

(A)

89 Which bond is required to be submitted by the service provider in the

case of Provisional assessment

(A) B-1 Bond (B) B-2 Bond (C) C-1 Bond (D) None of the above

(D)

90 ST-3A return is submitted by the

(A) Small Scale Service Provider (B) Service provider who export services

(C)

(C) Service provider paid service tax under Provisional

assessment

91 Maximum Late fee for delay in submission of ST-3 Returns

(A) Rs 5000 (B) Rs 2000 (C) Rs 3000

(B)

92 Memorandum of Cross objection u/s 86 should be submitted in form

(A) ST-4 (B) ST-5

(C) ST-6

(D) ST-7

(C)

93 What is the full form of EASIEST

(A) Electronically service tax payment (B) Electronic Account System in Central Excise and Service Tax (C) Electronic Account System in Central Excise Customs and

Service Tax

(B)

94 Mr x lives in Hyderabad received makeup services from foreign

service provider on his marriage occasion under which service the

individual has to pay service tax

(A) Beauty Parlour Service (B) Health Service (C) Makeup Service (D) None of the above

(D)

95 e-payment of service tax is mandatory

(A) if assessee paid service tax more than Rs 10 lakhs by cash only in

the preceding Financial year

(B) if assessee paid service tax more than Rs 10 lakhs including

amount

paid by Cenvat A/c

(C) every assessee is required to pay service tax through e-payment

only

(B)

96 What is the full form of ACES

(A) Automation of Central Excise and Service Tax (B) Acounts of Customs, Excise and Service Tax (C) Automatic Computerised Electronic System

(A)

97. Construction of tunnels, dams, airports are taxable under

(A) Commercial or Industrial Construction Service (B) Works Contract Service (C) No service tax on the above services

(C)

98. Charging section for Service Tax

(A) Section 68 of Finance Act 1994 (A)

(B) Section 66 of Finance Act 1994 (C) Section 65(105) of Finance Act 1994 (D) Section 71 of Finance Act 1994

99. Promotion/Marketing/Sale of goods produced/provided by or

belonging to the client fall under

(A) Business Support Service (B) Business Auxiliary Service (C) Business Promotion Service (D) Commission agent service

(B)

100 EHTP Stands for

(A) Electricity Handle Terminal Port (B) Export Hardware Technlogy Premises (C) Electronic Hardware Trade Park

(C)

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ServiceTaxobjective Questions