Corporate Tax Planning and GST

JKPSC Assistant Professor (Commerce) · Commerce · 48 practice questions with answers and explanations: 9 Easy, 37 Medium, 2 Hard.

Sample questions

Sample Easy question 1

TDS stands for:

  1. Total Direct Savings
  2. Tax Declared Separately
  3. Tax Deducted at Source
  4. Tax Due Statement
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Answer: C. Tax is deducted when the payment is made.

Sample Easy question 2

The Income Tax return for individuals is generally filed by:

  1. 31 July
  2. 31 December
  3. 30 September
  4. 31 March
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Answer: A. For those not requiring an audit.

Sample Easy question 3

GSTIN has how many characters?

  1. 10
  2. 12
  3. 20
  4. 15
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Answer: D. It includes the state code and PAN.

Sample Medium question 4

Tax planning for a new unit may gain from locating it in:

  1. Any crowded city
  2. A special economic zone or an area with tax incentives
  3. A foreign country only
  4. A residential area
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Answer: B. Incentives cut the tax burden.

Sample Medium question 5

The concessional tax rate for domestic companies under section 115BAA is:

  1. 18.5%
  2. 15%
  3. 30%
  4. 22% (plus surcharge and cess)
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Answer: D. Such companies need not pay MAT.

Sample Medium question 6

A company that opts for section 115BAA does not have to pay:

  1. Minimum Alternate Tax
  2. Advance tax
  3. GST
  4. TDS
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Answer: A. It also gives up certain exemptions and deductions.

Sample Hard question 7

A 'zero-tax company' in the context of MAT is one that:

  1. Has no profit at all
  2. Pays no dividend
  3. Has book profit but nil or negative taxable income
  4. Is exempt from all taxes
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Answer: C. MAT was introduced to make such companies pay some tax.

Sample Hard question 8

Credit for MAT paid can be carried forward for:

  1. 20 years
  2. 15 years
  3. 5 years
  4. 8 years
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Answer: B. It is set off against tax in later years.

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