1.

Pakistan Fiscal year starts from:

a) 1st September
b) 1st January
c) 1st April
d) 1st July
2. Which is provincial tax in Pakistan?
a) Excise tax
b) Sales Tax
c) Import Duty
d) Motors token tax
3. There is how many chapters included in Income Tax Ordinance?
a) 11 Chapters
b) 12 Chapters
c) 13 Chapters
d) 14 Chapters
4. There is how many schedules included in Income Tax Ordinance 2001?
a) 9 Schedules
b) 6 Schedules
c) 7 Schedules
d) 8 Schedules
5. There is how many sections included in Income Tax Ordinance 2001?
a) 235 sections
b) 240 sections
c) 250 sections
d) 260 sections
6. Corporate tax is levied on:
a) Landlords
b) Municipal corporation
c) Joint stock companies
d) Importers
7. Central Excise Act, 1944 was repealed by
a) The Federal Excise Act, 2002
b) The federal Excise Act, 2004
c) The Federal Excise Act, 2005
d) The Federal Excise Act, 2007
8. Name of Central Excise Duty has been changed as a Federal Excise Duty on
a) 1st July, 2003
b) 1st July, 2005
c) 1st July, 2007
d) 1st July, 2008
9. Inland Revenue Wing of the FBR was created, which is combination of ___________ domestic taxes.
a) 3
b) 4
c) 5
d) 6

10. If we deduct direct tax from personal income, we get:

a) Net national income
b) Personal saving
c) Disposable income
d) Per capita income
11. The largest part of national income is
a) Consumption
b) Investment
c) Transfer payments
d) Saving
12. We measure national income by this method:
a) Expenditure Method
b) Income Method
c) Product Method
d) All of above
13. The most important source of a government is:
a) Foreign loans
b) Taxes
c) Printing of new money
d) Sale of government property
14. In Pakistan, taxes are levied by:
a) Prime minister of Pakistan
b) President of Pakistan
c) Federal Cabinet of ministers
d) National Assembly
15. Government finance is called
a) National Finance
b) Public finance
c) Private finance
d) Both a and b
16. A direct tax is that which:
a) Is heavy burden on the tax payer
b) Can be directly deposited in the banks
c) Cannot be evaded
d) Is paid by the person on whom it is levied
17. In Pakistan government budget is prepared by:
a) National Assembly
b) President of Pakistan
c) Ministry of Finance
d) State Bank of Pakistan
18. If government increases taxes, private savings:
a) Increase
b) Decrease
c) Do not change
d) Will become zero

19. Taxes on commodities are :

a) Direct taxes
b) Indirect taxes
c) Progressive taxes
d) Proportional tax
20. Govt. Prepared its budget:
a) Weekly
b) Monthly
c) Annually
d) Quarterly
21. It is direct tax:
a) Excise tax
b) Sale tax
c) Income tax
d) Custom duty
22. Which tax is not shared between central and provincial governments?
a) Excise tax
b) Sales tax
c) Custom duty
d) Property tax
23. Which is provincial tax in Pakistan?
a) Excise tax
b) Sales tax
c) Import duty
d) Motor token tax
24. The budget estimate prepared by ministry of finance is finally approved by:
a) State Bank
b) President
c) Senate
d) National Assembly
25. Devaluation means
a) Change in the currency of a country
b) Decrease in the value of gold
c) Decrease in the value of money in terms of foreign currency
d) Decrease in the value of money internally
26. When the central Board of Revenue (CBR) was established?
a) 1st April, 1924
b) 7th April, 1924
c) 6th April, 1924
d) 9th April, 1924
27. What is the main function of money?
a) To buy eatables from the market
b) To serve as a medium of exchange
c) To earn interest from a bank
d) To buy luxurious goods

28. A direct tax is that which:

a) Is heavy burden on the tax payers
b) Can be directly deposited in the banks
c) Cannot be evaded
d) Is paid by the person on whom it is levied
29. Special procedure under the title of Sales Ta special procedure (Withholding Tax) Rules 2007 was
introduced on:
a) 20th June 2007
b) 10th June 2007
c) 30th June 2007
d) 25th June 2007
30. Whom of the following propounded principles of taxation:
a) Keynes
b) Marshall
c) Adam Smith
d) Al Ghaali
31. There is how many schedules included in the Sales Tax Act, 1990?
a) 9 schedules
b) 6 schedules
c) 7 schedules
d) 8 schedules
32. There is how many sections included in the Sales Tax Act. 1990?
a) 75 Sections
b) 80 sections
c) 85 sections
d) 95 sections
33. Which section of sales tax act, 1990 deals with Special Audit by Chartered Accountants or Cost
Accountants?
a) 29
b) 30
c) 31
d) 32-A
34. Which Section of the Sales Tax Act, 1990 deals with offences and penalities?
a) 33
b) 34
c) 35
d) 36
35. No person other than a ________ shall make any deduction or reclaim input tax in respect of
taxable supplies made or to be made by him.
a) Unregistered person
b) Registered person
c) Association
d) None of these
36. In Pakistan, income tax is collected by:
a) Local govt.
b) Provincial govt.
c) Federal govt.

d) All governments
37. Sales tax in Pakistan is:
a) Direct and progressive
b) Direct and proportional
c) Indirect and progressive
d) Indirect and proportional
38. It is easy and convenient to pay:
a) Direct tax
b) Indirect tax
c) Proportional tax
d) Progressive tax
39. It is difficult to evade:
a) Direct tax
b) Indirect
c) Proportional
d) Progressive tax
40. Which tax is not shared between central and provincial governments?
a) Excise tax
b) Sales tax
c) Custom duty
d) Property tax
41. Which is provincial tax in Pakistan?
a) Excise tax
b) Sales tax
c) Import duty
d) Motors token tax
42. What is benefit of tariffs?
a) Increased choice
b) Increased government revenue
c) More competition
d) More trade
43. Pakistan public debt is:
a) Larger than GNP
b) Equal to GNP
c) Smaller than GNP
d) Smaller than our exports
44. Pakistan fiscal year start from:
a) 1st September
b) 1st January
c) 1st April
d) 1st July
45. As per law each registered person must file a return by the _________ of each month regarding the
sales made in last month.
a) 10th
b) 15th
c) 20th

d) 25th
46. There are ___ director generals in FBR?
a) 6
b) 7
c) 9
d) 10
47. There are ___ large taxpayer units for inland revenue collection
a) 2
b) 5
c) 3
d) 6
48. Fiscal laws means a general reference to the laws relating to:
a) Budget matters
b) Finance matters
c) Tax matters
d) None of these
49. The federal budget is presented in the parliament by:
a) Prime Minister
b) President
c) Finance minister
d) Commerce minister
50. System of eTax in Pakistan was introduced in?
a) 2007
b) 2008
c) 2009
d) 2010

Answers1d 2d 3c 4d 5b 6c 7c 8b 9a 10c 11a 12d 13b 14d15b 16d 17c 18b 19b 20c 21c 22d
23d 24d 25c 26a 27b 28d 29c 30c 31a 32a 33d 34a35b 36c 37d 38b 39a 40d 41d 42b 43c
44d 45b 46b 47c 48b 49c 50b....

Guess Paper for Inspector Inland Revenue (BS-16)

14:02 Inspector Inland Revenue MCQS

(PART-I)
ENGLISH PROFICIENCY
A- Which of these words is closest in meaning to the word provided?
1- remote
(a) automatic (b) distant
(c) savage (d) mean

2- detest
(a) argue (b) hate
(c) discover (d) reveal

3- gracious
(a) pretty (b) clever
(c) pleasant (d) present

4- predict

(a) foretell (b) decide

(c) prevent (d) discover

5- kin
(a) exult (b) twist
(c) friend (d) relative

B- Which of these words is most nearly the opposite of the word provided?
6- withdraw
(a) reduce (b) need
(c) advance (d) want

7- secret
(a) friendly (b) covert
(c) hidden (d) overt

8- heartfelt
(a) loving (b) insincere
(c) unhealthy (d) humorous

9- impartial
(a) hostile (b) biased
(c) dislike (d) worried

10- luminous
(a) clear (b) dim
(c) brittle (d) clever
C- Which is the correction option:-

11- Ali is afraid ___ spiders.

(a) from (b) in
(c) about (d) of

12- I am worried ______ the exam

(a) in (b) about
(c) on (d) of

13- He looks upset, I think he took the criticism ____ heart.

(a) to (b) in
(c) about (d) of

14- I am envious _____ them.

(a) of (b) in
(c) about (d) on

15- He confided ____ me.

(a) about (b) in
(c) on (d) of

16- They decided ____ the pink sofa.

(a) about (b) on
(c) of (d) in

17- She suffers ____ a heart disease.

(a) about (b) in
(c) from (d) on

18- The teacher set some homework _____ the end of the lesson.
(a) about (b) in
(c) of (d) at

19- I am good ____ tennis.

(a) about (b) in
(c) at (d) of

20- We arrived _____ the station an hour late.

(a) about (b) in

(c) at (d) of

(PART-II)
PROFESSIONAL TEST
(Comprising Sales Tax Act, 1990 amended upto July, 2014)

21- Tax fraction means the amount worked out in accordance with the following formula:
(a) (b)
(c) (d) None of these.

22- Taxable goods means all goods other than those which have been exempted under
section:(a) 12 (b) 15
(c) 13 (d) 11

23- The goods specified in the Fifth Schedule shall be charged to tax at the rate of:
(a) 17% (b) 16%
(c) 19% (d) 0%

24- If the amount shown in the tax invoice or the return needs to be modified the registered
person shall issue a:
(a) Debit Note (b) Credit Note

(c) (a) or (b) above (d) None of these

25- If the input tax paid by a registered person exceeds the output tax on account of zero
rated local supplies or exports made during the tax period; the excess amount of input tax
shall be refunded not later than _____ days.
(a) 40 (b) 45
(c) 50 (d) 60

26- No penalty under section 33 of this Act shall be imposed on a registered person unless
a ____________ is given to such person.
(a) Summon (b) Arrest warrant
(c) Show Cause Notice(d) Warning

27- De-registration, blacklisting and suspension of registration are dealt under section ____
of Sales Tax Act, 1990.
(a) 31 (b) 32
(c) 21 (d) 22
28- A registered person making a taxable supply shall issue a serially numbered tax invoice
in compliance to Section ___________?
(a) 21 (b) 23
(c) 25 (d) 26

29- A person who is required to maintain any record or documents under this act shall retain
the record and documents for a period of _____ years.

(a) Five (b) Six

(c) Eight (d) Three

30- Section ____ empowers an authorized Officer of Inland Revenue to take a sample of
any good or raw material for determining their liability to sales tax.
(a) 25 (b) 25-A
(c) 25-AA (d) 26

31- A person who applies for de-registration shall require to furnish a final return under
Section ___ of Sales Tax Act, 1990.
(a) 27 (b) 28
(c) 29 (d) 30

32- Section 30 of Sales Tax Act, 1990 deals with:

(a) De-Registration (b) Delegation of Powers
(c) Appointment of Officers & Their Powers
(d) None of the above.

33- A Directorate General of Training and Research is established under Section:

(a) 30A (b) 30B
(c) 30C (d) 30D

34- Special Audit of a registered person may be conducted under section____

(a) 31 (b) 32
(c) 32A (d) 28

35- In case a person files a return within fifteen days of the due date. He shall pay a penalty
of ___________ Rupees for each day of default.
(a) One Hundred (b) Five Hundred
(c) Five Thousand (d) Three Hundred

36- Any person who fails to issue an invoice when required under this act, he shall pay a
penalty of
(a) Rs.5,000/(b) 3% of the amount of tax involved
(c) (a) or (b) whichever is higher.
(d) None of the above.

37- Where a registered person fails to produce the record on receipt of 3rd Notice in noncompliance with Section 25; such person shall pay a penalty of:(a) Rs.5,000/- (b) Rs.10,000/(c) Rs.50,000/- (d) Rs.30,000/-

38- A person who obstructs the authorized officer in the performance of his official duties, he
shall pay a penalty of:(a) Rs.25,000/(b) 100% of the amount of tax involved.

(c) (a) or (b) whichever is higher

(d) None of the above.

39- Where any person repeats an offence for which a penalty is provided under this act.
(a) He shall pay twice the amount of penalty provided under the act for the said offence.
(b) He shall pay thrice the amount of penalty provided under the act for the said offence.
(c) Rs.50,000/(d) None of the above.

40- Any Office of Inland Revenue shall have power to summon any person under section:
(a) 38 (b) 39
(c) 37 (d) None of the above

41- All arrests made under this act shall be carried out in accordance with the relevant
provisions of:
(a) Sales Tax Act, 1990.
(b) Federal Excise Act, 2005
(c) Code of Criminal Produced, 1898.
(d) Income Tax Ordinance, 2001

42- Procedure to be followed on arrest of a person is laid down under section ___ of Sales

Tax Act, 1990.

(a) 37 (b) 37A
(b) 37B (d) 37C

43- It is necessary to produce an arrested person before the Special Judge or the nearest
Judicial Magistrate, within __ hours of such arrest.
(a) 36 (b) 48
(c) 72 (d) 24

44- The Sales Tax Officer authorized to hold inquiry shall maintain a register to be called:(a) Register of arrests (b) Register of detention
(c) Register of Arrests and Detention
(d) None of the above.

45- A Special Judge is appointed by the Federal Government under Section:

(a) 37A (b) 37B
(c) 37C (d) 37D

46- A Special Judge may hold sitting at any other place according to section:
(a) 37D (b) 37G
(c) 37H (d) 38

47- According to Section _____, the Commissioner may, by notice in writing, require any

person, including a banking company to furnish such information or such statement in

connection with any investigation or inquiry in cases of tax fraud.
(a) 37A (b) 37B
(c) 38A (d) 38B

48- The Officer of Inland Revenue may enter a place to search any documents or things
useful for any proceedings, after obtaining a warrant from the magistrate, under section
____:
(a) 40 (b) 40A
(c) 40B (d) None of the above.

49- Clause ___ of Section 45A empowers the Commissioner to take suo moto and examine
the record of any proceeding.
(a) 1 (b) 2
(c) 3 (d) 4
50- An appeal shall be accompanied by a fee of Rs.
(a) Rs.5,000/- (b) Rs.1,000/(c) Rs.2,000/- (d) Rs.10,000/-

51- Appeal to the Appellate Tribunal can be made under section:(a) 45A (b) 45B
(c) 46 (d) 47

52- Reference to the High Court can be send within ____ days of communication of the
order of the Appellate Tribunal:

(a) 120 (b) 90

(c) 70 (d) 60
53- A reference to the High Court under this Section shall be head by a Bench of not less
than ____ Judges of the High Court.
(a) 02 (b) 03
(c) 04 (d) 05

54- An application to the High Court by a person other than the Additional Commissioner
authorized by the Commissioner shall be accompanied by a fee of :(a) One Hundred Rupees
(b) Five Hundred Rupees
(c) One Thousand Rupees
(d) Five Thousand Rupees
55- Section ____ of the Limitation Act, 1908 shall apply to an application made to the High
Court under sub-section:(a) 7 (b) 1
(c) 9 (d) 10

56- According to Section 48, Sub-Section 1, Clause (c); the Officer of Inland Revenue may
take following action for recovery of arrears of tax:
(a) Seal the business premises.
(b) Stop removal of any goods from business premises
(c) Attach and Sell or Sell without attachment any moveable or
immoveable property of the registered person.

(d) A & B Above.

57- A liquidator is required to give written notice to the Commissioner within ____ days of
being appointed.
(a) 14 (b) 15
(c) 30 (d) 60

58- Board has a power to make rules under Section ______:

(a) 50 (b) 49
(c) 49A (d) 50A

59- Board may prescribe the use of computerized system under section ____
(a) 50 (b) 50A
(c) 49 (d) 49A

60- Board establishes bar of suits, prosecution and other legal proceedings under section:(a) 50 (b) 51
(c) 52 (d) 52A

61- An authorized representative of a registered person may appear before the Appellate
Tribunal as spells section:
(a) 50 (b) 51

(c) 52 (c) 53

62- Board may appoint a person to electronically file return on behalf of a registered person
under section:
(a) 50 (b) 52
(c) 52A (d) 53

63- According to Section ____ the tax liability of a deceased registered person under the Act
shall be the first charge on his estate in the hands of his successor.
(a) 51 (b) 52
(c) 53 (d) 54

64- Section ___ deals with removal of difficulties:

(a) 53 (b) 54
(c) 55 (d) 56

65- Service of orders, decisions etc are done in accordance with the procedure laid down
under section:
(a) 54 (b) 55
(c) 56 (d) 57

66- Any order, Notice or requisition require to be served on a resident individual is sent by a
register post or courier service to the individuals
(a) e-mail address (b) last known address in Pakistan
(c) official address (d) None of the above

67- Rectification of mistake in any order passed by an Officer of Inland Revenue,

Commissioner, The Commission (Appeals) or the Appellate Tribunal can be made as
envisaged under section:
(a) 53 (b) 55
(c) 57 (d) 59

68- No person shall be declared as the representative of non-resident person unless the
person has been given an opportunity by the _____of being heard.
(a) Inspector Inland Revenue
(b) Commissioner
(c) Collector
(d) None of these.

69- Tax paid on goods purchased by a person who get registered within 30 days of
purchase of goods, shall be treated as:(a) Input Tax (b) Output Tax
(c) Ad Velorum Tax (d) Both (a) and (b)

70- When a person imports goods, the tax paid by him thereon during a period of ______
days before making an application of registration shall be treated as:
(a) Output Tax (b) Input Tax
(c) Progressive Tax (d) None of these

71- Section ___ provides powers to deliver certain goods, without payment of tax:
(a) 52 (b) 54

(c) 60 (d) 62

72- Board may authorize the repayment in whole or in part of the tax paid on goods of such
class or description as it may determine under section __
(a) 60 (b) 61
(c) 62 (d) 64

73- According to Section _____ repayment of tax to person registered in Azad Jammu &
Kashmir can be made in whole or in part of the input tax, on any goods acquired in or
imported into Pakistan by person registered in Azad Jammu & Kashmir and are engaged in
making zero rated supplies.
(a) 59 (b) 60
(c) 61 (d) 61A

74- Drawback is allowed on re-export but not such drawback is repaid unless the re-export
is made within a period of ___ years from date of importation as per record of Custom
House.
(a) 03 (b) 02
(c) 01 (d) 04

75- Section ___ deals with drawback on goods taken into use between importation & reexportation period.
(a) 61 (b) 62
(c) 63 (d) 64

76- Federal Government may prohibit the payment of drawback on the exportation of goods
or any specified goods or class of goods to any specified foreign port or territory in
compliance with Section ___
(a) 64 (b) 65
(c) 66 (d) 67

77- Federal Government may by a notification direct that the tax not levied or short levied as
a result of inadvertent practice shall not be required to be paid for the period prior to the
discovery of such inadvertent practice, as per section :
(a) 64 (b) 65
(c) 66 (d) 67

78- All refunds have to be claimed within ____ year(s)

(a) 1 (b) 2
(c) 3 (d) 4

79- Application or claim filed under section 66 shall be disposed off within ____ days from
date of filing of claim
(a) 60 (b) 90
(c) 120 (d) 160

80- According to section _____ liability of the acts of agent solely lies upon a registered
person.
(a) 66 (b) 67
(c) 68 (d) 69

81- Duplicate copy of sales tax documents may be issued to a registered person on the
payment of Rs.___
(a) One Hundred (b) Two Hundred
(c) Three Hundred (d) Five Hundred

82- All Officers of Inland Revenue and other persons employed in the execution of this Act
shall observe and follow the order, instructions and direction of the Board under section ---- :
(a) 71 (b) 72
(c) 72A (d) 72B

83- Board may select persons or classes of persons for audit of tax affairs through ____
(a) Random Selection (b) Computer Ballot
(c) Manual Entry (d) None of the above.

84- According to Section 72C, Board may give ________ to Inland Revenue Officer/Officials
in cases involving concealment or evasion of sales tax and other taxes, on their meritorious
conduct in such cases.
(a) Promotion (b) Cash Reward
(c) Certificate of Appreciation
(d) None of these

85- Payment of the amount for a transaction exceeding value of _______, excluding

payment against a utility bill, shall be made by a crossed banking instrument showing
transfer of the amount of the sales tax invoice in favour of supplier.
(a) Rs.1,00,000/- (b) Rs.50,000/(c) Rs.2,00,000/- (d) Rs. 25,000/-

86- Retailer means a person supplying goods to general public for the purpose of:
(a) Sale (b) Purchase
(c) Consumption (d) Demand

87- _________ means a person who is registered or is liable to be registered under this act.
(a) Manufacturer (b) Supplier
(c) Registered Person (d) Retailer

88- Special Audit means an audit conducted under section ____

(a) 31 (b) 32
(c) 32A (d) 33

89- Taxable activity means any _________ activity carried on by a person whether or not for
profit.
(a) Financial (b) Fiscal
(c) Monetary (d) Economic

90- Taxable goods means all goods other than those which have been exempted under

section:(a) 11 (b) 12
(c) 13 (d) 15

91- Tax period means a period of ____ month(s) or such other period as specified by the
Federal Govt.
(a) one (b) three
(c) five (d) twelve

92- Tax invoice means a document required to be issued under section _____
(a) 21 (b) 23
(c) 25 (d) 26

93- Open Market Price means the consideration in money which that supply or
___________ would generally fetch in an open market.
(a) Demand (b) different supply
(c) similar supply (d) None of these

94- Appellate Tribunal means the Appellate Tribunal Inland Revenue established under
Section ____ of Income Tax Ordinance, 2001.
(a) 120 (b) 130
(c) 131 (d) None of the above.

95- Banking Company means a banking company as defined in the Banking Companies
Ordinance, ____.
(a) 1990 (b) 1962
(c) 1984 (d) 1969

96- Common taxpayer identification number means the registration number or any other
number allocated to a _____________.
(a) Wholesaler (b) Retailer
(c) Registered Person (D) Importer

97- CREST is an abbreviation of:(a) Computerized Return and E-Filing of Sales Tax
(b) Computerized Risk-Based Evaluation of Sales Tax
(c) Certificated Return E-Filing System
(d) None of these.

98- KIBOR stands for:(a) Karachi Intra-Bank Offered Rate

(b) Karachi Inter-Bank Offered Rate
(c) Karachi Inter Bank On-Spot Rate
(d) None of the above.

99- Directorate of Post Clearance Audit is established under section;(a) 30A (b) 30B
(c) 30D (d) 30DD

100- Delegation of Powers to the Officers of Inland Revenue are conferred under section:(a) 31 (b) 32
(c) 33 (d) 34
ANSWERS:1 (b) 2 (b) 3 (c) 4 (a) 5 (d) 6 (c) 7 (d) 8 (b) 9 (b) 10 (b) 11 (d) 12 (b) 13 (a) 14 (a) 15 (b) 16
(b) 17 (c) 18 (d) 19 (c) 20 (c) 21 (a) 22 (c) 23 (d) 24 (c) 25 (b) 26 (c) 27 (c) 28 (b) 29 (b) 30
(b) 31 (b) 32 (c) 33 (c) 34 (c) 35 (a) 36 (c) 37 (c) 38 (c) 39 (a) 40 (c) 41 (c) 42 (c) 43 (d) 44
(c) 45 (c) 46 (c) 47 (c) 48 (a) 49 (d) 50 (b) 51 (c) 52 (b) 53 (a) 54 (a) 55 (b) 56 (b) 57 (a) 58
(a) 59 (b) 60 (b) 61 (c) 62 (c) 63 (c) 64 (c) 65 (c) 66 (b) 67 (c) 68 (b) 69 (a) 70 (b) 71 (c) 72
(b) 73 (d) 74 (b) 75 (c) 76 (a) 77 (b) 78 (a) 79 (b) 80 (c) 81 (a) 82 (b) 83 (b) 84 (b) 85 (b) 86
(c) 87 (c) 88 (c) 89 (d) 90 (c) 91 (a) 92 (b) 93 (b) 94 (b) 95 (b) 96 (c) 97 (b) 98 ( b) 99 (d)
100 (b)