Quiz Contest - 2 (Service Tax)

1. THE SERVICE TAX IS NOW AT ........ % WITH EDUCATION CESS AND SECONDARY AND HIGHER EDUCATION CESS @ 2% AND 1% RESPECTIVELY.

The service tax rate is currently 10% with an additional education cess of 2% and a secondary and higher education cess of 1%. This means that the total tax rate, including all the cesses, is 10%.

Explanation

The service tax rate is currently 10% with an additional education cess of 2% and a secondary and higher education cess of 1%. This means that the total tax rate, including all the cesses, is 10%.

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2. ARTICLE ............. OF THE CONSTITUTION LAYS DOWN THAT NO TAX SHALL BE LEVIED OR COLLECTED EXCEPT BY THE AUTHORITY OF LAW.

Article 265 of the Constitution states that no tax shall be levied or collected except by the authority of law. This means that any taxation must be authorized by a law passed by the appropriate legislative body. It ensures that taxes are not imposed arbitrarily or without proper legal basis, providing a safeguard against potential misuse of taxation powers. This article helps to ensure transparency and accountability in the taxation process, as it requires taxes to be levied and collected in accordance with established legal procedures.

Explanation

Article 265 of the Constitution states that no tax shall be levied or collected except by the authority of law. This means that any taxation must be authorized by a law passed by the appropriate legislative body. It ensures that taxes are not imposed arbitrarily or without proper legal basis, providing a safeguard against potential misuse of taxation powers. This article helps to ensure transparency and accountability in the taxation process, as it requires taxes to be levied and collected in accordance with established legal procedures.

Submit

3. SERVICE TAX IS INDIRECT TAX ,BECAUSE THE BURDEN OF SERVICE TAX CAN BE PASSED ON TO THE CUSTOMER.
IS THIS STATEMENT TRUE OR FALSE:-

TRUE

FALSE

The statement is true because service tax is an indirect tax that is levied on the provision of services. The burden of this tax can be passed on to the customer by increasing the price of the service. Therefore, the customer ultimately bears the burden of the tax, making it an indirect tax.

Explanation

The statement is true because service tax is an indirect tax that is levied on the provision of services. The burden of this tax can be passed on to the customer by increasing the price of the service. Therefore, the customer ultimately bears the burden of the tax, making it an indirect tax.

4. IN WHICH YEAR WAS THE SERVICE TAX IMPOSED FOR FIRST TIME IN INDIA?

1993-94

1994-95

1995-96

1996-97

The correct answer is 1994-95. This is the year when the service tax was first imposed in India. It was introduced as an indirect tax on certain services provided or agreed to be provided by the service provider. The purpose of implementing the service tax was to broaden the tax base and generate additional revenue for the government.

Explanation

The correct answer is 1994-95. This is the year when the service tax was first imposed in India. It was introduced as an indirect tax on certain services provided or agreed to be provided by the service provider. The purpose of implementing the service tax was to broaden the tax base and generate additional revenue for the government.

5. IS THERE ANY SEPARATE ENACTMENT FOR THE LEVY OF SERVICE TAX?

YES

NO

There is no separate enactment for the levy of service tax. This means that the levy of service tax is not governed by a separate law or legislation. Instead, it is covered under the existing tax laws and regulations.

Explanation

There is no separate enactment for the levy of service tax. This means that the levy of service tax is not governed by a separate law or legislation. Instead, it is covered under the existing tax laws and regulations.

6. ON WHICH DATE SERVICE TAX WERE BROUGHT INTO FORCE IN INDIA?

W.e.f. JULY 01, 1994

W.e.f. JUNE 01, 1994

W.e.f. APRIL01, 1994

W.e.f. SEPT. 01, 1994

not-available-via-ai

Explanation

not-available-via-ai

7. SCHEDULE Vll DESCRIBE ABOUT THE AUTHORITY OF LAW.
WHICH ONE IS DESCRIBED AS THE AUTHORITY OF LAW AMONG THE FOLLOWING:-

UNION LIST(ONLY CENTRAL GOV. HAS POWER OF LEGISLATION)

STATE LIST(ONLY STATE GOVT. HAS POWER OF LEGISLATION)

CONCURRENT LIST(BOTH CENTRAL AND STATE GOV. CAN PAS LEGISLATION)

ALL OF THE ABOVE MENTIONED AUTHORITY

The correct answer is "ALL OF THE ABOVE MENTIONED AUTHORITY". This means that all the options mentioned in the question (Union List, State List, and Concurrent List) describe the authority of law. The Union List indicates that only the central government has the power of legislation, the State List indicates that only the state government has the power of legislation, and the Concurrent List indicates that both the central and state governments can pass legislation. Therefore, all of these options describe different authorities of law.

Explanation

The correct answer is "ALL OF THE ABOVE MENTIONED AUTHORITY". This means that all the options mentioned in the question (Union List, State List, and Concurrent List) describe the authority of law. The Union List indicates that only the central government has the power of legislation, the State List indicates that only the state government has the power of legislation, and the Concurrent List indicates that both the central and state governments can pass legislation. Therefore, all of these options describe different authorities of law.

8. SERVICE TAX IS LEVIED UNDER UNION GOVERNMENT'S POWER TO TAX VIA ....................................

ENTRY NO. 92 OF LIST 1 OF SCHEDULE Vll OF CONSTITUTION OF INDIA.

ENTRY NO. 92c OF LIST 1OF SCHEDULE Vl OF CONSTITUTION OF INDIA.

ENTRY NO. 94 OF LIST 1 OF SCHEDULE Vl OF CONSTITUTION OF INDIA.

ENTRY NO. 92c OF LIST 1 OF SCHEDULE Vll OF CONSTITUTION OF INDIA.

The correct answer is "ENTRY NO. 92c OF LIST 1 OF SCHEDULE Vll OF CONSTITUTION OF INDIA." This entry specifically grants the power to the Union Government to levy and collect service tax.

Explanation

The correct answer is "ENTRY NO. 92c OF LIST 1 OF SCHEDULE Vll OF CONSTITUTION OF INDIA." This entry specifically grants the power to the Union Government to levy and collect service tax.

9. What is the relevance of Finance Act, 1994 in case of Service Tax in India?

The correct answer is that sections 64 to 96 of chapter V and VA of the Finance Act, 1994 provides for the legal basis for the levy and collection of Service Tax in India. These sections outline the rules and regulations regarding the imposition and collection of Service Tax, ensuring that it is done in a legal and systematic manner. They provide the framework for determining the liability of service providers, the calculation of tax, and the procedures for registration, payment, and filing of returns.

Explanation

The correct answer is that sections 64 to 96 of chapter V and VA of the Finance Act, 1994 provides for the legal basis for the levy and collection of Service Tax in India. These sections outline the rules and regulations regarding the imposition and collection of Service Tax, ensuring that it is done in a legal and systematic manner. They provide the framework for determining the liability of service providers, the calculation of tax, and the procedures for registration, payment, and filing of returns.