UPSC Prelims PYQs – Budget and Taxes (Economy)

1. With reference to India’s decision to levy an equalization tax of 6% on online advertisement services offered by non-resident entities, which of the following statements is/are correct?

1. It is introduced as a part of the Income Tax Act.
2. Non-resident entities that offer advertisement services in India can claim a tax credit in their home country under the “Double Taxation Avoidance Agreements”.

Select the correct answer using the code given below:

[UPSC Civil Services Exam – 2018 Prelims]

2. Under which of the following circumstances may ‘capital gains arise?

1. When there is an increase in the sales of a product
2. When there is a natural increase in the value of the property owned
3. When you purchase a painting and there is a growth in its value due to increase in its popularity

Select the correct answer using the codes given below:

[UPSC Civil Services Exam – 2012 Prelims]

3. Consider the following items:

1. Cereal grains hulled
2. Chicken eggs cooked
3. Fish processed and canned
4. Newspapers containing advertising material

Which of the above items is/are exempted under GST (Good and Services Tax)?

[UPSC Civil Services Exam – 2018 Prelims]

4. What is/are the most likely advantages of implementing ‘Goods and Services Tax (GST)’?

1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India.
2. It will drastically reduce the ‘Current Account Deficit’ of India and will enable it to increase its foreign exchange reserves.
3. It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future.

Select the correct answer using the code given below:

[UPSC Civil Services Exam – 2017 Prelims]

5. The sales tax you pay while purchasing a toothpaste is a

[UPSC Civil Services Exam – 2014 Prelims]

6. Which one of the following is not a feature of “Value Added Tax”?

[UPSC Civil Services Exam – 2011 Prelims]