Tax and Central Excise

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ICWAI
Objective Type questions and Answers on Indirect Tax

1. Multiple Choice Questions
(1) Excise duty can be levied on those goods which are
a) Manufactured in India
b) Sold in India
a) Removed from the factory
b) None of the above
(2)Dutiable goods means
a) Goods are subject to Central Excise duty
b) Goods which are exempted from excise duty
c) Non excisable goods
d) Goods not at all mentioned in the Central Excise Tariff
(3)Place of Removal under Central Excise means
a) Removing the goods from the place of distributor
b) Removing the goods from the place of customs station
c) Removing the goods from the place of factory
d) None of the above
(4)Non-Dutiable goods means
a) Name of the product not mentioned in the Tariff Act
b) Name of the product mentioned in the Tariff Act
c) Name of the product mentioned in the Tariff Act with the Rate of Duty d) Name of the product mentioned in the Tariff Act with the Zero Rate (5)Payment of Central Excise Duty depends up on
a) Removal goods from the place of removal
b) Manufacture of goods in the factory
c) Deemed manufacture of goods
d) Removal goods for branch transfer
(6)The excise duty on alcoholic goods manufactured by the manufacturer is payable to a) State Government
b) Central Government
c) Corporation
d) Local authority
(7)Which of the following duties is covered under the First Schedule of the Central Excise Tariff Act? a) Basic Excise duty
b) Special Excise Duty
c) Additional Excise Duty
d) Education Cess
(8)Which of the following duties is under the purview of the State Government? a) Central Excise duty
b) Customs duty
c) Service tax
d) VAT
(9)Which are the goods still under the physical control?
(a)Plastic products
(b)Cigarette products
(c)Apparel products
(d) Glass products
(10) At the time of manufacture of product X attracts 14% BED. At the time of removal the rate of duty is 8%. Which is the duty attracts for the product X a) 14%
b) 8%
c) 11% (Average)
d) Zero (Because the rate has changed)
Answer:
(a)
(a)
(c)
(d)
(a)
(a)
(a)
(d)
(b)
(b)
2. Fill in the Blanks
1) Central Excise duty can be levied at the time of

2) Goods at the time of manufacture, not mentioned in the Central Excise Tariff Act, can be called
3) Central Excise Tariff Act, 1985 containssections
4) Goods are classified under Central Excise Tariff Act based on theof Nomenclature havingdigit classification
(5)The goods included in theSchedule of Central Excise Act are same as those on which excise duty is payable under section 4A of the Act.
6) Goods at the time of manufacture, mentioned in the Central Excise Tariff Act, can be called
7) Goods are classified under Central Excise Tariff Act based on thesystem 8) There are Chapters under the Central Excise classification 9) Labelling and relabelling comes under
10) Service tax came into force fromFinance Act
Answer:
Manufacture of goods in India
Non excisable goods
20-sections
Harmonized System Eight
Third.
Excisable goods
Harmonized System of Nomenclature
96 chapters
Third Schedule of Central Excise
1994
3. Say Yes or No, Give Reasons
All goods manufactured are subject to central excise duty.
All Excisable goods are dutiable goods
No duty can be levied if the goods manufactured by the manufacturer is not movable but marketable Goods has been defined in the Central Excise Act
Manufacturer includes deemed manufacturer
There is no difference between levy and collection
7) Duty can also be collected even if the goods are non-excisable at the time of manufacturer, but are excisable at the time of removal of goods from the place of removal. Duty rates are specified in the Central Excise Act, 1944

Central Excise Duty Rate is indicated against each tariff item and not against heading or sub-heading. Manufacture includes any process incidental or...
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