MCQs of Federal Excise Act, 2005 are available now for all students who are preparing for the test of Inspector Inland Revenue. The MCQs will be added time and again in parts. You can practice them time and again until you get command over this section of syllabus. Once you go through these mcqs then you may practice them in quiz form.
Apart from this, if you havent gone through Federal Excise Act then you must watch and understand its definitions and important mcqs in video lecture. Later on, you may answer 50% mcqs in the exam.
Please practice them thrice and you will get the best result for the test.
MCQs of Federal Excise Act
1. Federal Excise Act was passed in _________?
a. 1990
b. 2007
c. 2001
d. 2005
2. How many chapters are there in Federal Excise Act, 2005?
a. 13
b. 10
c. 6
d. 17
3. There are ____________ sections of Federal Excise Act, 2005?
a. 76
b. 49
c. 24
d. 242
4. Federal Excise Act, 2005 has ________ schedules?
a. 9
b. 4
c. 7
d. NOT
5. The products which are produced inside Pakistan and taxes levied on those products are called as__________?
a. Federal Excise Duty
b. Income Tax
c. Both a and b
d. NOT
6. Chapter one of the Federal Excise Act deals with_____________?
a. Title
b. Definitions
c. Both a and b
d. NOT
7. Which schedule of Federal Excise Act recently omitted from the act?
a. 1st
b. 2nd
c. 3rd
d. 4th
8. When the 4th schedule of Federal Excise Act, 2005 was omitted from the act?
a. 2019
b. 2020
c. 2021
d. NOT
9. Federal Excise Act, 2005 was enforced on_______?
a. 1st June 2005
b. 1st day of July, 2005
c. 1st month of 2005
d. NOT
10. All goods available in the first schedule of Federal Excise Act, 2005 are _______?
a. Dutiable goods
b. Exempted goods
c. Zero rated goods
d. NOT
11. __________ means premises including precincts where goods are manufactured or any process connected with manufacturing.
a. Company
b. Factory
c. Office
d. NOT
12. Structure of officers of Federal Excise Act, 2005 are discussed under section ___________?
a. 29
b. 30
c. 3
d. NOT
13. According to Federal Excise Act, 2005 goods falls under schedule?
a. 1st
b. 2nd
c. 3rd
d. 4th
e. NOT
14. Which type of insurance is available for goods under Federal Excise Act, 2005?
a. Fire
b. Marine
c. Theft
d. Accident
e. AOT
15. KIBOR stands for _____________________?
a. Karachi International Bank Offered Rate
b. Karachi Internal Bank Offered Ratio
c. Karachi Inter Bank Offered Ratio
d. Karachi Inter Bank Offered Rate
16. Non-tariff areas are ____________?
a. AJK
b. Northern areas
c. Where FED doesn’t apply
d. AOT
17. _________ are involved in the development of the purchased or leased land?
a. Property Developer
b. Promoter
c. Both a and b
d. NOT
18. The section 2 of the Federal Excise Act, 2005 deals with __________?
a. Duties specified in the first schedule
b. Definitions
c. Short Title
d. NOT
19. Duties specified in the first schedule to be levied are discussed in _______ section of FED, 2005?
a. 2nd
b. 3rd
c. 4th
d. NOT
20. Goods which are produced in Pakistan and are not mentioned in the first schedule of this act, shall be payable duty at the rate _________?
a. 12.5
b. 17
c. 15
d. 13
e. NOT
21. Adjudicating authorities mean authorities other than ____________ which act according to this law for determination of anything.
a. Board
b. Appellate tribunal
c. Both a and b
d. NOT
22. ___________ means deduction of amount of duty paid on goods used in manufacture or production.
a. Purchase
b. Buy
c. Adjustment
d. NOT
23. Federal Excise Act, 2005 provides the option of _________ for avoiding a person from paying double tax?
a. Zero rate option
b. Exemption option
c. Adjustment option
d. NOT
24. Under Federal Excise Act, 2005 the Appellate tribunal is as same as it is discussed in section 130 of ___________?
a. Sales Tax Act, 1990
b. Federal Excise Act, 2005
c. Federal Board of Revenue Act, 2007
d. Income Tax Ordinance 2001
25. Commissioner Inland Revenue is subordinate to ________?
a. Board
b. Chief commissioner inland revenue
c. Both a and b
d. NOT
26. Commissioner Inland Revenue Appeal is subordinate to _______?
a. Chief commissioner inland revenue
b. Board
c. Both a and b
d. NOT
27. Under Federal Excise Act, 2005 conveyance includes _________?
a. Aircraft
b. Vehicle
c. Animal
d. Vessel
e. AOT
28. An additional amount which is paid after due date is called as _________?
a. Default surcharge
b. Fund
c. Interest
d. NOT
29. According to Federal Excise Act, 2005 due date is _________?
a. 3rd of every month
b. 12th of every month
c. 15th of every month
d. NOT
30. Any sum payable under the provision of this Federal Excise Act is called as
a. Supply
b. Duty
c. Manufacturing
d. NOT
31. A person who purchases goods from manufacturer and sell it to wholesaler is_______?
a. Retailer
b. Wholesaler
c. Distributor
d. NOT
32. Establishment means __________________?
a. An undertaking
b. Company
c. Firm
d. Association
e. AOT
33. ________ means a franchiser allow to produce or manufacture then sell or trade further?
a. Establishment
b. Factory
c. Franchise
d. NOT
34. KIBOR is the rate which is offered at ______?
a. First day of each month
b. First day of each year
c. First day of each quarter
d. NOT
35. A manufacturer may comprised of ______?
a. Remaking
b. Remanufacturing
c. Reconditioning
d. AOT
36. All non interest based services are called as ________?
a. Exempted services
b. KIBOR services
c. Non fund banking services
d. AOT
37. Non fund banking services are provided by _________?
a. Banking company
b. Financial institution
c. Both a and b
d. NOT
38. Non fund banking services are non interest based so these services will be based on______?
a. Fee
b. Commission
c. Charges
d. AOT
39. Duty imposed on the imported goods would be according to the act_________?
a. Federal Excise Act
b. Income Tax Ordinance
c. Custom Act
d. Sales Tax Act
40. The services provided out of Pakistan then the duty would be levied on________?
a. Provider
b. Recipient
c. Both a and b
d. NOT
41. When a person is importing goods then the duty would be levied on _________?
a. Importer
b. Manufacturer
c. Producer
d. Both b and c
42. When the goods produced or manufactured in Pakistan, then the duty would be levied on _____?
a. Producer
b. Manufacturer
c. Buyer
d. Both a and b
43. If the services are rendered in Pakistan, then the duty would be levied on_________?
a. Service Recipient
b. Service Provider
c. Both a and b
d. NOT
44. If the goods are produced inside non-tariff areas and they are sold out in tariff areas then the duty would be levied on ______?
a. Person bringing goods in tariff areas
b. Person manufacturing
c. Both a and b
d. NOT
45. Section 4 of Federal Excise Act, 2005 deals with____________?
a. Zero Rate of Duty and Drawback
b. Filing of Return
c. Default Surcharge
d. NOT
46. In Federal Excise Act, 2005 the filing of return is discussed under ________ section?
a. 3rd
b. 4th
c. 5th
d. 8th
47. Filing of return is possible ____________?
a. Every month
b. Quarterly
c. After every 6 month
d. NOT
48. A person can revise file return within _______days?
a. 120
b. 90
c. 60
d. 30
49. The filing return can be revised with the permission of __________?
a. Inspector Inland Revenue Officer
b. Commissioner
c. Federal Government
d. NOT
50. When the approval of commissioner is not required for file returning under Federal Excise Act, 2005?
a. Return within 60 days
b. Return within 120 days but with increased amount
c. Both a and b
d. NOT
51. Section 5 of Federal Excise Act, 2005 deals with ___________?
a. Filing of return
b. Zero Rate of Duty and Drawback
c. Liability
d. NOT
52. When goods are produced for the sake of export then the duty would be levied on them at the rate __________?
a. 17%
b. 15%
c. 0%
d. NOT
53. The duty levied on importing electric car is ___________?
a. 12.5%
b. 17%
c. 15%
d. 0%
54. Adjustment of duties of excide are discussed under section ________?
a. 9
b. 8
c. 6
d. 4
55. Section 6 of Federal Excise Act, 2005 deals with ___________?
a. Filing of return and payment of duty
b. Definitions
c. Registration
d. Adjustment of duties of excise
56. Under Federal Excise Act, 2005 deduction of input tax is called as _____?
a. Exemption
b. Fund
c. Adjustment
d. NOT
57. Section 07 of Federal Excise Act deals with ________?
a. Default surcharge
b. Duties specified in the first schedule
c. Filing of return and payment of duty
d. Application of the provision of the sales tax act, 1990
e. NOT
58. When a person unable to pay duty is called as ________?
a. Defaulter
b. Robber
c. Layman
d. AOT
59. Section 8th of Federal Excise Act, 2005 deals with_____?
a. Registration
b. Zero Rating
c. Adjustment
d. Default Surcharge
60. According to Federal Excise Act, 2005 Default Surcharge is discussed under section ______?
a. 34
b. 8
c. 5
d. NOT
61. Default Surcharge is paid at the rate ________?
a. 15% per month
b. 17% annually
c. 12% per annum
d. NOT
62. Section 9 of Federal Excise Act, 2005 deals with __________?
a. Default Surcharge
b. Zero rate of duty
c. Adjustment of duties of excise
d. Liability for payment of duty in case of private companies
63. If a private company is sold out before paying duty, then who will be liable to pay duty?
a. Owner
b. Director
c. Partner
d. AOT
64. Section 10 of Federal Excise Act, 2005 deals with ________?
a. Applicable value and rate of duty
b. Collection of excess duty
c. Registration
d. AOT
65. Applicable value of duty would be paid on __________?
a. Retail price
b. Wholesale price
c. Manufacturing price
d. NOT
66. Collection of excess duty is discussed under section _________ of Federal Excise Act, 2005?
a. 7
b. 8
c. 10
d. 11
67. The non-refundable excess duty taken from consumer would be___________?
a. Given to wholesaler
b. Given to Federal Government
c. Given to consumer
d. NOT
68. Who fixes the retail price of a produced or manufactured good?
a. Government
b. FBR
c. Manufacturer
d. AOT
69. Who will determine the duty on the goods which are sold on retail price?
a. Manufacturer
b. FBR
c. Federal government
d. NOT
70. The determination of value of goods at import stage is done according to ____?
a. Provincial Government
b. Section 25 of Custom Act 1969
c. Sales Tax Act, 1990
d. NOT
71. Goods whose duty are determined according to their value are liable to pay duty according to ___?
a. Custom Act 1969
b. Section 25 of Custom Act 1969
c. Section 2 subsection (46) Sales Tax Act, 1990
d. Both a and b
72. The determination of value for the purpose of duty is discussed under section __________ of Federal Excise Act, 2005?
a. 9
b. 10
c. 11
d. 12
73. Registration according to Federal Excise Act is discussed under ______section?
a. 11
b. 12
c. 13
d. 14
74. When a person has already registered himself under sales tax act, 1990 _________ to register under Federal Excise Act, 2005?
a. Required
b. Not required
c. Required in some cases
d. NOT
75. Section 14 of Federal Excise Act, 2005 deals with ____________?
a. Recovery of unpaid duty
b. Recovery of erroneously refunded duty
c. Arrears of duty
d. AOT
76. According to Federal Excise Act, 2005 government can recover duty within _____years?
a. 3
b. 4
c. 5
d. NOT
77. Show cause notice would be send to a person for the recovery of duty within ________ years?
a. 2
b. 4
c. 5
d. 6
78. The department of Inland Revenue has _______ days to decide the recovery matter?
a. 90
b. 120
c. 150
d. NOT
79. __________ power to extend the days of recovery for 60 days
a. Federal Government
b. Provincial Government
c. Commissioner
d. NOT
80. The short paid amount can be recovered under section _______ of Federal Excise Act, 2005.
a. 13
b. 14
c. 14A
d. Not
81. Section 15 of Federal Excise Act, 2005 deals with ____________?
a. Application of Custom Act, 1969
b. Application of Sales Tax Act, 1990
c. Both a and b
d. NOT
82. Who has power to exempt duty on person or class of person ______?
a. Federal government
b. Board
c. Both a and b
d. NOT
83. Goods and services present in the first schedule of Federal Excise Act, 2005 can be exempted by _______?
a. Board
b. Federal government
c. Both a and b
d. NOT
84. Section __________ of Federal Excise Act, 2005 deals with Exemption
a. 14
b. 13
c. 15
d. 16
85. Section 16 of Federal Excise Act, 2005 deals with _________?
a. Registration
b. Exemptions
c. Record
d. NOT
86. A registered person requires to maintain his record for the period of ________ years?
a. 1
b. 3
c. 5
d. 6
87. Section _____ of Federal Excise Act, 2005 deals with records.
a. 16
b. 17
c. 18
d. AOT
88. _______ is discussed under section 17 of Federal Excise Act, 2005?
a. Registration
b. Default Surcharge
c. Records
d. Exemptions
89. Section 18 of Federal Excise Act, 2005 deals with_____________?
a. Records
b. Registration
c. Invoice
d. Exemption
90. Invoice is discussed under which section of Federal Excise Act, 2005?
a. 17
b. 18
c. 19
d. 20
91. Chapter III of Federal Excise Act, 2005 deals with __________?
a. Offences
b. Penalties
c. Both a and b
d. NOT
92. Section 19 of Federal Excise Act, 2005 deals with _______?
a. Offences
b. Penalties
c. Fines
d. Allied Matters
e. AOT
93. If a person who fails to file return then he needs to pay fine of ______?
a. Rs.5000
b. Rs.10000
c. 5%
d. Both a and c
94. If a person has done short payment of duty then he shall pay fine of_______?
a. Rs.10000
b. Rs.5000
c. 5%
d. Both a and c
95. When a person pays duty within 15 days after the due date, then he will pay fine of _______?
a. Rs.100 per day
b. Rs.200 per day
c. Both a and b
d. NOT
96. A person shall pay fine of Rs.20000 if he commits
a. Make sign declaration incorrect
b. Counterfeit or falsifying
c. Refuse to produce document
d. Sell Cigarette at lower price
e. AOT
97. A person shall pay fine of Rs.50000, 5 times duty and 5 year jail if he commits:
a. Illegal removal or storage
b. Anyway concern in conveying removing/ dipositing
c. Fraudulent evasion
d. Claim undue adjustment
e. Manufacturing of dutiable goods in contradiction
f. AOT
98. If a person destroy, manipulate, and erase the computer data without the permission of commissioner then he needs to pay fine of _______?
a. Rs.75000 Penalty, or 10 times duty, and 5 year jail
b. Rs.50000 Penalty, or 5 times duty, and 3 year jail
c. Rs.25000 Penalty, or 15 times duty, and 1 year jail
d. NOT
99. When a person refund or drawback of any duty i.e. undue then he shall pay fine of_______?
a. Rs.100000
b. 5 Times duty
c. 5 year jail
d. AOT
100. If a person interferes in the duty or service of revenue officer then he shall pay penalty of________?
a. Rs.50,000
b. 5 times duty
c. 3 years
d. AOT
101. If a manufacturer doesn’t show health warning, retail price on cigarette, and manufacturer name then he shall pay fine of __________?
a. Rs.50000
b. 500% ad valorem
c. 40 ad valorem
d. AOT
102. If a manufacturer doesn’t show his name, health warning or retail price on any good other than cigarette then he shall pay penalty__________?
a. Rs.5000
b. 10%
c. 40% ad valorem
d. NOT
103. When a person commits an offence which is not available in the penalties mentioned in the act then he shall pay________?
a. Rs.5000
b. 3% of duty
c. Both a and b
d. No Penalty
104. A registered person is ________?
a. A person who is registered
b. Required to be registered
c. Both a and b
d. NOT
105. If a person fails to make payment then he needs to pay a fine of ________?
a. Rs.1000
b. Rs.5000
c. 5%
d. Both a and c
106. When a person signs a declaration or certificate i.e. incorrect, incomplete or not true then he shall pay the fine of _____________?
a. Rs.5000
b. Rs.10000
c. Rs.20000
d. NOT
107. When a person counterfeits or falsifies any document required by the officials, he shall pay a fine of ____________?
a. Rs.5000
b. Rs.100000
c. 5 Years imprisonment
d. Both b and c
108. If a person sales cigarettes at a low price than retail price then he shall pay a fine of___________?
a. 5 years imprisonment
b. 5%
c. Rs.10000
d. Rs.20000
e. All three a, b, and c
109. Proceedings against authority and persons are discussed in section __________ Federal Excise Act 2005?
a. 19
b. 19A
c. 20
d. 21
110. In which section of the Federal Excise Act 2005 the appointment of special judges for the trial of offenses is discussed?
a. 21
b. 20
c. 19A
d. 19
111. According to the requirement of the Federal Excise Act, A special judge shall be a person who _______?
a. Is a Session Judge
b. Has been a Session Judge
c. Is qualified to be a Session Judge
d. AOT
112. Trial of offenses by the special judge is explained in ________ section?
a. 20
b. 21
c. 22
d. NOT
113. Trial of offenses by the special judge can only be initiated if the complaint in writing is submitted by _________?
a. Officer of Inland Revenue
b. Army person
c. Both a and b
d. NOT
114. Who has the authority to transfer a case from one special judge to another special judge?
a. Special judge
b. Special court
c. High court
d. Federal Government
115. Federal Government may transfer a case from the court of one special judge to the court of another special judge under _____ circumstances?
a. To promote ends of justice
b. General convenience of parties
c. Both a and b
d. NOT
116. Appeal against the order of a special judge is defined under section _________?
a. 19
b. 19A
c. 20
d. 21A
117. An appeal against the order of the special judge in respect of the trial of the offense shall lie to the _________?
a. Supreme court
b. High Court
c. Special court
d. NOT
118. An appeal against the decision of the special judge in respect to the trial of the offense shall lie in the high court within _____ days?
a. 90
b. 60
c. 30
d. NOT
119. Power to arrest and prosecute is well explained under section ___________ of Federal Excise Act, 2005?
a. 21
b. 21A
c. 22
d. NOT
120. An Inspector Inland Revenue may arrest any person due to any valid reason with the permission of __________?
a. Federal Government
b. Supreme Court
c. High Court
d. Commissioner
121. An inspector Inland Revenue may arrest any person because of an offense, with the permission of the Federal Government and he will inform about it to the special judge within________?
a. 24 hours
b. 30 days
c. 14 days
d. NOT
122. A special judge may bail to an accused person according to _________ section of the Federal Excise Act, 2005?
a. 20
b. 21
c. 21A
d. 22
123. __________ has authority to compound an offense if the accused person pays the amount of duty along with such default surcharge and penalty.
a. High court
b. Special judge
c. Commissioner
d. Federal Government
124. According to which section of the Federal Excise Act, 2005 Officer of Inland Revenue has the power to summon any person or authorized agent to give evidence and produce documents in inquiries.
a. 22
b. 23
c. 24
d. NOT
125. Which section of Federal Excise Act, 2005 allows Officer of Inland Revenue to get assistance from police, customs, civil armed forces, all officers of government and village officers?
a. 21
b. 22
c. 23
d. 24
126. Chapter IV of Federal Excise Act, 2005 deals with __________?
a. Searches
b. Arrests
c. Seizures
d. AOT
127. According to which section ______ searches and arrests shall be made in accordance with relevant provisions of the Code of Criminal Procedure, 1989.
a. 23
b. 24
c. 25
d. 26
128. In which section ______ power to seize counterfeit cigarettes, beverages, other goods, and conveyance for their movement is discussed?
a. 24
b. 25
c. 26
d. 27
129. The confiscation of goods subject to Federal Excise Duty is explained under ____ section?
a. 26
b. 27
c. 28
d. NOT
130. __________ may allow the destruction of such confiscated cigarettes which are rendered unfit for human consumption or unfit for sale.
a. High court
b. Federal Government
c. Commissioner
d. NOT
131. Power to release seized conveyance is discussed under section _____?
a. 27
b. 28
c. 29
d. NOT
You can practice all these mcqs of Federal Excise Act, 2005 in quiz form at Quiz of Federal Excise Act, 2005
Soon we will upload more mcqs of Federal Excise Act, 2005 because these are only 28 section we have uploaded. So, we will upload the rest sections in few days. You can peactice these questions until we upload the remaining. Thanks for your patience.