CA Taxation & Compliance

Question 1

Which tax is levied on the profit of businesses?

Accepted Answer

Corporate Income Tax

Answer

Value Added Tax (VAT)

Answer

Sales Tax

Answer

Excise Duty

Question 2

What is the primary purpose of tax compliance?

Accepted Answer

To ensure adherence to tax laws

Answer

To minimize financial transparency

Answer

To increase tax evasion

Answer

To avoid paying any taxes

Question 3

Which tax is typically deducted from an employee's salary before payment?

Accepted Answer

Payroll Tax

Answer

Capital Gains Tax

Answer

Inheritance Tax

Answer

Property Tax

Question 4

What is the main function of an audit in tax compliance?

Accepted Answer

To ensure accurate tax reporting

Answer

To avoid filing taxes

Answer

To increase tax liabilities

Answer

To manipulate financial records

Question 5

Which type of tax applies to goods and services at each stage of production?

Accepted Answer

Value Added Tax (VAT)

Answer

Estate Tax

Answer

Wealth Tax

Answer

Customs Duty

Question 6

What penalty can result from failure to comply with tax regulations?

Accepted Answer

Financial penalties and legal consequences

Answer

Tax exemptions

Answer

Higher tax refunds

Answer

Increased tax credits