Minimum Alternate Tax is levied on companies that: MCQ with Answer and Explanation

Question

Share Report Error

Minimum Alternate Tax is levied on companies that:

A. are in special economic zones

B. have no profit

C. pay very low tax due to exemptions and deductions

D. are foreign companies

Answer: Option C

Solution (By JKSSB Mock Tests)

MAT is imposed on companies whose normal tax liability is low because of exemptions and deductions.

This question belongs to: Economy GK Economy Set 1

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1

Which of the following is a feature of the Indian tax system after the introduction of GST?

A. Persistence of multiple cascading taxes

B. Only origin-based taxation

C. A unified destination-based tax on goods and services with input tax credit mechanism

D. Complete elimination of all state-level taxes without dual structure

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option C

Explanation:
GST replaced a large number of cascading central and state taxes with a unified destination-based tax that permits seamless input tax credit.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax' rate on water supply is:

A. 5%

B. not under GST

C. 0%

D. 18%

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option C

Explanation:
Water supply through public taps is exempt from GST.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following has been a major driver of service sector growth in India?

A. Decline in domestic and global demand

B. Complete restriction on foreign investment in services

C. IT and IT-enabled services, liberalisation and rising incomes

D. Only growth in agricultural productivity

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option C

Explanation:
The expansion of IT and ITES, financial services, trade and tourism, supported by liberalisation and rising incomes, has driven the rapid growth of India's service sector.

This question belongs to: Economy GK Economy Set 1

Explore All Economy Set 1 MCQs