The 'Fringe Benefit Tax' (FBT) was abolished in India from: MCQ with Answer and Explanation

The 'Fringe Benefit Tax' (FBT) was abolished in India from:
A. Assessment Year 2010-11
B. Assessment Year 2005-06
C. Never existed
D. Still in force
Answer: Option A
Solution (By JKSSB Mock Tests)
FBT was introduced in 2005 and abolished from AY 2010-11.

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Practice More Accountancy and Book Keeping Questions

Question #1
S1: In a cash flow statement under Ind AS 7, dividends paid can be classified as either operating or financing activities. S2: Interest paid can be classified as either operating or financing activities. Which statement(s) is/are correct?
A. Both S1 and S2
B. S2 only
C. Neither S1 nor S2
D. S1 only

Correct Answer: Option A


Explanation:
Ind AS 7 allows flexibility. Dividends paid can be classified as financing (cash outflow for financing) or operating (to assist in determining cash from operations). Interest paid can be operating or financing. Both are correct.

Question #2
If fixed costs are Rs 1,00,000, selling price is Rs 20, and variable cost is Rs 10 per unit, the Break-Even Sales in Rupees is:
A. Rs 50,000
B. Rs 1,00,000
C. Rs 10,000
D. Rs 2,00,000

Correct Answer: Option D


Explanation:
Contribution per unit = 20 - 10 = Rs 10. BEP (Units) = 1,00,000 / 10 = 10,000 units. BEP (Sales) = 10,000 * 20 = Rs 2,00,000.

Question #3
The 'Independence' of auditor means:
A. Auditor is a relative of management
B. Auditor can take loan from client
C. Auditor is free from any influence that could compromise professional judgment
D. Auditor can hold shares in the client company

Correct Answer: Option C


Explanation:
Independence in mind and appearance is fundamental to audit.