The 'Goods and Services Tax' on services provided by a director to a company is: MCQ with Answer and Explanation

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The 'Goods and Services Tax' on services provided by a director to a company is:

A. Not treated as supply

B. Taxable under reverse charge if the director is not an employee

C. Always exempt

D. Exempt

Answer: Option B

Solution (By JKSSB Mock Tests)

Services provided by a non-executive director are taxable under RCM.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

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A costing system that focuses on continuous small improvements in manufacturing processes to reduce costs is known as:

A. Life Cycle Costing

B. Kaizen Costing

C. Standard Costing

D. Target Costing

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Correct Answer: Option B

Explanation:
Kaizen costing is a Japanese concept involving continuous, incremental improvements to reduce costs during the manufacturing phase.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

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Assertion (A): Indirect Taxes are regressive in their impact. Reason (R): They are levied at a uniform rate irrespective of the income level of the consumer.

A. A is true but R is false

B. A is false but R is true

C. Both A and R are true and R is the correct explanation of A

D. Both A and R are true but R is not the correct explanation of A

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Correct Answer: Option C

Explanation:
Because indirect taxes (like GST) are charged flatly on goods, lower-income people pay a higher proportion of their income, causing a regressive effect.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping