The 'Securities Transaction Tax' (STT) is levied on: MCQ with Answer and Explanation

The 'Securities Transaction Tax' (STT) is levied on:
A. Commodity transactions
B. Purchase and sale of shares and derivatives on recognized stock exchanges
C. Property transactions
D. Bank deposits
Answer: Option B
Solution (By JKSSB Mock Tests)
STT is a direct tax on transactions in securities listed on recognized stock exchanges.

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Practice More Accountancy and Book Keeping Questions

Question #1
S1: Ind AS 115 deals with Revenue from Contracts with Customers. S2: Ind AS 116 deals with Leases. Which statement(s) is/are correct?
A. Neither S1 nor S2
B. Both S1 and S2
C. S1 only
D. S2 only

Correct Answer: Option B


Explanation:
Ind AS 115 prescribes the principles for recognizing revenue from contracts with customers. Ind AS 116 specifies the accounting for leases. Both statements correctly identify the respective standards.

Question #2
The 'Constitutional Amendment' that paved way for GST was:
A. 73rd Amendment
B. 42nd Amendment
C. 101st Amendment
D. 122nd Amendment

Correct Answer: Option C


Explanation:
The Constitution (One Hundred and First Amendment) Act, 2016 introduced GST.

Question #3
S1: Under GST, e-invoicing is mandatory for businesses with an aggregate turnover exceeding ₹5 Crores. S2: E-invoicing applies to B2C (Business to Consumer) supplies. Which statement(s) is/are correct?
A. S2 only
B. Neither S1 nor S2
C. S1 only
D. Both S1 and S2

Correct Answer: Option C


Explanation:
S1 is correct as the limit was reduced to ₹5 Crores. S2 is incorrect because e-invoicing is applicable only to B2B supplies and export of goods/services, not B2C supplies.