Which of the following is a direct tax? MCQ with Answer and Explanation

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Which of the following is a direct tax?

A. Income tax

B. Customs duty

C. Excise duty

D. GST

Answer: Option A

Solution (By JKSSB Mock Tests)

Income tax is a direct tax as the burden falls directly on the taxpayer. GST, excise, customs are indirect taxes.

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

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Question #1

The primary regulator of Mutual Funds in India is:

A. RBI

B. AMFI

C. IRDAI

D. SEBI

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Correct Answer: Option D

Explanation:
The Securities and Exchange Board of India (SEBI) regulates all capital market entities, including mutual funds.

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Question #2

The 'GST Suvidha Providers' (GSPs) are:

A. Tax officials

B. Government agencies

C. Banks

D. Private entities authorised to provide GST compliance services

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Correct Answer: Option D

Explanation:
GSPs facilitate taxpayers in filing returns and other GST compliances via software.

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Question #3

Assertion (A): Under Ind AS 23, borrowing costs directly attributable to the acquisition of a qualifying asset must be capitalized. Reason (R): A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use or sale. Choose the correct option.

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

B. Both A and R are true but R is NOT the correct explanation of A

C. A is false but R is true

D. A is true but R is false

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Correct Answer: Option A

Explanation:
Ind AS 23 requires capitalization of borrowing costs for qualifying assets. A qualifying asset is defined precisely as one that takes a substantial period to be ready for use or sale. R correctly defines the term and explains the basis for capitalization.

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