Accounting & Finance including Sales Tax on Services – 50 Marks
Q. The ratio of Net Profit before interest and tax to sales is called? Answer: Operating Profit Ratio
Q. What is the formula for the Operating Cycle? Answer: Inventory Period + Accounts Receivable Period
Q. Patents, Copyrights, and Trademarks are classified as? Answer: Intangible Assets
Q. Which bank is responsible for Monetary Policy in Pakistan? Answer: State Bank of Pakistan (SBP)
Q. A guarantee made by a bank to a foreign bank for imports is a? Answer: Letter of Credit (LC)
Q. What is a Zero Coupon Bond also known as? Answer: Deep Discount Bond
Q. The process of verifying documentary evidence of transactions is? Answer: Vouching
Q. Agency Theory suggests conflict between Managers and whom? Answer: Shareholders
Q. What is the standard rate of Punjab Sales Tax on Services? Answer: 16%
Q. Who is liable to pay tax for services received from a non-resident? Answer: Service Recipient
Q. What is the “Reverse Charge” obligation? Answer: Recipient deducts full tax and pays to Government
Q. Which transactions require payment through banking channel if exceeding Rs. 50,000? Answer: Any transaction or aggregate to one person in a tax period
Q. Input tax cannot be adjusted for which items? Answer: Vehicles, food & entertainment, gifts, utilities not in name of registered person, services where provider has not deposited tax
Q. What is the maximum input tax adjustment allowed per tax period? Answer: 90% of output tax
Q. What is the penalty if tax is paid after a show-cause notice? Answer: Tax + default surcharge + 50% of penalty
Q. Who can conduct a special or forensic audit? Answer: Chartered Accountants, Cost & Management Accountants, Forensic Experts
Q. How long must records be retained after July 2022? Answer: 6 years from end of financial year
Q. Who has the power to grant tax exemptions? Answer: Authority with Government approval
Q. Under Section 16A, what happens if payment is not through banking channel? Answer: Input tax credit cannot be claimed
Q. What is the consequence of charging excess tax? Answer: Penalty Rs. 20,000 for 1st default; Rs. 50,000 subsequent
Q. What is the time limit for filing a revised return? Answer: Within 120 days of original return, with prior permission
Q. How is the “Value of a Taxable Service” determined? Answer: Gross amount including all federal/provincial duties/taxes, excluding Punjab sales tax
Q. Who is a “Registered Person”? Answer: Person registered or liable to be registered under the Act
Q. What is the standard penalty for failure to maintain records? Answer: Rs. 10,000 to Rs. 100,000 or 5% of tax
Q. What is considered “Short-paid” tax? Answer: Paying less than due tax due to miscalculation or incorrect assessment
Q. Who is liable for tax if a private company is wound up? Answer: Every owner, partner, or director jointly and severally
Q. When can a registration be compulsorily ordered? Answer: Commissioner satisfied person required to register but failed to apply
Q. What is “Voluntary Registration”? Answer: Person not legally required to register may apply voluntarily
Q. What is the penalty for failure to issue a tax invoice? Answer: Rs. 20,000 1st default; Rs. 50,000 subsequent
Q. How long does a former owner have to inform Commissioner about sale of business? Answer: Within 1 month
Q. Who is considered a “Defaulter” in a firm or company? Answer: Every director, partner, guarantor, or successor failing to pay tax
Q. What is the “Common Taxpayer Identification Number”? Answer: Registration number/identification code allocated to a registered person
Q. Can audit proceedings be conducted online? Answer: Yes, through video links or other notified facilities
Q. What is the “Burden of Proof” in excess tax collection cases? Answer: Lies on person who collected tax
Q. Who can be appointed as a “Special Judge”? Answer: Person serving/served as District & Sessions Judge ≥5 years
Q. What is the “Due Date” for furnishing tax return? Answer: 15th day of month following end of tax period
Q. Which tax rate applies if rate changes during service provision? Answer: Rate in force at time service is provided
Q. Who is liable for tax on services originating outside Pakistan but received in Punjab? Answer: Recipient of service in Punjab
Q. Can a person liable to be registered claim benefits of registration? Answer: No, only after actual registration
Q. Who can conduct prosecution before a Special Judge? Answer: Officer not below rank of Assistant Commissioner
Q. What is the standard rate of default surcharge? Answer: Inter-bank rate + 3% per annum
Q. What is the surcharge for tax fraud? Answer: 2% per month of tax evaded
Q. What is the 10% protection rule during appeals? Answer: Deposit at least 10% of demanded tax to prevent recovery action
Q. Who is liable if an e-intermediary submits false info willfully? Answer: Jointly liable with taxpayer
Q. What is the maximum period for sealing business premises? Answer: 1 month
Q. Who has the power to amend Schedules of taxable services? Answer: Government via notification in official Gazette
Q. Can “Economic Activity” include a one-time transaction? Answer: Yes, if in nature of trade or business
Q. Is a personal hobby considered an economic activity? Answer: No
Q. Who can order attachment of bank accounts for recovery of tax? Answer: Punjab Revenue Authority
Q. How many members minimum for an ADR committee? Answer: 3
The ratio of Net Profit before interest and tax to sales is called? Answer: Operating Profit Ratio
What is the formula for the Operating Cycle? Answer: Inventory Period + Accounts Receivable Period
Patents, Copyrights, and Trademarks are classified as? Answer: Intangible Assets
Which bank is responsible for Monetary Policy in Pakistan? Answer: State Bank of Pakistan (SBP)
A guarantee made by a bank to a foreign bank for imports is a? Answer: Letter of Credit (LC)
What is a Zero Coupon Bond also known as? Answer: Deep Discount Bond
The process of verifying documentary evidence of transactions is? Answer: Vouching
Agency Theory suggests conflict between Managers and whom? Answer: Shareholders
Part II: General Knowledge
Islamic Studies / Ethics & Urdu
Q. Give the total number of Prophets (AS) in Islam? Answer: 124,000
Q. What punishment was sent upon the nation of Hazrat Shoaib (AS)? Answer: A Dreadful Cry
Q. The Holy Prophet (PBUH) was a direct descendant of which Prophet? Answer: Hazrat Ismaeel (AS)
Q. What is the primary focus of virtue ethics? Answer: Development of moral character
Who translated the Holy Quran into Urdu? Answer: Shah Abdul Qadir (and Shah Rafi-ud-Din)
What is the title (Laqab) of Prophet Yaqub (A.S)? Answer: Israel
Q. What is the main purpose of fasting in Ramadan? Answer: To attain piety and self-discipline
Q. اصطلاحِ ادب میں “بنتِ مشرق” کس شخصیت کے لیے استعمال ہوتی ہے؟ جواب: علامہ محمد اقبال۔
Q. اردو کا پہلا باقاعدہ اخبار کون سا تھا؟ جواب: جامِ جہاں نما۔
Q. علمِ بلاغت میں “تلمیح” سے کیا مراد ہے؟ جواب: کسی تاریخی، مذہبی یا مشہور واقعے کی طرف اشارہ کرنا۔
اردو کا پہلا ناول لکھنے والا کون سمجھا جاتا ہے؟ جواب: ڈپٹی نذیر احمد
مستنصر حسین تارڑ کا پہلا ناول کون سا تھا؟ جواب: پیار کا پہلا شہر
Pakistan Studies , Current Affairs & Geography
Q. Which is the largest district of Pakistan by area? Answer: Chaghi
Q. In which year was the 18th Amendment passed? Answer: 2010
Q. The highest peak of Karakoram Range is? Answer: K2
The Rawalpindi Conspiracy was initiated against which Prime Minister? Answer: Liaquat Ali Khan
Who was the first Governor of Punjab in 1849? Answer: Lord Dalhousie
The Pitt’s India Act was introduced in which year? Answer: 1784
Where is the Statue of Liberty situated? Answer: USA (New York)
“No Taxation without Representation” was a slogan of which country? Answer: USA
What is the height range of the Ozone Layer? Answer: 20–30 km
Sami Ullah Khan was a legendary player of which sport? Answer: Hockey
The Suez Canal connects which two seas? Answer: Red Sea and Mediterranean Sea
English
Q Correct Spelling: Ans: Entrepreneur
Q ‘The study of birds’ is: Ans: Ornithology
Q. Antonym of ‘Artificial’: Ans: Natural
Q. ‘I have been working ____ morning.’ Ans: Since
Antonym of Exonerate Answer: Accuse
Antonym of Anomaly Answer: Regular
Meaning of “Bring Out” Answer: To reveal/expose
Meaning of “For Good” Answer: Forever
Meaning of “Nefarious” Answer: Evil / Wicked
Change Voice: “Danial is singing a song” → ? Answer: A song is being sung by Danial
Computer Science & Everyday Science
What type of software is Windows 10? Answer: System Software (Operating System)
What was the name of the first computer network? Answer: ARPANET
Where is RAM physically located in a computer? Answer: Motherboard
Q. Why do we see lightning before we hear thunder? Answer: Because light travels faster than sound.
Q. What is the main gas responsible for the greenhouse effect? Answer: Carbon dioxide (CO₂).
Q. What part of the human body produces insulin? Answer: The pancreas.
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