Taxation MCQs - 1 Mark and 2 Mark Questions
1 Mark Questions
1. 1. Which articles of the Constitution of Nepal outline the distribution of taxing powers?
a) 56–59
b) 57–60
c) 60–63
d) 65–68
2. 2. What is typically required for a tax officer to conduct a search under tax laws?
a) Oral instruction
b) Identity card and written warrant
c) Newspaper notice
d) Verbal approval from IRD
3. 3. Which Schedule of the Constitution deals with residual tax powers?
a) Schedule 5
b) Schedule 6
c) Schedule 9
d) Schedule 8
4. 4. Which authority issues rulings and circulars for tax interpretation in Nepal?
a) Supreme Court
b) Ministry of Finance
c) Inland Revenue Department (IRD)
d) National Planning Commission
5. 5. Under which Act are penalties for non-compliance primarily outlined?
a) Income Tax Act
b) VAT Act
c) Excise Duty Act
d) Local Government Act
6. 6. Which articles of the Constitution of Nepal outline the distribution of taxing powers?
a) 56–59
b) 57–60
c) 60–63
d) 65–68
7. 7. What is typically required for a tax officer to conduct a search under tax laws?
a) Oral instruction
b) Identity card and written warrant
c) Newspaper notice
d) Verbal approval from IRD
8. 8. Which Schedule of the Constitution deals with residual tax powers?
a) Schedule 5
b) Schedule 6
c) Schedule 9
d) Schedule 8
9. 9. Which authority issues rulings and circulars for tax interpretation in Nepal?
a) Supreme Court
b) Ministry of Finance
c) Inland Revenue Department (IRD)
d) National Planning Commission
10. 10. Under which Act are penalties for non-compliance primarily outlined?
a) Income Tax Act
b) VAT Act
c) Excise Duty Act
d) Local Government Act
11. 11. Which articles of the Constitution of Nepal outline the distribution of taxing powers?
a) 56–59
b) 57–60
c) 60–63
d) 65–68
12. 12. What is typically required for a tax officer to conduct a search under tax laws?
a) Oral instruction
b) Identity card and written warrant
c) Newspaper notice
d) Verbal approval from IRD
13. 13. Which Schedule of the Constitution deals with residual tax powers?
a) Schedule 5
b) Schedule 6
c) Schedule 9
d) Schedule 8
14. 14. Which authority issues rulings and circulars for tax interpretation in Nepal?
a) Supreme Court
b) Ministry of Finance
c) Inland Revenue Department (IRD)
d) National Planning Commission
15. 15. Under which Act are penalties for non-compliance primarily outlined?
a) Income Tax Act
b) VAT Act
c) Excise Duty Act
d) Local Government Act
16. 16. Which articles of the Constitution of Nepal outline the distribution of taxing powers?
a) 56–59
b) 57–60
c) 60–63
d) 65–68
17. 17. What is typically required for a tax officer to conduct a search under tax laws?
a) Oral instruction
b) Identity card and written warrant
c) Newspaper notice
d) Verbal approval from IRD
18. 18. Which Schedule of the Constitution deals with residual tax powers?
a) Schedule 5
b) Schedule 6
c) Schedule 9
d) Schedule 8
19. 19. Which authority issues rulings and circulars for tax interpretation in Nepal?
a) Supreme Court
b) Ministry of Finance
c) Inland Revenue Department (IRD)
d) National Planning Commission
20. 20. Under which Act are penalties for non-compliance primarily outlined?
a) Income Tax Act
b) VAT Act
c) Excise Duty Act
d) Local Government Act
21. 21. Which articles of the Constitution of Nepal outline the distribution of taxing powers?
a) 56–59
b) 57–60
c) 60–63
d) 65–68
22. 22. What is typically required for a tax officer to conduct a search under tax laws?
a) Oral instruction
b) Identity card and written warrant
c) Newspaper notice
d) Verbal approval from IRD
23. 23. Which Schedule of the Constitution deals with residual tax powers?
a) Schedule 5
b) Schedule 6
c) Schedule 9
d) Schedule 8
24. 24. Which authority issues rulings and circulars for tax interpretation in Nepal?
a) Supreme Court
b) Ministry of Finance
c) Inland Revenue Department (IRD)
d) National Planning Commission
25. 25. Under which Act are penalties for non-compliance primarily outlined?
a) Income Tax Act
b) VAT Act
c) Excise Duty Act
d) Local Government Act
26. 26. Which articles of the Constitution of Nepal outline the distribution of taxing powers?
a) 56–59
b) 57–60
c) 60–63
d) 65–68
27. 27. What is typically required for a tax officer to conduct a search under tax laws?
a) Oral instruction
b) Identity card and written warrant
c) Newspaper notice
d) Verbal approval from IRD
28. 28. Which Schedule of the Constitution deals with residual tax powers?
a) Schedule 5
b) Schedule 6
c) Schedule 9
d) Schedule 8
29. 29. Which authority issues rulings and circulars for tax interpretation in Nepal?
a) Supreme Court
b) Ministry of Finance
c) Inland Revenue Department (IRD)
d) National Planning Commission
30. 30. Under which Act are penalties for non-compliance primarily outlined?
a) Income Tax Act
b) VAT Act
c) Excise Duty Act
d) Local Government Act
31. 31. Which articles of the Constitution of Nepal outline the distribution of taxing powers?
a) 56–59
b) 57–60
c) 60–63
d) 65–68
32. 32. What is typically required for a tax officer to conduct a search under tax laws?
a) Oral instruction
b) Identity card and written warrant
c) Newspaper notice
d) Verbal approval from IRD
33. 33. Which Schedule of the Constitution deals with residual tax powers?
a) Schedule 5
b) Schedule 6
c) Schedule 9
d) Schedule 8
34. 34. Which authority issues rulings and circulars for tax interpretation in Nepal?
a) Supreme Court
b) Ministry of Finance
c) Inland Revenue Department (IRD)
d) National Planning Commission
35. 35. Under which Act are penalties for non-compliance primarily outlined?
a) Income Tax Act
b) VAT Act
c) Excise Duty Act
d) Local Government Act
36. 36. Which articles of the Constitution of Nepal outline the distribution of taxing powers?
a) 56–59
b) 57–60
c) 60–63
d) 65–68
37. 37. What is typically required for a tax officer to conduct a search under tax laws?
a) Oral instruction
b) Identity card and written warrant
c) Newspaper notice
d) Verbal approval from IRD
38. 38. Which Schedule of the Constitution deals with residual tax powers?
a) Schedule 5
b) Schedule 6
c) Schedule 9
d) Schedule 8
39. 39. Which authority issues rulings and circulars for tax interpretation in Nepal?
a) Supreme Court
b) Ministry of Finance
c) Inland Revenue Department (IRD)
d) National Planning Commission
40. 40. Under which Act are penalties for non-compliance primarily outlined?
a) Income Tax Act
b) VAT Act
c) Excise Duty Act
d) Local Government Act
41. 41. Which articles of the Constitution of Nepal outline the distribution of taxing powers?
a) 56–59
b) 57–60
c) 60–63
d) 65–68
42. 42. What is typically required for a tax officer to conduct a search under tax laws?
a) Oral instruction
b) Identity card and written warrant
c) Newspaper notice
d) Verbal approval from IRD
43. 43. Which Schedule of the Constitution deals with residual tax powers?
a) Schedule 5
b) Schedule 6
c) Schedule 9
d) Schedule 8
44. 44. Which authority issues rulings and circulars for tax interpretation in Nepal?
a) Supreme Court
b) Ministry of Finance
c) Inland Revenue Department (IRD)
d) National Planning Commission
45. 45. Under which Act are penalties for non-compliance primarily outlined?
a) Income Tax Act
b) VAT Act
c) Excise Duty Act
d) Local Government Act
46. 46. Which articles of the Constitution of Nepal outline the distribution of taxing powers?
a) 56–59
b) 57–60
c) 60–63
d) 65–68
47. 47. What is typically required for a tax officer to conduct a search under tax laws?
a) Oral instruction
b) Identity card and written warrant
c) Newspaper notice
d) Verbal approval from IRD
48. 48. Which Schedule of the Constitution deals with residual tax powers?
a) Schedule 5
b) Schedule 6
c) Schedule 9
d) Schedule 8
49. 49. Which authority issues rulings and circulars for tax interpretation in Nepal?
a) Supreme Court
b) Ministry of Finance
c) Inland Revenue Department (IRD)
d) National Planning Commission
50. 50. Under which Act are penalties for non-compliance primarily outlined?
a) Income Tax Act
b) VAT Act
c) Excise Duty Act
d) Local Government Act
2 Mark Questions
51. 1. A taxpayer relies on a public circular despite a contrary Supreme Court verdict. What
is the correct legal position?
a) Circular prevails over the court
b) Supreme Court decision overrides the circular
c) Both have equal weight
d) The taxpayer can choose
52. 2. A federal officer imposes a tax on a subject matter listed in the provincial schedule.
What issue does this raise?
a) Improper tax rate
b) Jurisdictional conflict under Article 60
c) Misuse of VAT laws
d) Excise licensing error
53. 3. An officer enters a business premise for inspection without producing an ID. What is
the legal consequence?
a) The search is valid
b) The search is void and illegal
c) Penalties double
d) Only warning issued
54. 4. What happens if the Excise officer bypasses the procedure for issuing confiscation
notices?
a) Action is valid under emergency rule
b) Officer can be held personally liable
c) Goods are still forfeited
d) Taxpayer cannot appeal
55. 5. Withholding tax is applied to an income not listed under any law. Which issue arises?
a) Administrative conflict
b) Violation of residual power doctrine
c) Breach of taxpayer rights
d) All of the above
56. 6. A taxpayer relies on a public circular despite a contrary Supreme Court verdict. What
is the correct legal position?
a) Circular prevails over the court
b) Supreme Court decision overrides the circular
c) Both have equal weight
d) The taxpayer can choose
57. 7. A federal officer imposes a tax on a subject matter listed in the provincial schedule.
What issue does this raise?
a) Improper tax rate
b) Jurisdictional conflict under Article 60
c) Misuse of VAT laws
d) Excise licensing error
58. 8. An officer enters a business premise for inspection without producing an ID. What is
the legal consequence?
a) The search is valid
b) The search is void and illegal
c) Penalties double
d) Only warning issued
59. 9. What happens if the Excise officer bypasses the procedure for issuing confiscation
notices?
a) Action is valid under emergency rule
b) Officer can be held personally liable
c) Goods are still forfeited
d) Taxpayer cannot appeal
60. 10. Withholding tax is applied to an income not listed under any law. Which issue
arises?
a) Administrative conflict
b) Violation of residual power doctrine
c) Breach of taxpayer rights
d) All of the above
61. 11. A taxpayer relies on a public circular despite a contrary Supreme Court verdict.
What is the correct legal position?
a) Circular prevails over the court
b) Supreme Court decision overrides the circular
c) Both have equal weight
d) The taxpayer can choose
62. 12. A federal officer imposes a tax on a subject matter listed in the provincial schedule.
What issue does this raise?
a) Improper tax rate
b) Jurisdictional conflict under Article 60
c) Misuse of VAT laws
d) Excise licensing error
63. 13. An officer enters a business premise for inspection without producing an ID. What is
the legal consequence?
a) The search is valid
b) The search is void and illegal
c) Penalties double
d) Only warning issued
64. 14. What happens if the Excise officer bypasses the procedure for issuing confiscation
notices?
a) Action is valid under emergency rule
b) Officer can be held personally liable
c) Goods are still forfeited
d) Taxpayer cannot appeal
65. 15. Withholding tax is applied to an income not listed under any law. Which issue
arises?
a) Administrative conflict
b) Violation of residual power doctrine
c) Breach of taxpayer rights
d) All of the above
66. 16. A taxpayer relies on a public circular despite a contrary Supreme Court verdict.
What is the correct legal position?
a) Circular prevails over the court
b) Supreme Court decision overrides the circular
c) Both have equal weight
d) The taxpayer can choose
67. 17. A federal officer imposes a tax on a subject matter listed in the provincial schedule.
What issue does this raise?
a) Improper tax rate
b) Jurisdictional conflict under Article 60
c) Misuse of VAT laws
d) Excise licensing error
68. 18. An officer enters a business premise for inspection without producing an ID. What is
the legal consequence?
a) The search is valid
b) The search is void and illegal
c) Penalties double
d) Only warning issued
69. 19. What happens if the Excise officer bypasses the procedure for issuing confiscation
notices?
a) Action is valid under emergency rule
b) Officer can be held personally liable
c) Goods are still forfeited
d) Taxpayer cannot appeal
70. 20. Withholding tax is applied to an income not listed under any law. Which issue
arises?
a) Administrative conflict
b) Violation of residual power doctrine
c) Breach of taxpayer rights
d) All of the above
71. 21. A taxpayer relies on a public circular despite a contrary Supreme Court verdict.
What is the correct legal position?
a) Circular prevails over the court
b) Supreme Court decision overrides the circular
c) Both have equal weight
d) The taxpayer can choose
72. 22. A federal officer imposes a tax on a subject matter listed in the provincial schedule.
What issue does this raise?
a) Improper tax rate
b) Jurisdictional conflict under Article 60
c) Misuse of VAT laws
d) Excise licensing error
73. 23. An officer enters a business premise for inspection without producing an ID. What is
the legal consequence?
a) The search is valid
b) The search is void and illegal
c) Penalties double
d) Only warning issued
74. 24. What happens if the Excise officer bypasses the procedure for issuing confiscation
notices?
a) Action is valid under emergency rule
b) Officer can be held personally liable
c) Goods are still forfeited
d) Taxpayer cannot appeal
75. 25. Withholding tax is applied to an income not listed under any law. Which issue
arises?
a) Administrative conflict
b) Violation of residual power doctrine
c) Breach of taxpayer rights
d) All of the above
Answers
1 Mark Questions Answers:
1. a
2. b
3. c
4. c
5. a
6. a
7. b
8. c
9. c
10. a
11. a
12. b
13. c
14. c
15. a
16. a
17. b
18. c
19. c
20. a
21. a
22. b
23. c
24. c
25. a
26. a
27. b
28. c
29. c
30. a
31. a
32. b
33. c
34. c
35. a
36. a
37. b
38. c
39. c
40. a
41. a
42. b
43. c
44. c
45. a
46. a
47. b
48. c
49. c
50. a
2 Mark Questions Answers:
1. b
2. b
3. b
4. b
5. d
6. b
7. b
8. b
9. b
10. d
11. b
12. b
13. b
14. b
15. d
16. b
17. b
18. b
19. b
20. d
21. b
22. b
23. b
24. b
25. d
