Past Papers Sales Tax Custom and Federal Excise Duty


Subject: Sales Tax Custom and Federal Excise Duty

Time Allowed: 10 Minutes

Maximum Marks: 10

NOTE: Attempt this Paper on this Question Sheet only. Please encircle the correct option. Division of marks is given in front of each question. This Paper will be collected back after expiry of time limit mentioned above.


Part-I Encircle the correct option, cutting and overwriting is not allowed. (10)

1. On 14″ August 1947, the Pakistan Govt adopted the Custom Act:
a) Sea Customs Act 1878 . b) Airships Customs Act 1911
c) Land Customs Act 1924 d) All of the above
2. List of Excisable goods and services specified in Federal Excise Act 2005 are available:
a) First schedule b) Second schedule
c) Third schedule d) Fourth schedule
3. Which one of the following persons has to file special return under the Sales Tax Act 990
a) Registered persons b) Un-registered persons
c) Both (a) and (b) d) De-registered person
4. If the Appellate Tribunal decision involves point of law. the matter may be referred to
a) FBR b) Federal Govt
c) High Court d) Supreme Court
5. Monthly sales tax liability shall be paid on
a) 1st date of current month b) 15th of following month
c) End of current month d) End of following month
6. On 14th August 1947, Sales Tax was a provincial subject, levied in the
a) Province of Punjab and Sindh b) Provincially Administrated Tribal Areas
c} Federally Administrated Tribal Areas . d) Both (a) and (b)
7. As provided in section 8B(1) of the Sales Tax Act 1990, a registered person is not allowed to adjust input tax in excess of
a) 60% of output tax b) 70% of output tax
c) 80% of output tax d) 90% of output tax
8. Retailer means a person supplying goods to general public on
a) Wholesale prices b) Retail prices
c) Discount prices d) All of the above
9. Input tax is in relation to a registered person means
a) Tax paid on supply of goods b) Tax paid on imports of goods
c) Tax paid on exports of goods d) None of the above
10. Under the provisions of Sales Tax Act 1990. and Rules made there under, excess of input tax over output tax, for any period can be .
a) Casried forward indefinitely b) Cannot be carried forward
c) Carried forward to 6 months d) Carried forward to 3 months


Subject: Sales Tax Custom and Federal Excise Duty

Time Allowed: 2 Hours 45 Minutes

Maximum Marks: 50



Part-II Give short details of each of them, each answer carries equal marks. (20)

Q#1: Define the term “Tax Invoice” under the Sales Tax Act 1990

Q#2: Explain the grounds under which “File a revised return” is required

Q#3: Briefly elaborate the feature of appeals io Commissioner (Appeals)

Q#4: Explain the penalties to the following offences “Failure to furnish a return” and “Failure to issue tax invoice”

Q#5: Briefly give the overview of structure of any one “Federal Excise Duty” or “Customs Duty” in Pakistan




Part-III Give brief answers, each answer carries equal marks. (30)

Q#1: Q. No. 03

Nine Star Company is a distributor of certain chemicals. During the month of April 2019. its purchases and sales as per return are as under:

  1. Taxable turnover to registered persons Rs.40.00.000
  2. Taxable turnover to non-registered persons 280.000
  3. Taxable turnover to registered retailers(Retail price) 300.000
  4. Supplies of goods specified in 3 Schedule

(Retail price Rs. 150.000)                                                                                               100.000

  1. Supplies to associated company located in 170,000

Export processing zone

  1. Supplies to government hospital 375.000

(Consists of less than 50 beds)

  1. Supplies to government hospital 180.000

(Consists of more than 50 beds)

  1. Supplies to private hospital 260.000
  2. Taxable supplies at discounted price @ 10% (normal business

practice) Due to relation- ship special discount allowed @ 15%                   175.000

  1. Taxable purchases from registered persons 500.000
  2. Taxable purchases against commercial invoices 120.000
  3. Taxable purchases against tax invoices 210.000
  4. Purchase of pre-fabricated building 650.000
  5. Imported taxed goods 380.000
  6. General sales tax paid on electricity bill 60.000
  7. Purchases from un-registered persons

(used for making taxable supplies)                                                                          260.000

  1. Purchases of office equipment 190.000
  2. Replacement of defective parts free of cost under warranty 50.000
  3. Purchase of immovable property 850.000
  4. Purchase from register person (blacklisted during the period) 250,000
  5. Purchase of raw material from cottage industry 100,000
  6. Input Tax on lunch provided to the staff 75,000

Required: Calculate sales tax chargeable.

Q#2: Explain the provision of Sales Tax Act 1990 regarding “Compulsory registration” and “De-registration”.