Question 1

Which of the following is an example of a direct tax in Nepalu2019s tax system?

Accepted Answer

Income Tax \u2014 Income tax is levied directly on an individualu2019s or entityu2019s income, making it a direct tax, whereas VAT, customs duty and excise duty are indirect taxes.

Question 2

Value Added Tax (VAT) in Nepal is an example of which type of tax?

Accepted Answer

Indirect tax \u2014 VAT is collected on the sale of goods and services and its burden is ultimately passed to the consumer, making it an indirect tax.

Question 3

Which government body is primarily responsible for administering and collecting income tax and VAT in Nepal?

Accepted Answer

Inland Revenue Department \u2014 The Inland Revenue Department, under the Ministry of Finance, administers domestic taxes such as income tax and VAT in Nepal.

Question 4

Which government body administers duties on imported and exported goods at Nepalu2019s borders and customs points?

Accepted Answer

Department of Customs \u2014 The Department of Customs administers customs duties and regulates the movement of goods across Nepalu2019s international borders.

Question 5

Which constitutional body audits the accounts of government offices in Nepal?

Accepted Answer

Office of the Auditor General \u2014 The Office of the Auditor General is a constitutional body responsible for auditing the accounts and financial transactions of government entities, independent of the executive.

Question 6

Which office is primarily responsible for maintaining central government accounting records and overseeing treasury operations in Nepal?

Accepted Answer

Financial Comptroller General Office (FCGO) \u2014 The Financial Comptroller General Office maintains central government accounting records, consolidates financial statements, and oversees treasury operations.

Question 7

Which of the following is generally classified as u201cnon-tax revenueu201d for the government?

Accepted Answer

Fees, fines, royalties and dividends from government-owned enterprises \u2014 Non-tax revenue includes income such as administrative fees, fines, royalties and dividends, distinct from tax revenue like income tax or VAT.

Question 8

In Nepal, the governmentu2019s fiscal year traditionally begins around which point in the calendar?

Accepted Answer

Mid-July (Shrawan 1, Bikram Sambat calendar) \u2014 Nepalu2019s fiscal year traditionally begins in mid-July (Shrawan 1 in the Bikram Sambat calendar) and runs through the following mid-July.

Question 9

Which of the following best describes u201cprogressive taxation,u201d a principle commonly applied to personal income tax?

Accepted Answer

The tax rate increases as taxable income increases \u2014 Under a progressive tax system, higher income brackets are taxed at higher rates, a structure commonly applied to personal income tax.

Question 10

What is the primary purpose of a u201crevenue estimateu201d prepared before a fiscal yearu2019s budget?

Accepted Answer

To forecast expected government income for planning expenditure \u2014 A revenue estimate projects expected government income for the coming fiscal year, forming a key basis for planning government expenditure and budget allocation.

Rajaswa Sewa / Lekha Sewa (Revenue & Account Group) MCQ Questions with Answers – Practice Set 2

Rajaswa Sewa / Lekha Sewa (Revenue & Account Group) MCQ Questions with Answers – Practice Set 2

More Rajaswa Sewa / Lekha Sewa (Revenue & Account Group) Practice Sets

Rajaswa Sewa / Lekha Sewa (Revenue & Account Group) MCQ Questions with Answers – Practice Set 2