A registered supplier charges sales tax on a taxable sale. What is this charged amount generally called for the supplier?
Correct answer: B. Output tax
- A. Input tax
- B. Output tax
- C. Income tax credit
- D. Withholding allowance
Explanation
Sales tax charged by a registered supplier on taxable supplies is output tax. Input tax is the sales tax paid on eligible business purchases, which may be adjustable subject to the applicable rules.
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About Taxation
Taxation covers the principles used to assess and collect taxes from individuals, businesses and transactions, with emphasis on income tax and sales tax concepts in Pakistan. Questions involve taxable income, exemptions, deductions, tax liability, withholding, returns, assessment, tax avoidance versus evasion, and the distinction between direct and indirect taxes.
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50 free Taxation MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
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