SBI PO Pre English Language Quiz-20

SBI PO pre–English Language Quiz

Aspirants have a strong possibility of scoring well in the English Language section if they practice quality questions on a regular basis. This section takes the least amount of time if the practice is done every day in a dedicated manner. In this article, we have come up with the SBI PO pre–English Language Quiz to help you prepare better. Candidates will be provided with a detailed explanation for each question in this SBI PO pre–English Language Quiz. This SBI PO pre–English Language Quiz includes a variety of questions ranging in difficulty from easy to tough. This SBI PO pre–English Language Quiz is totally FREE. This SBI PO pre–English Language Quiz has important English Language Questions and Answers that will help you improve your exam score. Aspirants must practice this SBI PO pre–English Language Quiz in order to be able to answer questions quickly and efficiently in upcoming exams.

Directions (1-5): Read the following passage carefully and answer the questions given below it. Certain words/phrases are printed in bold to help you locate them while answering some of the questions.

The genesis of service tax emanates from the ongoing structural transformation of the Indian economy, whereby presently more than one-half of GDP originates from the services sector. Despite the growing presence of the services sector in the Indian economy, it remained out of the tax net prior to 1994-95, leading to a steady deterioration in tax-GDP ratio. The service tax was introduced in 1994-95 on a select category of services at a low rate of five per cent. While the service tax rate and the coverage of services being taxed have increased ever since, the combined tax-GDP ratio of the Centre and States, nevertheless, deteriorated from 16.4 per cent in 1985-86 to 14.1 percent in 1999-2000. It may be noted that between 1990-91 and 1998-99, the share of industrial sector in GDP dropped by 6.4 percentage points whereas almost 64 per cent of the tax revenue was generated by indirect taxes for which industrial sector continues to be the principal tax base. On the other hand, during the same period, the share of services sector in GDP has increased by 10 percentage points and this sector has still remained poorly taxed.

The rationale for service tax, therefore, lies not only in arresting the falling tax-GDP ratio but also in ipso facto improving allocative efficiency in the economy as well as promoting equity. Against this backdrop, the service tax needs to be designed taking into account the fact that (i) the share of services in GDP is expanding; (ii) failure to tax services distorts consumer choices and encourages spending on services at the expense of goods; (iii) untaxed service traders are unable to claim value added tax (VAT) on service inputs, which encourages businesses to develop in-house services, creating further distortions; and (iv) most services that are likely to become taxable are positively correlated with expenditure of high-income households and, therefore, service tax improves equity.

In the Indian context, taxation of services assumes importance in the wake of the need for improving the revenue system, ensuring a measure of neutrality in taxation between goods and services and eventually helping to evolve an efficient system of domestic trade taxes, both at the Central and the State levels.

The coverage of services under tax net has been progressively widened over the years. With effect of the Finance Act, 2004, 71 services are presently contributing to the service tax collections. The service tax is applicable to all parts of India except the State of Jammu and Kashmir and is leviable on the gross amount charged by the service provider from the client. The rate of service tax was increased from 5 per cent since September 10, 2004. With the increase in tax rate and base of service tax, the collections from the service tax have shown a steady rise from Rs. 410 crores in 1994-95 to Rs. 8,300 crores in 2003-04; however, they accounted for only 4.4 per cent of the total tax receipts of the Centre (0.3 per cent of GDP) in 2003-04.

Service tax is envisaged as the tax of the future. The inclusion of all value-added services in the tax net would yield a larger amount of revenue and make the existing tax structure more elastic. Once the service sector is adequately covered under tax net, the buoyant services sector will enable the reversal of declining trend in tax buoyancy. Besides raising the revenue buoyancy, appropriate taxation of services sector would also provide equity, efficiency and consistency in the tax administration as well as neutrality for various economic activities. Integration of services sector to the tax net would be the prelude to the introduction of a full-fledged VAT system.

 

  1. What, according to the passage, was the impact of exclusion of service tax till the first half of the last decade of the past century?

 

(a) There was no impact as there was no service tax

(b) There was a steady deterioration in the GDP

(c) Tax-GDP ratio had steadily and gradually aggravated

(d) Service sector used to flourish exorbitantly

(e) None of these

Answer & Explanation
Ans. c

Exp. Refer the second sentence of the passage “Despite the growing presence of the services sector in the Indian economy, it remained out of the tax net prior to 1994-95, leading to a steady deterioration in tax-GDP ratio.”

 

  1. Which of the following is most likely to provide neutrality at various economic activities?

 

(a) Increase in revenue buoyancy

(b) Fairness in tax administration

(c) Equity and efficiency in various activities

(d) Consistency in tax structure and revenue buoyancy

(e) None of these

Answer & Explanation
Ans. e

Exp. Refer the third paragraph of the passage “In the Indian context, taxation of services assumes importance in the wake of the need for improving the revenue system, ensuring a measure of neutrality in taxation between goods and services and eventually helping to evolve an efficient system of domestic trade taxes, both at the Central and the State levels.”

 

  1. When the author mentions that the service taxes constitute 0.3 percent of GDP, he implies that

 

(a) it is substantially high amount.

(b) the service taxes show a very progressive trend.

(c) it is a very small amount.

(d) there is no scope for further increase.

(e) None of these

Answer & Explanation
Ans. c

Exp.  In reference to the second last paragraph of the passage, we can infer that the author refers 0.3 percent of GDP to very small amounts.

 

  1. Which of the following factors helps service tax improve fairness across different economic strata of society?

 

(a) Taxable services are mostly those that are utilized by the rich.

(b) Untaxed service traders are prevented from claiming value-added tax.

(c) Encouragement to in-house services is affected.

(d) It improves revenue system.

(e) None of these

Answer & Explanation
Ans. a

Exp. Refer the second paragraph of the passage “most services that are likely to become taxable are positively correlated with expenditure of high-income households and, therefore, service tax improves equity.”

 

  1. Which of the following is likely to happen if services are not brought under the tax net?

 

(i) Misrepresentation of customers’ choice

(ii) Stimulating enhancement in spending on services at the cost of goods

(iii) Inability of tax payers to reclaim their taxes already paid by them

 

(a) (i) and (ii) only

(b) (ii) and (iii) only

(c) (i) and (iii) only

(d) all the three

(e) None of these

Answer & Explanation
Ans. a

Exp. Refer the second paragraph of the passage “failure to tax services distorts consumer choices and encourages spending on services at the expense of goods”.

 

  1. The author of the passage seems to be having

(a) an antagonistic attitude towards levying service tax

(b) a favourable attitude towards levying service tax

(c) a sympathetic and lenient view regarding untaxed service traders

(d) a distorted view about equity

(e) a soft corner for the tax payers brought under service tax net

Answer & Explanation
Ans. a

Exp. The tone of the author is ‘antagonistic’ towards levying service tax as he calls it ‘the tax of the future’.

 

  1. Choose the word / group of words which is most nearly the SAME in meaning to the word ‘envisaged’ as given in the passage.

 

(a) demnify

(b) reparation

(c) anticipate

(d) coverage

(e) meed

Answer & Explanation
Ans. c

Exp. Envisaged means contemplate or conceive of as a possibility or a desirable future event. Hence it has same meaning as anticipate.

 

Directions (8-10): Which of the phrases (a), (b), (c) and (d) given below each statement should be placed in the blank space provided so as to make a meaningful and grammatically correct sentence? If none of the sentences is appropriate, mark (e) as the answer.

 

  1. ________, experts proposed the idea of a common school system.

(a) Overlooking the fundamental right of quality education of every child in India

(b) Since the curricular requirements of a rural, child is different from an urban child

(c) Based on the fact that difference in the quality of schools acts as a ground for discrimination

(d) Since a large percentage of Indian children are getting free education

(e) None of these

Answer & Explanation
Ans. c

Exp. Based on the fact that difference in the quality of schools acts as a ground for discrimination

  1. ________, the soil today is nowhere as rich in native minerals as it used to be some centuries ago.

(a) As there is a growing consent among farmers regarding limiting the use of chemical fertilizers

(b) As the chemical inputs in agriculture improved the yield many folds

(c) Owing to the uninhibited use of chemical inputs in agriculture

(d) Awareness among farmers regarding the side-effects of chemical farming grew when

(e) None of these

Answer & Explanation
Ans. c

Exp. Owing to the uninhibited use of chemical inputs in agriculture

 

  1. As allegations of crores of rupees changing hands to permit illegal mining began to fly thick and fast, ________

(a) government ordered an enquiry which exposed a nexus between mine operators and bureaucrats

(b) it caused great damage to the surrounding ecosystem and the environment in general

(c) the officials have been irresponsible in failing to bring it to the notice of the court in time

(d) the powerful mining lobby had bribed the officials to obtain permit for mining on ecologically sensitive land

(e) None of these

Answer & Explanation
Ans. a

Exp. government ordered an enquiry which exposed a nexus between mine operators and bureaucrats

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