E-commerce and Taxation Quiz

What is the primary revenue recognition method used by Amazon for physical goods?

• When the service is provided

• Over the subscription period

• At the point of sale

• At the end of the financial year

Which of the following is a major cost for Shopify?

• Technology and development expenses

• Inventory costs

• Stock-based compensation

• Shipping costs

How does Alibaba primarily recognize revenue from its e-commerce business?

• When the product is shipped

• Through subscription fees

• Through commissions and service fees

• At the point of sale

What is the GST rate for luxury goods in India?

• 5%

• 28%

• 12%

• 18%

Which tax must e-commerce businesses collect at source?

• Tax Deducted at Source (TDS)

• Income Tax

• Tax Collection at Source (TCS)

• Goods and Services Tax (GST)

What is the threshold limit for GST registration for e-commerce businesses?

• ₹10 lakhs

• ₹40 lakhs

• ₹20 lakhs

• ₹30 lakhs

Which act requires e-commerce businesses to ensure consumer rights?

• Information Technology Act, 2000

• Goods and Services Tax Act

• Income Tax Act

• Consumer Protection Act, 2019

What is the primary purpose of maintaining accurate financial records in e-commerce?

• To comply with advertising standards

• To attract more customers

• For tax filing and auditing purposes

• To increase sales

Which of the following is a requirement under the GDPR for international e-commerce businesses?

• Maintaining a privacy policy

• Filing GST returns

• Registering for income tax

• Collecting TCS

What is the impact of GST compliance on cash flow for e-commerce businesses?

• It only affects large businesses

• It can negatively affect cash flow

• It can improve cash flow

• It has no impact