__________1. The taxpayer of a documentary stamp tax is the person…__________1. The taxpayer of a documentary stamp tax is the person making, signing, issuing,accepting or transferring the document.__________2. When a party to a document is exempt from the documentary stamp tax, the otherparty who is not exempt shall pay the tax.__________3. Failure to pay the documentary stamp tax does not make the document requiringit null and void.__________4. A documentary stamp tax is paid by the purchase of the stamp tax, affixing it tothe document, and cancelling it with a statement of the date on when it was attached andcancelled.__________5. A documentary stamp tax is paid by including it in a documentary stamp tax returnwithin five (5) days after the close of the month when the taxable document was issued, acceptedor transferred.__________6. Documentary Stamp Tax (DST) is in nature of an excise tax levied on the exerciseby person of certain privileges conferred by law for the creation, revision, or termination of specificlegal relationship through the execution of specific instruments.__________7. The DST rates shall be applicable on all documents not otherwise expresslyexempted from law, notwithstanding the fact they are in electronic form.__________8. DSTs are levied independently of the legal status of the transactions giving risethereto.__________9. DSTs must not be paid upon the issuance of the instruments if the contracts arerescissible, void, voidable or unenforceable.__________10. Once DST is unpaid, the document can never be presented as evidence in court. Choose the letter of the correct answer.1. The documentary stamp tax on deeds of sale and conveyance of real property is basedon:a. Acquisition costb. Consideration contracted to be paid for such realty.c. Consideration contracted to be paid for such realty or on its fair market value,whoever is higherd. Actual cash payment. 2. When one of the contracting parties is the Government, the documentary stamp taximposed shall be based on the:a. Actual considerationb. Consideration contracted to be paid for such realty.c. Consideration contracted to be paid for such realty or on its fair market value,whichever is higher.d. None of the choices. 3. How much is the documentary stamp tax on deeds of sale and conveyance of realproperty?I.Fifteen pesos (P15.00) when the consideration or value received or contractedto be paid for such realty after making proper allowance of any encumbrance,does not exceed one thousand pesos (P1,000). II.Fifteen pesos (P15.00) for each additional one thousand pesos (P1,000), orfractional part thereof in excess of one thousand pesos (P1,000) of suchconsideration or value. a. Both I and II are correctc. Only I is correctb. Both I and II are incorrectd. Only II is correct 4. What is the alternative method of paying the documentary stamp tax?a. Paying additional capital gains taxb. Using the tax withheld as paymentc. Imprinting the stamps through a documentary stamp metering machine on thetaxable documentd. None of the choices 5. What shall be the effect of the failure to pay or affix the documentary stamp tax on theinstrument, document, or paper that is required by law to be stamped? a. The instrument, document or paper shall not be recorded.b. The instrument, document or paper or any copy thereof or any record of thesame shall not be admitted or used in evidence in any court.c. No notary public or other officer authorized to administer oaths shall add hisjurat or acknowledgment to any documentd. All of the choices 6. When is the documentary stamp tax paid?a. Within thirty (30) days after the sale of the real property or shares of stockb. On or before the 15th day after the close of the monthc. Within fifteen (15) days after the document is signedd. As the documentary stamp tax return is filed 7. Which is not subject to documentary stamp tax?a. Issuance of domestic stocksb. Assignment of domestic stocksc. Issuance of foreign stocksd. Assignment of foreign stocks 8. Which is subject to documentary stamp tax?a. Accounts payable for services renderedb. Credit card receivablesc. Accounts receivables on sales of goodsd. Promissory note for intercompany advances 9. Documentary stamp taxes area. Ad valorem taxesb. Specific taxesc. Both ad valorem and specific taxesd. Either ad valorem or specific taxes 10. Which is subject to documentary stamp tax?a. Contribution of real estate property as capital in a partnershipb. Transfer of real property from the decedent to an heirc. Donation of a car to childrend. Pledge of property to answer for any default of the obligation LawSocial ScienceTax law ACCOUNTANC 101
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