UPSC 2022 › Indian Economy › Taxation

1 question · 2022 · answers as per the UPSC key

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UPSC 2022 · Q8 · Indian Economy › Taxation · Save

Which one of the following situations best reflects “Indirect Transfers” often talked about in media recently with reference to India ?

(a) An Indian company investing in a foreign enterprise and paying taxes to the foreign country on the profits arising out of its investment
(b) A foreign company investing in India and paying taxes to the country of its base on the profits arising out of its investment
(c) An Indian company purchases tangible assets in a foreign country and sells such assets after their value increases and transfers the proceeds to India
(d) A foreign company transfers shares and such shares derive their substantial value from assets located in India
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Answer: (d) A foreign company transfers shares and such shares derive their substantial value from assets located in India