Articleship assessment test ICAI – Level 2 | International Tax MCQ – Advance Ruling

Articleship assessment test ICAI – MCQ

Question 1:- 

The AAR has to pronounce its ruling within a statutory time limit of _________ of the receipt of the application :-

(a) 6 months

(b) 3 months

(c) 1 month

(d) None of the above

Question 2:- 

Which of the following are the advantages of Advance Ruling :-

(a) It brings tax certainty for transactions ;

(b) It determines Arm’s Length Price of International Transactions ;

(c) It can be used to create double taxation ;

(d) None of the above

Question 3:- 

Advance Ruling can resolve complex issues arising under _____________, where a difference of opinion may exist :-

(a) Income Tax Act, 1961

(b) DTAA

(c) Both Income Tax Act, 1961 and DTAA

(d) None of the above

Question 4:- 

The rulings of the AAR are binding on the :-

(a) The applicant who had sought it, in respect of the transaction in relation to which the ruling had been sought

(b) Any person undertaking similar transaction, as one where ruling of AAR was pronounced

(c) All income-tax authorities and appellate authorities

(d) All of the above

Question 5:- 

The rulings of the AAR are binding on the :-

(a) The Commissioner and all income tax authorities subordinate to him

(b) Any person undertaking similar transaction, as the transaction, where ruling of AAR was pronounced

(c) All income-tax authorities and appellate authorities

(d) All of the above

Answers

1. (a) 6 months

2. (a) It brings tax certainty for transactions ;

3. (c) Both Income Tax Act, 1961 and DTAA

4. (a) The applicant who had sought it, in respect of the transaction in relation to which the ruling had been sought

5. (a) The Commissioner and all income tax authorities subordinate to him