CA Final MCQs – International Tax

CA Final MCQs Answers ( Facebook )

QuestionAnswer
Question 1
Which of the following are the advantages of Advance Ruling :-
Option (a)
It brings tax certainty for transactions ;
Question 2
In determining the profits of a PE, there shall be allowed as deduction :-
Option (b)
Expenses which are incurred for the purposes of the PE
Question 3
FCO holds 100% equity shares (all equity shares carry equal voting rights) in ICO 1.ICO 1 holds 49% equity shares (all equity shares carry equal voting rights) in ICO 2.Who all will be the Associated enterprises?
Option (d)
All of the above
Question 4
Company A is __________ engaged in active business outside India, as it satisfies the : -
Option (d)
All of the above
Question 5
Select the correct Statement
Option (b)
Undisclosed foreign income earned on or after July 1, 2015 are covered under the Black Money Act
Question 6
Which of the following treaty would be considered as Limited DTAA?
Option (d)
Both A and B
Question 7
Which of the following are the prevalent business forms in digital economy :-
Option (d)
Both A and B
Question 8
What would be the fair market value of bullion / Jewellery / precious stone under the Black Money Act?
Option (c)
A or B, whichever is high
Question 9
A Inc. owns 20% equity shares of B India. A has also advanced loan of Rs 200 crores to B, whose total assets are Rs 300 crores. In such a case A and B would be _____________.
Option (a)
Associated Enterprises
Question 10
A Ltd. (India) and AB international (Mauritius) would be deemed as associated enterprises when –
Option (b)
A Ltd.(India) holds 26% equity shares in AB International (Mauritius).
Question 11
Y Ltd. (India) holds 30% Equity shares in Yo Inc. (USA) and 40% Equity shares in Z International (UK). Who all would be the Associated enterprises?
Option (d)
All of the above
Question 12
For transfer pricing purposes, “transaction” includes an arrangement, understanding or action in concert, -
Option (c)
Which may be in writing or oral
Question 13
Which of the following should be considered as International transaction:
Option (b)
Payment made by UG (India) to its holding company UG (UK) for installation services.
Question 14
Country-by-country report is required to be filed when Consolidated group revenue of the international group is -
Option (a)
More than Rs 5500 crores
Question 15
Which of the following transfer pricing methods may be adopted to determine arm’s length price in relation to specified domestic transactions :-
Option (d)
All of the above
Question 16
What would be the commission or fee under Safe Harbour Rules for Corporate Guarantee provided to wholly owned subsidiary?
Option (c)
1% or more p.a. on amount guaranteed
Question 17
Passive income of a company shall include : -
Option (a)
Rental income
Question 18
In order to determine the POEM of a company, mere formal holding of Board Meetings at a place would by itself ________ conclusive :-
Option (b)
Not be
Question 19
What are the presumptive profits and gains u/s 44B for non-resident engaged in the business of operation of ships.
Option (c)
7.5% of the aggregate of the specified receipts.
Question 20
Deduction under ______, would be available while computing presumptive income u/s 44B in respect of profits of non-resident engaged in shipping business ?
Option (a)
Chapter VI-A
Question 21
Remuneration of foreign citizen as a member of ship’s crew (in connection with employment on a foreign ship) shall be exempt from tax if his total stay in India is _______during the previous year :-
Option (b)
90 days or less
Question 22
Income of _____________in connection with any co-operative technical assistance programme, shall be exempt from tax u/s 10(8).
Option (b)
Any Individual serving in India
Question 23
In which of the following cases, interest on notified bonds shall be exempt from tax u/s 10(15)(iid) ?
Option (a)
NRI becomes resident subsequently after purchase of such bonds
Question 24
Income received by a foreign company from sale of Crude oil shall be exempt from tax u/s 10(48) if _____________.
Option (c)
Income is received in India in Indian currency
Question 25
The AAR constituted by Central Government shall consist of : -
Option (d)
All of the above
Question 26
The AAR shall consist of member from IRS who is : -
Option (d)
Either of the above
Question 27
The Authority of Advance Ruling shall be located in : -
Option (b)
The National Capital Territory of Delhi
Question 28
The AAR shall consist of Vice-Chairman who has been a : -
Option (b)
Judge of High Court
Question 29
Ram, an Indian resident earns foreign income of Rs 5,00,00 during the PY 2016-17 . Tax of Rs 10,000 has been withheld on such income outside India in PY 2017-18. However, such foreign income is taxable in India in PY 2018-19. Foreign tax credit would be available in :-
Option (c)
2018-19
Question 30
The foreign tax credit shall not be available against :-
Option (d)
Both A and C
Question 31
Meaning of terms used in DTAA would be taken from :-
Option (d)
Both B and C
Question 32
Where the foreign tax paid exceeds the amount of tax payable in accordance with DTAA, then :-
Option (a)
Such excess shall be ignored
Question 33
Every appeal filed by the assessee to the Appellate Tribunal under the Black Money Act shall be accompanied by fee of ……………….
Option (d)
Rs. 25,000
Question 34
Undisclosed asset located outside India shall be charged to tax on its value [i .e ., fair market value as per Rule 3(1)] in the previous year in which ………………
Option (c)
The asset comes to the notice of the Assessing Officer
Question 35
What would be the fair market value of archaeological collections, drawings, paintings, sculptures or work of art under the Black Money Act?
Option (c)
A or B, whichever is high
Question 36
The tax authority may make an amendment in its order under the Black Money Act _____________
Option (d)
All of the above
Question 37
What would be the fair market value of Unquoted shares (other than equity shares) under the Black Money Act?
Option (c)
A or B, whichever is higher
Question 38
Which of the following income would be taxable under the Black Money Act?
Option (c)
Both A and B
Question 39
While computing the undisclosed foreign income under the Black Money Act, which of the following relief would be available?
Option (d)
None of the above
Question 40
Appeal filed before the Commissioner (Appeals) under the Black Money Act shall be accompanied by filing fee of ……….
Option (b)
Rs. 10,000
Question 41
Which of the following articles of Vienna Convention provide for detailed rules of interpretation of tax treaties?
Option (d)
All of the above
Question 42
Though Indian tax treaties provide both Hindi and English as authentic texts, in case of divergence _________ as per Treaties
Option (c)
The text in English shall prevail
Question 43
India follow ______________ view of interpretation.
Option (a)
Monist
Question 44
OECD Commentary is directly applicable to _________.
Option (b)
OECD Countries
Question 45
Investments made before _________shall not attract GAAR
Option (c)
April 1, 2017
Question 46
In which of the following cases, GAAR is applicable?
Option (a)
Where tax avoidance arrangement has been made between four parties and each party obtains a tax benefit of Rs 1 crore each
Question 47
Which of the following could be considered as disadvantages of BEPS?
Option (b)
It imposed higher tax on other individuals in jurisdictions, when MNE’s do not pay their share of taxes
Question 48
In order to address the challenges of Digital Economy __________has been introduced in the context of specified online advertisement services.
Option (a)
New Chapter on Equalization Levy
Question 49
As per Section 94B of the Income-Tax Act restriction on deduction of interest to Associated Enterprise shall be _____________.
Option (c)
30% of EBITDA
Question 50
Example of C2C E-commerce transaction includes :-
Option (c)
Sale of furniture on Olx.com / Quicker.com
Question 51
Existence of website in host country :-
Option (c)
May be considered as PE, on the basis of location of server
Question 52
Taxation issues of E-commerce transactions are dealt in :-
Option (d)
OECD Action Plan 1 of BEPS
Question 53
Equalisation levy means the tax leviable on consideration received or receivable for :-
Option (b)
Online advertisement services,
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