CA Final MCQs Answers ( Facebook )
| Question | Answer |
|---|---|
| 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, |