MCQ – CA Final Elective 6C International Tax

Topic Covered in this page

1) Source rule of taxation provides that income is to be taxed :-

a. ​In the country of residence of taxpayer
b. ​In the country in which such income originates
c. ​Both A and B
d. ​None of the above

2) Residence rule provides that income is to be taxed in the country:-

a. Where the recipient of income is a resident
b. ​Where it originates
c. ​Both A and B
d. ​None of the above

3) ​Double taxation relief could be :-

a. ​Bilateral Relief
b. ​Unilateral Relief
c. ​Multilateral Relief
d. ​Both A and B

4) ​Bilateral relief means a relief in which :-

a. ​Home country of the taxpayer provides tax relief, where no mutual agreement has been entered into by the two countries for providing relief from double taxation
b. ​Governments of two countries, enter into an agreement to provide relief against double taxation on mutually agreed basis
c. ​Both A and B
d. ​None of the above

5) ​Unilateral relief means a method of providing relief from double taxation in which :-

a. ​Home country of the taxpayer provides tax relief, where no mutual agreement has been entered into by the two countries for providing relief from double taxation
b. ​Governments of two countries, enter into an agreement to provide relief against double taxation on mutually agreed basis
c. ​Both A and B
d. ​None of the above

6) ​Bilateral relief could be provided by way of :-

a. ​Credit Method
b. ​Exemption Method
c. ​Both A and B
d. ​None of the above

7) ​In Exemption Method  :-

a. ​Income is taxed in the Country of source and Country of Residence and deduction is provided in other Country
b. ​Income is taxed in one Country and exempt from tax in the other Country
c. ​Both A and B
d. ​None of the above

8) ​In Tax Credit method  :-

a. ​Income is taxed in Country of source and Country of Residence deduction is provided in other Country
b. ​Income is taxed in one Country and exempt from tax in the other Country
c. ​Both A and B
d. ​None of the above

9) ​Central Government may enter into an agreement, with the Government of any country outside India u/s 90 for grating relief in respect of :-

a. ​Income, where income-tax has been paid both in India and in country of residence of taxpayer
b. ​Income on which Income-tax is chargeable under the IT Act and under the corresponding law in force in that country
c. ​Both A and B
d. ​None of the above

10) ​Where an assessee is eligible to claim the DTAA benefit :-

a. ​Provisions of DTAA shall apply to the assessee
b. ​Provisions of Income-Tax Act shall apply to the assessee
c. ​Provisions of DTAA or Income-Tax Act, whichever is more beneficial, shall apply to the assessee
d. ​None of the above

Answers

1) b. ​In the country in which such income originates

2) a. Where the recipient of income is a resident

3)  d. ​Both A and B

4) b. ​Governments of two countries, enter into an agreement to provide relief against double taxation on mutually agreed basis

5) a. ​Home country of the taxpayer provides tax relief, where no mutual agreement has been entered into by the two countries for providing relief from double taxation

6) c. ​Both A and B

7) b. ​Income is taxed in one Country and exempt from tax in the other Country

8) a. ​Income is taxed in Country of source and Country of Residence deduction is provided in other Country

9) c. ​Both A and B

10) c. ​Provisions of DTAA or Income-Tax Act, whichever is more beneficial, shall apply to the assessee

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