International Taxation : Double taxation and its avoidance mechanism ; Transfer Pricing
- Where a person, resident in India, derives income from the nation with which India does not have a DTAA, such person is given credit in India in the following manner:
(a) Entire tax paid in the foreign country is allowed as deduction
(b) Tax paid in the foreign country on income which is doubly taxed, is allowed as deduction
(c) Tax paid on income which is doubly taxed, is allowed as deduction, at the Indian rate of tax only
(d) Tax paid on income which is doubly taxed, is allowed as deduction, at the Indian rate of tax or rate of tax of the foreign country, whichever is lower - Two enterprises shall be deemed to be associated enterprises if, at any time during the previous year, one enterprise holds shares carrying not less than of the voting power in the other enterprise.
(a) 15%
(c) 26%
(b) 20%
(d) 10% - Acrylic Ltd. sourced its new materials from Breeze Ltd. The relationship of associated enterprises would be established when Acrylic Ltd. buys raw material from Breeze Ltd. exceeding
(a) 50% of total raw material purchased
(c) 25% of total raw material purchased
(b) 90% of total raw material purchased
(d) 35% of total raw material purchased – (CSJune 2016)