👉 Practice this question interactively (Hindi / English / AI)

Which one of the following situations best reflects "Indirect Transfers" often talked about in media recently with reference to India?

UPSC · 2022 · Economy
Question:
Which one of the following situations best reflects "Indirect Transfers" often talked about in media recently with reference to India?

Options

An Indian company investing in a foreign enterprise and paying taxes to the foreign country on the profits arising out of its investment.
A foreign company investing in India and paying taxes to the country of its base on the profits arising out of its investment.
An Indian company purchases tangible assets in a foreign country and sells such assets after their value increases and transfers the proceeds to India.
A foreign company transfers shares and such shares derive their substantial value from assets located in India.
Answer: A foreign company transfers shares and such shares derive their substantial value from assets located in India.

Explanation:
This refers to situations like the Vodafone case, where a foreign company transferred shares of another foreign company whose value came from Indian assets—hence “indirect transfer.”

👉 Want AI explanation? Open in MCQ App

← Previous Next →

Recommended articles

Practice More PYQs

📱 Follow Us

Telegram Instagram YouTube