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UPSC Civil ServicesPrelims2022General Studies Paper I
Question
QQ8. Which one of the following situations best reflects “Indirect Transfers” often talked about in media recently with reference to India ?
Options
- A An Indian company investing in a foreign enterprise and paying taxes to the foreign country on the profits arising out of its investment
- B A foreign company investing in India and paying taxes to the country of its base on the profits arising out of its investment
- C An Indian company purchases tangible assets in a foreign country and sells such assets after their value increases and transfers the proceeds to India
- D A foreign company transfers shares and such shares derive their substantial value from assets located in India
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Correct Answer
D A foreign company transfers shares and such shares derive their substantial value from assets located in India
Model Answer
Answer: option D, as per UPSC's final answer key (Series A).