Transfer Pricing Provisions

 What is the requisite condition in respect of residency, to categorize a transaction as International Transaction?

• A) Both parties should be residents

• B) either of both of them should be residents

• C) Either of both of them should be non residents

 Which of the following is a method to determine value of Intangible Property?

• A)Market Approach

• B)Income Approach

• C) Cost Approach

• D) All of the above

 What is the threshokd limit for Specified Domestic Transaction?

• A) 5 Crores

• B) 20 Crores

• C) 2 Crores

• D) 50 Crores

Documents are required to be maintained only if value of international transactions is more than

• A) 5 Crores

• B) 0.5 Crores

• C) 2 Crores

• D) 1 Crore

Country by Country Report is to be submitted by

• A) All group entities

• B) Parent Entity

• C) Wholly owned Subsidiary

• D) Resident Companies of the group

      X ltd has 40% share holding in Y ltd giving voting power of aggregating 21%. X ltd also has Preference shares with differential voting power of aggregating 10%. Whether Y ltd is associated enterprise of X Ltd?

• A)      Yes, Total Voting is 21%

• B)      Yes,  total voting power is 31%

• C)      No

• D)      None of the Above

      Which country has the lowest Corporate tax rate in the world?

• A) India

• B) USA

• C) Ireland

• D) Australia

X ltd is a exporter of certain good to Ireland. X ltd wishes to pay lower income taxes. The prices on which it exports its goods to its subsidiary shall be (Assume Transfer Pricing provisions are not Applicable)

• A) Higher so that subsidiary profits will be lower

• B) Lower, so that profits earned by X ltd will be lower

• C) Lower, so that profits earned by Subsidiary increases

• D) BOTH B and C

      X ltd is a exporter of certain good to Ireland. X ltd wishes to pay lower income taxes. The prices on which it exports its goods to its Branch Shall be

• a)       Higher, So that Branch Earns More Profits

• B)       Lower, So that Branch Earns More profits

• C)       None of the Above

     Y ltd Procures 90% of the Raw material from X Ltd (Y ltd and X ltd are not associated Enterprises). The price of Such goods are determined by the Z Ltd which is associated Enterprise of X ltd.

• a)       Transfer Pricing Provisions will Apply

• B)       Transfer Pricing Provisions Shall not Apply

•       C)      None of the Above