Income Tax And Corporate Tax - Study Mode

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[#71] Which of the following double taxation avoidance agreement (DTAA)emphasizes on residence principle?

(A) UN Model

(B) US Model

(C) OECD Model

(D) Andean Model

Correct Answer

(C) OECD Model

[#72] Which is the most useful method for setting a transfer price when very little value is added by the company that sells the product outside the group?

(A) Resale price method

(B) Transactional net margin method

(C) Cost plus method

(D) Profit split method

Correct Answer

(A) Resale price method

[#73] Paying guest's accommodation is chargeable under

(A) income from house property

(B) profit and gains of business and profession

(C) income from other sources

(D) None of the above

Correct Answer

(B) profit and gains of business and profession

[#74] According to Section 80G, donations made to, which of the following are eligible for 100% deduction without any qualifying limit? 1. National Defence Fund set-up by the Central Government 2. Prime Minister's National Relief Fund 3. Prime Minister's Armenia Earthquake Relief Fund 4. Africa (Public Contributions-India) Fund 5. National Foundation for Communal Harmony 6. Prime Minister's Drought Relief Fund 7. National Children's Fund 8. Indira Gandhi Memorial Trust Select the correct answer using the options given below

(A) 1, 4, 6 and 8

(B) 4, 5, 7 and 8

(C) 1, 2, 3, 4 and 5

(D) 6, 7 and 8

Correct Answer

(C) 1, 2, 3, 4 and 5

[#75] The replacement may be of

(A) defective parts

(B) entire machinery

(C) substantial part of the entire machinery

(D) All of the above

Correct Answer

(D) All of the above