pyq/2022/prelims/8

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

(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