Question 1

The Kelkar proposals which were in the news recently were the:

Accepted Answer

The Kelkar proposals that have been in the spotlight lately pertain to recommendations for tax reforms. The Vijay Kelkar Committee on Direct Taxes initially presented its report in 2003.

Question 2

In India, the tax proceeds of which one of the following as a percentage of gross tax revenue has significantly declined in the last five years?

Accepted Answer

In the past five years, the percentage of gross tax revenue from excise duty has decreased significantly in India. In 1992-93, excise duty contributed 41.3 percent to the total tax revenue, but by 2006-07, this had dropped to 25.1 percent.

Question 3

Consider the following statements: In India, taxes on transactions in Stock Exchanges and Futures Markets are 1. levied by the Union 2. collected by the States. Which of the statements given above is/are correct?

Accepted Answer

In India, taxes on transactions in Stock Exchanges and Futures Markets are imposed by the Union government. However, these taxes are collected by the States. The correct statement is that taxes are levied by the Union government only.

Question 4

With reference to India's decision to levy an equalization tax of 6% on online advertisement services offered by non-resident entities, which of the following statements is/are correct? 1. It is introduced as a part of the Income Tax Act. 2. Non-resident entities that offer advertisement services in India can claim a tax credit in their home country under the 'Double Taxation Avoidance Agreements'. Select the correct answer using the code given below:

Accepted Answer

In 2016, India implemented a 6% equalization tax on online advertisement services offered by non-resident entities through a separate legislation under the Finance Bill. This tax does not allow non-resident entities to claim a tax credit in their home country under the 'Double Taxation Avoidance Agreements'. Therefore, both statements 1 and 2 are incorrect.

Question 5

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

Accepted Answer

Indirect transfers refer to situations where shares are transferred, and their substantial value is derived from assets located in India. This scenario has been a topic of discussion in the media due to its implications for taxation and capital gains.

Taxation — UPSC Previous Year Questions

The Kelkar proposals which were in the news recently were the:

Year-wise Distribution

Sample Questions

Taxation — UPSC Previous Year Questions

The Kelkar proposals which were in the news recently were the:

Year-wise Distribution

Sample Questions