Economics · Taxation
Which one of the following situations best reflects the term 'Indirect Transfers' often discussed in the media with reference to India?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A foreign company transfers shares, and such shares derive their substantial value from assets located in India✓
- 2An Indian company purchases tangible assets in a foreign country, sells them after their value increases, and transfers the proceeds to India
- 3A foreign company investing in India and paying taxes to its home base country on profits arising out of its investment
- 4An Indian company investing in a foreign enterprise and paying taxes to the foreign country on profits arising out of its investment
Correct answer
A foreign company transfers shares, and such shares derive their substantial value from assets located in India
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