The 'Significant Economic Presence' (SEP) concept was introduced in India to: MCQ with Answer and Explanation

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The 'Significant Economic Presence' (SEP) concept was introduced in India to:

A. Tax non-resident digital companies based on economic engagement

B. Reduce tax on foreigners

C. Simplify tax

D. Encourage FDI

Answer: Option A

Solution (By JKExamLibrary)

SEP deems a business connection if a non-resident has significant economic presence, even without physical presence.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1 Report Error

Assertion (A): Under Ind AS 41, biological assets are measured at fair value less costs to sell. Reason (R): This is because biological transformation makes historical cost accounting less relevant for these assets. Choose the correct option.

A. Both A and R are true and R is the correct explanation of A

B. A is true but R is false

C. Both A and R are true but R is NOT the correct explanation of A

D. A is false but R is true

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Correct Answer: Option A

Explanation:
Ind AS 41 requires biological assets to be measured at fair value less costs to sell. This is because biological growth, degeneration, and production (transformation) make historical cost less meaningful. R correctly explains A.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2 Report Error

The 'Surcharge' on income tax is levied for:

A. High-income individuals/entities

B. All taxpayers

C. Senior citizens only

D. Companies only

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Correct Answer: Option A

Explanation:
Surcharge is additional tax on income above specified thresholds for individuals, HUFs, companies.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3 Report Error

In the context of PFMS, the 'Core Banking Solution' (CBS) integration ensures that:

A. Tax collections are automatically deposited into the Consolidated Fund

B. Government departments can open bank accounts directly

C. The RBI can monitor all private bank transactions

D. Funds are credited to the beneficiary's account in real-time without manual intervention

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Correct Answer: Option D

Explanation:
CBS integration with PFMS ensures that once a payment instruction is processed, the funds are credited directly to the beneficiary's bank account in real-time, eliminating manual handling and delays.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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