Corporate Tax Planning

SAQ [UNIT-2]

1. Total income/ taxable income of an assesses depends on

(a) Residential status of the assessee
(b) Place of effective management
(c) Bothe (a) & (b)
(d) None of the above.

2. Incomes which accrue or arise outside India but received in India are taxable in the
hands of
(a) Resident only
(b) Non – resident
(c) None of the above
(d) Both (a) @ (b)

3. Income deemed to accrue or arise in India is taxable in the hands of

(a) Resident only
(b) Non – resident
(c) None of the above
(d) Both (a) @ (b)

4. Income which accrue or arise outside India and received outside India is taxable in the
hands of
(a) Resident only
(b) Non – resident
(c) None of the above
(d) Both (a) @ (b)

5. IT Ltd. an India Co. whose place of effective Management is situated outside India. The
residential status of the company would be –
(a) Resident in India
(b) Non- resident in India
(c) None of the above

6. The Concept of place of effective management (POEM) is applicable in case of

(a) An Indian Co.
(b) A non-Indian Co.
(c) Both (a) & (b)
(d) None of the above

7. The concept of ‘POEM’ is applicable when the turnover of the foreign Co. in the PY
(a) Below Rs. 50 crore
(b) Exceeds Rs. 50 crore
(c) None of the above
(d) Both (a) & (b)
8. Dixon Ltd. Is registered in USA. The place of effective management is in India during
the PY 2018 – 2019 the residential status of Dixon Ltd. Would be
(a) Resident in India
(b) Non-resident in India
(c) Bothe (a) & (b)
(d) None

9. A foreign Co. if its POEM is in India during the ,it will be treated as
(a) Resident in India
(b) Non-resident in India
(c) None

10. An India Co. is always

(a) Resident
(b) Non-resident
(c) None of the above

11. MAT provision is applicable for

(a) Any company
(b) Any assesses
(c) Indian Co.
(d) Foreign Co.

12. Tax credit u/s 115JAA can be claimed by a company in the immediately succeeding
(a) 10 years
(b) 5 years
(c) 15 years
(d) 3 years

13. For a company, the tax liability for a particular assessment year would be equal to
(a) Tax liability computed under normal provision
(b) Tax liability computed under MAT provision
(c) Higher of (a) & (b)
(d) None of the above