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Which one of the following situations best reflects “Indirect Transfers” often talked about in media recently with reference to India? (UPSC CSP 2022, GS Paper I)

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1. Which one of the following situations best reflects “Indirect Transfers” often talked about in media recently with reference to India? (UPSC CSP 2022, GS Paper I)

An Indian company investing in a foreign enterprise and paying taxes to the foreign country on the profits arising out of its investment

A foreign company investing in India and paying taxes to the country of its base on the profits arising out of its investment

An Indian company purchases tangible assets in a foreign country and sells such assets after their value increases and transfers the proceeds to India

A foreign company transfers shares and such shares derive their substantial value from assets located in India

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Which one of the following situations best reflects “Indirect Transfers” often talked about in media recently with reference to India? (UPSC CSP 2022, GS Paper I)

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