A
All managerial services rendered abroad are automatically exempt from domestic taxation.
B
FTS is taxable only if the service provider enables the recipient to independently apply the technology or skill later.
C
The source country has absolute right to tax royalty without any restriction.
D
Technical know-how must be transferred exclusively through government-to-government channels.
Correct answer: (b) FTS is taxable only if the service provider enables the recipient to independently apply the technology or skill later.
Explanation
Option B is correct because the make-available principle dictates that FTS is taxable only if the service provider enables the recipient to independently apply the technology or skill later. Options A, C, and D do not correctly define the make-available clause.
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
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2026 · Q52 · General Studies · 2 marks
In a multi-ethnic district where both economic competition and historical grievances frequently led to community tensions, a flashpoint has arisen with a Government decision to allocate land for a waste management facility near a tribal hamlet, sparking protests by the tribal community, which claimed that the land was sacred and critical to their cultural identity. At the same time, urban residents and local industries supported the project, citing severe solid waste challenges and health concerns due to lack of a proper disposal site. The conflict has escalated with road blockades, social media campaigns, and allegations of police excesses. As a responsible Government official, you are tasked with resolving the situation through mediation, ensuring a sustainable outcome that balances environmental needs, tribal rights, and urban public health. Consider the following statements with reference to the above: 1. A successful conflict resolution process must begin with acknowledging the cultural concerns of the protesting tribal community before discussing technical alternatives. 2. The Government should move ahead with the project without delay to address urban health concerns, which outweigh the sentiments of a small group. 3. Creating a multi-stakeholder dialogue platform - including tribal leaders, environmental experts, and municipal representatives - to build mutual understanding and help de-escalate tensions. 4. Conducting an independent Environmental and Social Impact Assessment (ESIA) and sharing findings transparently with both sides to facilitate evidence-based decision-making. Which of the statements given above would contribute to the resolution process? -
2022 · Q10 · GS III · 10 marks
What are the maritime security challenges in India ? Discuss the organisational, technical and procedural initiatives taken to improve the maritime security. -
2017 · Q52 · General Studies · 2 marks
With reference to 'Global Climate Change Alliance', which of the following statements is/are correct? 1. It is an initiative of the European Union. 2. It provides technical and financial support to targeted developing countries to integrate climate change into their development policies and budgets. 3. It is coordinated by World Resources Institute (WRI) and World Business Council for Sustainable Development (WBCSD). Select the correct answer using the code given below: -
2015 · Q11 · GS II · 12 marks
The quality of higher education in India requires major improvement to make it internationally competitive. Do you think that the entry of foreign educational institutions would help improve the quality of technical and higher education in the country. Discuss. -
2015 · Q74 · General Studies · 2 marks
With reference to 'Forest Carbon Partnership Facility', which of the following statements is/are correct? 1. It is a global partnership of governments, businesses, civil society and indigenous peoples. 2. It provides financial aid to universities, individual scientists and institutions involved in scientific forestry research to develop eco-friendly and climate adaptation technologies for sustainable forest management. 3. It assists the countries in their 'REDD+ (Reducing Emissions from Deforestation +)' efforts by providing them financial and technical assistance. Select the correct answer using the code given below