A
To act as a license issued by the Reserve Bank of India for outward foreign direct investments
B
To certify that a foreign company has paid all its Goods and Services Tax dues in India
C
To verify an entity's fiscal residence in a foreign jurisdiction for treaty benefits
D
To exempt domestic corporations entirely from indirect tax transfers under bilateral trade agreements
Correct answer: (c) To verify an entity's fiscal residence in a foreign jurisdiction for treaty benefits
Explanation
A Tax Residency Certificate is a document issued by a foreign tax authority verifying an entity's fiscal residence to claim benefits under DTAAs. Options B, C, and D are incorrect as they misstate the scope of a TRC regarding GST, RBI licensing, or domestic indirect tax exemptions.
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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2020 · Q70 · General Studies · 2 marks
With reference to the Indian economy, consider the following statements: 1. 'Commercial Paper' is a short-term unsecured promissory note. 2. 'Certificate of Deposit' is a long-term instrument issued by the Reserve Bank of India to a corporation -
2026 · Q27 · General Studies · 2 marks
Which of the following statements with regard to the arrival of Amur Falcons at Doyang Lake in Nagaland each year from Mongolia is/are correct? 1. It showcases how sustained local conservation efforts can contribute to the arrival and protection of international migratory birds. 2. It reflects the global success of advanced tracking technologies that guide migratory birds back to their stopover sites. 3. It confirms that Amur Falcons have adapted to permanent residency in India due to favourable habitat changes. Select the answer using the code given below: -
2026 · Q57 · General Studies · 2 marks
Consider the following statements about the provisions pertaining to the Scheduled Castes and the Scheduled Tribes in India: 1. Provisions regarding the administration of the Tribal Areas in the States of Assam, Meghalaya, Tripura and Mizoram are given in the Fifth Schedule of the Constitution of India. 2. Some tribes of India are entitled to exemption from paying Income Tax on certain incomes. 3. The Constitution of India provides for reservation of seats in Panchayats for women belonging to the Scheduled Castes and the Scheduled Tribes. Which one of the following conclusions based on the above statements is correct? -
2023 · Q14 · GS III · 15 marks
What are the direct and indirect subsidies provided to farm sector in India? Discuss the issues raised by the World Trade Organization(WTP) in relation to agricultural subsidies. -
2022 · Q8 · General Studies · 2 marks
Which one of the following situations best reflects "Indirect Transfers" often talked about in media recently with reference to India?