A
A bilateral agreement to eliminate customs duties on pharmaceutical imports
B
Routing investments through a third country solely to exploit favorable tax treaty provisions
C
Direct government procurement of foreign sovereign bonds
D
Shifting domestic manufacturing units to Special Economic Zones for export rebates
Correct answer: (b) Routing investments through a third country solely to exploit favorable tax treaty provisions
Explanation
Option B is correct because treaty shopping involves routing investments through an intermediary jurisdiction solely to take advantage of favorable tax treaty provisions between countries. Options B, C, and D describe entirely unrelated economic and trade activities.
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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2018 · Q8 · General Studies · 2 marks
With reference to India's decision to levy an equalization tax of 6% on online advertisement services offered by non-resident entities, which of the following statements is/are correct? 1. It is introduced as a part of the Income Tax Act. 2. Non-resident entities that offer advertisement services in India can claim a tax credit in their home country under the "Double Taxation Avoidance Agreements". Select the correct answer using the code given below: -
2025 · Q63 · General Studies · 2 marks
Consider the following statements : Statement I: Of the two major ethanol producers in the world, i.e., Brazil and the United States of America, the former produces more ethanol than the latter. Statement II: Unlike in the United States of America where corn is the principal feedstock for ethanol production, sugarcane is the principal feedstock for ethanol production in Brazil. Which one of the following is correct in respect of the above statements? -
2024 · Q77 · General Studies · 2 marks
What are the duties of the Chief of Defence Staff (CDS) as Head of the Department of Military Affairs? 1. Permanent Chairman of Chiefs of Staff Committee. 2. Exercise military command over the three Service Chiefs. 3. Principal Military Advisor to Defence Minister on all tri- service matters. Select the correct answer using the code given below -
2022 · Q20 · General Studies · 2 marks
With reference to Deputy Speaker of Lok Sabha, consider the following statements: 1. As per the Rules of Procedure and Conduct of Business in Lok Sabha, the election of Deputy Speaker shall be held on such date as the Speaker may fix. 2. There is a mandatory provision that the election of a candidate as Deputy Speaker of Lok Sabha shall be from either the principal opposition party or the ruling party. 3. The Deputy Speaker has the same power as of the Speaker when presiding over the sitting of the House and no appeal lies against his rulings. 4. The well established parliamentary practice regarding the appointment of Deputy Speaker is that the motion is moved by the Speaker and duly seconded by the Prime Minister. Which of the statements given above are correct? -
2016 · Q9 · General Studies · 2 marks
Regarding the taxation system of Krishna Deva, the ruler of Vijayanagar, consider the following statements: 1. The tax rate on land was fixed depending on the quality of the land. 2. Private owners of workshops paid an industries tax. Which of the statements given above is/are correct?