During the financial year 2024-25, MNO International Singapore (a company incorporated in Singapore) held shares carrying voting power of 25% in XYZ…
CA Final · Direct Tax Laws and International Taxation · MTP · May 2026
During the financial year 2024-25, MNO International Singapore (a company incorporated in Singapore) held shares carrying voting power of 25% in XYZ (India) Ltd. (an Indian Company). XYZ (India) Ltd., who is a wholly owned subsidiary of PQR International Singapore, also held shares carrying voting power of 36% in PQR (India) Ltd. PQR (India) Ltd is engaged in manufacturing of industrial chemicals and for such manufacturing, it is wholly dependent on the technical know-how provided by PQR International Singapore. During the financial year, royalty of 25 Crores was paid by PQR (India) Ltd. to PQR International Singapore. Considering the above facts, which of the following statements is correct:-
Suggested Answer and Working Notes:
Correct Answer: Option (B)
XYZ (India) Ltd and PQR (India) Ltd, both are associated enterprise of PQR International Singapore.
Topics: Transfer Pricing, Double Taxation Relief, Non-Resident Taxation
Related Questions in this Topic
- PG Ltd., an Indian Company, has borrowed ₹ 90 crores on 01-04-2025 from M/s. Capital Inc, a company incorporated in Lond...
- (I) Xylo Ltd., operating in India, is the dealer for the goods manufactured by Yoyo Ltd. of Japan. Yoyo Ltd. owns 55% sh...
- Euphoric Ltd. having its registered office in Chennai is engaged in multiple businesses. It buys mobile phones from its ...
- M/s Alpha Investments Ltd., an investment company, held 2,00,000 shares of Beta Alloys Ltd. as stock-in-trade. Pursuant ...
- Trex Ltd., an Indian Company, on 01-04-2024 has borrowed 90 crores from M/s Refine Inc, a Company incorporated in Countr...