"Indirect Transfer" refers to the transfer of ownership of shares or interests in a foreign entity, where the value of that foreign entity is primarily derived from assets located in India. This allows for taxing gains arising from such transfers within India.
Which one of the following situations best reflects "Indirect Transfers" often talked about in media recently with reference to India?
Asked in UPSC IAS 2022 · Topic: Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) (Issues related to FDI: Round-tripping, Tax Avoidance, Geopolitical considerations)
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Answer: D. A foreign company transfers shares and their substantial value derive from assets located in In‐ dia
Read the notes: Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) →
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