Double Taxation Avoidance — Prelims Questions

Consider the following statements about Double Taxation Avoidance Agreements (DTAAs): 1. DTAAs override domestic tax law provisions in all circumstances 2. The Multilateral Instrument (MLI) allows modification of bilateral DTAAs without renegotiation 3. Significant Economic Presence concept applies only to digital economy businesses 4. Beneficial ownership provisions prevent treaty shopping Which of the statements given above are correct?

Which of the following best describes the constitutional basis for India's Double Taxation Avoidance Agreements?

Consider the following pairs: DTAA Concept : Description 1. Permanent Establishment : Fixed place of business creating tax obligations 2. Beneficial Ownership : Prevents artificial treaty structures 3. Tie-breaker Rules : Determines withholding tax rates 4. Mutual Agreement Procedure : Resolves double taxation disputes How many pairs given above are correctly matched?

The Multilateral Instrument (MLI) in the context of India's tax treaties primarily aims to:

Which of the following statements about the Significant Economic Presence (SEP) concept is/are correct? 1. It was introduced to address challenges posed by the digital economy 2. It creates taxable presence based on physical presence requirements 3. It applies only to non-resident companies 4. It can override DTAA provisions in certain circumstances Select the correct answer using the code given below: