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GS Paper IUPSC Prelims 2022
Fiscal Policy & Public Finance
Question No. 212Interactive Test Mode
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+2-0.66

Q212. Which one of the following situations best reflects “Indirect Transfers” often talked about in media recently with reference to India?

Which one of the following situations best reflects “Indirect Transfers” often talked about in media recently with reference to India?

Select the correct option below (or cross out options to eliminate)
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Official Answer Key & Detailed Solution

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Official UPSC Answer KeyUPSC Prelims 2022 • Indian Economy

Correct Answer: Option (D) — A foreign company transfers shares and such shares derive their substantial value from assets located in India.

Concept & Option Breakdown

Standard Reference Verified

An 'indirect transfer' refers to a transaction where foreign entities transfer shares or ownership interests of an offshore holding company, but the value of those shares is substantially or primarily derived from underlying assets situated in India (as seen in the Vodafone and Cairn Energy tax disputes).

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2022 (Q212)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Fiscal Policy & Public Finance
Official Answer KeyOption (D) — A foreign company transfers shares and such shares derive their substantial value from assets located in India.

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Frequently Asked Questions — UPSC Prelims 2022 Q212

What is the official answer for UPSC Prelims 2022 GS Paper I Question 212 (Indian Economy)?

The official UPSC answer key for this 2022 Indian Economy (Fiscal Policy & Public Finance) question is Option (D): "A foreign company transfers shares and such shares derive their substantial value from assets located in India.". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2022 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Fiscal Policy & Public Finance". You can explore all repeated questions from Fiscal Policy & Public Finance in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Fiscal Policy & Public Finance UPSC Prelims question using option elimination?

To solve Fiscal Policy & Public Finance questions in UPSC Prelims, identify extreme modifiers, verify core NCERT conceptual definitions, and eliminate mutually contradictory statement pairs before locking your final option.

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