The 'Advance Pricing Agreement' (APA) programme in India is for: MCQ with Answer and Explanation

The 'Advance Pricing Agreement' (APA) programme in India is for:
A. Determining arm's length price in international transactions prospectively
B. Fixing GST rates
C. Customs valuation
D. Audit fees
Answer: Option A
Solution (By JKSSB Mock Tests)
APA provides certainty on transfer pricing for future years.

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Practice More Accountancy and Book Keeping Questions

Question #1
S1: Cost audit is mandatory for all companies in India. S2: Cost audit is conducted to verify the accuracy of cost records. Which statement(s) is/are correct?
A. Both S1 and S2
B. S1 only
C. S2 only
D. Neither S1 nor S2

Correct Answer: Option C


Explanation:
Cost audit is not mandatory for all companies; it is only required for specific classes of companies (like those in regulated sectors or manufacturing) as prescribed by the Central Government. S2 is correct as it verifies cost records. S1 is incorrect.

Question #2
Assertion (A): A Bank Reconciliation Statement is a part of the books of accounts. Reason (R): It is prepared to find out the correct bank balance. Choose the correct option:
A. Both A and R are true and R is the correct explanation of A.
B. Both A and R are true but R is not the correct explanation of A.
C. A is false but R is true.
D. A is true but R is false.

Correct Answer: Option C


Explanation:
BRS is not a part of books of accounts; it's a memorandum statement. R is true.

Question #3
S1: Under GST, the 'E-way bill' is required for the movement of goods where the consignment value exceeds ₹50,000. S2: The E-way bill is generated on the common portal by the registered person before the commencement of the movement of goods. Which statement(s) is/are correct?
A. Both S1 and S2
B. Neither S1 nor S2
C. S1 only
D. S2 only

Correct Answer: Option A


Explanation:
Both statements are correct. Rule 138 of the CGST Rules mandates an e-way bill for goods valued over ₹50,000, and it must be generated by the supplier/recipient before the goods are moved.