The 'Double Taxation Avoidance Agreement' (DTAA) aims to: MCQ with Answer and Explanation

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The 'Double Taxation Avoidance Agreement' (DTAA) aims to:

A. Increase tax rates

B. Avoid double taxation of same income in two countries

C. Unify all taxes

D. Tax income twice

Answer: Option B

Solution (By JKSSB Mock Tests)

DTAA provides relief from double taxation through exemption or credit method.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

Which of the following is a feature of a joint stock company?

A. No perpetual succession

B. Managed by partners

C. Unlimited liability

D. Separate legal entity

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Correct Answer: Option D

Explanation:
A joint stock company is a separate legal entity distinct from its shareholders, with perpetual succession and limited liability.

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Question #2

The 'Composition Scheme' under GST is not available to:

A. Restaurants not serving alcohol

B. Manufacturers

C. Service providers (except restaurant) with aggregate turnover above ₹50 lakh

D. Traders

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Correct Answer: Option C

Explanation:
Composition scheme for services is restricted to certain categories with turnover up to ₹50 lakh.

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Question #3

A and B share profits 3:2. They admit C with 1/5th share. C brings ₹30,000 as capital and ₹10,000 as goodwill. The total goodwill of the firm is:

A. ₹2,00,000

B. Cannot determine

C. ₹10,000

D. ₹50,000

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Correct Answer: Option D

Explanation:
C's share of goodwill = 1/5 = ₹10,000. So total goodwill = 10,000 × 5/1 = ₹50,000.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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