The 'Safe Harbour Rules' under transfer pricing provide: MCQ with Answer and Explanation

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The 'Safe Harbour Rules' under transfer pricing provide:

A. Circumstances in which tax authorities accept transfer price declared by taxpayer

B. Penalty provisions

C. Criminal prosecution

D. No relief

Answer: Option A

Solution (By JKSSB Mock Tests)

Safe harbour rules reduce litigation by accepting declared margins in specified conditions.

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

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Practice More Accountancy and Book Keeping Questions

Question #1

The term 'Virement' in budgetary control refers to:

A. Auditing the budget

B. Cutting the budget

C. Shifting funds from one budget head to another

D. Increasing the total budget

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Correct Answer: Option C

Explanation:
Virement is the process of transferring funds from one budget head to another to meet unforeseen expenses without increasing the total budget.

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

Question #2

Which of the following is not a characteristic of a company?

A. Unlimited liability of members

B. Perpetual succession

C. Separate legal entity

D. Common seal (now optional)

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Correct Answer: Option A

Explanation:
Company members have limited liability.

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Question #3

Under Marginal Costing, stock is valued at:

A. Prime Cost

B. Total Cost

C. Variable Manufacturing Cost

D. Fixed Cost

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Correct Answer: Option C

Explanation:
Marginal costing values inventory strictly on variable costs, treating fixed overheads as period costs written off immediately.

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

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