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CA Final Taxation of Digital Goods — practice questions

Explore 39 free Taxation of Digital Goods questions in CA Final Taxation. Open each question or exercise to read its content, reference answers and available explanation.

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Taxation of Digital Goods questions and exercises with answers

Showing questions 1–30 of 39.

In which year did India introduce the equalisation levy, starting with online advertising?Read the answer and worked solution →India's equalisation levy was first aimed at which kind of service?Read the answer and worked solution →Which kind of business is the equalisation levy meant to tax?Read the answer and worked solution →Explanation 2A on significant economic presence sits in which provision?Read the answer and worked solution →Significant economic presence in India is treated as part of which concept?Read the answer and worked solution →Significant economic presence follows which OECD BEPS Action?Read the answer and worked solution →In which year did the OECD begin its BEPS project on multinational profit shifting?Read the answer and worked solution →Whose finance ministers agreed BEPS recommendations in 2015?Read the answer and worked solution →Most national digital services taxes target which companies?Read the answer and worked solution →How does a DST usually attribute revenue to a country?Read the answer and worked solution →Which criticism is made of digital services taxes because of their revenue thresholds?Read the answer and worked solution →Why can unharmonised DSTs hurt a firm?Read the answer and worked solution →At what rate did the European Commission propose a temporary DST in 2018?Read the answer and worked solution →The EC's 2018 DST proposal covered businesses with annual worldwide revenue above what amount?Read the answer and worked solution →What happened to the original EC digital services tax proposal at EU level?Read the answer and worked solution →Which EU country applies its DST only to digital advertising?Read the answer and worked solution →What rate does the UK digital services tax charge on gross revenues of large multinationals?Read the answer and worked solution →From which date did the UK digital services tax apply to revenue earned?Read the answer and worked solution →Why did Singapore's minister tax imported services like app downloads?Read the answer and worked solution →At what rate did Malaysia's digital service tax initially come into effect on 1 January 2020?Read the answer and worked solution →From July 2020, Indonesia charged what VAT on foreign digital services?Read the answer and worked solution →India's expanded equalisation levy applies above gross receipts of about?Read the answer and worked solution →In January 2019 the OECD proposals against profit shifting were popularly labelled what?Read the answer and worked solution →Pillar One of the 2021 OECD solution covers MNEs with global turnover above what amount?Read the answer and worked solution →Besides the turnover limit, what profitability level brings an MNE into Pillar One?Read the answer and worked solution →Which sectors are excluded from Pillar One?Read the answer and worked solution →How is double taxation of profit allocated to market jurisdictions relieved under Pillar One?Read the answer and worked solution →On which measure is the profit or loss of an in-scope MNE under Pillar One determined?Read the answer and worked solution →GloBE rules under Pillar Two apply to MNEs meeting which threshold?Read the answer and worked solution →What minimum tax rate is used for the IIR and UTPR under Pillar Two?Read the answer and worked solution →

Worked practice questions

In which year did India introduce the equalisation levy, starting with online advertising?

  1. 2012
  2. 2014
  3. 2016
  4. 2018
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Correct answer: C. 2016

India promulgated the equalisation levy in June 2016 as its first step in taxing digital businesses with no physical presence.

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India's equalisation levy was first aimed at which kind of service?

  1. Online advertising
  2. Cloud data storage
  3. Software licensing
  4. Ship chartering
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Correct answer: A. Online advertising

The levy began with payments for online advertising, the most visible cross-border digital service at the time.

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Which kind of business is the equalisation levy meant to tax?

  1. Small resident traders only
  2. Overseas firms with no office
  3. Government-owned bodies only
  4. Resident banks and insurers
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Correct answer: B. Overseas firms with no office

The levy reaches multinational companies that earn from Indian customers without any physical presence in the country.

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More Taxation topics

Double TaxationTransfer PricingDeduction, Collection and Recovery of TaxIncome Tax DepartmentPermanent Account NumberBasic ConceptsAnti-avoidance ProvisionsAppeals, Revision and Dispute Resolution