ABC Limited has paid amount of royalty of ₹30 lakh in September, 2017 to John Miller Company of USA in pursuance of an agreement approved by the Central Government in the previous year 2015-16. The royalty so received by

CS Executive · Tax Laws and Practice · PYQS · June 2018
ABC Limited has paid amount of royalty of ₹30 lakh in September, 2017 to John Miller Company of USA in pursuance of an agreement approved by the Central Government in the previous year 2015-16. The royalty so received by the foreign company shall be subject to tax in A.Y. 2018-19 and the amount of tax payable by the foreign company shall be :
(A) ₹9.27 lakh
(B) ₹4.635 lakh
(C) ₹3 lakh
(D) None of the above

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Income Tax Act, 1961

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