MANAGEMENT

Detailed explanation-1: -Offshore banking units (OBUs) refer to bank branches located outside of its home country, and handling transactions made in foreign currency (known generically as “eurocurrency") OBUs make it easier for individuals and businesses to bank internationally and establish offshore accounts.

Detailed explanation-2: -In case of resident taxpayer all his income would be taxable in India, irrespective of the fact that income is earned or has accrued to taxpayer outside India. However, in case of non-resident all income which accrues or arises outside India would not be taxable in India.

Detailed explanation-3: -If you deal with them, take note that for such income, you are responsible for withholding taxes thereon. An NRFC is generally taxable at 25% final withholding tax (FWT) and at 12% final withholding value-added tax (FWVAT).

Detailed explanation-4: -TRUE 15. Foreign governments and foreign government-owned and controlled corporations are exempt from final tax.