IFCI Financial Services Interview Questions and Answers

The last date to claim Input Tax Credit (ITC) in GST is the due date for filing the monthly return for September of the following financial year or the annual return, whichever is earlier.

• Last date to claim ITC in GST is the due date for filing the monthly return for September of the following financial year or the annual return, whichever is earlier.

• ITC for invoices pertaining to FY 2020-21 can be claimed till the due...read more

IRR and NPV are financial metrics used to evaluate the profitability of an investment. IRR is the rate of return that makes the net present value of all cash flows equal to zero, while NPV is the difference between the present value of cash inflows and outflows.

• IRR is the rate at which the net present value of cash flows is zero.

• NPV is the difference between the present value of cash inflows and outflows.

• IRR helps in d...read more

Deferred tax assets are future tax benefits that arise from overpayment or overprovision of taxes in current or previous periods.

• Deferred tax assets are recorded on the balance sheet when a company has paid more taxes than it owes, or has made provisions for taxes that are higher than the actual tax liability.

• They represent potential tax savings that can be realized in the future when the company's taxable income is hi...read more

LGD (Loss Given Default) is the amount of money a lender loses when a borrower defaults on a loan.

• LGD is expressed as a percentage of the total exposure at default (EAD).

• It represents the portion of the loan that is not recovered after a borrower defaults.

• LGD can vary depending on the type of loan, collateral, and economic conditions.

• For example, if a borrower defaults on a $100,000 loan and the LGD is 50%, the lender ...read more

Transfer pricing refers to the setting of prices for goods and services sold between related entities within an enterprise.

• Transfer pricing is important for multinational companies to ensure that transactions between different parts of the organization are conducted at arm's length to avoid tax evasion.

• It involves determining the prices at which goods, services, and intangible assets are transferred between related ent...read more

Arm length price is calculated using a method that considers the length of the arm and the price associated with it.

• Arm length price is typically calculated by multiplying the length of the arm by a predetermined price per unit of length.

• For example, if the price per unit of length is $10 and the arm length is 20 inches, the arm length price would be $200 (20 inches x $10).

• This method is commonly used in industries whe...read more