Significant economic presence expands business connection to tax digital transactions and user-driven activities when income is attributable. The amendment widens business connection to include persons who habitually conclude or principally cause conclusion of contracts on behalf of ... Summary
Significant economic presence expands business connection to tax digital transactions and user-driven activities when income is attributable.
The amendment widens business connection to include persons who habitually conclude or principally cause conclusion of contracts on behalf of non-residents where contracts are in the non-resident's name, transfer or grant rights in the non-resident's property, or provide services. It adds that significant economic presence-transactions in goods, services, property including data or software downloads exceeding prescribed payments, or systematic digital solicitation or user interactions in India-constitutes business connection, and only income attributable to such transactions or activities shall be deemed to accrue or arise in India.
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