Significant economic presence triggers business connection and local taxability for income from transactions, user interactions and data-driven services. Amendments to section 9 declare that significant economic presence of a non resident constitutes a business connection in India, defined by prescribed thresholds for transactions (including data or software downloads) or systematic user interaction, and provide that only income attributable to those transactions or activities is deemed to accrue or arise in India. Explanation 3A specifies that income from targeted advertisements, sale of data from Indian users, and sale of goods or services using such data is attributable to operations in India. The amendments also adjust exemptions for investments through specified foreign portfolio investor categories and expand the definition of royalty to include consideration for cinematographic films.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Significant economic presence triggers business connection and local taxability for income from transactions, user interactions and data-driven services.
Amendments to section 9 declare that significant economic presence of a non resident constitutes a business connection in India, defined by prescribed thresholds for transactions (including data or software downloads) or systematic user interaction, and provide that only income attributable to those transactions or activities is deemed to accrue or arise in India. Explanation 3A specifies that income from targeted advertisements, sale of data from Indian users, and sale of goods or services using such data is attributable to operations in India. The amendments also adjust exemptions for investments through specified foreign portfolio investor categories and expand the definition of royalty to include consideration for cinematographic films.
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