Non-resident derivative income exemption applies only when contracts avoid permanent establishment exposure in India. Income accrued or received by a non-resident from the transfer of non-deliverable forward contracts, offshore derivative instruments, or over-the-counter derivatives, and from distributions on such instruments, is exempt subject to conditions. The contract or instrument must be entered into with an offshore banking unit of an International Financial Services Centre holding valid registration, or with a foreign portfolio investor that is a unit of an International Financial Services Centre, and it must not be entered into through or on behalf of the non-resident's permanent establishment in India. The offshore banking unit or foreign portfolio investor must ensure compliance with that condition.
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.
Non-resident derivative income exemption applies only when contracts avoid permanent establishment exposure in India.
Income accrued or received by a non-resident from the transfer of non-deliverable forward contracts, offshore derivative instruments, or over-the-counter derivatives, and from distributions on such instruments, is exempt subject to conditions. The contract or instrument must be entered into with an offshore banking unit of an International Financial Services Centre holding valid registration, or with a foreign portfolio investor that is a unit of an International Financial Services Centre, and it must not be entered into through or on behalf of the non-resident's permanent establishment in India. The offshore banking unit or foreign portfolio investor must ensure compliance with that condition.
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