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<h1>India Clarifies Tax Rules for Non-Resident Companies in Hydroelectric Projects: Individual Taxation and Specific Contract Provisions.</h1> The circular addresses the taxability of income for non-residents involved in turnkey hydroelectric power projects in India. It clarifies that foreign companies in a consortium will not be treated as an association of persons for tax purposes, and each will be taxed individually. Profits from the sale of equipment on an FOB basis, where payments are made outside India, are not taxable in India. Fees for planning, design, and engineering services are subject to tax unless covered by a double taxation agreement. Profits from civil works and commissioning contracts are taxable under specific provisions. Transportation charges are taxable if clearly distinguished in agreements. These guidelines apply to contracts post-April 1, 1989.