Non-resident business connection in India: Contract authority, stock delivery, or order securing defines it. Independent agents exempt.
A business connection is established when a non-resident conducts activities through a representative in India who either has the authority to conclude contracts, maintains stock for regular delivery, or secures orders primarily for the non-resident. However, no business connection is deemed if activities are conducted through an independent broker or agent working in their ordinary course of business. Only the income arising from such a connection is considered as accruing from India, not the entire income of the non-resident.
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