Business connection: significant economic presence can create taxable nexus in India without physical presence or residence. A non-resident has a business connection in India if a person acting on its behalf habitually concludes contracts, maintains a stock of goods for delivery, or habitually secures orders in India for the non-resident; agents of independent status are excluded unless they act mainly for the same non-resident group. Significant economic presence-including prescribed-threshold transactions (goods, services, property, data/software downloads) or systematic solicitation/interaction with prescribed numbers of users-also constitutes business connection, creating taxable nexus for income attributable to those activities irrespective of physical presence or residence.
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.
Business connection: significant economic presence can create taxable nexus in India without physical presence or residence.
A non-resident has a business connection in India if a person acting on its behalf habitually concludes contracts, maintains a stock of goods for delivery, or habitually secures orders in India for the non-resident; agents of independent status are excluded unless they act mainly for the same non-resident group. Significant economic presence-including prescribed-threshold transactions (goods, services, property, data/software downloads) or systematic solicitation/interaction with prescribed numbers of users-also constitutes business connection, creating taxable nexus for income attributable to those activities irrespective of physical presence or residence.
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