Special provision for computing profits and gains of non-residents engaged in business of providing services or technology for setting up an electronics manufacturing facility or in connection with manufacturing or producing electronic goods, article or thing in India. [ Section 44BBD ]

Presumptive Tax Rule Simplifies Electronics Manufacturing Service Income for Non-Resident Entities Under Section 44BBD

A specialized tax provision under Section 44BBD introduces a presumptive taxation mechanism for non-resident entities providing services or technology for electronics manufacturing in India. The provision mandates that 25% of gross receipts will be deemed taxable income, with restrictions on set-off of losses and depreciation. The section applies to specific transactions between non-residents and resident companies under a government-notified scheme, creating a targeted approach to international technology transfer and electronics manufacturing investments.