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The Central Board of Direct Taxes has released theIncome-tax (13th Amendment) Rules, 2021 in order to further amend theIncome-tax Rules, 1962 wherein, a new Rule11UD has been inserted stating thethreshold limit for the purposes of significant economic presence. Read the official notification below: MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 3rd May, 2021 INCOME-TAX G. S. R. 314(E). In exercise of the powers conferred by
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FAQ :
The CBDT has inserted a new Rule 11UD into the Income-tax Rules, 1962, which specifies the threshold limits for significant economic presence.
These rules come into force with effect from the 1st day of April, 2022.
For the purposes of clause (a) of Explanation 2A to clause (i) of sub-section (1) of section 9, the aggregate of payments from transactions in respect of goods, services, or property carried out by a non-resident with any person in India shall be two crore rupees.
For the purposes of clause (b) of Explanation 2A to clause (i) of sub-section (1) of section 9, the number of users with whom systematic and continuous business activities are solicited or who are engaged in interaction shall be three lakhs.
The rules cover transactions in respect of any goods, services, or property carried out by a non-resident with any person in India, including the provision of download of data or software in India.
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