The Government of India recently notified the relevant threshold to constitute ‘Significant Economic Presence’ (SEP). The concept of #SEP was introduced in the Income-Tax Act, 1961 (‘ITA’) from April 1, 2018. ‘Significant economic presence’ SEP generally means that when transaction in respect of any goods or services is carried out by non residential in India they are subjected to certain payment thresholds.
The Indian tax administration on 3rd May issued a notification prescribing user thresholds for the application of new rule for non residents in the form of significant economic presence (SEP).
Watch this #LawWiser IN A MINUTE video powered by Phoenix Legal, where, Pranav Srivastava, Partner, Phoenix Legal, takes us through the highlights of this notification. He also shares the highlights and the objective of this law which is to tax the income of non-residents operating online digital platforms.