By Tayo Ogungbenro
Digital economy no longer needs introduction. We will therefore not be spending time trying to define neither the term, scope nor coverage. But its pervasiveness and disruption of established business norm is no more demonstrated by the recent valuation of Paystack, a fintech company in Nigeria, with less than ten-year track record.
Stripes, a US-based major investor in the payment technology industry recently paid a whooping US$200m (approximately N76 billion at current official exchange rate) to acquire the company. The value of a relatively unknown company set up by young graduates was more than the combined net asset value of at least three non-first tier banks in Nigeria, each of which has been in existence for more than three decades.
Non-residents will be taxed if transaction value exceeds Rs 2 cr
By IANS |
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Tax.. Image Source: IANS News
New Delhi, May 6 : Non-residents undertaking transactions with Indian parties will trigger taxability under the domestic law in India even if they do not have physical presence in the country and operate digitised businesses.
Subhash Narayan
New Delhi, May 6 (IANS) Non-residents undertaking transactions with Indian parties will trigger taxability under the domestic law in India even if they do not have physical presence in the country and operate digitised businesses.
The Central Board of Direct Taxes has notified new rules for operation of business by non-residents under which any transaction over Rs 2 crore (apex $27,100) in respect of any goods, services or property carried out by them with any person in India including provision of download of data or software in India, will attract tax in India.
Non-residents will be taxed if transaction value exceeds Rs 2 crore
Photo by Nataliya Vaitkevich from Pexels
Non-residents undertaking transactions with Indian parties will trigger taxability under the domestic law in India even if they do not have physical presence in the country and operate digitised businesses.
The Central Board of Direct Taxes has notified new rules for operation of business by non-residents under which any transaction over Rs 2 crore (apex $27,100) in respect of any goods, services or property carried out by them with any person in India including provision of download of data or software in India, will attract tax in India.
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Non-resident Indians (NRIs) undertaking transactions with Indian parties will trigger taxability under the domestic law in India even if they do not have physical presence in the country and operate digitised businesses.
The central board of direct taxes (CBDT) has notified new rules for operation of business by NRIs under which any transaction over Rs2 crore (approx $27,100) in respect of any goods, services or property carried out by them with any person in India including provision of download of data or software in India, will attract tax in India.
The provisions of significant economic presence (SEP) that becomes the base for taxability of NRIs in India will also apply if the number of users with whom systematic and continuous business activities are solicited (or who are engaged in interactions) exceeds 300,000.
New Delhi: Non-resident Indians (NRI) in transactions with those in India will be liable for tax under the country s law - even if they do not have a physical presence in India and operate digital businesses.
The Central Board of Direct Taxes has notified new rules for operation of business by NRIs under which any transaction over Rs20 million (around $27,100; Dh995,994) in respect of goods, services or property carried out by them with a person in India. This also applies to download of data or software in India.
The new provisions are applicable with effect from Financial Year 2021-22. It had become fully functional now with CBDT notifying the thresholds for triggering SEP and consequently tax liability in India.