INTERNATIONAL TAXATION

1. Royalty and FTS payment by National Technical Research Organization (NTRO) to non-residents not being a company or a foreign company will be tax exempt

2. Business Connections for non-residents

i)Business connection definition is proposed to widen to cover arrangement where person playing principal role leading to the conclusion of contracts for non-resident

ii) Concept of “Significant Economic Presence” in India is introduce to tax digitized business which do not require a physical presence of itself or any agent in India

3. Rationalization of time limit for filing of CBCR report retrospectively from AY.17-18.

4. Foreign company comprising total income solely from business referred U/s.44B/BB/BBB/BBA offering tax at specialized rates are not subject to MAT provisions effectively from 2001.