India: Introduction of India Finance Act 2018 containing tax base definition
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Description
Introduction of India Finance Act 2018 containing tax base definition
The India Finance Act 2018 is introduced in the Indian Parliament on 1 February 2018. The Act prescribes that companies with a "significant economic position" (SEP) have a "business connection" in India, and therefore the income resulting from the SEP in India is taxable. SEP is defined as the operation of transactions in India for any type of product (including download of data or software) with the turnover from these transactions exceeding a threshold to be defined. Furthermore, SEP is defined as a company having a systematic interaction "through digital means" with a number of users exceeding a threshold to be defined. SEP however only applies to companies non-residing in India.
Original sourceScope
Policy Area
Taxation
Policy Instrument
Direct taxes including Digital Service Taxes
Regulated Economic Activity
cross-cutting
Implementation Level
national
Government Branch
legislature
Government Body
parliament
Complete timeline of this policy change
Hide details
2018-02-01
under deliberation
2018-03-14
adopted
2018-03-29
in grace period
2021-05-03
adopted
Key regulatory dimensions
Regulated subjects
The businesses, government agencies or individuals affected by this policy or regulatory change.
producer / supplier
1
Type
Private organisation
Economic activity
cross-cutting
Category
All
Policy change by business practice
The detailed activities within the scope of this policy or regulatory change.
all goods (physical or digital): sale
Regulatory tool
Subordination under other existing tax
Sanctions
TBR - Existing statutory sanction
Regulated subjects
1
service (any type): sale
Regulatory tool
Subordination under other existing tax
Sanctions
TBR - Existing statutory sanction
Regulated subjects
1