India: Implementation of “significant economic presence” tax base definition in India Finance Act 2018
Description
Implementation of “significant economic presence” tax base definition in India Finance Act 2018
On 1 April 2022, the thresholds to identify companies with a “significant economic presence” (SEP) in India enter into force and the India Finance Act is fully implemented. In particular, companies with a revenue of over INR 20 million ($267000) ste…
Scope
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