The Indian government today announced that it has extended the due date for public comment on its newly adopted “significant economic presence” test, a nexus rule designed to expand India’s taxation rights of over business profits of multinational firms.
Comments may be submitted by September 30; the original due date for comments was set at August 10.
India’s tax authority is seeking stakeholder comments on what the thresholds should be for the new test, whereby a significant economic presence of a non-resident in India would constitute a business connection in India.
Specifically, the government seeks feedback on appropriate thresholds for transactions in respect of physical goods or services carried out by a non-resident in India and for digital goods or services or property, including the provision of download of data or software carried out by a non-resident in India.
Moreover, feedback is sought on the threshold for the number of ‘users’ with whom a non-resident engages in interaction or carries out systematic and continuous soliciting of business activities in India through digital means. More details on India’s solicitation for comments can be found here.
Comments may be sent to the following email address: [email protected].
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