CBDT notifies Threshold for Significant Economic Presence

On 3rd May, 2021, the Central Board of Direct Taxes (CBDT) notified a threshold for Significant Economic Presence (SEP).

  • This will come into effect from the 1st April 2022.

Key Points

  • The threshold of aggregate payment of Rs. 2 crores and user base of 3 lakhs seems quite low considering the user base in India of few e-commerce giants such as Facebook or Google.
  • Existing Double Taxation Avoidance Agreements(DTAAs) will not cover the proposed change unless DTAAs are re-negotiated. Accordingly, non-resident of the treaty jurisdiction can take recourse to the beneficial provision of DTAA. Consequently, the relevance of the amendment may be ....
Do You Want to Read More?
Subscribe Now
To get access to detailed content
Buy July 2021 Issue

Already a Member? Login here

Take Annual Subscription and get the following Advantage
The annual members of the Civil Services Chronicle can read the monthly content of the magazine as well as the Chronicle magazine archives.
Readers can study all the material before the last six months of the Civil Services Chronicle monthly issue in the form of Chronicle magazine archives.
Be an Annual Subscriber

Related Content

Public Policy