Centre decides to amend Income-Tax Act 1961

New Delhi, Sept.24 (ANI): After due consideration of various aspects of the matter, the government has decided that with effect from April 1, .2001, the provisions of Section 115JB of the Income Tax, 1961, shall not be applicable to a foreign company if –

• The foreign company is a resident of a country having DTAA with India and such foreign company does not have a permanent establishment within the definition of the term in the relevant DTAA

• The foreign company is a resident of a country which does not have a DTAA with India and such foreign company is not required to seek registration under Section 592 of the Companies Act 1956 or Section 380 of the Companies Act 2013.

An appropriate amendment to the Income-tax Act in this regard will be carried out.

Earlier, the issues relating to taxation of foreign companies, having no permanent establishment in India, have been under consideration of the Government. In this regard, the Centre has already clarified the inapplicability of MAT provisions to FIIs/FPIs.

The Centre has now considered the issue of applicability of MAT under Section 115JB of the Income-tax Act to foreign companies having no place of business/permanent establishment in India. (ANI)

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