India - Income Tax Act 2010 - Saarc

1.297 CH. IV - COMPUTATION OF BUSINESS INCOME S. 44D(c) in a case where the total income of the assessee is assessable onlyfor one of the aforesaid three assessment years, the amount of theadjusted total income in respect of the previous year relevant tothat assessment year;(iii) 27 [***](iv) “head office expenditure” means executive and general administrationexpenditure incurred by the assessee outside India, includingexpenditure incurred in respect of—(a) rent, rates, taxes, repairs or insurance of any premises outsideIndia used for the purposes of the business or profession;(b) salary, wages, annuity, pension, fees, bonus, commission, gratuity,perquisites or profits in lieu of or in addition to salary,whether paid or allowed to any employee or other person employedin, or managing the affairs of, any office outside India;(c) travelling by any employee or other person employed in, ormanaging the affairs of, any office outside India; and(d) such other matters connected with executive and generaladministration as may be prescribed.]28[Special provisions for computing income by way of royalties, etc., in the caseof foreign companies.44D. Notwithstanding anything to the contrary contained in sections 28 to 44C,in the case of an assessee, being a foreign company,—(a) the deductions admissible under the said sections in computing theincome by way of royalty or fees for technical services received29[from Government or an Indian concern in pursuance of an agreementmade by the foreign company with Government or with theIndian concern] before the 1st day of April, 1976, shall not exceed inthe aggregate twenty per cent of the gross amount of such royalty orfees as reduced by so much of the gross amount of such royalty asconsists of lump sum consideration for the transfer outside India of,or the imparting of information outside India in respect of, any data,documentation, drawing or specification relating to any patent,invention, model, design, secret formula or process or trade mark orsimilar property;(b) no deduction in respect of any expenditure or allowance shall beallowed under any of the said sections in computing the income byway of royalty or fees for technical services received 29 [from Governmentor an Indian concern in pursuance of an agreement made by theforeign company with Government or with the Indian concern] afterthe 31st day of March, 1976 30 [but before the 1st day of April, 2003];27. Omitted by the Finance Act, 1993, w.e.f. 1-4-1993.28. Inserted by the Finance Act, 1976, w.e.f. 1-6-1976.29. Substituted for the portion beginning with “from an Indian concern” and ending with “withthe Indian concern” by the Finance Act, 1983, w.e.f. 1-6-1983.30. Inserted by the Finance Act, 2003, w.e.f. 1-4-2004.