India - Income Tax Act 2010 - Saarc

S. 44DA I.T. ACT, 1961 1.298(c) 31 [***](d) 32 [***]Explanation.—For the purposes of this section,—(a) “fees for technical services” shall have the same meaning as in33[Explanation 2] to clause (vii) of sub-section (1) of section 9;(b) “foreign company” shall have the same meaning as in section 80B;(c) “royalty” shall have the same meaning as in 34 [Explanation 2] to clause(vi) of sub-section (1) of section 9;(d) royalty received 35 [from Government or an Indian concern inpursuance of an agreement made by a foreign company with Governmentor with the Indian concern] after the 31st day of March, 1976,shall be deemed to have been received in pursuance of an agreementmade before the 1st day of April, 1976, if such agreement is deemed,for the purposes of the proviso to clause (vi) of sub-section (1) ofsection 9, to have been made before the 1st day of April, 1976.]36[Special provision for computing income by way of royalties, etc., in case of nonresidents.44DA. (1) The income by way of royalty or fees for technical services receivedfrom Government or an Indian concern in pursuance of an agreementmade by a non-resident (not being a company) or a foreign company withGovernment or the Indian concern after the 31st day of March, 2003, where suchnon-resident (not being a company) or a foreign company carries on business inIndia through a permanent establishment situated therein, or performs professionalservices from a fixed place of profession situated therein, and the right,property or contract in respect of which the royalties or fees for technicalservices are paid is effectively connected with such permanent establishment orfixed place of profession, as the case may be, shall be computed under the head“Profits and gains of business or profession” in accordance with the provisionsof this Act :Provided that no deduction shall be allowed,—(i) in respect of any expenditure or allowance which is not wholly andexclusively incurred for the business of such permanent establishmentor fixed place of profession in India; or(ii) in respect of amounts, if any, paid (otherwise than towards reimbursementof actual expenses) by the permanent establishment to itshead office or to any of its other offices.The following proviso shall be inserted after the existing proviso of sub-section(1) of section 44DA by the Finance Act, 2010, w.e.f. 1-4-2011 :Provided further that the provisions of section 44BB shall not apply in respect ofthe income referred to in this section.31. Omitted by the Finance Act, 1994, w.e.f. 1-4-1995. Prior to its omission, clause (c) wasinserted by the Finance Act, 1983, w.e.f. 1-6-1983.32. Omitted by the Finance Act, 1994, w.e.f. 1-4-1995. Prior to its omission, clause (d) wasinserted by the Finance (No. 2) Act, 1991, w.r.e.f. 1-4-1989.33. Substituted for “the Explanation” by the Finance (No. 2) Act, 1977, w.e.f. 1-4-1977.34. Substituted, ibid.35. Substituted for the portion beginning with “from an Indian concern” and ending with “withthe Indian concern” by the Finance Act, 1983, w.e.f. 1-6-1983.36. Inserted by the Finance Act, 2003, w.e.f. 1-4-2004.