{"id":17680,"date":"2021-10-16T22:40:43","date_gmt":"2021-10-16T17:10:43","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=17680"},"modified":"2022-02-04T01:36:10","modified_gmt":"2022-02-03T20:06:10","slug":"cbdt-notifies-rule-11ud-prescribing-thresholds-for-sep","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/cbdt-notifies-rule-11ud-prescribing-thresholds-for-sep\/","title":{"rendered":"CBDT Notified Rule 11UD Prescribing thresholds for SEP"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d18849b633b\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d18849b633b\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/cbdt-notifies-rule-11ud-prescribing-thresholds-for-sep\/#CBDT_notifies_Rule_11UD_prescribing_thresholds_for_determining_%E2%80%98Significant_Economic_Presence_in_India\" title=\"CBDT notifies Rule 11UD prescribing thresholds for determining \u2018Significant Economic Presence\u2019 in India\">CBDT notifies Rule 11UD prescribing thresholds for determining \u2018Significant Economic Presence\u2019 in India<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/cbdt-notifies-rule-11ud-prescribing-thresholds-for-sep\/#What_is_Significant_Economic_Presence_SEP\" title=\"What is Significant Economic Presence (SEP)?\">What is Significant Economic Presence (SEP)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/cbdt-notifies-rule-11ud-prescribing-thresholds-for-sep\/#What_is_Significant_Economic_Presence_SEP_threshold_limit_specified_by_CBDT\" title=\"What is Significant Economic Presence (SEP) threshold limit specified by CBDT ?\">What is Significant Economic Presence (SEP) threshold limit specified by CBDT ?<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/cbdt-notifies-rule-11ud-prescribing-thresholds-for-sep\/#The_Basic_outline_of_Rule_11UD_is_addressed_in_this_Tax_Update_including_its_potential_impact\" title=\"The Basic outline of Rule 11UD is addressed in this Tax Update including its potential impact.\">The Basic outline of Rule 11UD is addressed in this Tax Update including its potential impact.<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-17673\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/CBDT-notifies-Rule-11UD-prescribing-thresholds-for-determining-\u2018Significant-Economic-Presence-in-India-300x168.jpg\" alt=\"CBDT notifies Rule 11UD \" width=\"830\" height=\"465\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/CBDT-notifies-Rule-11UD-prescribing-thresholds-for-determining-\u2018Significant-Economic-Presence-in-India-300x168.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/CBDT-notifies-Rule-11UD-prescribing-thresholds-for-determining-\u2018Significant-Economic-Presence-in-India.jpg 512w\" sizes=\"(max-width: 830px) 100vw, 830px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"CBDT_notifies_Rule_11UD_prescribing_thresholds_for_determining_%E2%80%98Significant_Economic_Presence_in_India\"><\/span><span style=\"color: #ff0000;\">CBDT notifies Rule 11UD prescribing thresholds for determining \u2018Significant Economic Presence\u2019 in India<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.caindelhiindia.com\/blog\/launched-new-income-tax-e-filing-portal\/\">CBDT<\/a> has set revenue &amp; user base threshold limits for determining &#8216;Significant Economic Presence&#8217; in Notification No. 41 dated May 2021.<\/li>\n<li>Legislators have established circumstances in which foreign corporations are regarded to have a &#8220;business tie&#8221; in India, bringing their operations in India under the jurisdiction of our tax system.<\/li>\n<li>Indian legislators have devised scenarios in which such foreign corporations are deemed to have a &#8220;business link&#8221; in India, bringing their Indian operations under the Indian tax system&#8217;s jurisdiction.<\/li>\n<li>The Indian income tax legislation was revised in 2018 by the Finance Act, which expanded the meaning of the existing word &#8216;business connection&#8217; to include Significant Economic Presence (SEP).<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"What_is_Significant_Economic_Presence_SEP\"><\/span><strong><span style=\"color: #000080;\">What is Significant Economic Presence (SEP)?<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"padding-left: 40px;\"><span style=\"color: #000000;\"><strong>Significant Economic Presence (SEP)<\/strong> was defined to mean, inter-alia transaction of services and goods with any person in India which including provision of download of data or software in India, if one of two conditions are satisfied<\/span>:<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Engagement with Indian consumers cross a specified No. or<\/li>\n<li>Total Aggregate of payments arising from such transactions crosss a specified limit<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"What_is_Significant_Economic_Presence_SEP_threshold_limit_specified_by_CBDT\"><\/span><span style=\"color: #000080;\"><b>What is Significant Economic Presence (SEP) threshold limit specified by CBDT ?<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"padding-left: 40px;\">India economy went ahead &amp; specified the threshold limits with effective date April 1, 2021 to operationalise the Significant Economic Presence (SEP) for Non-Resident E-commerce companies by including\u00a0 activity of \u2018software\/ download of data\u2019<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Amount of revenues exceeding INR 2 Cr from Indians or<\/li>\n<li>a threshold of INR 3,00,000\/- No of Indian users<\/li>\n<li>with whom such companies\u00a0 continuous business activities\u00a0 and \u2018solicit systematic or engage in interaction\u2019 with them<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>Threshold limit CBDT notified for specific object of <span style=\"color: #000000;\">Significant Economic Presence (SEP) <\/span>has been summaries as below:<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-17675\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/CBDT-notifies-Rule-11UD-prescribing-thresholds-for-determining-\u2018Significant-Economic-Presence-in-India-300x90.png\" alt=\"prescribing thresholds for determining \u2018Significant Economic Presence\u2019 in India\" width=\"787\" height=\"236\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/CBDT-notifies-Rule-11UD-prescribing-thresholds-for-determining-\u2018Significant-Economic-Presence-in-India-300x90.png 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/CBDT-notifies-Rule-11UD-prescribing-thresholds-for-determining-\u2018Significant-Economic-Presence-in-India-768x231.png 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/CBDT-notifies-Rule-11UD-prescribing-thresholds-for-determining-\u2018Significant-Economic-Presence-in-India-800x240.png 800w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/CBDT-notifies-Rule-11UD-prescribing-thresholds-for-determining-\u2018Significant-Economic-Presence-in-India.png 825w\" sizes=\"(max-width: 787px) 100vw, 787px\" \/><\/p>\n<h4><span class=\"ez-toc-section\" id=\"The_Basic_outline_of_Rule_11UD_is_addressed_in_this_Tax_Update_including_its_potential_impact\"><\/span><strong>The Basic outline of Rule 11UD is addressed in this Tax Update including its potential impact.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-17658\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/11D-227x300.jpg\" alt=\"CBDT notifies thresholds for determining \u2018Significant Economic Presence\u2019 in India\" width=\"783\" height=\"1035\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/11D-227x300.jpg 227w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/11D-775x1024.jpg 775w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/11D-768x1014.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/11D-800x1057.jpg 800w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/11D.jpg 826w\" sizes=\"(max-width: 783px) 100vw, 783px\" \/><\/p>\n<p>&nbsp;<\/p>\n<p><em><span style=\"color: #0000ff;\"><strong><a style=\"color: #0000ff;\" href=\"https:\/\/carajput.com\/blog\/three-tier-tp-documentation-threshold-requirement\/\">More read:Three-tier TP Documentation &amp; threshold Requirement<\/a><\/strong><\/span><\/em><\/p>\n<p><a href=\"https:\/\/carajput.com\/blog\/tp-libor-is-the-best-benchmark-for-interest-free-loan-granted-to-ae\/\"><span style=\"color: #0000ff;\"><em><strong>More read :TP : LIBOR IS THE BEST BENCHMARK FOR INTEREST-FREE LOAN GRANTED TO AE<\/strong><\/em><\/span><\/a><\/p>\n<p style=\"text-align: justify;\">For query or help, contact: <a href=\"mailto:singh@carajput.com\">singh@carajput.com<\/a>\u00a0or call at 9555555480<\/p>\n","protected":false},"excerpt":{"rendered":"<p>CBDT notifies Rule 11UD prescribing thresholds for determining \u2018Significant Economic Presence\u2019 in India CBDT has set revenue &amp; user base threshold limits for determining &#8216;Significant Economic Presence&#8217; in Notification No. 41 dated May 2021. Legislators have established circumstances in which foreign corporations are regarded to have a &#8220;business tie&#8221; in India, bringing their operations in &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[10057],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/17680"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=17680"}],"version-history":[{"count":4,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/17680\/revisions"}],"predecessor-version":[{"id":17686,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/17680\/revisions\/17686"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=17680"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=17680"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=17680"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}