Amendment of section 9
Section 5 of the Finance Act, 2003 deals with amendment of section 9. Amendment of section 9. 5. In section 9 of the Income-tax Act, in sub-section (1), in clause (i), the existing Explanation shall be numbered as Explanation 1 thereof and after Explanation 1 as so numbered, the following Explanations shall be inserted with effect from the 1st day of April, 2004, name
Amendment of section 9.
5. In section 9 of the Income-tax Act, in sub-section (1), in clause (i), the existing Explanation shall be numbered as Explanation 1 thereof and after Explanation 1 as so numbered, the following Explanations shall be inserted with effect from the 1st day of April, 2004, namely:—
‘Explanation 2.—For the removal of doubts, it is hereby declared that "business connection" shall include any business activity carried out through a person who, acting on behalf of the non-resident,—
(a ) has and habitually exercises in India, an authority to conclude contracts on behalf of the non-resident, unless his activities are limited to the purchase of goods or merchandise for the non-resident; or
(b ) has no such authority, but habitually maintains in India a stock of goods or merchandise from which he regularly delivers goods or merchandise on behalf of the non-resident; or
(c ) habitually secures orders in India, mainly or wholly for the non-resident or for that non-resident and other non-residents controlling, controlled by, or subject to the same common control, as that non-resident:
Provided that such business connection shall not include any business activity carried out through a broker, general commission agent or any other agent having an independent status, if such broker, general commission agent or any other agent having an independent status is acting in the ordinary course of his business :
Provided further that where such broker, general commission agent or any other agent works mainly or wholly on behalf of a non-resident (hereafter in this proviso referred to as the principal non-resident) or on behalf of such non-resident and other non-residents which are controlled by the principal non-resident or have a controlling interest in the principle non-resident or are subject to the same common control as the principal non-resident, he shall not be deemed to be a broker, general commission agent or an agent of an independent status.
Explanation 3. — Where a business is carried on in India through a person referred to in clause (a) or clause (b) or clause (c ) of Explanation 2, only so much of income as is attributable to the operations carried out in India shall be deemed to accrue or arise in India.’
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Section 5, The Finance Act, 2003.
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Questions about Section 5
What does Section 5 of the Finance Act deal with?
Section 5 of the Finance Act is headed "Amendment of section 9". Amendment of section 9. 5. In section 9 of the Income-tax Act, in sub-section (1), in clause (i), the existing Explanation shall be numbered as Explanation 1 thereof and after Explanation 1 as so numbered, the following Explanations shall be inserted with effect from the 1st day of April, 2004, name
How do I find court cases under Section 5 of the Finance Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Finance Act 2003 5, section 5 Finance Act 2003, section 5 of the Finance Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 5 of the Finance Act, and has it changed?
Its own text turns on section 9 (Amendment of section 10C), Income-tax Act 9 (Income deemed to accrue or arise in India), so none of them can safely be read on its own.
When was the Finance Act enacted?
Finance Act was enacted in 2003. India Code records no commencement date for it. It is in force as at the date shown on this page.
Other sections of this Act
- First Schedule. First Schedule5940 words
- 2. Income-tax2243 words
- 6. Amendment of section 101472 words
- 40. Insertion of new section 80-IC1270 words
- 99. Insertion of Thirteenth and Fourteenth Schedules1215 words
- 65. Insertion of new sections 153A, 153B and 153C977 words
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