Amendment of section 9
Section 4 of the Finance Act, 2018 deals with amendment of section 9. Amendment of section 9. 4. In section 9 of the Income-tax Act, in sub-section (1), in clause (i), with effect from the 1st day of April, 2019,— (I) | in Explanation 2, for clause (a), the following clause shall be substituted, namely:— "(a) | has and habitually exercises in India, an authority to co
Amendment of section 9.
4. In section 9 of the Income-tax Act, in sub-section (1), in clause (i), with effect from the 1st day of April, 2019,—
(I) in Explanation 2, for clause (a), the following clause shall be substituted, namely:—
"(a) has and habitually exercises in India, an authority to conclude contracts on behalf of the non-resident or habitually concludes contracts or habitually plays the principal role leading to conclusion of contracts by that non-resident and the contracts are—
(i) in the name of the non-resident; or (ii) for the transfer of the ownership of, or for the granting of the right to use, property owned by that non-resident or that non-resident has the right to use; or (iii) for the provision of services by the non-resident; or";
(II) after Explanation 2, the following Explanation shall be inserted, namely:— 'Explanation 2A.—For the removal of doubts, it is hereby clarified that the significant economic presence of a non-resident in India shall constitute "business connection" in India and "significant economic presence" for this purpose, shall mean—
(a) transaction in respect of any goods, services or property carried out by a non-resident in India including provision of download of data or software in India, if the aggregate of payments arising from such transaction or transactions during the previous year exceeds such amount as may be prescribed; or (b) systematic and continuous soliciting of business activities or engaging in interaction with such number of users as may be prescribed, in India through digital means:
Provided that the transactions or activities shall constitute significant economic presence in India, whether or not,—
(i) the agreement for such transactions or activities is entered in India; or (ii) the non-resident has a residence or place of business in India; or (iii) the non-resident renders services in India: Section 4, The Finance Act, 2018 (Act 13 of 2018).
Provided further that only so much of income as is attributable to the transactions or activities referred to in clause (a) or clause (b) shall be deemed to accrue or arise in India.'.
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Questions about Section 4
What does Section 4 of the Finance Act deal with?
Section 4 of the Finance Act is headed "Amendment of section 9". Amendment of section 9. 4. In section 9 of the Income-tax Act, in sub-section (1), in clause (i), with effect from the 1st day of April, 2019,— (I) | in Explanation 2, for clause (a), the following clause shall be substituted, namely:— "(a) | has and habitually exercises in India, an authority to co
How do I find court cases under Section 4 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 2018 4, section 4 Finance Act 2018, section 4 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 4 of the Finance Act, and has it changed?
Its own text turns on section 9 (Amendment of section 28), Income-tax Act 9 (Income deemed to accrue or arise in India), so none of them can safely be read on its own. 5 other provisions in this corpus refer back to it.
When was the Finance Act enacted?
Finance Act was enacted in 2018 as Act 13 of 2018. 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. INCOME-TAX8472 words
- 2. Income-tax4233 words
- 206. Amendment of Act 54 of 20001580 words
- Second Schedule. Second Schedule1062 words
- 33. Insertion of new section 112A756 words
- 63. Amendment of section 28707 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Harvested from the Income Tax Department's own portal at incometaxindia.gov.in, which publishes the Finance Acts section by section. India Code carries none of them: its Central community holds the Acts that stand as general law, and a Finance Act is an amending and rate-fixing instrument. This page is not a substitute for legal advice.