A close-up of coloured fiber optic data cables. (Photographer Andrey Rudakov/Bloomberg)
Owing to the advent of digitalisation, India has been keen on taxing foreign digital businesses and adopted the concept of ‘Equalisation Levy’ and ‘Significant Economic Presence’ in its domestic law. SEP regulations were initially introduced in 2016 and the scope was widened in 2020. However, these provisions were deferred till April 2021.At a concept level, SEP expanded the scope of income for a non-resident doing business with Indi...