Presumptive Tax Rule Simplifies Electronics Manufacturing Service Income for Non-Resident Entities Under Section 44BBD

A specialized tax provision under Section 44BBD introduces a presumptive taxation mechanism for non-resident entities providing services or technology for electronics manufacturing in India. The provision mandates that 25% of gross receipts will be deemed taxable income, with restrictions on set-off of losses and depreciation. The section applies to specific transactions between non-residents and resident companies under a government-notified scheme, creating a targeted approach to international technology transfer and electronics manufacturing investments.

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