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TMI BlogSection 44BBD - Non-residents engaged in business of providing services or technology for setting up an electronics manufacturing facility or in connection with manufacturing or producing electronic goods, article or thing in IndiaX X X X Extracts X X X X X X X X Extracts X X X X ..... in business of providing services or technology for setting up an electronics manufacturing facility or in connection with manufacturing or producing electronic goods, article or thing in India. [ Section 44BBD ] [ W.e.f. 01.04.2026 Inserted vide Section 11 of the Finance Act, 2025 ] Applicability and Scope [ Section 44BBD(1) ] * Section 44BBD commences with a **non-obstante cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Electronics and Information Technology**, * Where the **resident company satisfies prescribed conditions**. * The provision is thus targeted and does not apply to all non-residents or all kinds of services/technology transfers. The transaction must be with a resident company participating in a government-notified scheme, ensuring that the benefit is limited to bona fide cases aligned with pol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n account of providing services or technology; and * (b) The amount received or deemed to be received by the non-resident assessee or on his behalf on account of providing services or technology. * This broad formulation ensures that both actual and constructive receipts, as well as payments made to agents or intermediaries, are covered. * The provision also contains a proviso&nbs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ifying assessment and preventing potential tax planning or manipulation. Important Points to be considered * Potential Issues and Ambiguities identified under this section * The section does not define "services or technology," which may lead to interpretational issues. For instance, whether routine management services or only high-value technical services are covered may be debated. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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