Vide Finance Act, 2020, Ministry of Finance amended the provisions related to Equalisation levy and has extended the scope of same to cover non-resident e-commerce operators operating in India without having any permanent establishment in India such as Zoom, netflix, ebay etc. The amendment was given effect from 1st April, 2020.
FAQs on Services to NRIs
Residential status is determined differently under different statutes. The Income tax Act has its set of criteria to determine whether a person is resident or not. Whereas, FEMA determine residential status differently.
NRI PAN is a PAN card issued to NRIs who wish to invest in the capital market, earn taxable income or have a property or land in India. It is mandatory of NRIs to have PAN card who wants to or are liable to file their Income tax returns in India or if such NRI wants to enter into any transaction where reporting of PAN is mandatory.
It depends on your residential status. If You are a resident of India as per Income Tax Act and earned income globally then entire income is taxable in India whether earned in India or outside India. Whereas, in case of non-resident,then your liability to pay Income tax arises to such income which is earned in India.
The Income Tax Act determines whether a person is NRI or not depending upon the duration of stay whereas FEMA decides if you are NRI or not depending upon the reason on stay or departure.
Yes, NRIs are eligible for deductions on taxable income as per Chapter VI-A of Income Tax Act.