All the overseas companies are setting their economic value in India. By keeping this in mind Income tax department on Friday analyze the views on all the online industries. Their focus on analyzing is basically the revenues of the company and their user thresholds.

 

 

Their motive of performing this task is to determine that, is the company is having the significant economic presence in the nation or not. All the big companies based on online services have the big audience base in India. Such companies are Amazon, Facebook, Google, Netflix, and Twitter.

In the context of this, the Indian Government introduced the new system under the Finance Act 2018. The concept is defined as SEP which was put under the IT Act Section 9(1).

What is SEP?

SEP id defined as any activity carried out by the non-residents in India. The sum of money arising from the transaction is the amount that may be prescribed. These activities also include the download and software activities. Also, the proper eye is keeping on the number of audiences through digital mediums.

SEP has introduced for the determination of income by the non-residents who use Indian audience for the generation of revenue.

 

 

Income Tax Department on Friday gives a fair chance to stakeholder to give their views on SEP before 10 August 2018.

IT department cleared that the views are invited only in three context-

Income generation from the transfer of physical goods which is carried by the non-residents of India.

The revenue which is generated from the digital transactions. All the transactions including the download of data and software activities carried out by the non-residents comes under this category.

The third is the income generation from the all the users who are connected with the non-residents. All the activities are considered like some business activities through a digital medium.

Rakesh Nangia who is the Managing director of the LLP stated that asking for the views from the stakeholders represent the friendly approach of the government towards the taxpayers.

 

 

Rather than asking them for view and comments we should be imposed our decision strictly on them. All the online overseas companies exploit the Indian users for the generation of revenue.