What is SEC 44 DA? And how to treat it ?
Deeps
(Article Assisstant)
(2485 Points)
Replied 22 October 2009
SPECIAL PROVISIONS FOR COMPUTING INCOME BY WAY OF ROYALTIES ETC. IN
CASE OF NON-RESIDENTS [SECTION 44DA]
The provisions of this section are as follows -
(i) The income by way of royalty or fees for technical services received from Government or
an Indian concern in pursuance of an agreement made by a non-corporate non-resident or a
foreign company with Government or the Indian concern after the 31st March, 2003 in respect
of such non-corporate non-resident or a foreign company which carries on business in India,
shall be computed on the basis of books of accounts required to be maintained under the Act.
(ii) Such business should be carried on through a permanent establishment, or the assessee
should perform professional services from a fixed place of profession in India
(iii) They should keep and maintain books of account and other documents in accordance
with the provisions contained in section 44AA.
(iv) They should get their accounts audited by an accountant as defined in the Explanation
below sub-section (2) of section 288 and furnish along with the return of income, the report of
such audit in the prescribed form duly signed and verified by such accountant.
(v) No deduction will be allowed while computing income of such non-resident, of the
expenditure which is not wholly and exclusively incurred for the business of such permanent
establishment or fixed place and also of any amount paid by the permanent establishment to
its head office or any of its offices.
Amit Ingale
(Student CA Final)
(1454 Points)
Replied 22 October 2009
Special provision for computing income by way of royalties, etc., in case of non-residents.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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