Correct Answer : Option (B) - Digital Tax
Significant Economic Presence (SEP) principle was introduced in the Finance Bill 2018-19. It widened the scope of ‘business connection’ to include download of data or software, if aggregate payments from such transactions exceed a prescribed amount, or a prescribed number of users.
India recently notified a revenue threshold of Rs 2 crore and a limit of 300,000 users for non-resident technology firms such as Google, Facebook, to pay tax in India.