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‘Significant Economic Presence (SEP) principle’, is a concept used to levy which category of tax?
A)
GST
B)
Digital Tax
C)
Customs Duty
D)
Income Tax

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.

Published On : July 17, 2021
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