Section 44DA is a special provision for computing income by way of royalty or fees for technical services having a Permanent Establishment, etc.
|1||Eligible Assessee||(i) a Non-Resident (not being a company) or a Foreign Company; and
(ii) carries on business in India
(a) through a Permanent Establishment (PE) in India or
(b) performs professional services from a fixed place of profession in India
and the right, property, contract in respect of which the royalties or fees for technical services are paid is effectively connected with such PE or fixed place of profession, as the case may be.
|2||Eligible Income||The Income by way of royalty of fees for technical services received from Government or Indian Concern in pursuance of an agreement made by NR or FC with Govt of Indian Concern after the 31st day of March, 2003.|
|3||Computation of Profits||The computation of profits under the head “Profits and gains from business or profession” in respect of such Assessee shall be done in accordance with provisions of the Income Tax Act, 1961 (Sections 28 to 43D)|
|4||Deductions||No deduction shall be allowed –
(i) in respect of any expenditure or allowance which is not wholly and exclusively incurred for the business of such PE or fixed place of profession in India; or
(ii) in respect of amounts, if any, paid (otherwise than towards reimbursement of actual expenses) by PE to its head office or to any of its offices.
|5.||Accounts and Audit||Accounts u/s 44AA are required to be maintained.
Accounts are required to be Audited by a Chartered Accountant.