Executive summary
The Indian Tax Administration,1 on 3 May 2021, issued a notification2 prescribing revenue and user thresholds for the application of a new nexus rule for nonresidents in the form of “significant economic presence” (SEP) which was introduced under the Indian Tax Laws (ITL) in 2018.
The notification prescribes a revenue threshold of INR20 million (US$280,000) for sales to Indian persons or a user threshold of 300,000 (Indian users). If a nonresident exceeds either of the…