Section 44DCentral Act

Section 44D: [ Special provisions for computing income by way of royalties, etc., in the case of foreign companies. [ Inserted by Act 66 of 1976, Section 10 (w.e.f. 1.6.1976).]

The Income-tax Act, 1961

[ Special provisions for computing income by way of royalties, etc., in the case of foreign companies. [ Inserted by Act 66 of 1976, Section 10 (w.e.f. 1.6.1976).]

-Notwithstanding anything to the contrary contained in sections 28 to 44-C, in the case of an assessee, being a foreign company,-

(a)

the deductions admissible under the said sections in computing 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 the foreign company with Government or with the Indian concern] [ Substituted by Act 11 of 1983, Section 19, for certain words (w.e.f. 1.6.1983).][before the 1st day of April, 1976, shall not exceed in the aggregate twenty per cent. of the gross amount of such royalty or fees as reduced by so much of the gross amount of such royalty as consists of lump sum consideration for the transfer outside India of, or the imparting of information outside India in respect of, any data, documentation, drawing or specification relating to any patent, invention, model, design, secret formula or process or trade-mark or similar property; [ Inserted by Act 66 of 1976, Section 10 (w.e.f. 1.6.1976).]

(b)

no deduction in respect of any expenditure or allowance shall be allowed under any of the said sections in computing 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 the foreign company with Government or with the Indian concern] [ Substituted by Act 11 of 1983, Section 19, for certain words (w.e.f. 1.6.1983).][after the 31st day of March, 1976 ] [ Inserted by Act 66 of 1976, Section 10 (w.e.f. 1.6.1976).][but before the 1st day of April, 2003] [ Inserted by Act 32 of 2003, Section 27 (w.e.f. 1.4.2004).];

(c)

[* * *] [ Clauses (c) and (d) omitted by Act 32 of 1994, Section 17 (w.e.f. 1.4.1995).]

(d)

[* * *] [ Clauses (c) and (d) omitted by Act 32 of 1994, Section 17 (w.e.f. 1.4.1995).]

[Explanation. - For the purposes of this section,-

(a)"fees for technical services" shall have the same meaning as in ] [ Inserted by Act 66 of 1976, Section 10 (w.e.f. 1.6.1976).] [Explanation 2] [ Substituted by Act 29 of 1977, Section 39, for " the Explanation" (w.e.f. 1.4.1977).][to clause (vii) of sub-section (1) of section 9;

(b)"foreign company" shall have the same meaning as in section 80-B;

(c)"royalty" shall have the same meaning as in Explanation 2 to clause (vi) of sub-section (1) of section 9;

(d)royalty received ][from Government or an Indian concern in pursuance of an agreement made by a foreign company with Government or with the Indian concern after the 31st day of March, 1976, shall be deemed to have been received in pursuance of an agreement made before the 1st day of April, 1976, if such agreement is deemed, for the purposes of the proviso to clause (vi) of sub-section (1) of section 9, to have been made before the 1st day of April, 1976.] [ Substituted by Act 11 of 1983, Section 19, for certain words (w.e.f. 1.6.1983).]

Sec 44C — [ Deduction of head office expenditure in the case of non-residents. [Inserted by Act 66 of 1976, Section 10 (w.e.f. 1.6.1976).]

Sec 44DA — [ Special provision for computing income by way of royalties, etc., in case of non-residents. [Inserted by Act 32 of 2003, Section 28 (w.e.f. 1.4.2004).]

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