On 21 December 2016, the Indian Central Board of Direct Taxes issued Circular No. 41 of 2016 to provide clarifications on indirect transfer provisions under the Income Tax Act 1961 (ITA) through a series of question and answers (Q&A). The Q&A sets out different scenarios in which income will be deemed to accrue or arise in India, taking into account the provisions of section 9(1)(i) of the ITA and the explanations to those provisions, including:
- Explanation 5, which clarifies that an…