44D. Special provisions for computing income by way of royalties,
etc., in the case of foreign companies.- Notwithstanding
anything to the contrary contained in sections 28 to 44C,
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 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;
(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 after the 31st day of March, 1976
but before the 1st day of April, 2003;
(c) Omitted
(d) Omitted
Explanation.—For the purposes of this section,—
(a) “fees for technical services” shall have the
same meaning as in Explanation 2 to clause (vii) of sub-section
(1) of section 9;
(b) “foreign company” shall have the same meaning
as in section 80B;
(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.
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