Significant Economic Presence (SEP) under Section 9(1)(i):
AOffice in India
BRevenue from India >= Rs. 2 crore OR user base in India >= 3 lakh
CBank account
DDirector in India (per relevant Section) (per relevant Section)
Answer & Solution
Correct answer: B. Revenue from India >= Rs. 2 crore OR user base in India >= 3 lakh
1. Explanation 2A to Section 9(1)(i): SEP nexus for non-residents.
2. Triggered by (i) transactions with India > Rs. 2 crore or (ii) systematic interaction with >= 3 lakh users.
3. Income attributable to such activities taxable in India (subject to DTAA).
_Source: ICAI BoS CA Final Paper 7, Ch 24 "Transfer Pricing"_
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