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94A Special
measures in respect of transactions with persons located in notified
jurisdiction area-
(1)
The Central Government may, having regard to the lack of
information with any country or territory outside India, specify by notification
in the Official Gazette such country or territory as a notified jurisdictional
area in relation to transactions entered into by any aassessee.
(2)
Notwithstanding anything to the contrary contained in this Act, if
an assessee enters into a transaction where one of the parties to the
transaction is a person located in a notified jurisdictional area, then-
(i)
All the parties to the transaction shall be deemed to be
associated enterprises within the meaning of section 92A;
(ii)
Any transaction in the nature of purchase, sale or lease of
tangible or intangible property or provision of service or lending or borrowing
money or any other transaction having a bearing on the profits, income, losses
or assets of the allocation or apportionment of, or any contribution to, any
cost or expense incurred or to be incurred in connection with a benefit, service
or facility provided or to be provided by or to the assessee shall be deemed to
be an international transaction within the meaning of section 92B,
And the provisions of sections 92,92A,92B,92C except the second proviso
to sub-section (2), 92CA, 92CB,92D,92E and 92F shall apply according.
(3)
Notwithstanding anything to the contrary contained in this Act, no
deduction,-
(a)
In respect of any payment made to any financial institution
located in a notified jurisdictional area shall be allowed under this Act,
unless the assessee furnishes an authorisation in the prescribed form
authorising the Board or any other income-tax authority acting on its behalf to
seek relevant information from the said financial institution on behalf of such
assessee; and
(b)
In respect of any other expenditure or allowance (including
depreciation) arising from the transaction with a person located in a notified
jurisdictional area shall be allowed under any other
provision of this Act, unless the assessee maintains such other documents
and furnishes such information as may be prescribed, in this behalf.
(4)
Notwithstanding anything to the contrary contained in this Act,
where, in any previous year, the assessee has received or credited any sum from
any person located in a notified jurisdictional area and the asseessee does not
offer any explanation about the source of the said sum in the hands of such
person or in the hands of beneficial owner (if such person is not the beneficial
owner of the said sum) or the explanation offered by the assessee, in the
opinion of the Assessing Officer, is not satisfactory, then, such sum shall be
deemed to be the income of the assessee for that previous year.
(5)
.Notwithstanding anything contained in any other provisions of
this Act, where any person located in a notified jurisdictional area is entitled
to receive any sum or income or amount on which tax is deductible under Chapter
XVII-B, tha tax shall be deducted at the highest of the following rates,namely:-
(a)
At the rate or rates in forex;
(b)
At the rate specified in the relevant provisions of this Act;
(c)
At the rate of thirty percent.
(6)
In this Section,-
(i)
“person located in a notified jurisdictional area” shall
include,-
(a)
A person who is resident of the notified jurisdictional area;
(b)
A person, not being an individual, which is established in the
notified jurisdictional area; or
(c)
A permanent establishment of a person not falling in sub-clause
(a) or sub-clause (b), in the notified jurisdictional area;
(ii)
“permanent establishment” shall have the same meaning as
defined in clause (iiia) of section 92F;
(iii)
“transaction” shall have the same meaning as defined in clause
(v) of section 92F’.
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