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The provisions of section 100 of the Finance (No. 2) Act, 2019 w. e. f. 01/09/2020

[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]

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Government of India

Ministry of Finance

(Department of Revenue)

Central Board of Indirect Taxes and Customs


Notification No. 63/2020 – Central Tax


New Delhi, the 25th August, 2020

G.S.R. ….(E).— In exercise of the powers conferred by sub-section (2) of section 1 of the Finance (No. 2) Act, 2019 (23 of 2019), the Central Government hereby appoints the 1st day of September, 2020, as the date on which the provisions of section 100 of the Finance (No. 2) Act, 2019 (23 of 2019), shall come into force.


[F. No. 20/06/09/2019-GST]

(Pramod Kumar)

Director to the Government of India

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Board Of Director

Non-resident expats’ salary paid in India won’t face tax

The Authority of Advance Rulings (AAR) has held that the salary income of a nonresident individual for services rendered overseas cannot be taxed in India, even when such salary is paid into a bank account in India. It is not the country of origin, but the number of days’ stay in India, which determine whether a person will be a resident or non-resident for tax purposes. Unlike a tribunal or court order, a ruling by AAR, a quasi-judicial body, does not set a precedent. But it does have persuasive value and is well-considered. Thus, the ruling may benefit expat workers, in particular the over one lakh Indian workers who work in the US, largely on H1B visas.

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