DIGITAL TAX IN INDIA Until date, non-resident businesses doing business in India and having commercial relationships in India were exempt from the Indian tax system due to the taxing regulations outlined in Article 7 of the Double Tax Avoidance Agreement. There was no such provision that allowed the Indian government to collect taxes from abroad corporations that did not have a permanent establishment in India due to taxing restrictions outlined in Article 7 of the Double Taxation Avoidance Agreement. According to the DTAA, a corporation will be subject to Indian taxation only if it has a permanent establishment in India. The Central Board of Direct Taxes introduced the “Threshold for the Purpose of Significant Economic Presence” under Income Tax Rules, 2021 on May 3, 2021, by Notification No. 41 /2021/ F. No. 370142/11/2018-TPL. Companies who have no physical presence in India but have reaped considerable financial benefits from the Indian market will now be subject to the Indi...