Full Text
REGD. No. D. L.-33004/99
The Gazette of India
CG-DL-E-02012025-259864
EXTRAORDINARY
PART II-Section 3-Sub-section (ii)
PUBLISHED BY AUTHORITY
No. 19]
NEW DELHI, THURSDAY, JANUARY 2, 2025/ PAUSHA 12, 1946
MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION
New Delhi, the 2nd January, 2025
(INCOME-TAX)
S.O. 21(E).— In exercise of the powers conferred by sub-section (1F) of section 197A of the
Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as the said Act), the Central Government hereby
specifies that no deduction of tax shall be made under the provisions of section 194Q of the said Act by a
person, being a buyer, in respect of purchase of goods from a Unit of International Financial Services
Centre, being a seller, subject to the following conditions, namely: -
(a) the seller shall –
(i) furnish a statement-cum-declaration in the format provided in Form No. 1 annexed to
notification of the Government of India in the Ministry of Finance, Department of Revenue
(Central Board of Direct Taxes) number S.O. 1135(E), dated the 7th March, 2024 (hereinafter
referred to as the said Form) to the buyer giving details of previous years relevant to the ten
consecutive assessment years for which the seller opts for claiming deduction under sub-
sections (1A) and (2) of section 80LA of the said Act; and
(ii) such statement-cum-declaration so furnished shall be verified in the manner specified in the
said Form, for each previous year relevant to the ten consecutive assessment years for which
the seller opts for claiming deduction under sub-sections (1A) and (2) of section 80LA of the
said Act;
(b) the buyer shall –
(i) not deduct tax on payment made or credited to the seller after the date of receipt of copy of
the statement- cum-declaration in the said Form from the seller; and
(ii) furnish the particulars of all the payments made to the seller on which tax has not been
deducted in pursuance of this notification in the statement of deduction of tax referred to in
sub-section (3) of section 200 of the said Act read with rule 31A of the Income-tax
Rules, 1962.
2. The relaxation under this notification shall be available to the seller only during the said previous years
relevant to the ten consecutive assessment years as declared by the seller in the said Form for which
deduction under section 80LA of the said Act is being opted and the buyer shall be liable to deduct tax on
payments made or credited for any other year.
3. For the purposes of this notification, –
(a) the "seller" under all circumstances shall remain an International Financial Services Centre Unit
within the meaning of sub-clauses (a) and (d) of the Explanation to section 80LA of the said
Act; and
(b) the expressions–
(i) "buyer" shall have the same meaning as assigned to it in the Explanation to sub-section
(1) of section 194Q of the said Act;
(ii) "International Financial Services Centre" shall have the same meaning as assigned to it in
clause (q) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005); and
(iii) “Unit” shall have the same meaning as assigned to it in clause (zc) of section 2 of the
Special Economic Zones Act, 2005 (28 of 2005).
4. The Principal Director General of Income-tax (Systems) or the Director General of Income-tax
(Systems), as the case may be, shall lay down procedures, formats and standards for ensuring secure
capture and transmission of data and uploading of documents and the Principal Director General of
Income-tax (Systems) or the Director General of Income-tax (Systems) shall also be responsible for
evolving and implementing appropriate security, archival and retrieval policies.
5. This notification shall come into force on 1st day of January, 2025.
[No. 3/2025/F. No. 275/109/2024-IT(B)]
RUBAL SINGH, Dy. Secy. (IT-Budget)