1Notwithstanding anything to the contrary contained in sections 28 to 44C, in the case of an assessee, being a foreign company,-
(a) the deductions admissible under the said sections in computing the income by way of royalty or fees for technical services received 2 from Government or an Indian concern in pursuance of an agreement made by the foreign company with Government or with the Indian concern before the 1st day of April, 1976, shall not exceed in the aggregate twenty per cent of the gross amount of such royalty or fees as reduced by so much of the gross amount of such royalty as consists of lump sum consideration for the transfer outside India of, or the imparting of information outside India in respect of, any data, documentation, drawing or specification relating to any patent, invention, model, design, secret formula or process or trade mark or similar property;
(b) no deduction in respect of any expenditure or allowance shall be allowed under any of the said sections in computing the income by way of royalty or fees for technical services received from Government or an Indian concern in pursuance of an agreement made by the foreign company with Government or with the Indian concern after the 31st day of March, 1976 3 but before the 1st day of April, 2003;
4 * * * * *
Explanation.-For the purposes of this section,-
(a) "fees for technical services" shall have the same meaning as in 5
Explanation 2 to clause (vii) of sub-section (1) of section 9 ;
(b) "foreign company" shall have the same meaning as in section 80B;
(c) "royalty" shall have the same meaning as in 6 Explanation 2 to clause (vi) of sub-section (1) of section 9;
(d) royalty received 2 from Government or an Indian concern in pursuance of
an agreement made by a foreign company with Government or with the Indian
concern after the 31st day of March, 1976, shall be deemed to have been received
in pursuance of an agreement made before the 1st day of April, 1976, if such
agreement is deemed, for the purposes of the proviso to clause (vi) of
sub-section (1) of section 9, to have been made before the 1st day of April,
1976.
--------------------
1. Ins. by Act 66 of 1976, s. 10 (w.e.f. 1-6-1976).
2. Subs. by Act 11 of 1983, s. 19, for certain words (w.e.f. 1-6-1983).
3. Ins. by Act 32 of 2003, s. 27 (w.e.f. 1-4-2004).
4. Clause (c) and (d) omitted by Act 32 of 1994, s. 17 (w.e.f. 1-4-1995).
5. Subs. by Act 29 of 1977, s. 29, for "the Explanation to, clause (vii) of
sub-section (1) of section 9" (w.e.f. 1-4-1977).
6. Subs. by s. 29, ibid., for "the Explanation to clause (vi) of sub- section
(1) of section 9" (w.e.f 1-4-1977).
Section 46 Capital gains on distribution of assets by companies in liquidation
Section 46A Capital gains on purchase by company of its own shares or other specified securities
Section 47 Transactions not regarded as transfer
Section 47A Withdrawal of exemption in certain cases
Section 48 Mode of computation
Section 49 Cost with reference to certain modes of acquisition
Section 50 Special provision for computation of capital gains in case of depreciable assets