The Indian Tax Administration, on 3 May 2021, issued a notification prescribing revenue and user thresholds for the application of a new nexus rule for nonresidents in the form of “significant economic presence” (SEP) which was introduced under the Indian Tax Laws (ITL) in 2018.
The notification prescribes a revenue threshold of INR20 million (US$280,000) for sales to Indian persons or a user threshold of 300,000 (Indian users). If a nonresident exceeds either of these thresholds, the SEP rules will apply, resulting in taxation of the nonresident in India.
Source
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