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[Tax] National Iranian Oil Company Notified As Foreign Company [Section 10(48)]

Central Board of Direct Taxes(CBDT) Notification No. 13/2017 dated the 23rd February, 2017

S.O. 600(E).–In exercise of the powers conferred by clause (48) of section 10 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Government, having regard to the national interest, hereby notifies for the purposes of the said clause, the National Iranian Oil Company, as the foreign company and the Memorandum of Understanding entered between the Government of India in the Ministry of Petroleum and Natural Gas and the Central Bank of Iran on the 20th day of January, 2013 as modified by the minutes of meeting signed on the 16th August, 2016 between the Government of India, Ministry of Finance, Department of Economic Affairs and Bank Markazi Jomhouri Islami Iran, as the agreement subject to the condition that the said foreign company shall not engage in any activity in India, other than the receipt of income under the agreement aforesaid.

This notification shall be deemed to have come into force from the 16th day of August, 2016.
Explanatory Memorandum:- It is certified that no person is being adversely affected by giving this retrospective effect to this notification. 

Extra Notes for Readers

Only clause 48 of section 10 is reproduced below:

Section 10:- In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included—

Clause (48) any income received in India in Indian currency by a foreign company on account of sale of crude oil, any other goods or rendering of services, as may be notified by the Central Government in this behalf, to any person in India:

Provided that—
(i) receipt of such income in India by the foreign company is pursuant to an agreement or an arrangement entered into by the Central Government or approved by the Central Government;
(ii) having regard to the national interest, the foreign company and the agreement or arrangement are notified by the Central Government in this behalf; and
(iii) the foreign company is not engaged in any activity, other than receipt of such income, in India.

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