Overview
- The exemption applies from the 2026–27 tax year through 2046–47, taking effect on April 1, 2026.
- To qualify, a foreign company must be officially notified, procure services from an Indian-company data centre, use a MeitY-notified facility, and route services to Indian users through an Indian reseller entity.
- Officials said qualifying foreign providers will not face Indian taxation on global income merely for using Indian data centres.
- Profits from resident data-centre services and from Indian resellers’ sales to local customers will continue to be taxed in India, with a 15% safe-harbour margin where the data centre is a related cost-plus entity.
- Treatment is identical whether the Indian data centre is independently owned or a subsidiary of the global firm, and the scheme’s rollout awaits formal MeitY and related notifications.