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The Economic Times

Technology

Govt proposes easier compliance for foreign firms using Indian data centres

India Lok Sabha

The government on Tuesday proposed structural changes to ease compliance requirements for foreign companies procuring data centre services from India by doing away with the notification requirement, a move aimed at improving the ease of doing business.

The Taxation and other laws (Amendment) Bill, 2026, introduced in the Lok Sabha on Tuesday, reduces reporting requirements for foreign companies which wish to claim the tax holiday announced in the FY27 Budget. It also ensures that genuine data centre businesses get started and operate with far less friction.

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