India, Feb. 5 -- The Budget proposal of a 20-year tax holiday to foreign companies which provide cloud services globally will be available only to those which have set up a MeitY-notified data centre in India, and there will not be any risk for such overseas firms of their global income being taxed in India on this account, sources said on Wednesday.

Finance Ministry sources also said that the Budget announcement would also give certainty to foreign companies that are in the business of providing cloud services and procurement services from a data centre in India.

"Now Indian data centres can confidently offer their services to such global cloud entities, without these global entities perceiving any tax risk if they use Indian data cent...