liaison office

The Tribunal accepted most of the contentions of the assessee. The ruling assumes significance since it has held that selection of right goods and negotiation of price as per the instructions of the Head Office though a part of the purchasing activit Full Article

Foreign Law Firms are not eligible to open liaison offices or to practice law in India. Even giving an opinion on a legal matter amounts to “practise of law”. Non-Advocates cannot practise law. Full Article

If the LO is having decision making authority on behalf of the HO and also empowered to conclude the contract and to secure purchase orders. Then considering the activities carried on LO is to be treated as permanent establishment and will not be excluded from the definition of permanent establishment as per Article 5(4)(e) of DTAA. Full Article

SUMMARY OF THE AAR This alert summarizes a recent ruling of the Authority for Advance Ruling (AAR) [2009-TIOL-12-ARA–IT] in the case of K.T. Corporation (Applicant) on the issue of whether a Liaison Office (LO), acting as a communication channel, will constitute a Permanent Establishment (PE) of the Applicant under the Double Taxation Avoidance Agreement between [...] Full Article