permanent establishment

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

ADVANCE RULING  DETAILS Decided by: THE AUTHORITY FOR ADVANCE RULINGS (INCOME TAX) NEW DELHI, Advance Ruling Asked by: Worley Parsons Services Pty. Ltd., In re,  Advance Ruling  No. : A.A.R. NO. 748 OF 2009, Decided on: April 23, 2009.  RELEVENT PARAGRAPH 3. The applicant contends that the services under various contracts except contract no. 5 cannot be brought within the sweep [...] Full Article

ITAT, DELHI BENCH `G’ : NEW DLEHI DCIT v. Mideast India Ltd., Appeal No. TA No. 638/Del/2007 Dated: January 9, 2009 SUMMARY The entire income earned by the assessee company in USSR through its PE was chargeable to tax in that country as per Article 7(1) of the DTAA between India and USSR. RELEVANT PARAGRAPHS: [...] Full Article

CIT VS. SIEMENS AG (BOMBAY HIGH COURT) If the Tribunal has answered an issue and that has not been challenged by the revenue, it will not be open to the revenue to raise the said issue again in respect of the same assessee; The judgement of the Supreme Court in Ishikawajima-Harima Heavy Industries vs. DIT 288 ITR 408 (SC) has been overcome by the Explanation to s. 9 inserted by the FA 2007 which provides that income from royalty paid by a resident would be deemed to accr.. Full Article

A Double Taxation Avoidance Agreement was signed between India and Tajikistan today, i.e. 20th November, 2008. The Agreement was signed by Mr. Narendra Bahadur Singh,Chairman, Central Board of Direct Taxes on behalf of Government of India and by Mr. Norinov Jamshed Nurmahmadovich, Deputy Minister of Finance of the Republic of Tajikistan on behalf of the Government of Tajikistan. Full Article

SET Satellite (Singapore) vs. DDIT (Bombay High Court) - Where the assessee had a ‘Dependent Agency Permanent Establishment’ (‘DAPE’) (“SET India”) in India and it was admitted by the Revenue that the assessee had paid ‘arms length’ remuneration to the said dependent agent but the Tribunal still held (106 ITD 75) that notwithstanding the taxability of the said dependent agent in accordance with domestic law, the assessee had to be assessed in respect of t.. Full Article

Rolls Royce Plc vs. DDIT (ITAT Delhi) - jurisdiction u/s 147 can be exercised even on the basis of a prima facie opinion (ii) On facts, the wholly owned subsidiary constituted a 'business connection' as well as a 'permanent establishment' (iii) the total profits of the enterprise have to be apportioned on the basis of various factors affecting accrual of income. First, the economically significant activities and responsibilities (in the context of activities and responsi.. Full Article

The author has made a critical analysis of the recent decision of the Kolkota Bench of the ITAT in Van Oord Atlanta B.V. 112 TTJ 229 and identified the important principles of law emerging therefrom. 1. 1. Factual Synopsis of the case 1.1 Van Oord Atlanta B.V. (‘Assessee’) a company incorporated in Netherlands and a resident of that country was accordingly treated as eligible to benefits of ‘DTAA’. Full Article