pioneer overseas corporation

Research activities of branch office can lead to a ‘permanent establishment’ if not characterized as preparatory or auxiliary in nature

Under the specific facts of the case the research activities were held to be in the nature of core business activities and not preparatory and auxiliary services so as to be covered in the exclusionary Article for Fixed Place PE.
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Income from Cultivation of parent hybrid seed is non agricultural Income and taxable as business income

The income attributable to the operations of developing/producing breeder seeds or hybrid germplasm or parent hybrid seed containing desired traits cannot be treated as agricultural income and should be treated as business income.
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